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The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Financial Goals 2016: Saving for babby's first SA account
 
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BEHOLD: MY CAPE
Jan 11, 2004

pig slut lisa posted:

Exciting and terrifying. Good luck!

I'd say extremely terrifying to gamble my sweat into startup equity while earning just north of minimum wage but that's just me

* # ¿ Feb 27, 2016 21:34
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# ¿ May 3, 2024 12:12
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BEHOLD: MY CAPE
Jan 11, 2004

overdesigned posted:

Kind of early April update, since I'm bored and know what my next paycheck will be on Friday:

1) Hit this goal last month, haven't had to use it, still sitting at 10k.
2) Now contributing $950/month! So, kinda achieved--I won't hit the 18k/year limit at this rate though. Probably should redefine that as a stretch goal.
3) Debt paydown increased, now paying down at $1500/month. Should be paid off in September at this rate. Balance after this payment will be $5600.
4) Sent $1k to the photographer, savings now sitting at $500. Basically adjusting this to "have $4k sitting around by end of year" since I sent off that $1k.

Unsolicited advice but IMO it is a mistake on several levels to pay off a 3% loan faster than required if you are not maxing out your 401k contributions.

* # ¿ Apr 27, 2016 01:10
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BEHOLD: MY CAPE
Jan 11, 2004

Moneyball posted:

I wouldn't say it's that drastic. It's certainly a less efficient thing to do with your money, but the security or even relief of not having debt anymore can be huge.

It's like the snowball vs avalanche debt repayment. Sure, a hypothetical $5,000 at 7% is a bigger problem than $500 at %4, but being able to obliterate the entire second debt is a psychological motivator.


This is a good example.



I'm currently paying my 6.8% student loans rather than funding my IRA and 401k and I'm not that concerned about missing out on tax advantaged space. Although I might be a complete hypocrite and start funding those once I'm left with just loans at 3.5%

Losing your job with outstanding debt is actually a good example of why saving money with strong legal protections against creditors is usually better than paying off low interest debt. While you cannot eat paid off loans, you may be able to take loans against or withdraw principal from 401k and IRAs to fund your living expenses if you lose your job and exhaust your emergency fund, have a medical emergency, become disabled, have a disastrous expense at your home, are sued, etc etc. If the poo poo really hit the fan and you had to declare bankruptcy or creditors sought judgements against you, retirement accounts are heavily protected. This is entirely ignoring the enormous tax, estate planning, and of course investment return advantages of holding a diversified portfolio in a retirement accounts versus paying off a 3% loan.

* # ¿ Apr 27, 2016 21:10
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The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Financial Goals 2016: Saving for babby's first SA account