NT: Official Personal Finances Thread

[206to813]

antidope
I try to hit the irs max for both 401k and Roth IRA.... last year my company began offering a Roth 401k, and I switched from doing the traditional 401k to Roth, nothing to traditional. I was thinking since Roth is post tax and therefore tax free on withdrawal, that’s the smart decision for when I retire. What do you think?

 

[antidope]

antidope
I try to hit the irs max for both 401k and Roth IRA.... last year my company began offering a Roth 401k, and I switched from doing the traditional 401k to Roth, nothing to traditional. I was thinking since Roth is post tax and therefore tax free on withdrawal, that’s the smart decision for when I retire. What do you think?

I am actually switching to a Roth 401k next year from doing the traditional since I started working. I won't be converting any of the traditional monies I have, just gonna leave it as is.

I think if you can afford to max out a Roth 401k, that is the move you should make over the traditional. Its just way more expensive to do so which is why I haven't considered it until now.

 

[DCAllAfrican]

I do not see any practical reason to not maintain separate accounts that doesn’t involve trust issues. But that’s another convo...

Do you mind speaking on this more?

I didn't want to clog up the other thread.

 

[tay1]

When it comes to paying off a list of debt what would y’all rather do? Pay off the smallest amounts first or pay off the big bills first?

Also keep in mind if you pay off the big bills first, you’ll be tight for cash for a week or two

Just asking for advice

 

[pdino]

pay off highest interest/smallest, ex- Credit cards. 20%~ is a lot of interest on those

 

[antidope]

Paying off the largest first is how I went about it. I valued the math aspect over the relief of seeing something go down to zero faster.

tay1

 

[Chopper]

I am actually switching to a Roth 401k next year from doing the traditional since I started working. I won't be converting any of the traditional monies I have, just gonna leave it as is.

I think if you can afford to max out a Roth 401k, that is the move you should make over the traditional. Its just way more expensive to do so which is why I haven't considered it until now.

Word I’m doing about half and half right now (401k traditional and 401k roth). Don’t want to lose the full benefit of tax deductible contributions right now, although I should probably just bite the bullet.

 

[antidope]

Word I’m doing about half and half right now (401k traditional and 401k roth). Don’t want to lose the full benefit of tax deductible contributions right now, although I should probably just bite the bullet.

Yeah I felt the same way. In the long term I know I'll be better off with the Roth less to think about. No worries about the taxes or the RMD.

 

[sneakaprince]

I split it 50/50 between roth and traditional. Really no rhyme or reason as to why I've been doing it like that though.

 

[tay1]

Paying off the largest first is how I went about it. I valued the math aspect over the relief of seeing something go down to zero faster.

tay1

Yeah that’s how I’m looking at it as well. Think I’m gonna go this route and just careful spend for a little bit

 

[moderndarwin]

I did smallest first. I valued the mental aspect of paying it off and seeing stuff disappear.

Paid off about 6 cards and 45k total. Now i’m at $0 credit card debt. And have saved some money for the first time in life. Life’s much better.

 

[antidope]

The older I get the more I realized not everything is solely about the math.

 

[BaltimoreLove]

THATS GREAT STUFF MAN I HOPE TO BE ABLE TO PAY OFF DEBTS SOON

 

[antidope]

Anyone here do bugeting? Just looked at my 2020 spend vs what I projected for the year and I was substantially under what I projected I would spend. A lot of this is pandemic related but very nice to see. I also saved double what I projected.

 

[jjs]

I don’t chase every little expenses but i do have a monthly budget which allows me to see how much i can save to be comfortable with the lifestyle i’m living (which is mostly frugal).

Then i just save the amount per paycheck and i can spend the rest (which i know is enough for my lifestyle).

Been working great.

 

[ICE CITY CF]

I use Mint for budgeting but thinking of switching to Personal Capital.

 

[antidope]

I use Mint for budgeting but thinking of switching to Personal Capital.

I prefer Personal Capital to Mint. I use both though for whatever reason. I just use them to look at all my assets in aggregate my budgeting I do all in Excel.

 

[ICE CITY CF]

I prefer Personal Capital to Mint. I use both though for whatever reason. I just use them to look at all my assets in aggregate my budgeting I do all in Excel.

Yea I have less need for a budgeting tool these days and I'm more interested in a nice view of my aggregate assets. Switching to PC is one a couple of small personal finance projects I want to knock out before end of year.

 

[アミーゴ]

I don’t chase every little expenses but i do have a monthly budget which allows me to see how much i can save to be comfortable with the lifestyle i’m living (which is mostly frugal).

Then i just save the amount per paycheck and i can spend the rest (which i know is enough for my lifestyle).

Been working great.

Bro I just saw you on IG popping bottles in Vegas - come on now

 

[antidope]

Yea I have less need for a budgeting tool these days and I'm more interested in a nice view of my aggregate assets. Switching to PC is one a couple of small personal finance projects I want to knock out before end of year.

Pretty much the same. PC has a better view of investments. I can track aggregate performance across all my accounts and whatnot. Its not THAT important but its something that Mint doesn't have.

 

[jjs]

Bro I just saw you on IG popping bottles in Vegas - come on now

That’s on the expense account

 

[pitman13]

When it comes to paying off a list of debt what would y’all rather do? Pay off the smallest amounts first or pay off the big bills first?

Also keep in mind if you pay off the big bills first, you’ll be tight for cash for a week or two

Just asking for advice

Snowball Effect. I've used it myself and I've advised clients to do so as well. Paying off debt is more mental than anything else, imo. The minute you pay off a debt, no matter how small it is, you get motivated to tackle the next one and so on.

 

[antidope]

Question on mortgage math, you guys do the math on Gross or Net pay in terms of percentage of pay that goes to your mortgage?

 

[6 Rings G.O.A.T.]

 

[206to813]

Do y’all have a will/trust? DIY or pay an attorney?
One of the reasons why I’ve procrastinated is because in the event my wife and I pass, we have 0 options for who would take care of our 2 kids. Even though I still don’t have an answer there, I want to put something in writing at least for our finances