Monthly/Annual Savings Goals Forum

[Mr. Peanutbutter]

NYC 2nd year. Maxing out 401k and saving 1k a month on top of that. We have a child and daycare is 2k a month. We're luckily buying an apartment and the tax advantage of owning will help (mortgage interest deduction).

Confused about this. You're adding an expense--interest payments--and then recouping 25-30% of that expense due to deductibility. How is that a net gain?

Presumably mortgage interest - deduction will be less than what they currently spend on rent?

[DportIA]

Current Chicago 2nd year/market firm. I save ~ $8.5/month (6.5-7.0k post-tax, 1.5k 401k, +.3 HSA), w/ additional 1k/mo once the SS tax tops out in August.

Zero debt anywhere; $1.1k/mo rent (have a 2BR with roommate--sweet apt--lake michigan views); no car; no kids. Should end 2nd year with like $200k in the bank (inclusive 401k/roth/hsa/taxable brokerage) before boanus.

[Anonymous User]

I save on average $3500/month post-tax ($5000 including 401k), which I think is reasonable to frugal for NYC first year. Monthly take-home is around $7000. I have $2000 in fixed costs (shared apt and bills), $1000 in personal expenses, $500 for vacations/other random non-recurring costs.

What do you guys do with your non-tax advantaged savings? Liquid? Index funds? Balanced portfolio? Mine is sadly just sitting in the savings account currently...

[Anonymous User]

3rd year Asian biglaw. Aiming to save $9k per month--with COLA montly after tax is ~12k and found a place with reasonable rents. No loans.

[Anonymous User]

I save on average $3500/month post-tax ($5000 including 401k), which I think is reasonable to frugal for NYC first year. Monthly take-home is around $7000. I have $2000 in fixed costs (shared apt and bills), $1000 in personal expenses, $500 for vacations/other random non-recurring costs.

What do you guys do with your non-tax advantaged savings? Liquid? Index funds? Balanced portfolio? Mine is sadly just sitting in the savings account currently...

I would do either index fund or turnkey rental property. If you want to diversify I would consider funds connected with promising foregin countries, e.g. India.

[shock259]

What do you guys do with your non-tax advantaged savings? Liquid? Index funds? Balanced portfolio? Mine is sadly just sitting in the savings account currently...

I just put mine into a personal investment account consisting of index funds. I chose a retirement index fund, which is 90% stocks (about 60% domestic and 40% foreign) and 10% bonds.

Assuming you aren't saving for something in the near term, and assuming you already have an emergency fund, I think this is a way better place to park cash than a savings account. The market has been on a run recently, but I've made thousands and thousands of dollars from this investment. Obviously just comes with the risk that you can lose a lot if the market crashes. But again, assuming you're saving this for the long term, it'll always come back. Or so I am told.

[Yugihoe]

Really impressed by the people saving 7-9k/month. Good shit.