SavingsTalk.com

simplegreen · 11-03-2006, 10:02 PM

So Nick i hear you're quite the money guy. This site may help me and save me cash in the process. Hopefully you can give me some direction and hell even maybe a plan?

A little background on myself and my finacial situation.

Me and my wife total make close to 150k a year
I currently have a Roth IRA (small one >1000 usd)
My wife is a Govt worker shes enrolled in their thrift savings plan
I make probably another 10 - 20k a year in off the record web ventures
I purchased my first home last december in which we've sunk a decent amount of cash upgrading and making it nicer
I'm enrolled in my companies 401k but as a contractor/consultant i seem to float a lot every year - year and half i usualy change jobs

Bills

two car payments at about 700 a month,
cell phone bill about 140 a month,
internet/tv 80 a month
Credit cards total balance about 4k combined and about 200 a month in payments
Insurance about 140 a month
Gas/Electric floats based on season but about 100-150 a month (worst case)
Mortage 1800 a month

Other than what seems like a lot in bills, we usually have about 2k a month in play money.

With all that said.. and probably more questions you'll bring. And really where i want to be where i retire is retire as early as possible and live as comfortably as possible.

A savings/finacial plan where to put money where not to put money medium risk, high gain .

titan22 · 11-03-2006, 11:52 PM

well i'm open to answer any questions i can legally answer. i'm not sure what state you live in but that will also play into effect. load up and shoot questions at me. i'm more than willing to help. if you have something personal you don't want posted, go ahead and pm me. again, welcome to the site.

simplegreen · 11-04-2006, 08:42 AM

I live in Maryland

It was a bit late and my questions didnt really come out like questions it seems.

1) basically where should i be putting my money?
2) can you only be involved in your companies 401k program. As to say since i jump around a good bit it would be nice to have a 401k that isnt reliant on the company im with at that time.
3) how much should i be putting away, most people say as much as you can afford but is that realistic? i mean i dont want to be skimping so i can put 3k away in my 401k every month.

i guess thats a good start.

titan22 · 11-04-2006, 08:56 AM

1) you should be putting your money into investments where you feel comfortable. you would want to take into consideration; risk tolerance, time horizon, amount to invest, and several other factors. it ranges from low risk to high risk. If you have 25 years to retirement, it is acceptable to be high risk with your portfolio. It depends on several factors that I listed. I'll do an article on the 8 questions to ask when determining risk factor. just remind me if i don't post it soon.

2) you can't contribute to a companies 401k if you don't work for them anymore. since offering a 401k is a tax break to a company, they will often offer it as an incentive. most companies range from 3-5% of your annual pay. When a company offers it as an incentive, i suggest you make it part of your negotiation process. My father works for a company that offered him 9% matching on his 401k. when you make 70k a year, that is a huge bonus. Especially because if you invest all 9% that is matched, it lowers your taxable income and you will get taxed less and have a greater retirement. I suggest that people never invest more than the company will match though.

to answer question #2, you should max out the amount of the 401k your company has to offer, then invest the rest in another retirement form such as a roth IRA. If you jump around a lot, i would suggest that you find an advisor with a company you trust, and consolidate your 401k's. you will be charged a rollover fee, but it is better to have them all under 1 ceiling than to have a lot of different investments and money managers.

3)How much you should be putting away depends on how much you have available. there are a lot of tax opportunities provided when investing in retirement plans. I suggest at a minimum people save at least 10%. The more the better. if you save from 25-35 years old, you will have more money at retirement then if you saved from 35-60. compounding interest is a wonderful thing.

When i give guidance on retirement planning, i never let people invest beyond their budget and capabilities. It is better to live conservative now, than to put it all into retirement funds and struggle with daily bills and living expenses. definitely don't put away 3k in your 401k if your company doesn't match that much, unless you are borderline and can get the tax advantage by contributing that much.

11-03-2006, 10:02 PM	#1
simplegreen Greenhorn Join Date: Nov 2006 Posts: 3 Rep Power: 0	Got Nick? So Nick i hear you're quite the money guy. This site may help me and save me cash in the process. Hopefully you can give me some direction and hell even maybe a plan? A little background on myself and my finacial situation. Me and my wife total make close to 150k a year I currently have a Roth IRA (small one >1000 usd) My wife is a Govt worker shes enrolled in their thrift savings plan I make probably another 10 - 20k a year in off the record web ventures I purchased my first home last december in which we've sunk a decent amount of cash upgrading and making it nicer I'm enrolled in my companies 401k but as a contractor/consultant i seem to float a lot every year - year and half i usualy change jobs Bills two car payments at about 700 a month, cell phone bill about 140 a month, internet/tv 80 a month Credit cards total balance about 4k combined and about 200 a month in payments Insurance about 140 a month Gas/Electric floats based on season but about 100-150 a month (worst case) Mortage 1800 a month Other than what seems like a lot in bills, we usually have about 2k a month in play money. With all that said.. and probably more questions you'll bring. And really where i want to be where i retire is retire as early as possible and live as comfortably as possible. A savings/finacial plan where to put money where not to put money medium risk, high gain .

11-03-2006, 11:52 PM	#2
titan22 Super Moderator Join Date: Aug 2006 Location: West Coast Posts: 773 Rep Power: 7	well i'm open to answer any questions i can legally answer. i'm not sure what state you live in but that will also play into effect. load up and shoot questions at me. i'm more than willing to help. if you have something personal you don't want posted, go ahead and pm me. again, welcome to the site.

11-04-2006, 08:42 AM	#3
simplegreen Greenhorn Join Date: Nov 2006 Posts: 3 Rep Power: 0	I live in Maryland It was a bit late and my questions didnt really come out like questions it seems. 1) basically where should i be putting my money? 2) can you only be involved in your companies 401k program. As to say since i jump around a good bit it would be nice to have a 401k that isnt reliant on the company im with at that time. 3) how much should i be putting away, most people say as much as you can afford but is that realistic? i mean i dont want to be skimping so i can put 3k away in my 401k every month. i guess thats a good start.

11-04-2006, 08:56 AM	#4
titan22 Super Moderator Join Date: Aug 2006 Location: West Coast Posts: 773 Rep Power: 7	1) you should be putting your money into investments where you feel comfortable. you would want to take into consideration; risk tolerance, time horizon, amount to invest, and several other factors. it ranges from low risk to high risk. If you have 25 years to retirement, it is acceptable to be high risk with your portfolio. It depends on several factors that I listed. I'll do an article on the 8 questions to ask when determining risk factor. just remind me if i don't post it soon. 2) you can't contribute to a companies 401k if you don't work for them anymore. since offering a 401k is a tax break to a company, they will often offer it as an incentive. most companies range from 3-5% of your annual pay. When a company offers it as an incentive, i suggest you make it part of your negotiation process. My father works for a company that offered him 9% matching on his 401k. when you make 70k a year, that is a huge bonus. Especially because if you invest all 9% that is matched, it lowers your taxable income and you will get taxed less and have a greater retirement. I suggest that people never invest more than the company will match though. to answer question #2, you should max out the amount of the 401k your company has to offer, then invest the rest in another retirement form such as a roth IRA. If you jump around a lot, i would suggest that you find an advisor with a company you trust, and consolidate your 401k's. you will be charged a rollover fee, but it is better to have them all under 1 ceiling than to have a lot of different investments and money managers. 3)How much you should be putting away depends on how much you have available. there are a lot of tax opportunities provided when investing in retirement plans. I suggest at a minimum people save at least 10%. The more the better. if you save from 25-35 years old, you will have more money at retirement then if you saved from 35-60. compounding interest is a wonderful thing. When i give guidance on retirement planning, i never let people invest beyond their budget and capabilities. It is better to live conservative now, than to put it all into retirement funds and struggle with daily bills and living expenses. definitely don't put away 3k in your 401k if your company doesn't match that much, unless you are borderline and can get the tax advantage by contributing that much.

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