Life Situation:29, male, Texas, USA
No SO, no kids (and will NEVER happen)
When i was 18 i told myself i wanted to retire by age 45. By age 20 I bought a house while making 8$/hr, i viewed it as my first investments, lucky me, this was a few weeks before the big bubble! Ever since then i have thrown every extra penny i had, at the house. That is every penny that i wasn't wasting. I wasn't wasting alot, but i wasn't saving alot. House is 70% paid off at this point. I could have completed but over the last 2 years, i have shifted my extra money into other investments, due to the low rate i was able to get with a personal loan from my father.
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Goals: FI between 38-45
After that, lots of volunteer work! And start back up my own business. Personal income level may actually be higher after a few years
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My question:Need some advice on how to divide up 401k, and other investments.
I felt that a rIRA was nice because i can easily pull out my money and use that without any tax issues or limits. And i kept r401k since i could roll it over into the rIRA and then pull out the contributions without penalties. But after some recent postings, people are suggesting otherwise.
Should i be using after-tax 401k? I just learned of this and it seems like a 2nd version of roth that lets you get up to 42k/yr in total. So another 20k extra! Would seem that I should.
If i put everything into the 401k options, i will have almost nothing left for taxable accounts, would that be OK?
What options should be using in my 401k? Current setup can be seen here.
https://i.gyazo.com/6303533f822acff8fd48d1d592f92095.png I really am at a loss on this, it feels like almost throwing darts. I am a TA person, funds like "pick whatever and hope for the best" I guess i am looking for high reward, high risk with this, at least for now.
And finally should i be putting extra towards my house at all? Father is 100% OK with me investing, as long as i pay my payments on time.
And all the details below. Please feel free to call me stupid :) As i said, i had a plan and threw money at a house. Now i really want to get this going right!
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Income sources: 42,000/yr - main job
4,200/yr - i get a 10% bonus of base pay every year,this can vary, but most likely it will remain 10% for the next 3 or so years, if anything it may go up
~~up to another 50,000/yr - main job.
My work includes gobs of OT and DT, and travel with per a diem. So in my last 3 years with this company my yearly incomes have been 52k, 100k, 76k, and this year looks to be around 65k
1,000/yr - youtube, twitch, parked domains, uberish type driving, fixing computers on the side, etc...
12,000/yr - Roommates, i charge flat 500$ no bills, and generally i have 2 people living with me at a time at any point in time
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Expected inheritance: 250k-500k from my father. He is in decent health and still works, age 55. So who knows when i will get that money. It will be raw cash, no IRAs or anything else.
Do not expect to get any other funds at any other person in my life.
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Current Investment setup:401k - 25%
r401k - 15%
After-tax - 0%
(I figured with around 40% i should be hitting the 18k max, i just recently learned of the 42k limit using after-tax)
HSA - 0% (will be looking to enroll in this next year, seems easy enought to max)
ESPP - 15%, of standard working hours (no OT $) - Basic plan, buying period and ending period, lowest price gets 15% discount and a buy at that price. Can quick sell or hold, no restrictions
rIRA - 5,500/yr
Tax account1 - day/swing trade account - 0/yr
Tax account2 - vanguard - 12,000/yr
Tax account3 - P2P lending - 4,000/yr
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Current account funds:401k - 30,000 (about 50/50 on t401k and r401k)
ESPP - 5,500 (just sold around 26k worth of shares last month, over 50% gains)
Tax account1 - swing/day trade - 8,100 (Account started with 2k about 1 year ago. I think i have done pretty well, do not plan to add more money into this account, just play with what i have)
Tax account2 - Vangaurd - 14,800 (FIAX 90%, and some VIG, VNQ, VXUS)
Tax account3 - LendingClub - 4,100 - 6 months in and adjust returns is at 11.61%, do believe this will go down to around 9%, would be nice if it didn't
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Current expenses: House - 12,000/yr (basically paid for my roommates)
Home ins - 1,200/yr
Land tax - 3,500/yr
Gas(house) - 480/yr
Electrcity - 1,100/yr (that is with solar panels, more than 75% of that is due to fees and taxes)
Water/sewage/trash - 888/yr
Cell/phone - 480/yr (read below)
internet - 1,080/yr (read below)
Healthcare (all) - 520/yr
Car (maint/gas) - 2,500/yr (plan on lower this by 50% due to carpool/biking)
Car ins - 1,200/yr (changing to 650/yr in 3 months)
Groceries - 1,800/yr (attempting to lower this, WHILE lower my eating out cost)
eating out - 500/yr (this was around 3,000 up until 6 months ago)
Clothes, bathroom, cleaning items - <200/yr
Alcohol - 80/yr (everclear and some juice!)
PC games/hardware - 200/yr
Other fun money - 0/yr (i have no life)
Total 27,000~ Hopefully can lower to around 25k within the next 12 months
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Debts:Home - $66,000 @ 3.73%, with 1000/mo payments. The loan is a personal loan with my father. So no tax credit. I paid 180k for it, and it is est to be worth 205k, but i have 40k worth of solar panels on the roof. So around 245k value.
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So some things to point out.
House - Roommates basically cover house payments
Food/eating out - Really will cut back on eating out. New Soylent Bars are from the heavens! Finally! something to fill me up and eat while working 18 hour shifts.
Internet - Need my fiber connection. I host tor nodes for the world and minecraft servers for kids. This is my charity work :) and i love it. I should brag and say that when i signed up and they told me the promotion would last for 1 year, i refused and said to make it last a life time. Proud to say it expires in the year 2114 (ATT)
Cell phone - I host a few friends and family members on a family plan, my share is 40$. Once currect pre-payment is up i will be closing the service and getting a cheap 20/mo plan.
Power - Last item for savings is to use a bit less power. Funny enough i make more power than i use, but due to the way credits work, i end up losing my credits at the end of each year, so when summer rolls around. I have very little credits left.
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edit:
Damn 0s are needed when dealing with maths