Fantasy Football - Footballguys Forums
dorno

What's your age and the value of your 401k?

Recommended Posts

On 11/6/2019 at 9:51 AM, Wheezer34 said:

My wife and I have a combined $1.16M in combined 401(k), Roth, and Traditional IRA's.  I'm 54 and she is 50.

My current employer matches 100% of my 401k (I know - unheard of), so I am deferring the max. of $25,000 while I can.

The hope is to retire at 61.  My dad passed away at that age and never was able to enjoy the fruits of his labor.  I'm trying like heck to make sure that doesn't happen to me. 

Man - sign me up.

Share this post


Link to post
Share on other sites

I asked my boss if he wouldn't mind fully matching my 19k 401k contribution and he said sure thing NutterButter if you wouldn't mind taking a 19k cut in your salary.    I told him I'd get back to him.

  • Thanks 1

Share this post


Link to post
Share on other sites
1 hour ago, mr. furley said:

the #### did i do wrong with my life that i'm not putting 50k a year in to a 401k

You and spouse maxing and getting a 10% salary match should be roughly 50k if both make >130k  

Two max 401k and two max roth and a non roth salary match should wind up at 50k relatively easily.  

10 years ago that wasn't really practical due to limits.

Share this post


Link to post
Share on other sites
2 hours ago, dino259 said:

2 years later and the combined 401k and IRA and an annuity account are closer to $2M.  However, as stated most of this is in tax deferred items.  We are basically maxing 401k and IRA Contributions.  Should we back off some of the 401K and put a little more into more accessible accounts?  Kind of hard to plan to retire early if there is no access to the funds?  Does that make sense?

 

We have about $15K auto loan at .9% (projected payoff of 2 years but tempted to just pay it off)  and the remaining mortgage is about $65k at 3 or 3.25% projected payoff of about 7 yrs.

 

Man if I had $2M socked away it would be a pretty easy call for me to pay off those two small loans.  To be completely debt free would feel amazing — real value in that. 

  • Like 5

Share this post


Link to post
Share on other sites
5 minutes ago, culdeus said:

You and spouse maxing and getting a 10% salary match should be roughly 50k if both make >130k  

well, that's not happening in my lifetime

Share this post


Link to post
Share on other sites
3 hours ago, dino259 said:

2 years later and the combined 401k and IRA and an annuity account are closer to $2M.  However, as stated most of this is in tax deferred items.  We are basically maxing 401k and IRA Contributions.  Should we back off some of the 401K and put a little more into more accessible accounts?  Kind of hard to plan to retire early if there is no access to the funds?  Does that make sense?

 

We have about $15K auto loan at .9% (projected payoff of 2 years but tempted to just pay it off)  and the remaining mortgage is about $65k at 3 or 3.25% projected payoff of about 7 yrs.

 

Did you just double your retirement savings in less than 2 years?  I don't know how you did it considering the market has hardly gone up since you originally posted on 1/24/18 but good for you.

Share this post


Link to post
Share on other sites
2 hours ago, Random said:

Thats pretty amazing.  Rule 72t allows for early disbursements from retirement accounts. 

Also IRA to Roth rollovers have a 5 year waiting period then allow for withdrawal of principle (not gains!).

  • Like 1

Share this post


Link to post
Share on other sites
3 hours ago, dino259 said:

We have about $15K auto loan at .9% (projected payoff of 2 years but tempted to just pay it off)  and the remaining mortgage is about $65k at 3 or 3.25% projected payoff of about 7 yrs.

Tempting to pay that off.  I tried to clear the money to wipe away my mortgage, but didn't have the cash this year.

Share this post


Link to post
Share on other sites
2 hours ago, NutterButter said:

I asked my boss if he wouldn't mind fully matching my 19k 401k contribution and he said sure thing NutterButter if you wouldn't mind taking a 19k cut in your salary.    I told him I'd get back to him.

Actually a good deal for you if you have enough disposable income.

  • Like 2

Share this post


Link to post
Share on other sites

Guys, I have 100k sitting in a savings account doing close to nothing.  Tell me what to do with it.  

We need a new van, I’d love to pay cash and not have a car loan.  But if I can get a good rate I know investing the money elsewhere is probably the better idea. 

Share this post


Link to post
Share on other sites
26 minutes ago, shuke said:

Guys, I have 100k sitting in a savings account doing close to nothing.  Tell me what to do with it.  

We need a new van, I’d love to pay cash and not have a car loan.  But if I can get a good rate I know investing the money elsewhere is probably the better idea. 

There is a personal finance and education thread for which this post may be better suited, but, I'll add an opinion for you here.

I'm assuming this money is in a non-tax sheltered account.  That's a lot of money to have sitting around doing nothing.  I think the first question you need to ask yourself is why is it in a savings account doing nothing?  Is it because you're afraid to invest it/risk it?  Is it because you're saving it for a rainy day?  College?  Early retirement?  Or is it simply a matter of you don't know wtf to do with it.  Honestly, money is a funny thing.  People are afraid to talk about it with people they are close with, and they are even more opposed to pay someone to take care of it for them.  Not a knock on you, Shuke.  I just think you really need to come to terms as to what your intention is to do with this money.  Short term/long term.

Everyone is different.  I know a little bit about money/finance.  I'm by no means an expert.  But, if this was me..............

First of all, I have no issue at all carrying a car payment at less than 2% financing.  Quick search yields https://www.edmunds.com/minivan/car-incentives.html a number of possible options.  Obviously you will need to figure out what kind of vehicle you are looking for, but to me, financing almost always trumps all.  I cannot recall the last used car I've bought for myself or my wife.  Further, I can't recall ever having a car loan over 2.9% and that was a while ago. I always want a reliable vehicle, under warranty for the entire length of my loan and never want to pay out of pocket for anything but gas, tires and brakes.  :shrug:

As far as what to have the money doing, well, there are an ### load of investments out there.  At a bare minimum, this money should be making 3% and tbh, 4-5% yields is easily attainable for relatively little risk.  If it were me, I'd keep a rainy day fund in cash of maybe 2-3 months of expenses.  The rest should all be working all the time. If you are hesitant to research on your own, ask someone or even pay someone.  Everyone's situation is obviously different, but having money sitting around doing nothing for no good reason while you are still working is not a great idea.  And you know its not a great idea, so do something about it.  

This thread gets a lot more action when the stock market is doing well.  And there are a lot of headwinds in the equity markets ahead.  But that's not to say there aren't places to invest your money even when times aren't so good.  If you're retired or you need this money imminently, well, there is something to be said for being in cash.  But if its just there because you don't know what else to do with it, well, its time to start doing something about it.  g'luck

  • Like 2
  • Thanks 1

Share this post


Link to post
Share on other sites
2 minutes ago, guru_007 said:

There is a personal finance and education thread for which this post may be better suited, but, I'll add an opinion for you here.

I'm assuming this money is in a non-tax sheltered account.  That's a lot of money to have sitting around doing nothing.  I think the first question you need to ask yourself is why is it in a savings account doing nothing?  Is it because you're afraid to invest it/risk it?  Is it because you're saving it for a rainy day?  College?  Early retirement?  Or is it simply a matter of you don't know wtf to do with it.  Honestly, money is a funny thing.  People are afraid to talk about it with people they are close with, and they are even more opposed to pay someone to take care of it for them.  Not a knock on you, Shuke.  I just think you really need to come to terms as to what your intention is to do with this money.  Short term/long term.

Everyone is different.  I know a little bit about money/finance.  I'm by no means an expert.  But, if this was me..............

First of all, I have no issue at all carrying a car payment at less than 2% financing.  Quick search yields https://www.edmunds.com/minivan/car-incentives.html a number of possible options.  Obviously you will need to figure out what kind of vehicle you are looking for, but to me, financing almost always trumps all.  I cannot recall the last used car I've bought for myself or my wife.  Further, I can't recall ever having a car loan over 2.9% and that was a while ago. I always want a reliable vehicle, under warranty for the entire length of my loan and never want to pay out of pocket for anything but gas, tires and brakes.  :shrug:

As far as what to have the money doing, well, there are an ### load of investments out there.  At a bare minimum, this money should be making 3% and tbh, 4-5% yields is easily attainable for relatively little risk.  If it were me, I'd keep a rainy day fund in cash of maybe 2-3 months of expenses.  The rest should all be working all the time. If you are hesitant to research on your own, ask someone or even pay someone.  Everyone's situation is obviously different, but having money sitting around doing nothing for no good reason while you are still working is not a great idea.  And you know its not a great idea, so do something about it.  

This thread gets a lot more action when the stock market is doing well.  And there are a lot of headwinds in the equity markets ahead.  But that's not to say there aren't places to invest your money even when times aren't so good.  If you're retired or you need this money imminently, well, there is something to be said for being in cash.  But if its just there because you don't know what else to do with it, well, its time to start doing something about it.  g'luck

Where 

Share this post


Link to post
Share on other sites

Thanks guru.  The reason it’s in there is because it just happened to collect there over the past two years while I figured out what I wanted to do with it. 

I know I should see someone to discuss, but to be honest I don’t trust financial advisors, so I’ve just been too hesitant.  

  • Like 2

Share this post


Link to post
Share on other sites
8 minutes ago, shuke said:

I know I should see someone to discuss, but to be honest I don’t trust financial advisors, so I’ve just been too hesitant.

I hear you.  There are a lot of advisors that act as fiduciaries that would have your best interest in mind.  There may be consultation fees, but isn't the peace of mind worth a sit down?  $100K isn't a tremendous amount of wealth, but it's not change in your couch either.  And I'm sure you have other accounts and aspirations other than buying a new car.  Hell, your bank may even have one willing to talk to you for free (now do take what they say with a grain of salt because they will be trying to sell you something without a doubt).

Either way, its your money, you worked hard for it, make it work for you.  Finance is a hobby of mine for sure (and what I studies in college), but there is a lot to wrap your head around.  No need to put all your eggs in one basket either.  Put some in a fund, some in a REIT, some in an equity you believe in, and by all means a good portion in cash or equivalent to not lose money.

  • Like 2

Share this post


Link to post
Share on other sites
5 minutes ago, guru_007 said:

and by all means a good portion in cash or equivalent to not lose money.

What do you mean by this?  Isn’t this where it is now?

Share this post


Link to post
Share on other sites
4 minutes ago, shuke said:

What do you mean by this?  Isn’t this where it is now?

yes, but not so much.  a few months of expenses say maybe 1/3 or what you have in there now at most?  Always want something in cash for sure.  Personally, I keep 2 months of expenses, but both myself and wife work, and our jobs are pretty safe.  Everyone's situation is different.

Share this post


Link to post
Share on other sites
41 minutes ago, shuke said:

Thanks guru.  The reason it’s in there is because it just happened to collect there over the past two years while I figured out what I wanted to do with it. 

I know I should see someone to discuss, but to be honest I don’t trust financial advisors, so I’ve just been too hesitant.  

At the least you can put it in a brokerage, buy ICSH and get 2.2% or so on that money.  

Share this post


Link to post
Share on other sites
33 minutes ago, shuke said:

Thanks guru.  The reason it’s in there is because it just happened to collect there over the past two years while I figured out what I wanted to do with it. 

I know I should see someone to discuss, but to be honest I don’t trust financial advisors, so I’ve just been too hesitant.  

If you're going to spend a bunch of it in the next year or two and it needs to be liquid ...I would consider online savings accounts that pay 1.7% - 1.85%.  Depending on whether you already have holdings at Fidelity or Vanguard, you can just plunk it in there.  I just checked my Vanguard accounts and they are yielding 1.87% YTD.  

3-month US Treasury bonds are currently 1.57%.

Share this post


Link to post
Share on other sites

At a minimum, you can put it in a high yield savings account and get close to 2%.

Check out CIT bank as one option.

That was as high as 2.45% as of a couple months ago.

Share this post


Link to post
Share on other sites
4 hours ago, Sand said:

Tempting to pay that off.  I tried to clear the money to wipe away my mortgage, but didn't have the cash this year.

It is very tempting, especially the auto. Probably will shortly after first of year after IRA and property taxes are taken care of.

First post from 2 yrs ago didn't include the IRA amounts, so it wasn't doubling in value.

I guess I got lucky, neither wife or I are spenders. Need to start looking for more experiences to enjoy.

 

Share this post


Link to post
Share on other sites
6 hours ago, NutterButter said:

5% with little risk?   Sign me up.

Best cd/money market i can see is 2.2%/1 year with capital one

Share this post


Link to post
Share on other sites
10 hours ago, shuke said:

Guys, I have 100k sitting in a savings account doing close to nothing.  Tell me what to do with it.  

We need a new van, I’d love to pay cash and not have a car loan.  But if I can get a good rate I know investing the money elsewhere is probably the better idea. 

That's wayyyy too much to have earning zilcho.  You're essentially losing money every day because of inflation.

I'm not into financial advisor's but something you may want to think about since seems need some help.  If you don't want to go that route, you should read a couple investing books.

Nothing really wrong with buying car with cash if you're not going to invest money anyway, although in long run maybe better to invest. Buying car with cash is essentially like buying a CD at 2%.  Speaking of which I would take some of your money and at least do that so you're not earning zero.  Then take a slice and put in stock market ETF at Vanguard or Fidelity, maybe a smaller slice in bonds fund or etf.  

So might look something like this and I don't know your age or rest of your financial situation:

20K for car, or could maybe put down 1/2 and take loan for rest

40K stock market ETF

10 K bond ETF

10 K in 18 month CD

20 K left for emergencies

 

 

 

  • Thanks 1

Share this post


Link to post
Share on other sites

My biggest concern is you are buying into an all time high stock market.

Share this post


Link to post
Share on other sites
12 hours ago, shuke said:

Guys, I have 100k sitting in a savings account doing close to nothing.  Tell me what to do with it.  

We need a new van, I’d love to pay cash and not have a car loan.  But if I can get a good rate I know investing the money elsewhere is probably the better idea. 

Pay for cars in cash. That part is simple and probably takes care of a third of that amount. 
 

do you have any other non mortgage debt? If so pay that too

 

what is your emergency fund amount? Different people have different things, I do $25k for what it’s worth. I have this earning 1.5% or so, that is easy to get with Ally or others. 
 

so that might leave $40k or so. So you fund 529s? Do you max Roth’s? 

  • Like 1
  • Thanks 1

Share this post


Link to post
Share on other sites
26 minutes ago, rascal said:

My biggest concern is you are buying into an all time high stock market.

How many historical highs do you think there have been in the history of the stock market? The first one was closing bell the day they opened it, I would guess thousands have happened since 

  • Like 4

Share this post


Link to post
Share on other sites
47 minutes ago, rascal said:

My biggest concern is you are buying into an all time high stock market.

Buying stocks at an all time high.  

  • Like 4

Share this post


Link to post
Share on other sites
13 hours ago, shuke said:

Guys, I have 100k sitting in a savings account doing close to nothing.  Tell me what to do with it.  

We need a new van, I’d love to pay cash and not have a car loan.  But if I can get a good rate I know investing the money elsewhere is probably the better idea. 

We pay cash for our vehicles, no regrets there. 

I know a guy who can take care of your money for you...

Seriously, buy the vehicle in cash, invest the rest in a 4 fund blend - bond, us large cap, international, us small cap. Feel free to add REIT if you want (I do but it's not necessary)

  • Thanks 1

Share this post


Link to post
Share on other sites
1 hour ago, rascal said:

My biggest concern is you are buying into an all time high stock market.

There’s a pretty good chance that in 5-10 years there will be at least one more all time high stock market. If he doesn’t need the money until that timeframe, he should put it in the market. 

  • Like 1

Share this post


Link to post
Share on other sites
13 hours ago, shuke said:

Guys, I have 100k sitting in a savings account doing close to nothing.  Tell me what to do with it.  

We need a new van, I’d love to pay cash and not have a car loan.  But if I can get a good rate I know investing the money elsewhere is probably the better idea. 

Buy car in cash if that gives you piece of mind. Take 25k put in these fancy bank accounts that have been mentioned, Put rest in a good Index Fund and ignore it for 20 years. Oh, and more bobbleheads. 

  • Thanks 1

Share this post


Link to post
Share on other sites
18 hours ago, shuke said:

Guys, I have 100k sitting in a savings account doing close to nothing.  Tell me what to do with it.  

We need a new van, I’d love to pay cash and not have a car loan.  But if I can get a good rate I know investing the money elsewhere is probably the better idea. 

If you are hyper risk averse and want to use that as an emergency fund, plus a car payment taking your money and cycling through bank bonuses is a fantastic way to get 5+% return on your cash and often higher.  

https://everybankbonus.com/

I mean this isn't the best one going but just to give an idea:

Enjoy up to $625 when you open and fund a new You Invest Trade account with $25,000 or more in new money within 45 days. New money is cash or securities from a non-Chase or non-J.P. Morgan account. Maintain the balance for 90 days and we'll add your bonus in 10 business days. Find out how. *INVESTMENT PRODUCTS: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE*

 

You can put 25k there, get $625 and still invest it in whatever you want.  

Others are similar to this except they are pure money market funds.

 

  • Thanks 1

Share this post


Link to post
Share on other sites

Shuke, I’m in almost the same situation. Have had ~150k sitting in our checking account all year. Just was waiting till end of year to figure out what to do with it. A lot of it I’ll keep there as a slush fund for regular monthly expenses and a rainy day, but probably 50k I should dump somewhere. 
 

I may put it into my mortgage. I know it’s not the smartest thing but I just really want to pay down our mortgage ASAP for sanity’s sake. With everyone expecting a recession soon, seems like not a bad time to do that anyway. 

Share this post


Link to post
Share on other sites
12 minutes ago, Otis said:

Shuke, I’m in almost the same situation. Have had ~150k sitting in our checking account all year. Just was waiting till end of year to figure out what to do with it. A lot of it I’ll keep there as a slush fund for regular monthly expenses and a rainy day, but probably 50k I should dump somewhere. 
 

I may put it into my mortgage. I know it’s not the smartest thing but I just really want to pay down our mortgage ASAP for sanity’s sake. With everyone expecting a recession soon, seems like not a bad time to do that anyway. 

If you are currently putting away savings each month, there is no reason not to dump a bunch of that money on the mortgage and save a lot on interest.

There is nothing wrong with paying down a mortgage.  Just think of it as diversifying for a guaranteed "ok" return 

Edited by ghostguy123
  • Like 1

Share this post


Link to post
Share on other sites
52 minutes ago, Otis said:

Shuke, I’m in almost the same situation. Have had ~150k sitting in our checking account all year. Just was waiting till end of year to figure out what to do with it. A lot of it I’ll keep there as a slush fund for regular monthly expenses and a rainy day, but probably 50k I should dump somewhere. 
 

I may put it into my mortgage. I know it’s not the smartest thing but I just really want to pay down our mortgage ASAP for sanity’s sake. With everyone expecting a recession soon, seems like not a bad time to do that anyway. 

Why do you say this?

Share this post


Link to post
Share on other sites

Put that money in an account just earning 2% and you could pay for at least 1 attendee at a daughter's wedding over the course of a year.

  • Like 2
  • Thanks 1
  • Sad 1

Share this post


Link to post
Share on other sites
8 hours ago, rascal said:

My biggest concern is you are buying into an all time high stock market.

Have you looked at a chart of the stock market’s value over time? It’s often near or at all time highs. 

Share this post


Link to post
Share on other sites
2 hours ago, culdeus said:

If you are hyper risk averse and want to use that as an emergency fund, plus a car payment taking your money and cycling through bank bonuses is a fantastic way to get 5+% return on your cash and often higher.  

https://everybankbonus.com/

I mean this isn't the best one going but just to give an idea:

Enjoy up to $625 when you open and fund a new You Invest Trade account with $25,000 or more in new money within 45 days. New money is cash or securities from a non-Chase or non-J.P. Morgan account. Maintain the balance for 90 days and we'll add your bonus in 10 business days. Find out how. *INVESTMENT PRODUCTS: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE*

 

You can put 25k there, get $625 and still invest it in whatever you want.  

Others are similar to this except they are pure money market funds.

 

I've wondered if bank churning would be a decent plan. I have $30k in savings now (plus $15k in a regular brokerage) could easily flip that every few months. But does it kill your FICO? What if your card churning at the same time? 

Edited by -OZ-

Share this post


Link to post
Share on other sites

@shuke put the money in an S&P tracker. We are paying for the kid’s college fund in the Schwab S&P 500. 
 

20 years at an assumed 7% would turn your 100k into 387k. 

Edited by Capella
  • Like 2
  • Thanks 1

Share this post


Link to post
Share on other sites
37 minutes ago, -OZ- said:

I've wondered if bank churning would be a decent plan. I have $30k in savings now (plus $15k in a regular brokerage) could easily flip that every few months. But does it kill your FICO? What if your card churning at the same time? 

Bank accounts don't require credit pulls so it should do nothing to your FICO score.  That site actually confirms if there's a pull or not.  So as long as there isn't a hard pull, you're fine.

  • Like 1

Share this post


Link to post
Share on other sites
13 minutes ago, Judge Smails said:

Where’s the tree money going? 

Into trees.

  • Thinking 1

Share this post


Link to post
Share on other sites

I'm not as smart as all the financial guys but if I were expecting a recession I think I'd prefer to have 150k liquid cash sitting around ready to help any situation me or my family might be in or be in a prime spot to jump into an investment. 

Share this post


Link to post
Share on other sites
12 hours ago, Tool said:

That's wayyyy too much to have earning zilcho

 

 

 

You guys don’t have to keep saying this. I know this, which is why I’m asking for help. 

50k was in there for my emergency fund, the other 50 has accumulated over the last 10 months (severance, unpaid vacation, tax returns, additional savings).  

Getting laid off in December and now working for a high risk startup has me a little hesitant about making most of this non-liquid. 

Share this post


Link to post
Share on other sites
11 hours ago, wilked said:

Pay for cars in cash. That part is simple and probably takes care of a third of that amount. 
 

do you have any other non mortgage debt? If so pay that too

 

what is your emergency fund amount? Different people have different things, I do $25k for what it’s worth. I have this earning 1.5% or so, that is easy to get with Ally or others. 
 

so that might leave $40k or so. So you fund 529s? Do you max Roth’s? 

No non-mortgage debt. 

Already contribute to 529s.  Don’t currently put anything into Roth.  

Share this post


Link to post
Share on other sites
6 minutes ago, shuke said:

You guys don’t have to keep saying this. I know this, which is why I’m asking for help. 

50k was in there for my emergency fund, the other 50 has accumulated over the last 10 months (severance, unpaid vacation, tax returns, additional savings).  

Getting laid off in December and now working for a high risk startup has me a little hesitant about making most of this non-liquid. 

Ok fair enough, I think we're all just trying to help.

  • Like 1

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.