Men Over 30
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[quote name='mykevermin']More or less, yeah. A combo of incredulity because we thought we'd be young and healthy forever, as well as the damning realization that we are, in fact, mortal beings.[/QUOTE]
Is it annoying to realize that you do age just like everyone else. I am only 28 right now, be 29 this year but, I can already tell a big difference from now and five years ago. I still hit the gym but don't have the same energy level that I use to, and some people have mentioned earlier about drinking beer. I am fine with one or two where I use to remember drinking a six-pack and that was an average night in or something.
Is it annoying to realize that you do age just like everyone else. I am only 28 right now, be 29 this year but, I can already tell a big difference from now and five years ago. I still hit the gym but don't have the same energy level that I use to, and some people have mentioned earlier about drinking beer. I am fine with one or two where I use to remember drinking a six-pack and that was an average night in or something.
one really interesting thing I've noticed is how dating politics changes. Used to be hey you're hot, you're hot, let's 
, ok. Now it's hey nice 401(k)... I seem to be stuck dating 25-28 year olds who haven't quite made that turn in life quite yet so it's like bangin teenagers or something. Kind of ridiculous after awhile.
, ok. Now it's hey nice 401(k)... I seem to be stuck dating 25-28 year olds who haven't quite made that turn in life quite yet so it's like bangin teenagers or something. Kind of ridiculous after awhile.
[quote name='nasum']one really interesting thing I've noticed is how dating politics changes. Used to be hey you're hot, you're hot, let's , ok. Now it's hey nice 401(k)... I seem to be stuck dating 25-28 year olds who haven't quite made that turn in life quite yet so it's like bangin teenagers or something. Kind of ridiculous after awhile.[/QUOTE]
You'd be surprised at the number of people
, ok. Now it's hey nice 401(k)... I seem to be stuck dating 25-28 year olds who haven't quite made that turn in life quite yet so it's like bangin teenagers or something. Kind of ridiculous after awhile.[/QUOTE]You'd be surprised at the number of people
joey791
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[quote name='mykevermin']More or less, yeah. A combo of incredulity because we thought we'd be young and healthy forever, as well as the damning realization that we are, in fact, mortal beings.[/QUOTE]
Yeah, you run around telling the "old" guys THERE CAN BE ONLY ONE and next thing you know your 35 and someones cut off your head.
Yeah, you run around telling the "old" guys THERE CAN BE ONLY ONE and next thing you know your 35 and someones cut off your head.
juanawoman
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Does it happen RIGHT when you turn 30?
[quote name='juanawoman']Does it happen RIGHT when you turn 30?[/QUOTE]
The physical parts? No. That's a slow process that I started noticing probably from my mid 20's on in terms of having less energy etc.
The mental part? Kind of in the sense that turning 30 is a benchmark and kind of gets you thinking about where you're at in life, what you want in life etc.
For me it was compounded by the fact that I was in my last year of grad school and making decisions about what job to take etc. right around my 30th birthday. So I had both the hitting the big 3-0 bench mark and finally entering the real, working world happening around the same time.
The physical parts? No. That's a slow process that I started noticing probably from my mid 20's on in terms of having less energy etc.
The mental part? Kind of in the sense that turning 30 is a benchmark and kind of gets you thinking about where you're at in life, what you want in life etc.
For me it was compounded by the fact that I was in my last year of grad school and making decisions about what job to take etc. right around my 30th birthday. So I had both the hitting the big 3-0 bench mark and finally entering the real, working world happening around the same time.
[quote name='dmaul1114']The physical parts? No. That's a slow process that I started noticing probably from my mid 20's on in terms of having less energy etc.
The mental part? Kind of in the sense that turning 30 is a benchmark and kind of gets you thinking about where you're at in life, what you want in life etc.
For me it was compounded by the fact that I was in my last year of grad school and making decisions about what job to take etc. right around my 30th birthday. So I had both the hitting the big 3-0 bench mark and finally entering the real, working world happening around the same time.[/QUOTE]
Up until I was around 32-33, everybody thought I was in my early 20s. My friend's brother made a comment tonight that I "looked older." I took it as a compliment.
[quote name='mtxbass1']You'd be surprised at the number of people
The mental part? Kind of in the sense that turning 30 is a benchmark and kind of gets you thinking about where you're at in life, what you want in life etc.
For me it was compounded by the fact that I was in my last year of grad school and making decisions about what job to take etc. right around my 30th birthday. So I had both the hitting the big 3-0 bench mark and finally entering the real, working world happening around the same time.[/QUOTE]
Up until I was around 32-33, everybody thought I was in my early 20s. My friend's brother made a comment tonight that I "looked older." I took it as a compliment.
[quote name='mtxbass1']You'd be surprised at the number of people
[quote name='2DMention']
I think I was around 30 when I started contributing to a 401k. My friend just started contributing this year. It doesn't really matter anyway, because our generation will probably work well into our 70s.[/QUOTE]
70? No thanks. I plan on being done by 60, if not even sooner. I'm tired of working already as is.
I think I was around 30 when I started contributing to a 401k. My friend just started contributing this year. It doesn't really matter anyway, because our generation will probably work well into our 70s.[/QUOTE]
70? No thanks. I plan on being done by 60, if not even sooner. I'm tired of working already as is.
[quote name='mtxbass1']70? No thanks. I plan on being done by 60, if not even sooner. I'm tired of working already as is.[/QUOTE]
I'f you've got a plan I'd love to hear it. I've been contributing 15% to my 401k since the day I got out of college and if you do the math it means I'll never be able to retire.
I'f you've got a plan I'd love to hear it. I've been contributing 15% to my 401k since the day I got out of college and if you do the math it means I'll never be able to retire.
[quote name='2DMention']Up until I was around 32-33, everybody thought I was in my early 20s. My friend's brother made a comment tonight that I "looked older." I took it as a compliment. [/quote]
Yeah, I still look younger than my age, so most people are suprised to hear I'm 32. Most assume I'm in my mid to later 20's. Not a bad thing at all though!
29 for me. My last year of grad school I worked as a faculty research assistant and that had a retirement plan--and I went with the higher education version of a 401K (for get what the name of it is--but pretty much the same thing).
And of course I have a good retirment plan now that I'm a prof. I have to contribute 5% of my paycheck to it (can't go up or down) and the employer contribution is currently 9.42% of my paycheck--so it's a damn nice plan with the near 200% "match."
[quote name='mtxbass1']70? No thanks. I plan on being done by 60, if not even sooner. I'm tired of working already as is.[/QUOTE]
I'd love to, but having gone the Ph D to academia route and having not started working full time until age 30 and graduating with $54K in student loan debt, it will be hard to retire earlier than probably 65 or so.
Of course, the job isn't that hard and by the time I'm a 60 year old full prof I could just be cruzing and teaching classes I've taught a gazillion times by that point and not doing much research and thus not logging all that many hours relative to now anyway.
That said, I don't want any kids as I've noted. So that cuts out a ton of expenses and will make it easy to retire early. Hopefully I can have the student loan debt gone in 10 years or less. I pay extra on it and will pay a lot more on it once I get my damn car paid off--focusing on that first as the interest rate is twice as high. Still owe around $8K on that. Going to pay an extra grand on it this month when I get a $6K consulting pay check, and probably another extra grand when I get my tax refund.
[quote name='javeryh']I'f you've got a plan I'd love to hear it. I've been contributing 15% to my 401k since the day I got out of college and if you do the math it means I'll never be able to retire.[/QUOTE]
Are your numbers based on retiring and staying in the NYC area? That's a tough thing to do with a couple of kids to pay for between now and then as well.
The math may look better if you calculate it with the goal of retiring and moving somewhere cheapear--and thus add the money you could expect to get from selling your house in 30 years or whatever added into your retirement pot.
Yeah, I still look younger than my age, so most people are suprised to hear I'm 32. Most assume I'm in my mid to later 20's. Not a bad thing at all though!
29 for me. My last year of grad school I worked as a faculty research assistant and that had a retirement plan--and I went with the higher education version of a 401K (for get what the name of it is--but pretty much the same thing).
And of course I have a good retirment plan now that I'm a prof. I have to contribute 5% of my paycheck to it (can't go up or down) and the employer contribution is currently 9.42% of my paycheck--so it's a damn nice plan with the near 200% "match."
[quote name='mtxbass1']70? No thanks. I plan on being done by 60, if not even sooner. I'm tired of working already as is.[/QUOTE]
I'd love to, but having gone the Ph D to academia route and having not started working full time until age 30 and graduating with $54K in student loan debt, it will be hard to retire earlier than probably 65 or so.
Of course, the job isn't that hard and by the time I'm a 60 year old full prof I could just be cruzing and teaching classes I've taught a gazillion times by that point and not doing much research and thus not logging all that many hours relative to now anyway.
That said, I don't want any kids as I've noted. So that cuts out a ton of expenses and will make it easy to retire early. Hopefully I can have the student loan debt gone in 10 years or less. I pay extra on it and will pay a lot more on it once I get my damn car paid off--focusing on that first as the interest rate is twice as high. Still owe around $8K on that. Going to pay an extra grand on it this month when I get a $6K consulting pay check, and probably another extra grand when I get my tax refund.
[quote name='javeryh']I'f you've got a plan I'd love to hear it. I've been contributing 15% to my 401k since the day I got out of college and if you do the math it means I'll never be able to retire.[/QUOTE]
Are your numbers based on retiring and staying in the NYC area? That's a tough thing to do with a couple of kids to pay for between now and then as well.
The math may look better if you calculate it with the goal of retiring and moving somewhere cheapear--and thus add the money you could expect to get from selling your house in 30 years or whatever added into your retirement pot.
[quote name='javeryh']I'f you've got a plan I'd love to hear it. I've been contributing 15% to my 401k since the day I got out of college and if you do the math it means I'll never be able to retire.[/QUOTE]
My plan is probably no better than anyone else, but it's working fine for me so far. I'm doing the following.
Maxing out my 401k each year.
Maxing out my IRA each year.
Save 20% of my income.
I take what is left, and I live off of it. That leaves me with more than enough money to pay my bills, etc. I carry some student loan debt and my mortgage of course, but I'm working on throwing every cent I have left over at those when I can. I'm about 2 years ahead of repayment on one student loan and I paid off another student loan 17 years early.
Is this a foolproof plan? No way. I do imagine that it puts me in a better position than most people our age though...
My plan is probably no better than anyone else, but it's working fine for me so far. I'm doing the following.
Maxing out my 401k each year.
Maxing out my IRA each year.
Save 20% of my income.
I take what is left, and I live off of it. That leaves me with more than enough money to pay my bills, etc. I carry some student loan debt and my mortgage of course, but I'm working on throwing every cent I have left over at those when I can. I'm about 2 years ahead of repayment on one student loan and I paid off another student loan 17 years early.
Is this a foolproof plan? No way. I do imagine that it puts me in a better position than most people our age though...
slowdive21
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401k is for suckers. I would only recommend investing in it if you are already vested in a company. (Trust me, I was let go 1 month before I was vested...my 3rd year) I lost 5% company match as well as Profit sharing. Overall I lost about $10,000 that should have been in my 401K. It depends on how you use your 401K, but for me it is not worth it. My parents lost nearly $150,000 due to the last crash. I am going with high rate CDs, savings (to keep some money liquid), and buying property.
To the people with student loans, you should probably pay those last since they have one of the lowest interest rates you can get on a loan. Pay down your high interest debt first. If your mortgage allows it apply your payments to the principle instead of the interest. (I don't have one, so I am not sure if mortgage loans still work like that. That advice is from my parents).
To the people with student loans, you should probably pay those last since they have one of the lowest interest rates you can get on a loan. Pay down your high interest debt first. If your mortgage allows it apply your payments to the principle instead of the interest. (I don't have one, so I am not sure if mortgage loans still work like that. That advice is from my parents).
Yeah, that's the good thing about the higher ed version of the 401(k). There's no vesting.
I was able to roll over 100% of the money from the plan I had during my last year of grad school from the faculty researcher position into my current one at the university that I work at now, and could subsequently roll this 100% over if I go to another university etc. Could get trickier if I leave higher ed as I'm not sure you can roll 100% over into a 401(k) or other plan different that what it's in currently.
I just have it in one of those mutual funds based on your goal retirement year where it's very agressive (like 90% stocks) early on and then gets more conservative over time to be mostly bonds, money market funds etc. as you get close to retirement.
Plus, like I said above, I don't worry about having to work into older age since you could just coast through a prof gig at that point--teach your classes during the year and take the summers off since you don't have to worry about "publish or perish" or bringing in grants so much at that point.
It sucks now as an assistant prof struggling toward tenure, and will still suck as an associate prof struggling toward the promotion to professor, but once you hit that you can start to take it easier, especially as you get close to retirement.
I was able to roll over 100% of the money from the plan I had during my last year of grad school from the faculty researcher position into my current one at the university that I work at now, and could subsequently roll this 100% over if I go to another university etc. Could get trickier if I leave higher ed as I'm not sure you can roll 100% over into a 401(k) or other plan different that what it's in currently.
I just have it in one of those mutual funds based on your goal retirement year where it's very agressive (like 90% stocks) early on and then gets more conservative over time to be mostly bonds, money market funds etc. as you get close to retirement.
Plus, like I said above, I don't worry about having to work into older age since you could just coast through a prof gig at that point--teach your classes during the year and take the summers off since you don't have to worry about "publish or perish" or bringing in grants so much at that point.
It sucks now as an assistant prof struggling toward tenure, and will still suck as an associate prof struggling toward the promotion to professor, but once you hit that you can start to take it easier, especially as you get close to retirement.
[quote name='slowdive21']401k is for suckers. I would only recommend investing in it if you are already vested in a company. (Trust me, I was let go 1 month before I was vested...my 3rd year) I lost 5% company match as well as Profit sharing. Overall I lost about $10,000 that should have been in my 401K. It depends on how you use your 401K, but for me it is not worth it. My parents lost nearly $150,000 due to the last crash. I am going with high rate CDs, savings (to keep some money liquid), and buying property.
To the people with student loans, you should probably pay those last since they have one of the lowest interest rates you can get on a loan. Pay down your high interest debt first. If your mortgage allows it apply your payments to the principle instead of the interest. (I don't have one, so I am not sure if mortgage loans still work like that. That advice is from my parents).[/QUOTE]
401k's are very powerful retirement vehicles when you know how to manage them. Depending on the plan, you may vest instantly, or you may fully vest in 3 years. It varies by company/plan of course. I've had one in the past that partially vested (and went full after 3 years). My current one vests instantly. What kind of "high rate" are you getting on your CD's?
Two things to remember about student loans. It is virtually impossible to have them forgiven unless you die. If you file bankruptcy, they won't go away. They can, and will, garnish your wages for repayment. A mortgage on the other hand can go away through foreclosure or filing bankruptcy. You're going to ruin your credit, but you can recover. It's also a lot easier for people to pay off a smaller debt first (such as the case with a student loan) than your mortgage. The other thing is that depending on how much money you make, your student loan interest begins to phase out. I'm to the point where I'm in the salary range that I qualify for approximately 0% of any student loan interest deduction I could take. It's in my best interest to pay off those loans faster than my mortgage.
To the people with student loans, you should probably pay those last since they have one of the lowest interest rates you can get on a loan. Pay down your high interest debt first. If your mortgage allows it apply your payments to the principle instead of the interest. (I don't have one, so I am not sure if mortgage loans still work like that. That advice is from my parents).[/QUOTE]
401k's are very powerful retirement vehicles when you know how to manage them. Depending on the plan, you may vest instantly, or you may fully vest in 3 years. It varies by company/plan of course. I've had one in the past that partially vested (and went full after 3 years). My current one vests instantly. What kind of "high rate" are you getting on your CD's?
Two things to remember about student loans. It is virtually impossible to have them forgiven unless you die. If you file bankruptcy, they won't go away. They can, and will, garnish your wages for repayment. A mortgage on the other hand can go away through foreclosure or filing bankruptcy. You're going to ruin your credit, but you can recover. It's also a lot easier for people to pay off a smaller debt first (such as the case with a student loan) than your mortgage. The other thing is that depending on how much money you make, your student loan interest begins to phase out. I'm to the point where I'm in the salary range that I qualify for approximately 0% of any student loan interest deduction I could take. It's in my best interest to pay off those loans faster than my mortgage.
Yeah, I'd probably say to focus on mortgage more than student loan debt.
However, very high interest debts like credit card should be paid off first (if you stupidly ran any up) as well as higher interest, smaller amount loans like car loans should be prioritized first. Get those out of the way then put those payments toward the student loans (or mortgage).
Moot for me as I don't plan on buying anytime soon. I don't have a down payment yet, and I see little point in buying until I have tenure somewhere and am ready to settle down. I could honestly move to a different city/region pretty much any time in the next few years (and it's pretty likely honestly as I don't think I want to stay in the south long-term) so I figure it's better to wait and save up etc. than buy something that I may need to sell in 1 or 2 years.
However, very high interest debts like credit card should be paid off first (if you stupidly ran any up) as well as higher interest, smaller amount loans like car loans should be prioritized first. Get those out of the way then put those payments toward the student loans (or mortgage).
Moot for me as I don't plan on buying anytime soon. I don't have a down payment yet, and I see little point in buying until I have tenure somewhere and am ready to settle down. I could honestly move to a different city/region pretty much any time in the next few years (and it's pretty likely honestly as I don't think I want to stay in the south long-term) so I figure it's better to wait and save up etc. than buy something that I may need to sell in 1 or 2 years.
slowdive21
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[quote name='mtxbass1'] What kind of "high rate" are you getting on your CD's?
[/QUOTE]
I actually do not have CDs at the moment. I have my money in an ING electric orange checking account. If you have over $50,000 you get 1.19% interest. I want to keep my money liquid because I plan on buying a condo this year. It is about the same as CD rates without tying up my cash.
[/QUOTE]
I actually do not have CDs at the moment. I have my money in an ING electric orange checking account. If you have over $50,000 you get 1.19% interest. I want to keep my money liquid because I plan on buying a condo this year. It is about the same as CD rates without tying up my cash.
I'm not quite to 30 yet, but something did happen the other day that me feel a little old. The local classic rock station was playing Stone Temple Pilots' Big Empty. First time I heard that song was in The Crow, back in 94. Still doesn't feel like that should be considered classic rock.
[quote name='slowdive21']I actually do not have CDs at the moment. I have my money in an ING electric orange checking account. If you have over $50,000 you get 1.19% interest. I want to keep my money liquid because I plan on buying a condo this year. It is about the same as CD rates without tying up my cash.[/QUOTE]
Well, the point was more that CDs are currently a terrible investment. You're lucky to get rates above an ING savings or checking account so there's just no point to them. So your recommendation of them seemingly in place of a 401(k) etc. seems misguided--especially since you don't even have a high interest one currently!
And they've never really been a good option for retirement--especially for 30 somethings--as the interest rates were always pretty low compared to the average stock market return over time (which tends to average around 10% a year over a long haul--like a 30 year or longer retirement plan--with a diversified portfolio).
At best CDs are just an easy and safe way to make a little interest with extra cash after maxing out all your IRAs and retirement accounts. But they're pointless with the current rates being around the same as the online savings accounts so there's just no reason to tie up money in them currently unless someone can find one that's paying more than the 1% or less most banks offer currently.
Well, the point was more that CDs are currently a terrible investment. You're lucky to get rates above an ING savings or checking account so there's just no point to them. So your recommendation of them seemingly in place of a 401(k) etc. seems misguided--especially since you don't even have a high interest one currently!
And they've never really been a good option for retirement--especially for 30 somethings--as the interest rates were always pretty low compared to the average stock market return over time (which tends to average around 10% a year over a long haul--like a 30 year or longer retirement plan--with a diversified portfolio).
At best CDs are just an easy and safe way to make a little interest with extra cash after maxing out all your IRAs and retirement accounts. But they're pointless with the current rates being around the same as the online savings accounts so there's just no reason to tie up money in them currently unless someone can find one that's paying more than the 1% or less most banks offer currently.
[quote name='Clak']I'm not quite to 30 yet, but something did happen the other day that me feel a little old. The local classic rock station was playing Stone Temple Pilots' Big Empty. First time I heard that song was in The Crow, back in 94. Still doesn't feel like that should be considered classic rock.[/QUOTE]
That's been happening to me for a quite a while. Lots of bands I grew up listening to starting in middle school have been on classic rock for years.
Bands like U2, REM etc. I could understand since I got into them in the middle of their careers. But once I started hearing bands like Pearl Jam, who I got into with their first album in 1991, on the classic rock stations a few years back I know I was getting old.
That's been happening to me for a quite a while. Lots of bands I grew up listening to starting in middle school have been on classic rock for years.
Bands like U2, REM etc. I could understand since I got into them in the middle of their careers. But once I started hearing bands like Pearl Jam, who I got into with their first album in 1991, on the classic rock stations a few years back I know I was getting old.
[quote name='dmaul1114']Well, the point was more that CDs are currently a terrible investment. You're lucky to get rates above an ING savings or checking account so there's just no point to them. So your recommendation of them seemingly in place of a 401(k) etc. seems misguided--especially since you don't even have a high interest one currently!
And they've never really been a good option for retirement--especially for 30 somethings--as the interest rates were always pretty low compared to the average stock market return over time (which tends to average around 10% a year over a long haul--like a 30 year or longer retirement plan--with a diversified portfolio).
At best CDs are just an easy and safe way to make a little interest with extra cash after maxing out all your IRAs and retirement accounts. But they're pointless with the current rates being around the same as the online savings accounts so there's just no reason to tie up money in them currently unless someone can find one that's paying more than the 1% or less most banks offer currently.[/QUOTE]
CD's are a horrible investment vehicle, period. Maybe 15-20 years ago, they might have made sense, but now, they're just pathetic.
dmaul, question. Why do you think it would be better to pay off your mortgage before your student loan?
And they've never really been a good option for retirement--especially for 30 somethings--as the interest rates were always pretty low compared to the average stock market return over time (which tends to average around 10% a year over a long haul--like a 30 year or longer retirement plan--with a diversified portfolio).
At best CDs are just an easy and safe way to make a little interest with extra cash after maxing out all your IRAs and retirement accounts. But they're pointless with the current rates being around the same as the online savings accounts so there's just no reason to tie up money in them currently unless someone can find one that's paying more than the 1% or less most banks offer currently.[/QUOTE]
CD's are a horrible investment vehicle, period. Maybe 15-20 years ago, they might have made sense, but now, they're just pathetic.
dmaul, question. Why do you think it would be better to pay off your mortgage before your student loan?
10%?! I heavily doubt it. The only return that gets that would be investing in a business. My CD was getting about 5% a few years ago, and I was locked in for 2 years when I bought it.
Investments are making dick right now. I think CDs are like .8%.
You're better off staying liquid if you plan on buying anything significant in the next few years.
Houses are going to drop, so I've heard.
I should listen to a classic rock station and see if they play my generations grunge music. I could see 80s being classic rock, but 90s? Come the
on. I could see U2 or something, but Nirvana, Soundgarden, etc.? Really ?[quote name='2DMention']10%?! I heavily doubt it. The only return that gets that would be investing in a business. My CD was getting about 5% a few years ago, and I was locked in for 2 years when I bought it.
Investments are making dick right now. I think CDs are like .8%.
You're better off staying liquid if you plan on buying anything significant in the next few years.
Houses are going to drop, so I've heard.
I should listen to a classic rock station and see if they play my generations grunge music. I could see 80s being classic rock, but 90s? Come the on. I could see U2 or something, but Nirvana, Soundgarden, etc.? Really ?[/QUOTE]
The Dow Jones Industrial Average's return for the past 10 years is 12.9%.
http://www.google.com/finance?q=INDEXDJX:.DJI
The Russel 2000's return is 59.18%.
http://www.google.com/finance?q=NYSE:IWM
Many investments are on the biggest runs ever right now. The DOW is near an all time high. Too many stocks have gone up 15-45% (if not more) since the hit in 2008. I'd hardly say they are "making dick right now."
People have different reasons for putting their money in different places. If your intention is to purchase something like a home in a few years, you obviously don't want to tie that money up. At the same time, you don't want to lose money either. Keeping your money in a low-return account is doing just that.
Investments are making dick right now. I think CDs are like .8%.
You're better off staying liquid if you plan on buying anything significant in the next few years.
Houses are going to drop, so I've heard.
I should listen to a classic rock station and see if they play my generations grunge music. I could see 80s being classic rock, but 90s? Come the
on. I could see U2 or something, but Nirvana, Soundgarden, etc.? Really ?[/QUOTE]The Dow Jones Industrial Average's return for the past 10 years is 12.9%.
http://www.google.com/finance?q=INDEXDJX:.DJI
The Russel 2000's return is 59.18%.
http://www.google.com/finance?q=NYSE:IWM
Many investments are on the biggest runs ever right now. The DOW is near an all time high. Too many stocks have gone up 15-45% (if not more) since the hit in 2008. I'd hardly say they are "making dick right now."
People have different reasons for putting their money in different places. If your intention is to purchase something like a home in a few years, you obviously don't want to tie that money up. At the same time, you don't want to lose money either. Keeping your money in a low-return account is doing just that.
[quote name='mtxbass1']
dmaul, question. Why do you think it would be better to pay off your mortgage before your student loan?[/QUOTE]
I don't have a mortgage, but my thought is based on my student loan interest being 3.x and most mortgages being higher than that.
I mean student loans will get paid off first anyway as they're a lower amount, but I'd put more extra money toward the mortgage than the student loans since:
1) They're higher interest
2) They're higher balance
Even if you want to sell in a few years, at least you come out with more cash in hand (assuming you sell for a profit and not a loss!) if you've paid the principle down more.
[quote name='2DMention']10%?! I heavily doubt it. The only return that gets that would be investing in a business.[/QUOTE]
Well, yes, that's based on the stock market. See the above post for the Dow Jones average returns in the long run etc., or look up any aggressive mutual fund that's been around for a decade or more etc.
You have down swings like the past couple of years, but it bounces back and most stock heavy funds will average about 10% growth in the long haul. You just want to trim down how much you have in stocks as you get closer to retirement of course, as you can get screwed if there's a major recession or depression in your last few years before wanting to retire. First 10-15 years you can afford it and wait for it to bounce back, last 10 years losing a lot in a drop can push your retirement date way back.
dmaul, question. Why do you think it would be better to pay off your mortgage before your student loan?[/QUOTE]
I don't have a mortgage, but my thought is based on my student loan interest being 3.x and most mortgages being higher than that.
I mean student loans will get paid off first anyway as they're a lower amount, but I'd put more extra money toward the mortgage than the student loans since:
1) They're higher interest
2) They're higher balance
Even if you want to sell in a few years, at least you come out with more cash in hand (assuming you sell for a profit and not a loss!) if you've paid the principle down more.
[quote name='2DMention']10%?! I heavily doubt it. The only return that gets that would be investing in a business.[/QUOTE]
Well, yes, that's based on the stock market. See the above post for the Dow Jones average returns in the long run etc., or look up any aggressive mutual fund that's been around for a decade or more etc.
You have down swings like the past couple of years, but it bounces back and most stock heavy funds will average about 10% growth in the long haul. You just want to trim down how much you have in stocks as you get closer to retirement of course, as you can get screwed if there's a major recession or depression in your last few years before wanting to retire. First 10-15 years you can afford it and wait for it to bounce back, last 10 years losing a lot in a drop can push your retirement date way back.
[quote name='dmaul1114']I don't have a mortgage, but my thought is based on my student loan interest being 3.x and most mortgages being higher than that.
I mean student loans will get paid off first anyway as they're a lower amount, but I'd put more extra money toward the mortgage than the student loans since:
1) They're higher interest
2) They're higher balance
Even if you want to sell in a few years, at least you come out with more cash in hand (assuming you sell for a profit and not a loss!) if you've paid the principle down more.
[/QUOTE]
A couple of things to think about. Of course this is going to depend on your personal economy...
Mortgages do have a higher interest most of the time, however that interest is fully deductible, regardless of how much money you make. Student loan interest is not however. If you make above 65k a year, the student loan tax break starts to phase out. For me personally, I'd rather take the mortgage interest deduction than the SL interest deduction (since I can't quality for the SL deduction now anyway). By taking the mortgage interest deduction, you're effectively knocking the interest rate on your mortgage down at least 1% (if not more) anyway.
I also look at it like this. Let's say I rush and pay my student loans off early, but I keep on my regular payment schedule for my mortgage. I sell my house and take a loss. I'm now totally debt free. It sucks to take the loss, but I know I can make that money up by the freed up income from not having a mortgage, or moving elsewhere for employment that may pay more.
If I rush to pay the mortgage early, I *might* end up with more in my pocket when I sell. That's a given. I'll still owe my student loan debt however and that will factor in to taking another job, or moving elsewhere, etc. I'd rather lose a home, but be otherwise debt free, than to sell a home and still have SL debt.
I mean student loans will get paid off first anyway as they're a lower amount, but I'd put more extra money toward the mortgage than the student loans since:
1) They're higher interest
2) They're higher balance
Even if you want to sell in a few years, at least you come out with more cash in hand (assuming you sell for a profit and not a loss!) if you've paid the principle down more.
[/QUOTE]
A couple of things to think about. Of course this is going to depend on your personal economy...
Mortgages do have a higher interest most of the time, however that interest is fully deductible, regardless of how much money you make. Student loan interest is not however. If you make above 65k a year, the student loan tax break starts to phase out. For me personally, I'd rather take the mortgage interest deduction than the SL interest deduction (since I can't quality for the SL deduction now anyway). By taking the mortgage interest deduction, you're effectively knocking the interest rate on your mortgage down at least 1% (if not more) anyway.
I also look at it like this. Let's say I rush and pay my student loans off early, but I keep on my regular payment schedule for my mortgage. I sell my house and take a loss. I'm now totally debt free. It sucks to take the loss, but I know I can make that money up by the freed up income from not having a mortgage, or moving elsewhere for employment that may pay more.
If I rush to pay the mortgage early, I *might* end up with more in my pocket when I sell. That's a given. I'll still owe my student loan debt however and that will factor in to taking another job, or moving elsewhere, etc. I'd rather lose a home, but be otherwise debt free, than to sell a home and still have SL debt.
slowdive21
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I think the problem with 401k is people think they are making money, when they really aren't until they cash it out. Your 401K could be worth $500,000 today and be actually $20,000 20 years from now. I have yet to see a true way a 401k is worth it.
The point about CDs is they are FDIC insured and you can not lose money (if you have under the limit which is something like $200,000 or $250,000). I am not saying they are the best option right now, but your money is safe.
I am 100% debt free BTW.
The point about CDs is they are FDIC insured and you can not lose money (if you have under the limit which is something like $200,000 or $250,000). I am not saying they are the best option right now, but your money is safe.
I am 100% debt free BTW.
[quote name='mtxbass1']A couple of things to think about. Of course this is going to depend on your personal economy...
Mortgages do have a higher interest most of the time, however that interest is fully deductible, regardless of how much money you make. Student loan interest is not however. If you make above 65k a year, the student loan tax break starts to phase out. For me personally, I'd rather take the mortgage interest deduction than the SL interest deduction (since I can't quality for the SL deduction now anyway). By taking the mortgage interest deduction, you're effectively knocking the interest rate on your mortgage down at least 1% (if not more) anyway.
I also look at it like this. Let's say I rush and pay my student loans off early, but I keep on my regular payment schedule for my mortgage. I sell my house and take a loss. I'm now totally debt free. It sucks to take the loss, but I know I can make that money up by the freed up income from not having a mortgage, or moving elsewhere for employment that may pay more.
If I rush to pay the mortgage early, I *might* end up with more in my pocket when I sell. That's a given. I'll still owe my student loan debt however and that will factor in to taking another job, or moving elsewhere, etc. I'd rather lose a home, but be otherwise debt free, than to sell a home and still have SL debt.[/QUOTE]
Very good points.
Hopefully I'll have my student loans paid way down before I buy a house anyway. I can't see myself buying a house any sooner than 4-5 years, as again I'm not bothering with it until I both have tenure and have decided to stay in a particular city long term. And that could well be longer than 5 years on the latter as academic life is by nature pretty nomadic if you're ambitious.
Also, I'm a believer in that "snowball" idea that one guy has. Pay extra to pay off smallest debts earliest, and pay the minimum on others. Pay one off, then put that money that was going to that into the next smallest to pay above it's minimum etc. It's a motivation tool as you feel good getting rid of debts. May not make the most dollars and cents sense as it doesn't account for differing interest rates etc. But I think he's right that most of us have low self control and need that motivation of clearing out debt and feeling good about it to not feel hopeless. especially for people with a lot of debt. I just owe about $7K on my car loan and around $51K on my student loans. Not great, but at least I don't have credit card debt or past due utlity bill debt or medical bills etc. to deal with.
So right now I'm putting more extra toward the car loan, still pay $50-100 above the minimum on the student loans. Once the Car loan is gone I'll start putting the $400-500 a month I'm putting toward that (min payment is $365) into my student loans, and the re-assess once I buy a home.
[quote name='slowdive21']I think the problem with 401k is people think they are making money, when they really aren't until they cash it out. Your 401K could be worth $500,000 today and be actually $20,000 20 years from now. I have yet to see a true way a 401k is worth it.
The point about CDs is they are FDIC insured and you can not lose money (if you have under the limit which is something like $200,000 or $250,000). I am not saying they are the best option right now, but your money is safe.
[/QUOTE]
It's just a matter of whether you want to take some risk to make more money, or just be content in saving what you can and earning a tiny amount of interest.
Barring another great depression, most of us can count on whatever we throw in our retirement accounts making money and coming out WAY ahead of people who are very conservative when their savings by the time we're ready to retire.
Also, keep in mind that you can put your 401K into all kinds of different plans. You could put the vast majority of it into bonds and money market funds if you so choose--they have mutual funds out there that are very conservative and safe, and others that are heavy into stocks.
Basically, low risk investment=low gains. Higher risk investment=potential for much greater gains, but risk of losing as well.
The key is again to diversify, and if you're not willing to be active with it (like I'm not) get into funds that rebalance quarterly, that get more conservative (less stocks, more bonds etc.) as you get closer to retirement etc.
And again, I don't mind the risk as my job would be very easy and well paying by the time I'm in my 60's and beyond so no biggie if I have to keep working if my savings some how took a big hit. Just teach courses I've taught a gazillion times by then from Aug to May and have the summers off.
But odds are my retirement account will grow to much more than it would if put into cds and bonds etc. and I'll be able to retire at a decent age with a lot more money than someone that invested very conservatively and thus be able to do a ton of traveling etc. while the other person can live on their savings comfortably but not with many luxuries. That's the reason to take the risk. I don't want to be like my parents and many other tired folk that have to live on a fixed income and can't really enjoy retirement. So I'll take some risk, and feel good doing it knowing that the market averages 10% or so in the long haul, and that's a lot of interest to compound over a 30 year career.
Mortgages do have a higher interest most of the time, however that interest is fully deductible, regardless of how much money you make. Student loan interest is not however. If you make above 65k a year, the student loan tax break starts to phase out. For me personally, I'd rather take the mortgage interest deduction than the SL interest deduction (since I can't quality for the SL deduction now anyway). By taking the mortgage interest deduction, you're effectively knocking the interest rate on your mortgage down at least 1% (if not more) anyway.
I also look at it like this. Let's say I rush and pay my student loans off early, but I keep on my regular payment schedule for my mortgage. I sell my house and take a loss. I'm now totally debt free. It sucks to take the loss, but I know I can make that money up by the freed up income from not having a mortgage, or moving elsewhere for employment that may pay more.
If I rush to pay the mortgage early, I *might* end up with more in my pocket when I sell. That's a given. I'll still owe my student loan debt however and that will factor in to taking another job, or moving elsewhere, etc. I'd rather lose a home, but be otherwise debt free, than to sell a home and still have SL debt.[/QUOTE]
Very good points.
Hopefully I'll have my student loans paid way down before I buy a house anyway. I can't see myself buying a house any sooner than 4-5 years, as again I'm not bothering with it until I both have tenure and have decided to stay in a particular city long term. And that could well be longer than 5 years on the latter as academic life is by nature pretty nomadic if you're ambitious.
Also, I'm a believer in that "snowball" idea that one guy has. Pay extra to pay off smallest debts earliest, and pay the minimum on others. Pay one off, then put that money that was going to that into the next smallest to pay above it's minimum etc. It's a motivation tool as you feel good getting rid of debts. May not make the most dollars and cents sense as it doesn't account for differing interest rates etc. But I think he's right that most of us have low self control and need that motivation of clearing out debt and feeling good about it to not feel hopeless. especially for people with a lot of debt. I just owe about $7K on my car loan and around $51K on my student loans. Not great, but at least I don't have credit card debt or past due utlity bill debt or medical bills etc. to deal with.
So right now I'm putting more extra toward the car loan, still pay $50-100 above the minimum on the student loans. Once the Car loan is gone I'll start putting the $400-500 a month I'm putting toward that (min payment is $365) into my student loans, and the re-assess once I buy a home.
[quote name='slowdive21']I think the problem with 401k is people think they are making money, when they really aren't until they cash it out. Your 401K could be worth $500,000 today and be actually $20,000 20 years from now. I have yet to see a true way a 401k is worth it.
The point about CDs is they are FDIC insured and you can not lose money (if you have under the limit which is something like $200,000 or $250,000). I am not saying they are the best option right now, but your money is safe.
[/QUOTE]
It's just a matter of whether you want to take some risk to make more money, or just be content in saving what you can and earning a tiny amount of interest.
Barring another great depression, most of us can count on whatever we throw in our retirement accounts making money and coming out WAY ahead of people who are very conservative when their savings by the time we're ready to retire.
Also, keep in mind that you can put your 401K into all kinds of different plans. You could put the vast majority of it into bonds and money market funds if you so choose--they have mutual funds out there that are very conservative and safe, and others that are heavy into stocks.
Basically, low risk investment=low gains. Higher risk investment=potential for much greater gains, but risk of losing as well.
The key is again to diversify, and if you're not willing to be active with it (like I'm not) get into funds that rebalance quarterly, that get more conservative (less stocks, more bonds etc.) as you get closer to retirement etc.
And again, I don't mind the risk as my job would be very easy and well paying by the time I'm in my 60's and beyond so no biggie if I have to keep working if my savings some how took a big hit. Just teach courses I've taught a gazillion times by then from Aug to May and have the summers off.
But odds are my retirement account will grow to much more than it would if put into cds and bonds etc. and I'll be able to retire at a decent age with a lot more money than someone that invested very conservatively and thus be able to do a ton of traveling etc. while the other person can live on their savings comfortably but not with many luxuries. That's the reason to take the risk. I don't want to be like my parents and many other tired folk that have to live on a fixed income and can't really enjoy retirement. So I'll take some risk, and feel good doing it knowing that the market averages 10% or so in the long haul, and that's a lot of interest to compound over a 30 year career.
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[quote name='slowdive21']I think the problem with 401k is people think they are making money, when they really aren't until they cash it out. Your 401K could be worth $500,000 today and be actually $20,000 20 years from now. I have yet to see a true way a 401k is worth it.
The point about CDs is they are FDIC insured and you can not lose money (if you have under the limit which is something like $200,000 or $250,000). I am not saying they are the best option right now, but your money is safe.
I am 100% debt free BTW.[/QUOTE]
That's why you diversify your portfolio when you can. You aren't gaining or losing anything until you sell. Any stock market investing is risky. Even if you invested your entire 401k in "safe" options, you are still likely to come out ahead of a CD. You could buy treasuries and they would be just as secure. If the government defaults, we've all got more problems than what our 401k's are worth anyway... dmaul summed up the rest of what I was going to say here, so I'll put it to rest.
Congrats on being debt free. I plan on being there in 5 years (including mortgage) if I can stay on my path. That will free up a substantial amount of money to really begin building wealth each month.
The point about CDs is they are FDIC insured and you can not lose money (if you have under the limit which is something like $200,000 or $250,000). I am not saying they are the best option right now, but your money is safe.
I am 100% debt free BTW.[/QUOTE]
That's why you diversify your portfolio when you can. You aren't gaining or losing anything until you sell. Any stock market investing is risky. Even if you invested your entire 401k in "safe" options, you are still likely to come out ahead of a CD. You could buy treasuries and they would be just as secure. If the government defaults, we've all got more problems than what our 401k's are worth anyway... dmaul summed up the rest of what I was going to say here, so I'll put it to rest.
Congrats on being debt free. I plan on being there in 5 years (including mortgage) if I can stay on my path. That will free up a substantial amount of money to really begin building wealth each month.
[quote name='dmaul1114']Are your numbers based on retiring and staying in the NYC area? That's a tough thing to do with a couple of kids to pay for between now and then as well.
The math may look better if you calculate it with the goal of retiring and moving somewhere cheapear--and thus add the money you could expect to get from selling your house in 30 years or whatever added into your retirement pot.[/QUOTE]
yeah - I'm guessing I'll be here long-term but the wife and I have started to talk about moving since we are outgrowing our house and an addition is going to be VERY costly (~$225k-$250k). We would prefer to stay because we like where we are but that may not be realistic. We also place a higher value on our house because the kids were born there, took their first steps, etc. Lots of great memories which we might not be ready to leave behind even though there is no rational reason for it. It would be pretty sweet to pay off the house and then move somewhere really cheap when it is just the two of us - financially speaking.
EDIT: Also, good for you guys who are striving to be debt free and getting there. It is a great feeling.
The math may look better if you calculate it with the goal of retiring and moving somewhere cheapear--and thus add the money you could expect to get from selling your house in 30 years or whatever added into your retirement pot.[/QUOTE]
yeah - I'm guessing I'll be here long-term but the wife and I have started to talk about moving since we are outgrowing our house and an addition is going to be VERY costly (~$225k-$250k). We would prefer to stay because we like where we are but that may not be realistic. We also place a higher value on our house because the kids were born there, took their first steps, etc. Lots of great memories which we might not be ready to leave behind even though there is no rational reason for it. It would be pretty sweet to pay off the house and then move somewhere really cheap when it is just the two of us - financially speaking.
EDIT: Also, good for you guys who are striving to be debt free and getting there. It is a great feeling.
bordjon
CAGiversary!
Being debt free is such an important thing to me and my wife. Our only debt is our house. Cars are both paid off and should last us a while ( mid 2000s accord and tacoma.) House will take a little while but we pay a little under a hundred extra towards principal every month and put over twenty percent down and bought a very modest house. Hoping to stay here for a while and develop some equity (sure wouldn't want to have to sell right now in this market.)
We have been slow to do any investing though. My wife has her 401k and I've finally convinced her to open a roth ira (been on her about it for a few years) now that we have a child (she's just been depositing monthly to her savings acct.) We are gonna give that a go and probably max out those before we look in to a 529 for our daughter.
We have been slow to do any investing though. My wife has her 401k and I've finally convinced her to open a roth ira (been on her about it for a few years) now that we have a child (she's just been depositing monthly to her savings acct.) We are gonna give that a go and probably max out those before we look in to a 529 for our daughter.
[quote name='bordjon']Being debt free is such an important thing to me and my wife. Our only debt is our house. Cars are both paid off and should last us a while ( mid 2000s accord and tacoma.) House will take a little while but we pay a little under a hundred extra towards principal every month and put over twenty percent down and bought a very modest house. Hoping to stay here for a while and develop some equity (sure wouldn't want to have to sell right now in this market.)
We have been slow to do any investing though. My wife has her 401k and I've finally convinced her to open a roth ira (been on her about it for a few years) now that we have a child (she's just been depositing monthly to her savings acct.) We are gonna give that a go and probably max out those before we look in to a 529 for our daughter.[/QUOTE]
Get that 529 going. You can set them up to auto-deposit every month so you don't ever see the money. Being debt-free is awesome even though I am still getting killed by my house... which I guess means I'm not exactly debt-free but whatever...
We have been slow to do any investing though. My wife has her 401k and I've finally convinced her to open a roth ira (been on her about it for a few years) now that we have a child (she's just been depositing monthly to her savings acct.) We are gonna give that a go and probably max out those before we look in to a 529 for our daughter.[/QUOTE]
Get that 529 going. You can set them up to auto-deposit every month so you don't ever see the money. Being debt-free is awesome even though I am still getting killed by my house... which I guess means I'm not exactly debt-free but whatever...
[quote name='bordjon']Being debt free is such an important thing to me and my wife. Our only debt is our house. Cars are both paid off and should last us a while ( mid 2000s accord and tacoma.) House will take a little while but we pay a little under a hundred extra towards principal every month and put over twenty percent down and bought a very modest house. Hoping to stay here for a while and develop some equity (sure wouldn't want to have to sell right now in this market.)
We have been slow to do any investing though. My wife has her 401k and I've finally convinced her to open a roth ira (been on her about it for a few years) now that we have a child (she's just been depositing monthly to her savings acct.) We are gonna give that a go and probably max out those before we look in to a 529 for our daughter.[/QUOTE]
My gf and I recently went through Dave Ramsey's Financial Peace University and it really put some things in to perspective about being in debt (and out of debt) for us. I've always been very good with money, but she hasn't, and it helped us to get on the same page together.
I second what javy said about that 529. That's incredibly important. Even if you only did $100 a month, after 18 years, you'd have a lot of money towards a college education.
We have been slow to do any investing though. My wife has her 401k and I've finally convinced her to open a roth ira (been on her about it for a few years) now that we have a child (she's just been depositing monthly to her savings acct.) We are gonna give that a go and probably max out those before we look in to a 529 for our daughter.[/QUOTE]
My gf and I recently went through Dave Ramsey's Financial Peace University and it really put some things in to perspective about being in debt (and out of debt) for us. I've always been very good with money, but she hasn't, and it helped us to get on the same page together.
I second what javy said about that 529. That's incredibly important. Even if you only did $100 a month, after 18 years, you'd have a lot of money towards a college education.
[quote name='mtxbass1']I second what javy said about that 529. That's incredibly important. Even if you only did $100 a month, after 18 years, you'd have a lot of money towards a college education.[/QUOTE]
And just think - in 18 years college will only be $100,000 a year! The 529 should be enough for books though.
I kid, I kid... sort of.
And just think - in 18 years college will only be $100,000 a year! The 529 should be enough for books though.
I kid, I kid... sort of.
bordjon
CAGiversary!
I wish we could max out two roth iras and a 529 right now but as it is the iras are first. You can take the money out of a roth ira, penalty free, for college expenses. You can take out a loan for college expenses - but not for retirement. We fully intend to do the 529 as soon as we can manage though.
I'm familiar with Ramsey and I think he can be (and has been) a great help to many. Me and my wife are both very level headed when it comes to finances (plus I'm not keen on his Christian slant.)
I'm familiar with Ramsey and I think he can be (and has been) a great help to many. Me and my wife are both very level headed when it comes to finances (plus I'm not keen on his Christian slant.)
[quote name='bordjon']I wish we could max out two roth iras and a 529 right now but as it is the iras are first. You can take the money out of a roth ira, penalty free, for college expenses. You can take out a loan for college expenses - but not for retirement. We fully intend to do the 529 as soon as we can manage though.
I'm familiar with Ramsey and I think he can be (and has been) a great help to many. Me and my wife are both very level headed when it comes to finances (plus I'm not keen on his Christian slant.)[/QUOTE]
You can take out that money penalty free, that is correct, however, if you take out more than you put in (you dip in to earnings), you will have to pay taxes on that. That money you take out will also affect any calculations your child may have for determining financial aid.
I took most of what Dave said with a grain of salt. I actually don't believe in the ordering of his baby steps, or the idea that I shouldn't contribute to my retirement until my debts are paid for. It was more some of the principles of what he had to say that made it worthwhile to me. His Christian slant rarely came in to play honestly. It was mostly used as a humor device. There was only one lesson about giving that focused heavily on the church, but even that wasn't dramatic.
I'm familiar with Ramsey and I think he can be (and has been) a great help to many. Me and my wife are both very level headed when it comes to finances (plus I'm not keen on his Christian slant.)[/QUOTE]
You can take out that money penalty free, that is correct, however, if you take out more than you put in (you dip in to earnings), you will have to pay taxes on that. That money you take out will also affect any calculations your child may have for determining financial aid.
I took most of what Dave said with a grain of salt. I actually don't believe in the ordering of his baby steps, or the idea that I shouldn't contribute to my retirement until my debts are paid for. It was more some of the principles of what he had to say that made it worthwhile to me. His Christian slant rarely came in to play honestly. It was mostly used as a humor device. There was only one lesson about giving that focused heavily on the church, but even that wasn't dramatic.
slowdive21
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[quote name='bordjon']I wish we could max out two roth iras and a 529 right now but as it is the iras are first. You can take the money out of a roth ira, penalty free, for college expenses. You can take out a loan for college expenses - but not for retirement. We fully intend to do the 529 as soon as we can manage though.[/QUOTE]
I think you can borrow from your 401K as well, but you essentially have to pay yourself interest if you borrow from it. There is a cap, but I don't remember what it is.
On a side note: I just checked my 401K and it made $0.04 in the past month. Fidelity won't let me put it into anything but their cash reserves without depositing more money into the account.
I think you can borrow from your 401K as well, but you essentially have to pay yourself interest if you borrow from it. There is a cap, but I don't remember what it is.
On a side note: I just checked my 401K and it made $0.04 in the past month. Fidelity won't let me put it into anything but their cash reserves without depositing more money into the account.
Just to add mine to the pile.
Vanguard: 18% rate of return for 2010.
Fidelity: 15.3% rate of return for 2010.
Slowdive, you really should do some more research in to your 401k. If you have money in Fidelity cash reserves, you likely either got paid dividends (and didn't reinvest) or something else is screwed up. With a 401k, you typically pick a number of funds you want to invest in and you rarely (if ever) put money directly in to cash.
My private brokerage account with Fidelity has cash reserves, but those are the results of dividends and my own investments that I do outside of my 401k and IRA. If you really are contributing to a 401k, you need to find out which funds you're invested in. When you click on Balances, then year-to-date change, you can see your rate of return for this year. If you do a custom search, you can pull a pdf of the entirety of last year.
Vanguard: 18% rate of return for 2010.
Fidelity: 15.3% rate of return for 2010.
Slowdive, you really should do some more research in to your 401k. If you have money in Fidelity cash reserves, you likely either got paid dividends (and didn't reinvest) or something else is screwed up. With a 401k, you typically pick a number of funds you want to invest in and you rarely (if ever) put money directly in to cash.
My private brokerage account with Fidelity has cash reserves, but those are the results of dividends and my own investments that I do outside of my 401k and IRA. If you really are contributing to a 401k, you need to find out which funds you're invested in. When you click on Balances, then year-to-date change, you can see your rate of return for this year. If you do a custom search, you can pull a pdf of the entirety of last year.
I have no real financial advice to give that hasn't already been stated, so I'll just leave it to the experts.
http://www.comedycentral.com/videos/index.jhtml?videoId=11887&title=wu-tang-financial
http://www.comedycentral.com/videos/index.jhtml?videoId=11887&title=wu-tang-financial
I don't have a degree in finance or actively manage my 401 thousand, I just get the cookie cutter thing they offer and it's doing ok.
I don't trust ANYONE but me with investment advice, especially brokers or whoever. All they care about is commishes. The only way I'd hire a broker is if his/her compensation is directly tied to how well the fund/stock or whatever they advise you to get does, but nobody works like that.
I don't trust ANYONE but me with investment advice, especially brokers or whoever. All they care about is commishes. The only way I'd hire a broker is if his/her compensation is directly tied to how well the fund/stock or whatever they advise you to get does, but nobody works like that.
[quote name='2DMention']I don't have a degree in finance or actively manage my 401 thousand, I just get the cookie cutter thing they offer and it's doing ok.
I don't trust ANYONE but me with investment advice, especially brokers or whoever. All they care about is commishes. The only way I'd hire a broker is if his/her compensation is directly tied to how well the fund/stock or whatever they advise you to get does, but nobody works like that.[/QUOTE]
Personally I just don't agree with paying someone else to make money off of my money. If they can get me 8%, but take a 2% commission, and I can get 6% all by myself, why would I even pay them?
I don't trust ANYONE but me with investment advice, especially brokers or whoever. All they care about is commishes. The only way I'd hire a broker is if his/her compensation is directly tied to how well the fund/stock or whatever they advise you to get does, but nobody works like that.[/QUOTE]
Personally I just don't agree with paying someone else to make money off of my money. If they can get me 8%, but take a 2% commission, and I can get 6% all by myself, why would I even pay them?
plasticbathmonki
CAGiversary!
Well, after 6 years, the GF and I called it quits, and congrats to the CAG community for being the first to hear about it! I won't bore you all with the details, but suffice it to say, I'm actually relieved that it's finally over. I'm getting way too old to deal with traditional relationship bull-shite. The only thing that sucks is we have a few shared bills.
bread's done