-
Help Support Hardline Crawlers :
Retirement
- Thread starter race_jeep
- Start date
John Galbreath Jr.
38 Special & Solo Buggy
- Joined
- May 24, 2007
- Messages
- 8,613
- Reaction score
- 3
Cole said:
Sure there are tax benefits. But there are also tax benefits for having a child. Neither offset the cost.
Hypothetical example. Supose you pay $10,000 in mortgage interest in a year, and the .gov gives you a credit of $2,500. You are still $7,500 poorer than you would have been without a mortgage.
Mortalis5509
Well-Known Member
JohnG said:
Very true. Immagine sticking your house payment in a mutual fund in the upper 30% return rate. Government write offs don't come close to that.
Mortalis5509
Well-Known Member
Cole said:
Vanguard. Upper 30's actually.
If you want I can post the fund names up. I just don't remember off the top of my head.
Mortalis5509
Well-Known Member
Vanguard mutual funds
VCVLX - 1 year is 43.86
Its day to day is consistant. High risk mutual fund
VEXPX - 1 yeas is 44.36
This one can swing a lot. High risk
There are tons of funds on their site. Different risk therefore different returns.
You can look at mutual funds without having an account.
I am not a financial advisor.
VCVLX - 1 year is 43.86
Its day to day is consistant. High risk mutual fund
VEXPX - 1 yeas is 44.36
This one can swing a lot. High risk
There are tons of funds on their site. Different risk therefore different returns.
You can look at mutual funds without having an account.
I am not a financial advisor.
The Luke
Well-Known Member
- Joined
- Dec 12, 2010
- Messages
- 4,255
- Reaction score
- 515
So here we are years later, what's working for everyone? Everyone successfully retired and making dozens of dollars off of bitcoins and Game Stop?
Seriously though, my new job has a pretty awesome 401k match, I'm working on getting it all setup, but it's way over my head. Tier 1? Tier 2? 1% on everything? I've got about 200 options to choose from. Anybody have any insight here?
Seriously though, my new job has a pretty awesome 401k match, I'm working on getting it all setup, but it's way over my head. Tier 1? Tier 2? 1% on everything? I've got about 200 options to choose from. Anybody have any insight here?
Sugar Momma 101...
whiskeymakin
Well-Known Member
Spread about 20% across 5 different funds and never look at it again until you get within 10 years of retirement.
The Luke
Well-Known Member
- Joined
- Dec 12, 2010
- Messages
- 4,255
- Reaction score
- 515
With the way that my parents generation planned for their kids future, pushed for everyone to go to college, take out student loans and had the mentality of "you'll make so much money when you get out of college that you'll pay back your student loans in no time", I don't know that that exists much these days. Outside of family money and drug dealers...
Complete derail/tangent here:
But my first week of college was spent with my engineering professors saying the same line of BS over and over; "The average salary of a new hire right out of college in this field makes $1XX,XXX a year. So the best thing you can do is not work, take out the maximum student loan possible and focus on school. Don't worry if you rack up $100K+ in student loans, that will be a drop in the bucket when you graduate".
I'm sure there are exceptions. But, out of the people I know from my engineering classes, I'm the only one who is working as an actual engineer. And I'm the only one that flunked out. Everyone else graduated and went on to work in a totally different field because that was all they could find.
Last edited:
TBItoy
Well-Known Member
I heard the same spiel about not working during college. DUMB. the real # is ~$45-50k if you live somewhere reasonable. I remember doing a phone interview for some job that was based near San Diego, starting pay was like $76K, I was all excited till I started looking at housing. Then I was like NOPE.
I got a SIMPLE IRA though work (like a 401k) 7% + 3% company match spread on 4 mutual funds. I also try to put a few thousand extra into another TD Ameritrade traditional IRA (working toward putting the max in to get my taxable income down) + a ROTH IRA if I'm not broke.
I got a SIMPLE IRA though work (like a 401k) 7% + 3% company match spread on 4 mutual funds. I also try to put a few thousand extra into another TD Ameritrade traditional IRA (working toward putting the max in to get my taxable income down) + a ROTH IRA if I'm not broke.
The Luke
Well-Known Member
- Joined
- Dec 12, 2010
- Messages
- 4,255
- Reaction score
- 515
We did the same when an Occupational Therapy place in Hawaii offered my wife a job right out of Grad school. High dolla and it could barely cover the living expenses.
That said, in the right profession, these days you can work anywhere and live anywhere else. lol
SkinnyPedalRacing
Well-Known Member
Interesting fact on paying off a house and investing:
Buy a house that you can afford to pay off in 15 years, but get a 30 year loan from the bank.
Example:
House Payment - $1,000 a month for a 30 year loan, $2,000 for 15 year loan
$1,000 to the bank (which covers principle, interest, taxes, and insurance)
$1,000 to investments (this is outside of 401k, 529, IRA, Roth IRA, and general investments)
So a Total of $2,000 a month
Over 30 years, that $1,000 a month into investments can turn into a large number. Use a investment calculator and you can come out with $700,000 + (depends on what you can pay and 8% average return or better). The lower interest rate saving on a 15 year loan is nothing compared to the amount of money this can produce. Ran the numbers of doing a 15 year loan and then investing the entire amount into investements after paying off a 15 year mortgage, and I came up short by $100,000's of dollars. Long and steady wins this race vs shorter and a lot of money.
Buy a house that you can afford to pay off in 15 years, but get a 30 year loan from the bank.
Example:
House Payment - $1,000 a month for a 30 year loan, $2,000 for 15 year loan
$1,000 to the bank (which covers principle, interest, taxes, and insurance)
$1,000 to investments (this is outside of 401k, 529, IRA, Roth IRA, and general investments)
So a Total of $2,000 a month
Over 30 years, that $1,000 a month into investments can turn into a large number. Use a investment calculator and you can come out with $700,000 + (depends on what you can pay and 8% average return or better). The lower interest rate saving on a 15 year loan is nothing compared to the amount of money this can produce. Ran the numbers of doing a 15 year loan and then investing the entire amount into investements after paying off a 15 year mortgage, and I came up short by $100,000's of dollars. Long and steady wins this race vs shorter and a lot of money.
extremetownie
Well-Known Member
- Joined
- Apr 7, 2009
- Messages
- 707
- Reaction score
- 199
I would be very interested in some guaranteed 8% or better.
Jduck
Well-Known Member
That sounds good but a 15yr Mortgage payment isn't double a 30yr. So in reality you'd only have 3-400 a month to invest in that 1000 payment example
Last edited:
Well we have have a 401 from my former employer. My working career was cut short in 2015 because of a cyst in the back of my scull that can not be removed because it is attach to my brain stem. So the work put me put me on medical disability until I could get on disability (took over a year and had to get a lawyer to get it). Luckily the company I was working for came around about 6 mounts before I started showing systems with an addition insurance police that you get get (pay for of course). The wife talked me in to buying it. So now between the insurance disability, social medical disability and the extra medical insurance payment (they were pissed when I went got it) i am bringing home almost as much as I did when before all this happen. We have not touch our 401. And I join it as soon as they offer it. And I put in over what they matched. We were (are) in it for over 28 years with the company and still in it as of right now. We have a nice little tidied some. No plans on touching it until we have to. The still works. She was talking about working until she is 70 (she is 61 right now, I turn 60 in April). But I think I have her talked in retiring early. LOL
Working get everything setup so we can do some traveling while we are still able.
Working get everything setup so we can do some traveling while we are still able.
My route was slightly different. I am "retired" at 52. I have two pensions (military and law enforcement) and both my wife and I are covered with medical insurance (Tricare) for $300 a year. I don't have to work if I don't want to but that isn't my style. I started my own LLC and I teach firearms and tactics to civilians and LEO. I make my own schedule and I am my own boss. We are comfortable and we don't spend beyond our means. We are fortunate but I sacrificed on the front end and I am now able to reap those benefits on the back end.
As a guy who was told that, and came out of college making $72k a year in 2011, with 130k in student loan debt, **** that professor, and **** that. I couldn't be making less than $70k or else I wouldn't have enough money to pay rent in a MCOL area after my student loan payments went out. Similar to your class, I'm one of the lucky ones who found a decent job when I graduated, many of my friends did not.
Student loan debt sucks giant donkey balls, but it's still better than trading getting shot at in the military.
