Hi all,
I have recently started reading MMM and am looking for some further advice. There is so much information on his blog it is a little overwhelming for me. I still don't quite understand all the terminology but here is what I do know. A year ago in October I invested in Edward Jones and maxed out my ROTH for 2014, and have done the same for 2015. In the spring of 2015 my employer started matching 3% into a 401k so I also have a simple IRA with Edward Jones and my employer.
Life Situation: 26 years old, single, with a girlfriend that will be future wife.
Goal:
-To save, retire from full time work in next 10 years so that I can afford to work just a few days a week doing hands work with skills that I have.
-Possibly start a family in next 3 years. (2 kids) I am a workaholic and I love to work. I work 7 days a week on a dairy farm but salary pay and minimal free time makes it hard to make extra cash.
-Benefits of working on a farm is housing and being able to raise a family as you work.
Gross Salary/Wages: $46,800 annually, $900/week
I have a 401k, work puts in 3%.
Roth IRA: $10,400 - Max it at $5,500 each year ($458.33/month)
Simple IRA: $4,300 - I believe $454 a month goes into that from my pay check.
Savings in bank: $11,500
Taxes that come out of check: After taxes and SIMPLE IRA check goes from $900 to $559.33
Current expenses: Monthly:
Health Insurance - 230 (Cheapest I could find, $7,000 deductible.)
Auto Insurance - 67 (paid in full, broke down to 12 months)
Dog Food - 50
Internet -25
Electric - 80
Cell Phone - 60
Gas - ~160
Eating out - 200
Misc - No more than 200
Total - $1072
No rent or mortgage. Employer gives us housing.
No debt - Just recently paid off college loans.
Material Assets: $31,350
A mixture of 3 older trucks (work truck, pleasure truck, and sentimental truck), dirtbike, 4 wheeler, car trailer, enclosed trailer, guns and ammo, tools, furniture and appliance. I have alot of "stuff" but it is all kept in good condition. I have a hard time selling anything once I have it. Have always lived by the motto, "If I cant pay for it cash, I cant afford it" Only debt I have ever had was college loans.
Specific Question(s):
1. How much money should I set for a budget to be saving 75% of my pay?
-What confuses me is the pre-tax money like my 401K
2. Are there any other investments I could be making with the cash that I have in hand?
-I'm assuming I should keep enough cash for my heath insurance deductible at all times?
3. I recently read that Edward Jones is not a good move. I did this because my grandparents recommended it because they had good success doing it in the past years. My guy seems pretty trustworthy, but who knows?
4. Any other advice?
Thank you!!