Author Topic: How Old Were You for the Investing Order Milestones?  (Read 3915 times)

simonsez

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How Old Were You for the Investing Order Milestones?
« on: September 25, 2017, 07:26:52 AM »
0. Establish an emergency fund to your satisfaction           
1. Contribute to your 401k up to any company match           
2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield.           
3. Max HSA             
4. Max Traditional IRA or Roth (or backdoor Roth) based on income level           
5. Max 401k (if 401k fees are lower than available in an IRA, or if you need the 401k deduction to be eligible for a tIRA, swap #4 and #5)           
6. Fund mega backdoor Roth if applicable           
7. Pay off any debts with interest rates ~3% or more above the 10-year Treasury note yield.           
8. Invest in a taxable account with any extra. 

0. 24, first job several paychecks in
1. 24, first job 2nd pay period
2. 29, 7.9%/7.65% student loans
3. n/a, maybe switching health insurance this year, need to look into it more
4. 32 (2018), this is maxing the TSP, doing 15k in 2017
5. 34? (2020)
6. n/a
7. 34 (2020)
8. 34 (2020)

Also one other thing I'm curious about - for those of you that own your residence, at what age and between which steps did this occur?

MrsWolfeRN

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Re: How Old Were You for the Investing Order Milestones?
« Reply #1 on: September 25, 2017, 09:02:53 AM »
0. Establish an emergency fund to your satisfaction           
1. Contribute to your 401k up to any company match           
2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield.           
3. Max HSA             
4. Max Traditional IRA or Roth (or backdoor Roth) based on income level           
5. Max 401k (if 401k fees are lower than available in an IRA, or if you need the 401k deduction to be eligible for a tIRA, swap #4 and #5)           
6. Fund mega backdoor Roth if applicable           
7. Pay off any debts with interest rates ~3% or more above the 10-year Treasury note yield.           
8. Invest in a taxable account with any extra. 

0. 24, first job several paychecks in
1. 24, first job 2nd pay period
2. 29, 7.9%/7.65% student loans
3. n/a, maybe switching health insurance this year, need to look into it more
4. 32 (2018), this is maxing the TSP, doing 15k in 2017
5. 34? (2020)
6. n/a
7. 34 (2020)
8. 34 (2020)

Also one other thing I'm curious about - for those of you that own your residence, at what age and between which steps did this occur?

I did this way out of order, but then I didn't discover MMM until last year.

0. 18
1. 22
2. 24 or 25 I think, I had a couple car loans in my late teens/early 20s. I don't remember the rates and I definitely don't know what the t note yield was at the time, so I'm not sure if they would go here or in step 7.
3. n/a
4. I maxed a Roth one year around age 24 (with a bank earning a pittance) but not again until 34 (now with Vanguard in VTSAX).
5. 35
6.  n/a
7. Paid off student loans at 26, I don't remember what the rates were, I only used subsidized Stafford loans, so the rate may have been too low to go here
8. 27 (bought some individual stocks during the crash in 2009, wish I had invested more)

Bought my first house at age 20 between step zero and one (LCOL area)

JohnGalt

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Re: How Old Were You for the Investing Order Milestones?
« Reply #2 on: September 25, 2017, 09:40:50 AM »
0. 17         
1. 23 (first time having 401k)
2. 23 (last time I had a car payment)       
3. N/A
4. 18
5. 26
6. N/A
7. 23 (last time I had a car payment)
8. 18 (not much, but I was investing what little extra I had back in High School)

bought my first house at age 25, sold it at age 28.

boarder42

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Re: How Old Were You for the Investing Order Milestones?
« Reply #3 on: September 25, 2017, 01:55:44 PM »
0. Never really did this         
1. 23       
2. Never had these     
3. 26         
4. 18       
5. 26       
6. N/a       
7. Never had these
8. 26



moof

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Re: How Old Were You for the Investing Order Milestones?
« Reply #4 on: September 25, 2017, 05:37:11 PM »
0. Never bothered to do an emergency fund, I keep a small buffer of only about 2 months spending.  Shoot me.   
1. 22'ish?
2. 29'ish when I wiped out the new wife's credit cards ASAP after getting hitched.         
3. N/A.       
4. 39           
5. 35'ish.  I varied in this from late 20's till about age 35 when income finally exceeded the vagaries of life.       
6. N/A         
7.  29'ish when I wiped out the new wife's credit cards ASAP after getting hitched. 
8. 39.  Just hit the 1 year anniversary of opening it, and already have 26k built up.

2Birds1Stone

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Re: How Old Were You for the Investing Order Milestones?
« Reply #5 on: September 26, 2017, 06:38:14 AM »
0. Establish an emergency fund to your satisfaction           
1. Contribute to your 401k up to any company match           
2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield.           
3. Max HSA             
4. Max Traditional IRA or Roth (or backdoor Roth) based on income level           
5. Max 401k (if 401k fees are lower than available in an IRA, or if you need the 401k deduction to be eligible for a tIRA, swap #4 and #5)           
6. Fund mega backdoor Roth if applicable           
7. Pay off any debts with interest rates ~3% or more above the 10-year Treasury note yield.           
8. Invest in a taxable account with any extra. 

0. 23
1. 23
2. 23
3. 28
4. 25
5. 29
6. NA
7. 23
8. 28

Dicey

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Re: How Old Were You for the Investing Order Milestones?
« Reply #6 on: September 28, 2017, 10:42:59 AM »
0. Establish an emergency fund to your satisfaction           
1. Contribute to your 401k up to any company match           
2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield.           
3. Max HSA             
4. Max Traditional IRA or Roth (or backdoor Roth) based on income level           
5. Max 401k (if 401k fees are lower than available in an IRA, or if you need the 401k deduction to be eligible for a tIRA, swap #4 and #5)           
6. Fund mega backdoor Roth if applicable           
7. Pay off any debts with interest rates ~3% or more above the 10-year Treasury note yield.           
8. Invest in a taxable account with any extra. 

0. Always had one. Still do.
1. At every job that offered one. Didn't always enroll immediately though, boo.
2. Never had any.
3. Never qualified for one. Used FSA once they came into existence.
4. Not sure, but not before I bought my first house, as that was a higher goal.
5. Never.
6. Not yet.
7. Never had any.
8. Can't remember. Mid thirties perhaps? When CD's were paying 15% or more, I didn't feel the need to buy stocks.

Had cancer at 21-22. Wanted to buy a house for the security it represented + the incentive it provided to live long enough to reach the audacious (for a young, single woman living in a HCOLA) goal. Got a year's salary in the bank then bought my first house at age 30. Never looked back.

It's important to note I did a lot of things "wrong". I was never a super high wage earner. In my twenties, I left 2 jobs shortly before at least some vesting would have occurred. These things were not as well known in the olden days. In both cases, I left for more money, so not as bad as it seems, but still. I NEVER MAXED OUT MY 401k #seeHCOLA. I traveled, I bought clothes, I ate out quite a bit. I even borrowed against my 401k once. Even though I made a lot of money on the money I borrowed and it was only $6k, I wish I hadn't done it.

My point is that there are lots of paths to FIRE.  I didn't get there super early, or do things in the "right" order, but get there I did. I hope this helps someone who needs a little reassurance that they can do this, too.

EDITED TO ADD: Once I moved out during college (which I paid for myself), I never went back, but for one short period. I did live at home during my cancer treatment (my share after insurance also self-paid), and my company was nice enough to let me keep my company car. I practiced medical arbitrage by seeking treatment in my home town, which was a somewhat lower COLA, plus all my sibs were still at home and I wanted to be near family. Otherwise, I was out at 19 and never looked back. IMO, living at home to save money is, well...easier. You're able to save because someone else is paying your overhead.
« Last Edit: September 30, 2017, 03:49:56 PM by Dicey »

simonsez

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Re: How Old Were You for the Investing Order Milestones?
« Reply #7 on: September 28, 2017, 11:26:57 AM »
My point is that there are lots of paths to FIRE. 
Indeed there are!  Thanks Dicey, I was sorta hoping you would respond. :-)

Ocinfo

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Re: How Old Were You for the Investing Order Milestones?
« Reply #8 on: September 28, 2017, 07:35:41 PM »
Did not do it completely in the optimal order but accomplished all by age 29 (except HSA as my non high deductible plan is a better deal so no HSA).

I bought my first home at 24 but it’s been a rental since I was 25 and I’m a happy renter for my primary residence.


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Rodgers12

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Re: How Old Were You for the Investing Order Milestones?
« Reply #9 on: September 28, 2017, 08:30:41 PM »
0. 26           
1. 23, When I started First Full time Job           
2. 25, 6.8% student Loans, Took me 20 months exactly to get rid of it.               
3. N/A, 2018 or 2019 Is my goal to Max the HSA             
4. 24           
5. 28, 2017 This is my First year maxing my Simple IRA of $12,500!!!           
6. N/A           
7. N/A             
8. 18, Add some every year, I also consider this as my emergency fund

I bought my house this year at 27 a few months before I turned 28. After graduating I bit the bullet and lived with my parents for about 3 years before moving out and then eventually buying the house this year. If it wasn't for my three years living at the parents, I wouldn't have been able to pay off the student loans in 20 months, max out the Roth IRA every year, and save up 20% for a downpayment so quickly.

Beach_Stache

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Re: How Old Were You for the Investing Order Milestones?
« Reply #10 on: September 29, 2017, 11:19:35 AM »
0. 24
1. 23
2. N/A (only student loans and I think were at 2.5% after graduating)
3. N/A
4. 20
5. 24
6. N/A
7. 29 (Student Loans, I think at 2.5 or 3%)
8. 28

Bart1ma3u5

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Re: How Old Were You for the Investing Order Milestones?
« Reply #11 on: September 29, 2017, 11:41:26 AM »
0. Establish an emergency fund to your satisfaction     
23 Treated my roth IRA contributions as my emergency fund from day 1.
1. Contribute to your 401k up to any company match 
23 From the first day of employment         
2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield.
Never had one.           
3. Max HSA             
26 I was on my parents insurance before that.
4. Max Traditional IRA or Roth (or backdoor Roth) based on income level   
24 The first full year of employment. I contributed $3,000 my first half year.       
5. Max 401k (if 401k fees are lower than available in an IRA, or if you need the 401k deduction to be eligible for a tIRA, swap #4 and #5) 
25 Second full year after starting full time.         
6. Fund mega backdoor Roth if applicable         
N/A 
7. Pay off any debts with interest rates ~3% or more above the 10-year Treasury note yield.       
Never had any.     
8. Invest in a taxable account with any extra. 
Not yet. Would be 27 (this year) if my upcoming wedding was a bit more mustachian.

I have never owned my residence.

Looking back I am pretty happy that for the most part I did everything pretty quickly and mostly in order. Still did some things out of order, particularly the  Roth IRA vs TSP. I did the Roth IRA prior to maxing my TSP despite lower fees in the TSP due to the option to remove contributions to the Roth IRA if needed. I used this as my emergency fund as well.

Cali Nonya

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Re: How Old Were You for the Investing Order Milestones?
« Reply #12 on: September 29, 2017, 12:26:41 PM »
0.  18 - Maintained saving throughout college (worked / scholarships)
1.  23 - First year of corporate employment
2.  N/A - never had consumer debt
3.  N/A - Never saw the point to this one
4.  N/A - Never was my way of investing (started with taxable at 26)
5.  29
6.  N/A
7.  Still have mortgage
8.  26 - First self directed brokerage

Bought first house at 25.

boarder42

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Re: How Old Were You for the Investing Order Milestones?
« Reply #13 on: September 29, 2017, 12:59:00 PM »
0.  18 - Maintained saving throughout college (worked / scholarships)
1.  23 - First year of corporate employment
2.  N/A - never had consumer debt
3.  N/A - Never saw the point to this one
4.  N/A - Never was my way of investing (started with taxable at 26)
5.  29
6.  N/A
7.  Still have mortgage
8.  26 - First self directed brokerage

Bought first house at 25.

wait you see no benefit to tax sheltered accounts?  these are extremely good ways to save?  Why aren't you using these.

NotJen

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Re: How Old Were You for the Investing Order Milestones?
« Reply #14 on: September 29, 2017, 01:11:59 PM »
0. 18
1. 29
2. N/A
3. N/A
4. 29
5. 35
6. N/A
7. 34
8. 35

Purchased home at 26.  I guess between steps 0 and 1, but after I had paid off all debts (they just happened to be low-interest) and before a 401k became available to me.

I wanted to say 0 for the first step, I'm a pretty natural saver who always had reserves.

My investing seems pretty lagging, but it really wasn't.  I work for a small company - we had a SEP  the company contributed to with profit sharing - no option to contribute on our own.  At 29, we moved to a 401k and I started contributing some in addition to the company profit sharing (no match, they straight out give us 10%).  I also got separated/divorced and started maxing out my Roth that year.  Didn't max 401k until I paid off my house.

Never had high-interest debt.  Paid off student and car loans at 24 (basically after a year of full time work), and home at 34.  I'm pretty gung-ho about being debt free, so no surprise that those are out of order.
« Last Edit: September 29, 2017, 01:13:31 PM by NotJen »

Travis

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Re: How Old Were You for the Investing Order Milestones?
« Reply #15 on: September 29, 2017, 05:01:57 PM »
Age 37

0. Establish an emergency fund: 25, though my definition of E-Fund has evolved. Back then was the age when I saved up what I actually needed, and it continued to grow because "cash" was my retirement plan until a peak at age 32. My E-Fund shrunk back to what I actually need at age 34.
           
1. Contribute to your 401k up to any company match: no company match
           
2. Pay off any debts with interest rates ~5%: never had a debt that high
           
3. Max HSA: not eligible
             
4. Max Traditional IRA or Roth: 30

5. Max 401k: 35           

6. Fund mega backdoor Roth if applicable: N/A
           
7. Pay off any debts with interest rates ~3%: Had a 4% car loan at 29, but only lasted six months
 
8. Invest in a taxable account with any extra: 32 

Own a house: bought at 29, sold at 31. Haven't tried it again yet.

TheAnonOne

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Re: How Old Were You for the Investing Order Milestones?
« Reply #16 on: October 03, 2017, 08:46:50 AM »
0. Establish an emergency fund to your satisfaction           
1. Contribute to your 401k up to any company match           
2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield.           
3. Max HSA             
4. Max Traditional IRA or Roth (or backdoor Roth) based on income level           
5. Max 401k (if 401k fees are lower than available in an IRA, or if you need the 401k deduction to be eligible for a tIRA, swap #4 and #5)           
6. Fund mega backdoor Roth if applicable           
7. Pay off any debts with interest rates ~3% or more above the 10-year Treasury note yield.           
8. Invest in a taxable account with any extra. 

Also one other thing I'm curious about - for those of you that own your residence, at what age and between which steps did this occur?

I was young, I had a software dev job @ 18 so... a grain of salt.

1. 18
2. 20-22 I paid off my student loans, then got a car and then paid that off ect ect ect
3. 27 This is the first year we will be doing that, simply because we didn't know about it lol
4. 22
5. 23-24
6. ---
7. I only carry my mortgage, has been this way for a while.
8. 22-23 I first started with LC, now I am almost entirely VTSAX

boarder42

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Re: How Old Were You for the Investing Order Milestones?
« Reply #17 on: October 03, 2017, 09:22:34 AM »


Also one other thing I'm curious about - for those of you that own your residence, at what age and between which steps did this occur?

I was young, I had a software dev job @ 18 so... a grain of salt.



not sure what you mean by own ... i have a mortgage that i could pay off in full with my investments.  i bought my first house at 23 ... and my second at 29 ... we will not be paying our mortgage off early but i still feel like we "own" our house.  We're just creatively using the low cost mortgage to allow us to invest vs owning a fixed asset that appreciates whether we pay down our mortgage or not.

sparkytheop

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Re: How Old Were You for the Investing Order Milestones?
« Reply #18 on: October 03, 2017, 09:48:27 AM »
0. Establish an emergency fund to your satisfaction            16?  I saved from the time I had a paper route in fifth grade.  That savings got me through some really bad financial times when I was married and later divorced.  Might not have made it without that money in the bank, even if I didn't know what an "emergency fund" was at the time.
1. Contribute to your 401k up to any company match      21.  First job I had that offered a 401k (actually TSP).
  Signed up for it on my orientation day.
     
2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield. NA           
3. Max HSA             NA
4. Max Traditional IRA or Roth (or backdoor Roth) based on income level        swapped for #5
5. Max 401k (if 401k fees are lower than available in an IRA, or if you need the 401k deduction to be eligible for a tIRA, swap #4 and #5)             21, same as above.  I maxed from day one (when max was only allowed at 12% of your income, increasing by 1%/year until the change to a $ amount) 
6. Fund mega backdoor Roth if applicable  Not allowed with tsp.  Still working, so not going to use one of my withdrawals to transfer funds to a regular IRA, where I could do a backdoor roth.         
7. Pay off any debts with interest rates ~3% or more above the 10-year Treasury note yield.    Still have my mortgage.  Traded off being able to pay that off in order to buy property, which I'm also still making payments on.       
8. Invest in a taxable account with any extra.  Haven't done this yet.  Right now I have other priorities, and I really don't need to in order to reach my retirement goals.

PoutineLover

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Re: How Old Were You for the Investing Order Milestones?
« Reply #19 on: October 03, 2017, 10:05:33 AM »
I'm in Canada so I'll just use my equivalents
0. Establish an emergency fund to your satisfaction 18 I guess? Have always had savings for emergencies, and it has been enough so far           
1. Contribute to your 401k up to any company match 24 when I joined my company's defined contribution pension           
2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield. Paid off my student loans (5.5%) at 24, 1 year after graduating           
3. Max HSA  N/A           
4. Max Traditional IRA or Roth (or backdoor Roth) based on income level If this is like a Tax Free Savings Account, I'm contributing the max since this year (25/26), but haven't filled up all the eligible space from previous years yet           
5. Max 401k (if 401k fees are lower than available in an IRA, or if you need the 401k deduction to be eligible for a tIRA, swap #4 and #5)   If this is like an RRSP, I'm not contributing yet, although my pension contributions count towards this limit I think, so I guess I'm just not hitting the maximum yet         
6. Fund mega backdoor Roth if applicable  Don't know what this is in Canada         
7. Pay off any debts with interest rates ~3% or more above the 10-year Treasury note yield.  N/A         
8. Invest in a taxable account with any extra.  Not there yet

Also one other thing I'm curious about - for those of you that own your residence, at what age and between which steps did this occur?
Not there yet

sparkytheop

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Re: How Old Were You for the Investing Order Milestones?
« Reply #20 on: October 03, 2017, 10:15:08 AM »
Quote
Also one other thing I'm curious about - for those of you that own your residence, at what age and between which steps did this occur?

I missed this question...

I was 19, then-h was 20.  Right place, right time, right savings attitude since the time I was little.  I had the house before I had the job that offered any type of retirement program (so I guess between steps 1 & 2).  My dad was a realtor and did give up his commission (although we still had to pay his boss's portion), but that was the only "financial help" we got with the house.  And, we would have paid it if my dad didn't insist, but he didn't want to charge us for helping find a place and doing the paperwork.  He did the same years later when I sold that house and bought my current one (I think I was 26 then).

simonsez

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Re: How Old Were You for the Investing Order Milestones?
« Reply #21 on: October 03, 2017, 12:39:13 PM »


Also one other thing I'm curious about - for those of you that own your residence, at what age and between which steps did this occur?

I was young, I had a software dev job @ 18 so... a grain of salt.



not sure what you mean by own ... i have a mortgage that i could pay off in full with my investments.  i bought my first house at 23 ... and my second at 29 ... we will not be paying our mortgage off early but i still feel like we "own" our house.  We're just creatively using the low cost mortgage to allow us to invest vs owning a fixed asset that appreciates whether we pay down our mortgage or not.
A permanent domicile that you live in where you're not paying rent to the owner (because by definition, you are the owner) - be it with a mortgage or if it is paid off.  It sounds like you were 23 when this first occurred. 

boarder42

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Re: How Old Were You for the Investing Order Milestones?
« Reply #22 on: October 03, 2017, 01:01:23 PM »


Also one other thing I'm curious about - for those of you that own your residence, at what age and between which steps did this occur?

I was young, I had a software dev job @ 18 so... a grain of salt.



not sure what you mean by own ... i have a mortgage that i could pay off in full with my investments.  i bought my first house at 23 ... and my second at 29 ... we will not be paying our mortgage off early but i still feel like we "own" our house.  We're just creatively using the low cost mortgage to allow us to invest vs owning a fixed asset that appreciates whether we pay down our mortgage or not.
A permanent domicile that you live in where you're not paying rent to the owner (because by definition, you are the owner) - be it with a mortgage or if it is paid off.  It sounds like you were 23 when this first occurred.

just wanted to make sure.  some around here like to pay down their free gift from the govt of a low fixed rate mortgage so they can "feel" like they own their house more.

Stimpy

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Re: How Old Were You for the Investing Order Milestones?
« Reply #23 on: October 03, 2017, 01:18:39 PM »
0. Establish an emergency fund to your satisfaction         
       26(give or take) (Technically earlier, but those funds were earmarked for college.)
1. Contribute to your 401k up to any company match           
       17 (Started a 401K, more out of ignorance then understanding.  Lucky I guess?)
2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield.           
      NA (Not including CC which worst case are payed off with in 6 months)
3. Max HSA             
      33
4. Max Traditional IRA or Roth (or backdoor Roth) based on income level           
     31
5. Max 401k (if 401k fees are lower than available in an IRA, or if you need the 401k deduction to be eligible for a tIRA, swap #4 and #5)           
     Not yet.  (Coming soon to a lifetime near me.)
6. Fund mega backdoor Roth if applicable           
     NA
7. Pay off any debts with interest rates ~3% or more above the 10-year Treasury note yield.           
    See 2
8. Invest in a taxable account with any extra. 
    28   (Started seriously investing here technically, and this lead to a low fee IRA, and eventually MMM.)



So umm, yea not in order, but always aware I needed some type of investments/savings somewhere.

No house yet, haven't found someone else to pay for it.  (Someone else as in rentals with Renters.)

Caoineag

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Re: How Old Were You for the Investing Order Milestones?
« Reply #24 on: October 03, 2017, 02:06:50 PM »

0. Establish an emergency fund to your satisfaction - Ever since people gave me money as gifts (seriously when I was 16 I gave my father a couple hundred dollars because he needed to borrow it, he used to "borrow" money from me all the time once he figured out I kept a stash, I think around 10? years old. Fortunately, my mother would pay me back. I hoarded money for a rainy day since I was single digits and I have used that money to buy the last needed ingredient for a recipe from the store because my parents didn't have it...)
1. Contribute to your 401k up to any company match - N/A, ever     
2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield. - Never had these.           
3. Max HSA - 25 (employer paid, stopped maxing when not employed by them), 33 (self paid)             
4. Max Traditional IRA or Roth (or backdoor Roth) based on income level - 32           
5. Max 401k (if 401k fees are lower than available in an IRA, or if you need the 401k deduction to be eligible for a tIRA, swap #4 and #5) - 32           
6. Fund mega backdoor Roth if applicable - N/A           
7. Pay off any debts with interest rates ~3% or more above the 10-year Treasury note yield. - Still have my mortgage until next year when I sell so 36.           
8. Invest in a taxable account with any extra.   - 34

House - 27 (after paying down my then outrageous cc debt sitting at 4% APR, previously had been 0% APR)
Expected retirement 36

We were lower income until recently so while we contributed sooner, we didn't hit max numbers until after we got really really good paying jobs. Just proof that you don't have to make big bucks to retire early, you just need low expenses.

GuitarBrian

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Re: How Old Were You for the Investing Order Milestones?
« Reply #25 on: October 03, 2017, 11:33:43 PM »
0. Establish an emergency fund to your satisfaction
14
         
1. Contribute to your 401k up to any company match
Never
     
2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield.
Never had any high interest debts.
     
3. Max HSA
Nope

4. Max Traditional IRA or Roth (or backdoor Roth) based on income level
N/A

5. Max 401k (if 401k fees are lower than available in an IRA, or if you need the 401k deduction to be eligible for a tIRA, swap #4 and #5)
Never
   
6. Fund mega backdoor Roth if applicable
N/A
         
7. Pay off any debts with interest rates ~3% or more above the 10-year Treasury note yield.
25 (paid off 30k loan from my grandparents)
   
8. Invest in a taxable account with any extra.
Started buying stocks at 14.


Also one other thing I'm curious about - for those of you that own your residence, at what age and between which steps did this occur?
I bought my first house at 22.


I have never made enough earned income to justify any tax deferred accounts. All the tax I've paid was from capital gains and dividends.

nnls

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Re: How Old Were You for the Investing Order Milestones?
« Reply #26 on: October 04, 2017, 02:15:14 AM »
I am an Aussie so will do my equivalents

WHAT           
0. Pay the minimum required on all debts. -Dont have any debts besides mortgage, got mortgage aged 24
1. Establish an emergency fund to your satisfaction.  See https://www.bogleheads.org/wiki/Emergency_fund.  Use your mortgage offset account OR use springy debt http://www.mrmoneymustache.com/2011/04/22/springy-debt-instead-of-a-cash-cushion/  .  Had an emergency fund from when I moved out fo home ages 17, it was one month of my income at the time(about $1200 a month), this has grown and is now about 3 months worth of expenses     
2. Pay off any debts with interest rates above your mortgage rate (if you have one) not relevant
3. Put money into your PPOR mortgage offset account (if you have one).    Age 24, when I got my first home       
4. If your taxable income is less than $51,021 (before salary sacrifice) consider contributing $1000 per year to superannuation to get the Government co-contribution.I was contributing extra to my super from about 19, but didnt ever do the whole $1000
5. Pay off any debts above the return you can get on your investments.not relevant
6. If you taxable income is more than $37,000 optimise Salary Sacrifice into Superannuation - you need to work this out individually, because how much depends on at what age you will ER, how much is already inside/outside superannuation, and your marginal tax rate. First year my income was about $37k I did a bit, probably not maximised it but I was saving for a home deposit
7. Invest any extra into low cost index funds (long term investments - 10 years) or high interest accounts (short term - 2 or 3 years).       Started investing outside of super in 2010, but didnt do index funds until I was 28, but was saving in highish interest accounts from 18 when I started saving for my first house   
           
WHY           
0. Don't get yourself into trouble.           
1. Give yourself at least enough buffer to avoid worries about paying bills.
2.& 3. Because it's untaxed, the effective return on a mortgage offset account is likely to be the highest percent return you can get on your money           
4. When the government is giving you money - take it.
5. It's better to pay off expensive debt than to invest.
6. Salary sacrifice is taxed at 15% as it goes into superannuation and people on low incomes have a lower tax rate. You will need other money to last you between when you retire and when you are eligible for superannuation. However superannuation tax rates are low.           
7. Because earnings, even if taxed, are beneficial. If you are saving for the short term (eg. a house deposit whether PPOR or IP), you want to be absolutely sure that you will get back what you saved, but longer term savings are better off in an index fund.