Author Topic: Case Study - Need Help  (Read 2318 times)

GhostRider103

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Case Study - Need Help
« on: June 29, 2016, 08:31:29 PM »
Hello, I am just looking for some suggestions on what I can / should do to retire as early as possible.
« Last Edit: April 05, 2020, 06:44:53 PM by GhostRider103 »

Shane

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Re: Case Study - Need Help
« Reply #1 on: June 29, 2016, 08:44:02 PM »
If you're not doing it already, maxing out any employer sponsored retirement accounts like a 401(k) or 403(b) would be a good start. After that, depending on your ages, you could put $12K-$13K/year into tIRAs. Doing those two things should significantly lower your tax liability and free up even more money that you can save and invest.

Shane

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Re: Case Study - Need Help
« Reply #2 on: June 29, 2016, 09:34:44 PM »
I feel like I really don't know a whole lot about investing. I have read quite a bit into it, but I haven't felt comfortable enough to put any large amount (to me) into any kind of fund. I do have a small amount, about 1,500 in a TDameritrade account that I have played with some, but again am fairly new and not 100% sure what I'm doing.

If you want to learn more about investing, check out jlcollinsnh's Stock Series. Start at the first post and just read your way through all of them. There are about 30 blog posts in the series, last I checked. After you read the whole series, you'll have a lot better idea about investing. It's easy to understand and fun to read.

LeRainDrop

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Re: Case Study - Need Help
« Reply #3 on: June 29, 2016, 11:53:59 PM »
Yup, the Jeep payment did jump out at me, so I'm glad to hear you're already on the path towards replacing it.  Lhamo's advice on that is good.

The extra gym membership also seems really expensive to me.  Unless you are *really* making great use of it on a *very* consistent basis, I would definitely cut this.

Why is your Pontiac car insurance so high?  I know that rates are highly dependent on location, so it may be fair, but I would at least compare prices from a few other insurers, like Geico, Progressive, etc.

You say that your employer offers a 401(k) with matching.  I would DEFINITELY make it a top priority to invest in this to take full advantage of the matching funds, at a minimum.  That is totally free money that you are leaving on the table.  Essentially, your employer is saying, "here is bonus money," and you're like, "nah, no thanks."  I realize you've had a lot going on that has contributed to your delay in getting the 401(k) up and running, but now that things are a bit more settled, I would get this done!  If you don't know much yet about investing, I would probably just pick the target date fund (like around 2050 or so).

I also think your wife's budget of $180 per month on hair and nails is excessive, but you would need to decide if that's a battle you want to fight or not.
« Last Edit: June 29, 2016, 11:56:51 PM by LeRainDrop »

2Birds1Stone

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Re: Case Study - Need Help
« Reply #4 on: June 30, 2016, 02:37:24 AM »
Cash flow will improve greatly once the Jeep is gone.

Add in a full time gig for the wife and your savings rate will SKYROCKET!

Great job, at your age you are lucky to have found this site/lifestyle.

Basenji

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Re: Case Study - Need Help
« Reply #5 on: June 30, 2016, 06:02:55 AM »
I used to be intimidated by investing and learning about it, but it's really not complicated to do some basics that are always recommended here:
Max out the 401k or start with the amount that gets you the employer match
Look at the 401k options and choose one with the least fees, look for an index fund
Keep looking for ways to free up more money to invest and come back and ask what to invest in next (IRA, taxable Vanguard account)
Ask more questions here
Keep reading and repeat, "I can do this! I have a team of advisors now on this forum."