need help pls

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
noLegend
Posts: 6
Joined: Sat Jul 14, 2018 3:24 pm

need help pls

Post by noLegend » Sun Jul 15, 2018 1:05 pm

Hello,

I just discovered this website yesterday via google

heres my situation: i am 40 y/o with 45k/year income, no debts as in nothing

but i do not have any savings/retirement/investments etc.. I messed up my life but right now im back on track and I just realized that its kinda late for me to save for retirement. Just need your thoughts/advise on how/where to start.

(excuse me for my bad english)

Thank you!

User avatar
LadyGeek
Site Admin
Posts: 49145
Joined: Sat Dec 20, 2008 5:34 pm
Location: Philadelphia
Contact:

Re: need help pls

Post by LadyGeek » Sun Jul 15, 2018 1:16 pm

Welcome! Relax, we will help you.

For investing, this is a good place to start: Getting started

However, you should only start to invest when you have your "other" personal finances in good shape.

Follow this checklist: Financial planning

To say this in another way:

- Do you have any debt, such as money owed on a credit card? (You said no, but I want to be sure.)
- Do you have money in a savings account that will cover "unplanned" expenses for a few months? See the wiki: Emergency fund If not, we need to work on this first.

Once that's complete, we can proceed to invest.

The first step is to create a plan to get you started.

I recommend updating this thread with the information in Asking Portfolio Questions format. Certainly, a lot of that info will be "none", but it's a great way to make you think about the "big picture" and will give us the info we need to point you in the right direction.

So, take your time to do some reading. If you have any questions, ask them here. (We'll help you with the plan, of course.)

(This thread is now in the Investing - Help with Personal Investments forum.)
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

retiredjg
Posts: 34372
Joined: Thu Jan 10, 2008 12:56 pm

Re: need help pls

Post by retiredjg » Sun Jul 15, 2018 1:19 pm

The situation may look grim to you, but you are far ahead of many because you have no debt. You don't have to dig yourself out of a hole before moving up. Good for you for being at this point!

It is certainly not too late to start saving. Start your education here. https://www.bogleheads.org/wiki/Getting_started


Start your savings in a plan at work if you have one. Or a traditional IRA or Roth IRA (not sure which one would be best for you yet).

Do you have a plan at work? If so, we can talk about whether it is a good one or not. If not, you can use an IRA instead. Think you can save $5k a year? That is about 10% of your income and a good place to start if you can manage it.

After you start, every time you get a raise, increase your savings percentage a little rather than spend it all.

megabad
Posts: 828
Joined: Fri Jun 01, 2018 4:00 pm

Re: need help pls

Post by megabad » Sun Jul 15, 2018 1:43 pm

noLegend wrote:
Sun Jul 15, 2018 1:05 pm
Hello,

I just discovered this website yesterday via google

heres my situation: i am 40 y/o with 45k/year income, no debts as in nothing

but i do not have any savings/retirement/investments etc.. I messed up my life but right now im back on track and I just realized that its kinda late for me to save for retirement. Just need your thoughts/advise on how/where to start.

(excuse me for my bad english)

Thank you!
Welcome. Surveys have shown that between 20-40% of American adults have nothing saved for retirement so you are not alone. We all have to start somewhere and realizing this is a very important step. There was certainly a time when I had no savings (and a lot of debt) and I had to read and learn from others and slowly build a financial future. As a community, the Bogleheads forum learns together.

In addition to the above great starting advice, I would explicitly call out and recommend reading the book The Bogleheads' Guide to Investing by Taylor Larimore, Michael LeBeouf, Mel Lindauer which was authored by some of our respected forum members. It is an easy read and covers a lot relatively quickly.

Dottie57
Posts: 4775
Joined: Thu May 19, 2016 5:43 pm

Re: need help pls

Post by Dottie57 » Sun Jul 15, 2018 1:47 pm

noLegend wrote:
Sun Jul 15, 2018 1:05 pm
Hello,

I just discovered this website yesterday via google

heres my situation: i am 40 y/o with 45k/year income, no debts as in nothing

but i do not have any savings/retirement/investments etc.. I messed up my life but right now im back on track and I just realized that its kinda late for me to save for retirement. Just need your thoughts/advise on how/where to start.

(excuse me for my bad english)

Thank you!

Welcome.

We need more info. Do you have a 401k at work? We need to know about all expenses and dept.
If there is a retirement plan at work, list what you can invest in (ticker/symbol, name of funds, rxpense ratio).

Answers to these will help.

noLegend
Posts: 6
Joined: Sat Jul 14, 2018 3:24 pm

Re: need help pls

Post by noLegend » Sun Jul 15, 2018 2:35 pm

Dottie57 wrote:
Sun Jul 15, 2018 1:47 pm
noLegend wrote:
Sun Jul 15, 2018 1:05 pm
Hello,

I just discovered this website yesterday via google

heres my situation: i am 40 y/o with 45k/year income, no debts as in nothing

but i do not have any savings/retirement/investments etc.. I messed up my life but right now im back on track and I just realized that its kinda late for me to save for retirement. Just need your thoughts/advise on how/where to start.

(excuse me for my bad english)

Thank you!

Welcome.

We need more info. Do you have a 401k at work? We need to know about all expenses and dept.
If there is a retirement plan at work, list what you can invest in (ticker/symbol, name of funds, rxpense ratio).

Answers to these will help.
Hi,

Thank you all for all your great advice!

im reading all information on the bogleheads' wiki site right now

right now I dont have 401k but my previous job I had 401k around 7k which is jsut setting there, my current employer doesnt have retirement plans, and I dont have retirement plans.
my plan right now is to build my emergency funds, but next month im going to start with my new job/employer and they have retirement plans if everything goes well my plan is max out my contributions.

As of now I am not contributing to any retirement plans/investment, 0 savings

noLegend
Posts: 6
Joined: Sat Jul 14, 2018 3:24 pm

Re: need help pls

Post by noLegend » Sun Jul 15, 2018 2:39 pm

LadyGeek wrote:
Sun Jul 15, 2018 1:16 pm
Welcome! Relax, we will help you.

For investing, this is a good place to start: Getting started

However, you should only start to invest when you have your "other" personal finances in good shape.

Follow this checklist: Financial planning

To say this in another way:

- Do you have any debt, such as money owed on a credit card? (You said no, but I want to be sure.)
- Do you have money in a savings account that will cover "unplanned" expenses for a few months? See the wiki: Emergency fund If not, we need to work on this first.

Once that's complete, we can proceed to invest.

The first step is to create a plan to get you started.

I recommend updating this thread with the information in Asking Portfolio Questions format. Certainly, a lot of that info will be "none", but it's a great way to make you think about the "big picture" and will give us the info we need to point you in the right direction.

So, take your time to do some reading. If you have any questions, ask them here. (We'll help you with the plan, of course.)

(This thread is now in the Investing - Help with Personal Investments forum.)
Thank you! I did book mark this website and im reading all the information, I really appreciate all your help.

User avatar
LadyGeek
Site Admin
Posts: 49145
Joined: Sat Dec 20, 2008 5:34 pm
Location: Philadelphia
Contact:

Re: need help pls

Post by LadyGeek » Sun Jul 15, 2018 2:52 pm

^^^ Just remember that you don't need to understand everything at once. Take your time, relax. If you have any questions on what you're reading, ask them here.
noLegend wrote:
Sun Jul 15, 2018 2:35 pm
right now I dont have 401k but my previous job I had 401k around 7k which is jsut setting there, my current employer doesnt have retirement plans, and I dont have retirement plans.
my plan right now is to build my emergency funds, but next month im going to start with my new job/employer and they have retirement plans if everything goes well my plan is max out my contributions.
^^^ That's a good plan. So, you do have money saved for retirement - it's sitting at your last job. This tells us where to start.

Money in retirement plan from last job - Yes
Have retirement plan now - No
Will have retirement plan at next job - Yes

Once you build up some confidence to post your info, the Asking Portfolio Questions format has a place to enter your 401(k) info. We don't want account numbers, just the fund name (and "ticker" (stock) symbol), amount and expense ratio if you can. If not, don't worry about it. Just do the best you can. We deal with this stuff all the time, don't let it stop you from posting anything.

Your 401k money isn't going anywhere and it belongs to you. Since it's from your last job, it can be moved to your new employer's plan, or, to your own retirement account. It depends on a few things, like what your new job has. Don't do anything now, but it's something to think about for a later time.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

grok87
Posts: 8501
Joined: Tue Feb 27, 2007 9:00 pm

Re: need help pls

Post by grok87 » Sun Jul 15, 2018 2:56 pm

noLegend wrote:
Sun Jul 15, 2018 2:35 pm
Dottie57 wrote:
Sun Jul 15, 2018 1:47 pm
noLegend wrote:
Sun Jul 15, 2018 1:05 pm
Hello,

I just discovered this website yesterday via google

heres my situation: i am 40 y/o with 45k/year income, no debts as in nothing

but i do not have any savings/retirement/investments etc.. I messed up my life but right now im back on track and I just realized that its kinda late for me to save for retirement. Just need your thoughts/advise on how/where to start.

(excuse me for my bad english)

Thank you!

Welcome.

We need more info. Do you have a 401k at work? We need to know about all expenses and dept.
If there is a retirement plan at work, list what you can invest in (ticker/symbol, name of funds, rxpense ratio).

Answers to these will help.
Hi,

Thank you all for all your great advice!

im reading all information on the bogleheads' wiki site right now

right now I dont have 401k but my previous job I had 401k around 7k which is jsut setting there, my current employer doesnt have retirement plans, and I dont have retirement plans.
my plan right now is to build my emergency funds, but next month im going to start with my new job/employer and they have retirement plans if everything goes well my plan is max out my contributions.

As of now I am not contributing to any retirement plans/investment, 0 savings
Congratulations. Agree with those who say you are in better shape than most cause no debt.
I would look into maybe rolling your old 401k into your new 401k. That will get you jump started there and it will be easier to have everything in one place.
Cheers
Grok
Keep calm and Boglehead on. KCBO.

retiredjg
Posts: 34372
Joined: Thu Jan 10, 2008 12:56 pm

Re: need help pls

Post by retiredjg » Sun Jul 15, 2018 3:14 pm

Here is something you should learn about - the saver's credit. You can get a credit on your federal income taxes if you save for retirement. This might work out for you or it might not, but you should find out.

https://www.bogleheads.org/wiki/Saver%27s_credit

I know this may seem overwhelming today, but if you stick around it will not be overwhelming for long.

There is something else called the Earned Income Credit (EIC) but I don't know enough about it to even suggest if it might apply to you. There may be a Wiki page on it as well. The link to the Wiki is above, near center.

retiredjg
Posts: 34372
Joined: Thu Jan 10, 2008 12:56 pm

Re: need help pls

Post by retiredjg » Sun Jul 15, 2018 3:16 pm

You can roll your old 401k into a traditional IRA if you want.

Or leave it where it is until you see how good your new 401k is. People here can help you figure out if the new plan is a good one or not.

noLegend
Posts: 6
Joined: Sat Jul 14, 2018 3:24 pm

Re: need help pls

Post by noLegend » Sun Jul 15, 2018 4:00 pm

^^^ That's a good plan. So, you do have money saved for retirement - it's sitting at your last job. This tells us where to start.

Money in retirement plan from last job - Yes
Have retirement plan now - No
Will have retirement plan at next job - Yes

Once you build up some confidence to post your info, the Asking Portfolio Questions format has a place to enter your 401(k) info. We don't want account numbers, just the fund name (and "ticker" (stock) symbol), amount and expense ratio if you can. If not, don't worry about it. Just do the best you can. We deal with this stuff all the time, don't let it stop you from posting anything.

Your 401k money isn't going anywhere and it belongs to you. Since it's from your last job, it can be moved to your new employer's plan, or, to your own retirement account. It depends on a few things, like what your new job has. Don't do anything now, but it's something to think about for a later time.
Thank you LadyGeek!

Im almost done reading parts of Getting Started wikis, now Im trying to learn these words tickers and symbols and I came up with the plan earlier while reading the wikis.. hopefully next year around march or april I can move my old 401k to vanguard IRA's, just like i said if things goes well with my new job next month, i can start a new 401k with them and at the same time contributing to my IRA im not just sure if that is possible @ LadyGeek?

noLegend
Posts: 6
Joined: Sat Jul 14, 2018 3:24 pm

Re: need help pls

Post by noLegend » Sun Jul 15, 2018 4:02 pm

retiredjg wrote:
Sun Jul 15, 2018 3:16 pm
You can roll your old 401k into a traditional IRA if you want.

Or leave it where it is until you see how good your new 401k is. People here can help you figure out if the new plan is a good one or not.
oh thank you, i have a question is it possible to have IRA and 401k at the same time? Because my plan is rollover my old 401k to IRA and start a new 401k plan with my new employer?

retiredjg
Posts: 34372
Joined: Thu Jan 10, 2008 12:56 pm

Re: need help pls

Post by retiredjg » Sun Jul 15, 2018 4:12 pm

Yes. You can hold IRAs and 401k accounts at the same time. Even multiple IRAs and 401ks if you want - though I don't necessarily suggest that.

Sometimes there is a question about whether you can contribute, but I can't think of a time where there is a question about what you can hold.

Your plan to roll the old 401k to IRA and start a new 401k is not a problem.

22twain
Posts: 1598
Joined: Thu May 10, 2012 5:42 pm

Re: need help pls

Post by 22twain » Sun Jul 15, 2018 4:15 pm

noLegend wrote:
Sun Jul 15, 2018 4:02 pm
is it possible to have IRA and 401k at the same time?
Yes, and the contribution limits are separate. If you're under age 50, you can contribute up to $5,500 to an IRA and up to $18,500 to a 401k. If you're age 50+, the limits are $6,500 and $24,500.
My investing princiPLEs do not include absolutely preserving princiPAL.

User avatar
LadyGeek
Site Admin
Posts: 49145
Joined: Sat Dec 20, 2008 5:34 pm
Location: Philadelphia
Contact:

Re: need help pls

Post by LadyGeek » Sun Jul 15, 2018 4:18 pm

^^^ What 22twain and retiredjg said.

Let's step back and take a slow approach. The best way to learn is to try and write everything down for yourself. (I use a spreadsheet, but whatever is easy for you.)

See: Investment policy statement and do what it says. Since you're just starting out, skip to the bottom of the page and focus on the "Investing plan" section. Keep it simple. The details will come later.

This is your first "real" step towards investing and is a very important document. Make sure it's backed up somewhere. Write down what you've stated here. Think about it, then really take a good look at it. Revise as needed. Once you know what you want to do, how comes next.

Don't forget to include what we said about building up an emergency fund. (Do you have enough saved up? If you're not sure, ask.)
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

noLegend
Posts: 6
Joined: Sat Jul 14, 2018 3:24 pm

Re: need help pls

Post by noLegend » Sun Jul 15, 2018 4:30 pm

ok thank you, I will do all that probably going back to this forum next week, right now with all these information you guys provided today I have a lot of reading to do, so im just gonna pause and I will finish reading all the guides and information on wikis and I know i have lots of questions.

Thanks guys!

User avatar
dratkinson
Posts: 4378
Joined: Thu Jul 26, 2007 6:23 pm
Location: Centennial CO

Re: need help pls

Post by dratkinson » Sun Jul 15, 2018 5:06 pm

Previously mentioned tax programs. Research them to see if you can use them.
--Savers tax credit: https://www.irs.gov/retirement-plans/pl ... ers-credit
--Earned income tax credit: https://www.irs.gov/credits-deductions/ ... tax-credit



When you are ready to provide the information requested in the sticky "Asking Portfolio Questions", put it into your OP (original post, original posters).

Why? So the first thing all forum members see is all of your information in one place, at the beginning, so they can "hit the ground running" to offer their help.

How?
--Copy the sticky "Asking Portfolio Questions" and paste it into Microsoft Word (or your preferred editor).
--Edit it offline in Word. (Take your time, no rush.)
--Paste it into the bottom of your OP when ready. How? Click the "Edit post" button in your OP. It's at the top-right of your OP.



After you update your OP with your information, then create a new reply (click "Post reply") and tell us you've updated your information in your OP.

Why? The system does not notify us when you edit your OP. But it does send out "new reply received" emails when you post a "New reply"; that's how we will be called back to review your updated information and start helping you.



Disclosure. I was debt-free and 55 when I found this forum, so you are ahead of me. It can be done.



Welcome.
d.r.a, not dr.a. | I'm a novice investor, you are forewarned.

User avatar
LadyGeek
Site Admin
Posts: 49145
Joined: Sat Dec 20, 2008 5:34 pm
Location: Philadelphia
Contact:

Re: need help pls

Post by LadyGeek » Sun Jul 15, 2018 6:14 pm

^^^ What he said.

If you get stuck on something, don't wait until the end of the week. Ask for help here as soon as you need it. We'll be able to answer your questions and let you know what's important.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

Chaconne
Posts: 140
Joined: Sat Dec 15, 2007 4:18 pm

Re: need help pls

Post by Chaconne » Sun Jul 15, 2018 6:55 pm

You can do it! If my math is correct, with the $7K you have now plus putting away $5K each year, as suggested above, at 5% growth per year (admittedly a wild guess at the unknowable future), you'd have just a bit over $280,000 at age 66. I'm not sure how much that will be worth at that time, but there's also no telling how much more you can accumulate, assuming your 401(k), a good plan and growing salary and savings rates in the future. Best of luck!
-Bob

Post Reply