First Years: how much cash have you saved over the past year? Forum

[Anonymous User]

Ignoring 401k contributions, how much have you stacked away since starting? Was it more or less than expected?

[Anonymous User]

12k, not maxing out my 401k either (probably like 12k in 401k). It is much less than I had hoped I would save. Paying minimum on debts. The Bay Area is an expensive place. Probably not making my bonus this year either.

[estefanchanning]

12k, not maxing out my 401k either (probably like 12k in 401k). It is much less than I had hoped I would save. Paying minimum on debts. The Bay Area is an expensive place. Probably not making my bonus this year either.

How much do you pay in rent? How much did you make, after tax, per month?

[Anonymous User]

42 including 6 k in Roth. No 401k. Bought a duplex so my tenant pays most my mortgage. Wish I could be more frugal but significant other has expensive tastes.

Pay minimum on my loans.

[Anonymous User]

42 including 6 k in Roth. No 401k. Bought a duplex so my tenant pays most my mortgage. Wish I could be more frugal but significant other has expensive tastes.

Pay minimum on my loans.

OP here. Why are you opting out of 401k? Reason that mortgage expenses provide enough of a tax benefit? Also, which market?

[Anonymous User]

$71,000 exactly twelve months in. I maxed out 401k and IRA during my stub year, and have maxed out 401K and IRA for 2016. I have about $24k in taxable at this point.

[Anonymous User]

12k, not maxing out my 401k either (probably like 12k in 401k). It is much less than I had hoped I would save. Paying minimum on debts. The Bay Area is an expensive place. Probably not making my bonus this year either.

How much do you pay in rent? How much did you make, after tax, per month?

Sorry realized it is more like 15k, I have two savings accounts and was only counting one. I work at a 180k firm. $2k in rent. Went full sticker to a t14, so debt payments are close to $2k. Startup costs aren't nothing when starting a job like this with no help financially, i.e. buying a car with no cash or trade in, COL post-law school, pre-work, buying new wardrobe, etc. Lots of weddings this year too.

[Anonymous User]

$71,000 exactly twelve months in. I maxed out 401k and IRA during my stub year, and have maxed out 401K and IRA for 2016. I have about $24k in taxable at this point.

How are you maxing IRA? Also, are you in Texas? That's a crazy amount put away.

[Anonymous User]

$71,000 exactly twelve months in. I maxed out 401k and IRA during my stub year, and have maxed out 401K and IRA for 2016. I have about $24k in taxable at this point.

How are you maxing IRA? Also, are you in Texas? That's a crazy amount put away.

Yeah, just rough calculation but it looks like that means having only roughly 25k in expenses over 12 months.

[Anonymous User]

42 including 6 k in Roth. No 401k. Bought a duplex so my tenant pays most my mortgage. Wish I could be more frugal but significant other has expensive tastes.

Pay minimum on my loans.

OP here. Why are you opting out of 401k? Reason that mortgage expenses provide enough of a tax benefit? Also, which market?

Secondary market, 140k. My firm doesn't match at all. And I plan to invest in real estate for retirement instead. Already own two units/one property. My IRA is going to be more of an emergency fund than anything.

[DportIA]

$71,000 exactly twelve months in. I maxed out 401k and IRA during my stub year, and have maxed out 401K and IRA for 2016. I have about $24k in taxable at this point.

How are you maxing IRA? Also, are you in Texas? That's a crazy amount put away.

Yeah, just rough calculation but it looks like that means having only roughly 25k in expenses over 12 months.

Apologies, that $71k counts all vehicles (bank emergency fund, 401k, IRA and taxable investment accounts). My expenses are $1k/mo in rent, and then $1,500-2,000/month in discretionary spending, which leaves about $7-8k a month to do whatever with. I have chosen to save it. Chicago.

[SLS_AMG]

Interesting thread. What's the strategy behind not paying down debts more aggressively? I thought since interest rates were so high it made sense to pay down debts ASAP before saving at a lower rate.

Tagging for future reference

[star fox]

Interesting thread. What's the strategy behind not paying down debts more aggressively? I thought since interest rates were so high it made sense to pay down debts ASAP before saving at a lower rate.

Tagging for future reference

401K makes sense for tax savings. After that, it's because of liquidity.

[Anonymous User]

$71,000 exactly twelve months in. I maxed out 401k and IRA during my stub year, and have maxed out 401K and IRA for 2016. I have about $24k in taxable at this point.

How are you maxing IRA? Also, are you in Texas? That's a crazy amount put away.

Yeah, just rough calculation but it looks like that means having only roughly 25k in expenses over 12 months.

Apologies, that $71k counts all vehicles (bank emergency fund, 401k, IRA and taxable investment accounts). My expenses are $1k/mo in rent, and then $1,500-2,000/month in discretionary spending, which leaves about $7-8k a month to do whatever with. I have chosen to save it. Chicago.

Interesting, CA market paying firm and I get $8,200 a month (after 401k deduction and healthcare). So you're saying you get like $9,500-$10,500 a month? Are CA taxes that high?

[Anonymous User]

42 including 6 k in Roth. No 401k. Bought a duplex so my tenant pays most my mortgage. Wish I could be more frugal but significant other has expensive tastes.

Pay minimum on my loans.

OP here. Why are you opting out of 401k? Reason that mortgage expenses provide enough of a tax benefit? Also, which market?

Secondary market, 140k. My firm doesn't match at all. And I plan to invest in real estate for retirement instead. Already own two units/one property. My IRA is going to be more of an emergency fund than anything.

Sorry if this is a dumb question, but isn't a single filer making $180k ineligible for a Roth IRA?

[jbagelboy]

Its not so much about cash saved as loan balance paid. Unless you have sophisticated training as an investor, why not place as much money as possible toward your 6-8% interest bearing loans.

[DportIA]

42 including 6 k in Roth. No 401k. Bought a duplex so my tenant pays most my mortgage. Wish I could be more frugal but significant other has expensive tastes.

Pay minimum on my loans.

OP here. Why are you opting out of 401k? Reason that mortgage expenses provide enough of a tax benefit? Also, which market?

Secondary market, 140k. My firm doesn't match at all. And I plan to invest in real estate for retirement instead. Already own two units/one property. My IRA is going to be more of an emergency fund than anything.

Sorry if this is a dumb question, but isn't a single filer making $180k ineligible for a Roth IRA?

Yes and no. You invest in your Traditional IRA and then "back-door" the account to a Roth IRA.

[2014]

Basically all of what would otherwise be savings has gone to loans, which I'm dumping $3500ish a month into. I'm (for better or worse) treating available credit limit as my runway should shit hit the fan. The raise and impending bonus are financing my 401k and a few moderate QOL adjustments in lieu of just sitting on the cash. I basically am at a steady state of being able to do whatever and not stressing about money but by no means am comfortable.

[Anonymous User]

42 including 6 k in Roth. No 401k. Bought a duplex so my tenant pays most my mortgage. Wish I could be more frugal but significant other has expensive tastes.

Pay minimum on my loans.

OP here. Why are you opting out of 401k? Reason that mortgage expenses provide enough of a tax benefit? Also, which market?

Secondary market, 140k. My firm doesn't match at all. And I plan to invest in real estate for retirement instead. Already own two units/one property. My IRA is going to be more of an emergency fund than anything.

Sorry if this is a dumb question, but isn't a single filer making $180k ineligible for a Roth IRA?

Yes and no. You invest in your Traditional IRA and then "back-door" the account to a Roth IRA.

Can you please elaborate

[Anastasia Dee Dualla]

Anon; google "Back door Roth". There are a ton of helpful articles about this strategy.

[estefanchanning]

Basically all of what would otherwise be savings has gone to loans, which I'm dumping $3500ish a month into. I'm (for better or worse) treating available credit limit as my runway should shit hit the fan. The raise and impending bonus are financing my 401k and a few moderate QOL adjustments in lieu of just sitting on the cash. I basically am at a steady state of being able to do whatever and not stressing about money but by no means am comfortable.

how much loans do you have/how long do you forsee it will take to pay them off?

[upupandaway]

This is a great thread. Thanks for starting, OP!

[unlicensedpotato]

Its not so much about cash saved as loan balance paid. Unless you have sophisticated training as an investor, why not place as much money as possible toward your 6-8% interest bearing loans.

Eh, I hear this a lot. I would certainly either refi or attack or both any loans that are 7%+. But once you're talking about 5-6% interest, I would be buying index funds. Young people can handle the volatility and all the evidence suggests you'll get more than 6% annually on average in the stock market.

My firm also offers a Roth 401k, which is good if you have the option.

[TLSModBot]

I saved the most by switching to American National Insurance they are highly recommended on this forum

[2014]

Basically all of what would otherwise be savings has gone to loans, which I'm dumping $3500ish a month into. I'm (for better or worse) treating available credit limit as my runway should shit hit the fan. The raise and impending bonus are financing my 401k and a few moderate QOL adjustments in lieu of just sitting on the cash. I basically am at a steady state of being able to do whatever and not stressing about money but by no means am comfortable.

how much loans do you have/how long do you forsee it will take to pay them off?

Started with 280kish (had some from undergrad) and haven't looked recently but probably like 250k now. At my current rate I think we are looking at 7-8 years and if I pay more aggressively as earnings go up as soon as 4-5.

Realistically though I'm likely to refinance everything with First Republic at some point early next year and dump them all into a low rate 10-year and just pay them off in 10.