NT: Official Personal Finances Thread

[al audi]

So, for almost two years I have been contributing about 18% of every paycheck to my 401k. My employer matches 5% total which is 100% for the first 3% and 50% for the remaining 2%. My question is, should I keep contributing or should I contribute enough for the employer match and put the difference in a Roth IRA?

Damn bro, good for you.

 

[lilchico4life]

Checking in. Happy to see my fellow NTer's trying to better themselves




"Do not save what is left after spending, but spend what is left after saving." -Warren Buffett.

 

[solefed]

"Do not save what is left after spending, but spend what is left after saving." -Warren Buffett.

[emoji]128175[/emoji]

 

[crcballer55]

 

So, for almost two years I have been contributing about 18% of every paycheck to my 401k. My employer matches 5% total which is 100% for the first 3% and 50% for the remaining 2%. My question is, should I keep contributing or should I contribute enough for the employer match and put the difference in a Roth IRA?

The second. Contribute to the employer match, then max out the Roth IRA, then go back to the 401k. The employer match is basically free money which is an automatic 100% and 50% ROI respectively. Then the Roth IRA will be a better choice for the rest because the money will grow tax free which will allow it to grow even more.

Almost forgot to mention too that a Roth IRA isn't just good because of the tax free returns but because you have more investment options too. Your 401k provider will only let you invest in a handful of options so the general public doesn't get overwhelmed by everything and just not do it. With a Roth IRA, you can start it wherever you want and have a virtually unlimited amount of options to choose from.

 

[JL415]

Whats the early withdrawl penalty for a roth?

 

[based mod]

No penalty for your contributions. Think same rules apply for whatever returns you get

 

[pdino]

No penalty for your contributions. Think same rules apply for whatever returns you get

Just to help clarify for some of the newbies..

Ex. You put 1000$ into your ROTH, your ROTH made 200$, so you have 1200$ total. You can withdraw the 1000$ you contributed, but not the 200$ that it earned (without penalty, with a few exceptions)

 

[JL415]

So lets say an employer matches $100 of my $100 for $200 total. And the return on the roth made me is $20 for a total of $220. The $200 is what i can withdraw anytime penalty free?

 

[sneaksoy]

So lets say an employer matches $100 of my $100 for $200 total. And the return on the roth made me is $20 for a total of $220. The $200 is what i can withdraw anytime penalty free?

Your employer would not be contributing to your Roth IRA.

Employers contribute to a 401(k) which I think has certain penalties for any withdrawals, but I'm pretty sure you can take loans against a 401(k) if necessary

 

[friscostylez]

my company doesn't have a 401k program so i never bother to do anything related on my own. but i told myself i would open a retirement savings this year. any advice? i think i would start out putting ~10% of my take-home a month. thanks

 

[QU!K]

Anyone read I'll teach you how to be rich?

 

[crcballer55]

So lets say an employer matches $100 of my $100 for $200 total. And the return on the roth made me is $20 for a total of $220. The $200 is what i can withdraw anytime penalty free?

No. Your employer won't contribute to a Roth IRA. An IRA is an INDIVIDUAL retirement arrangement which means it's up to you to set up. Your employer will set up a 401k plan. Even if you are able to do a roth 401k, you'll only be able to withdraw what you contributed, which would be $100. Either way, it's not a good idea since you're unplugging that money from the market and negating the potential growth it would be earning.

 

[munchmaquchi]

NTPF fam, I deposit half of my monthly salary into my savings account. I currently have ~$100k sitting there.

Where can I park this to generate some kind of return? Market uncertainty has me very hesitant.

Thanks.

 

[al audi]

NTPF fam, I deposit half of my monthly salary into my savings account. I currently have ~$100k sitting there.

Where can I park this to generate some kind of return? Market uncertainty has me very hesitant.

Thanks.

i have a traducing account but done nothing with it yet...................i feel the same

i was thinking of something that will just generate cash flow...........instead

like luxury port o potties srs yes srs

 

[crcballer55]

 
NTPF fam, I deposit half of my monthly salary into my savings account. I currently have ~$100k sitting there.

Where can I park this to generate some kind of return? Market uncertainty has me very hesitant.

Thanks.

Real Estate.

We work with a company that allows you to invest in properties they've identified in high yield areas that give good double digit returns. The properties are pretty cheap too.

 

[based mod]

NTPF fam, I deposit half of my monthly salary into my savings account. I currently have ~$100k sitting there.

Where can I park this to generate some kind of return? Market uncertainty has me very hesitant.

Thanks.

Jesus dude, that's a lot of dough to have sitting not doing much.

I'm of the belief that you, especially if you're planning on letting it sit a few years/decades and not daytrading, should invest in stocks regardless of current volatility. The long-term trend is always up. Mix in some "safe" investments with bonds, and stash whatever you need for emergencies.

Look up "lazy portfolios" and go with something you're comfortable with.

 

[capital sb]

Jesus dude, that's a lot of dough to have sitting not doing much.

I'm of the belief that you, especially if you're planning on letting it sit a few years/decades and not daytrading, should invest in stocks regardless of current volatility. The long-term trend is always up. Mix in some "safe" investments with bonds, and stash whatever you need for emergencies.

Look up "lazy portfolios" and go with something you're comfortable with.

Agreed, either do a lazy portfolio or RE. Hell do a mix of both.

 

[jay are]

Real Estate.

We work with a company that allows you to invest in properties they've identified in high yield areas that give good double digit returns. The properties are pretty cheap too.

Which real estate company is this?

 

[lilchico4life]

NTPF fam, I deposit half of my monthly salary into my savings account. I currently have ~$100k sitting there.

Where can I park this to generate some kind of return? Market uncertainty has me very hesitant.

Thanks.

Real Estate would be one of your safest bets. I'd personally purchase 7-10 rental properties using leverage. Hire a property management company and let them manage them. Rental income would pay for the mortgages.

 

[Xennial]

7-10 properties with only $100k? 

Real Estate would be one of your safest bets. I'd personally purchase 7-10 rental properties using leverage. Hire a property management company and let them manage them. Rental income would pay for the mortgages.

 

[based mod]

You can probably buy 7-10 shacks in India for $100k.

Managing that many properties sounds like a full-time job in itself.

 

[lilchico4life]

7-10 properties with only $100k? 

Real Estate would be one of your safest bets. I'd personally purchase 7-10 rental properties using leverage. Hire a property management company and let them manage them. Rental income would pay for the mortgages.

Yes, using leverage. Depending on where you live of course. I've purchased 8 rentals in the past 2 years and have not paid more than $12,000 as a down payment and closing costs.

 

[sole searchin]

Real Estate.

We work with a company that allows you to invest in properties they've identified in high yield areas that give good double digit returns. The properties are pretty cheap too.

details on said RE company?

 

[peep the kicks]

So I have an old 401k from a previous job. Is it better to let it sit there or roll over to an IRA?

 

[jay are]

Yes, using leverage. Depending on where you live of course. I've purchased 8 rentals in the past 2 years and have not paid more than $12,000 as a down payment and closing costs.

Ive been meaning to ask you do you have your RE license? How much are the properties you tend to look for?