Author Topic: Case study: Just reached $100K net worth this morning!  (Read 2541 times)

EastbayRN

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Case study: Just reached $100K net worth this morning!
« on: October 26, 2015, 01:03:17 PM »
Reader Case Study

Life Situation: 32F; 33M (not married) SF bay area

Gross Salary/Wages: $100k/year total: Her $80K; Him $15K(full time student; income from grant/scholarships and work study job) Her side hustle $5k year

Pre-tax deductions: no 401K available at her job; Her Traditional IRA and HSA

Taxes: Her 25% federal tax, 6% state; His income is not taxed? (grants, scholarships, work study)

Current expenses: ~$2K/month (~$25K/year)

Rent $880
Utilities $25 (we pay water only)
Health insurance $250
Groceries $400
Transit $75
Internet/home phone $55
Cell phone $12
Restaurants $50
Netflix $8
Pets $50
Dental insurance/co-pays $25
Misc. $150 (school supplies, beer, etc)

Liabilities: None; Her student loans paid off in 2014, he has full scholarship

Assets:
Local credit union $5K
Barclays online savings 1% int. $25K
CD $10K (3% Penfed 5 Year)
HSA $3350 (HSA Admin)
Vanguard: Her Traditional IRA ~$17K (VG Target Retirement 2045 Fund)
      Her Taxable (VTSAX) $41K

-Take home pay is about $6K/month, we spend $2K and save/invest $4K

1. Can he open an IRA? Only earned income is work study.
2. Any other tax advantaged account opportunities?
3. I should have tax loss harvested. I guess I missed the opportunity for now...
« Last Edit: October 26, 2015, 01:23:31 PM by wwaallddoo »

Million2000

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Re: Case study: Just reached $100K net worth this morning!
« Reply #1 on: October 26, 2015, 01:14:20 PM »
Congrats! This is my current financial goal. My wife and I are a couple months from hitting the 100k mark.

Gin1984

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Re: Case study: Just reached $100K net worth this morning!
« Reply #2 on: October 26, 2015, 01:19:06 PM »
Work study is taxable income or at least it was in 2009 at my school.  Do you get a paycheck? 
Also, can she open a i401k for her side hustle?

Landlord2015

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Re: Case study: Just reached $100K net worth this morning!
« Reply #3 on: October 30, 2015, 12:45:53 PM »
Amazing income none of my friends have that except one multimillionaire entrepreneur.

That said why do you live on rent? Would it not be time to buy an apartment? Do not make a mistake it does not mean some super millionaire apartment instead buy an ok, but decent first home.

Emergency fund look at David Ramsey baby steps youtube video that is fairly good advice well at least most of it.
« Last Edit: November 01, 2015, 02:15:22 AM by Landlord2015 »

 

Wow, a phone plan for fifteen bucks!