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Thanks to Slap Me Silly's prompting, I'm back to thinking about goals and what to do with our money. Goals for 2015 1) Get through our wedding in May without taking on debt (~$3,000 left to spend) 2) Pay off the new wife's new to us car (~$15,000 left to pay) 3) Start saving for retirement again #3 is going to be the tough one to figure out. I currently have just shy of $200,000 in my 401k. I'm on the fence one whether I want to start maxing the 401k out again or use that money to purchase a rental home. We'd be treating the rental home as a retirement investment meaning that profits from it would be going directly into an IRA but contributing to a 401k is just so much easier and less scary. Thankfully we have a bit of time to figure it out but for some reason the idea of being a landlord really appeals to me.
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Dec 14, 2014 14:12
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| # ¿ May 10, 2024 10:41 |
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slap me silly posted:A single rental house is a high-risk investment, and if it's part of your retirement portfolio it could really reduce your diversification. There are a lot of ways you could set this up, what approach are you eyeing? Purchase it inside or outside of the retirement account? Contribute how much to the retirement accounts otherwise? Etc. In other words, what are the compromises you'd be making? My thinking is that I hold off on contributing to the 401k until I have saved enough for a 20%-30% down payment. Once I have purchased the rental home, I would want to save $5,000-$10,000 as an emergency fund specifically for the home. This would likely come from a combination of profits from the rental and money that would otherwise be contributed to the 401k. Once I have the house along with the house's emergency fund I would max out the 401k contributions again. Any profits from the rental home would then get dumped back into the mortgage on the home to get it paid off as quickly as possible. Then, once the mortgage is paid off any profit would be used to either save up for another property or put into a retirement account. Our current nest egg isn't going to be touched for this venture. We would just be holding off on further contributions until the rental home is up and running. edit: We'd be looking at a 401k contribution pause of 2 years or so.
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Dec 14, 2014 20:16
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TouchyMcFeely posted:Goals for 2015 Done and done. We made the last transfer to the "Wedding Account" and will have paid for our getting hitched completely in cash. It's really strange to think we'll have paid a little over $15,000 when it's all said and done and not a penny was borrowed to make it happen. Now it's time to focus on paying off the car and getting the emergency fund moving again. Woohoo for progress!
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Mar 12, 2015 23:51
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Update time! Goals for 2015 1) Get through our wedding in May without taking on debt (~$3,000 left to spend) - Done and done. We spent $23,000 on our wedding, paid all in cash. Friggin' awesome! 2) Pay off the new wife's new to us car (~$15,000 left to pay) - Not even close. We're making the regular payments on it so there's no problem but we're not going to have it paid off this year. 3) Start saving for retirement again - Nearing completion. Started contributing to the 401k up to my employers match but we're also in the process (and hope to have the keys by the end of December) the purchase of our first rental property. Really excited (and terrified) to be doing this.
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Nov 30, 2015 01:54
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rrrrrrrrrrrt posted:Not done, unfortunately. Partially because I did a bad job of saving money, but also because I pivoted towards the end of the year and decided to pay off the $2500 remaining on my student loan. On top of that I did get two raises this year, one from my previous company and another from switching jobs. Sounds like you nailed it pretty hard. There's nothing wrong with adjusting your goals as things progress, especially the switch was as minor as saving money vs paying a debt off. Hell, depending how you look at it, it's essentially the same thing. Additionally, don't discount getting 2 raises in the same year. In a time where people can go years without seeing any increase in pay, nailing the raise twice is pretty figgin' schweet. Good job and here's to a prosperous 2016.
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Dec 22, 2015 21:40
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| # ¿ May 10, 2024 10:41 |
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slap me silly posted:I like! Anyone who wants this and feels they deserve it, post in here with I like it and I'll take it! http://forums.somethingawful.com/showthread.php?threadid=3687865&userid=0&perpage=40&pagenumber=10#post453285404
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Dec 23, 2015 04:13
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