Author Topic: Advice for future  (Read 1439 times)


  • 5 O'Clock Shadow
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  • Posts: 6
Advice for future
« on: May 08, 2019, 08:17:47 AM »
Hi all. Id like a few pointers on how to better my situation First of i will explain my situation so it could be understood.  Im currently 30 years old and this is my current investment situation

1. I have over 6 months salary in the bank
2. I contribute 10% into my company 401k which matches me 6%
3. I am currently maxing out my roth ira.
4. I have a 529 established for my childs education
5. I am still saving plenty into the bank.
6. I am not paying a ton into my mortgage because of my relationship ( if we get married we will move into her house which will be payed off in 3 years)
My current mortgage i owe 130k left on it. It is a 30 year loan and im 8 years into it. I currently shaved off 9 years off of it.
7. I no longer invest into a HSA due to my company putting into it every paycheck now.
8. The only note i have is a house note.

SO for all the wizards out there how can i continue to better myself to set up for Retirement?


  • Handlebar Stache
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Re: Advice for future
« Reply #1 on: May 08, 2019, 08:26:17 AM »
It sounds like you have the ability to save a lot of money, but you need to consider how to deploy it.

1. Six months salary in the bank is probably too big for an emergency fund.  You should base your EF on spending, not salary, and even then, six months seems like a lot unless you live with a lot of uncertainty.
2.  If your 401k has good options (low cost index funds for example), you should use this as your primary retirement savings vehicle.
3.  Why a roth IRA?  Is your income particularly high or low?  Check out the "Investment Order" sticky.  Roths are not usually great for people seeking early retirement.
4.  I would max out retirement savings before investing in a 529.  The tax benefits are pretty limited and you can borrow for education, but not for retirement.
5.  Why wouldn't you save to investments?  The bank is not an ideal location for your money!
6.  This seems like a good plan.  Many people will eloquently point out that paying down your mortgage early is not optimal.
7.  Could you clarify this?  HSA's are really good investment options, because they're accessible pretty early on and have a specific utility.
8.  GOOD!


  • 5 O'Clock Shadow
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  • Posts: 6
Re: Advice for future
« Reply #2 on: May 08, 2019, 08:32:15 AM »
2. The options are extremely limited you can only get into aggressive, non aggressive or moderate. I rolled my last 401k into a vangaurd fund which has been doing great due to the lower fees, etc.
3. I was just brain washed to do this i suppose lol
5. Just need to learn more
7. My company pays 100% health premiums and also puts into a HSA fund for us that way we dont have to pay our deductible, health cost out of our own pocket, So if i have x amount of good years with no health problems this money continues to grow.


  • Handlebar Stache
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  • Age: 57
  • Location: Ann Arbor, Michigan
Re: Advice for future
« Reply #3 on: May 08, 2019, 09:40:45 AM »
Would you be better off with a traditional IRA rather than a Roth ?

Can you max out your 401k contribution?

Can you find out if your company allows after-tax contributions to the 401k which can be rolled over into a 401k Roth?

Are you filing proper tax status?  Are you single or head of household ?

Are you investing in index funds in the 401k rather than expensive actively managed funds ?


  • Walrus Stache
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  • Location: A poor and backward Southern state known as minimum wage country
Re: Advice for future
« Reply #4 on: May 10, 2019, 09:12:02 PM »
Good job on having emergency savings, avoiding consumer debt, and getting your 401k match. You are already among the elites, sadly.

Your next goal is to max out your 401k ($19,000 in 2019). Just FIND A WAY. This offers a somewhat instant double-digit return because you avoid taxes. E.g. if you are in the 22% tax bracket, you will defer payment of over $4k in taxes EACH YEAR, and instead that $4k will sit and compound in your account. 

In the meantime, analyze whether a roth or traditional IRA is ideal for your situation and max it out too. Roths make the most sense for young people with low-to-average earnings in low tax brackets who might need to access the cash for a down payment or something. Traditional makes more sense for higher earners who will be in a lower bracket after they retire. CAUTION: The combined limit for Roth + Traditional is $6,000, but your income may limit whether your traditional IRA contribution is deductible! If you realize this at tax time the following year like I did, it is a PITA to fix. See: Consider investing your Roth or Traditional IRA contribution in a taxable account until you can identify your limit for the year.

Once you have these settings in place, pivot your focus to increasing earnings. Pick up certifications, take night classes, do online code camps, join a Toastmasters club, and take wild shots at higher paying jobs.