Getting Started

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
happydaze412
Posts: 26
Joined: Thu Aug 27, 2020 3:37 pm

Getting Started

Post by happydaze412 »

Here it is, not much but you gotta start somewhere.

Age: 27

Debt: None

Tax Rate: Fed: 12% State: 5.05%

Filing Status: Single


Gold: $2250
Silver: $400
401k: $1550
Cash: $2600 (House downpayment fund)/emergency fund)

Total: $6800

Been able to save up to $350 a month. Here is my plan for that money.
Cash: $260 (For down payment)
Gold/Silver: 90
401k: (3% pre tax, 3% company match)

My girlfriend is also savings and has 5k saved for a house. I’m not counting that towards my savings.
Is savings rate calculated based on pre tax pay or after tax? I was just curious. Thank you.
Last edited by happydaze412 on Wed Nov 11, 2020 10:33 am, edited 3 times in total.
magicrat
Posts: 1090
Joined: Sat Nov 29, 2014 7:04 pm

Re: Getting Started

Post by magicrat »

Feel free to make whatever calculation you want. I don't care about my savings rate. I can only spend dollars, not percents, so I calculate dollar savings.
tashnewbie
Posts: 954
Joined: Thu Apr 23, 2020 12:44 pm

Re: Getting Started

Post by tashnewbie »

I'd recommend editing your original post (using the pencil icon in the upper right hand corner of the post) to format and include the information set forth here: Asking Portfolio Questions

In order to give the most-informed advice, people need to a fuller picture of your overall portfolio.
User avatar
JupiterJones
Posts: 2918
Joined: Tue Aug 24, 2010 3:25 pm
Location: Nashville, TN

Re: Getting Started

Post by JupiterJones »

No debt? Excellent! Love seeing that.

Smart to not consider your GFs savings as part of your portfolio, since it genuinely isn't.

Is your emergency fund (and just your emergency fund... not the portion that's earmarked as down payment savings) currently enough to cover a decent number of months of expenses? (Three at minimum, six is better, more than that is great.) Seems like it's not, unless your expenses are very low. So maybe the best place to prioritize your savings is there.

Secondly, I do not invest in precious metals. And even if I did, I would be skeptical about making it such a huge part of my overall investment portfolio. The typical Boglehead approach to investing is broad diversification over stocks and bonds, usually via mutual funds. You'll not find too many of us who are putting so many eggs in any one basket, be it a particular stock, a particular industry/sector, or a particular commodity.

So I would advocate for putting all of your future savings contributions--after your emergency fund is filled up, of course--into the 401k and just let the percentage that the metal accounts for slowly drop as the 401k grows. (Heck, if it were me, I'd start selling the metal and eventually just get out of it entirely. But just stopping further investment is a good second choice.)

Furthermore, you don't (at the time of this writing) mention how your 401k investments are set up. Again, you'll want a very broad diversification, with a stock/bond ratio that makes sense for you, given your risk tolerance and how far out you anticipate retirement to be. (And with a choice of funds that minimizes expenses.)

JJ
Stay on target...
3funder
Posts: 1489
Joined: Sun Oct 15, 2017 9:35 pm

Re: Getting Started

Post by 3funder »

Dump the precious metals and add the $2,650 to your house down payment/emergency fund.
vas
Posts: 136
Joined: Thu Mar 06, 2014 12:51 pm

Re: Getting Started

Post by vas »

Nice job getting started and prioritizing savings and investing.

I second 3funder: lose the metal.

Focus on a healthy cash reserve first. Call it whatever you like, but build up some cash. Don't get fancy just keep it in a savings account.

Increase your 401k contributions a bit now and with every raise. These are pretax contributions so not too painful. Keep it simple, maybe 80% S&P500 at your current age. Don't stop. This is slow cooking but your 60 year old self will lookback with an approving smile.

Continue your financial education. Read all the wiki's on this board. Go to the library and checkout the Boglehead guide to Investing.

Good luck
ddurrett896
Posts: 1387
Joined: Wed Nov 05, 2014 3:23 pm

Re: Getting Started

Post by ddurrett896 »

happydaze412 wrote: Wed Nov 11, 2020 10:03 am Gold: $2250
Silver: $400

Been able to save up to $350 a month. Here is my plan for that money.
Cash: $260 (For down payment)
Gold/Silver: 90
Sell the Gold and Silver - add to emergency fund.
Put the $350 each month towards your emergency fund until you hit your number.
Then I'd start contributing to a Roth IRA.
Doctor Rhythm
Posts: 501
Joined: Mon Jan 22, 2018 3:55 am

Re: Getting Started

Post by Doctor Rhythm »

However you calculate your savings rate, just know that it’s very good (basing this off the $30K income reported in your prior post). As long as you’re saving as much as you can and trying to be frugal within reason, it probably doesn’t help to compare your rate with that of others.

Similarly, allocation is very personal - based on personality and beliefs as much as math, so I try to avoid telling people that theirs is wrong. However, I think it’s fair to say your allocation to precious metals is much higher than what conventional wisdom would suggest, especially for someone as young as you. At your age and tax rate, I would consider opening a Roth.
User avatar
ruralavalon
Posts: 19733
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Getting Started

Post by ruralavalon »

happydaze412 wrote: Wed Nov 11, 2020 10:03 am Here it is, not much but you gotta start somewhere.

Age: 27

Debt: None

Tax Rate: Fed: 12% State: 5.05%

Filing Status: Single


Gold: $2250
Silver: $400
401k: $1550
Cash: $2600 (House downpayment fund)/emergency fund)

Total: $6800

Been able to save up to $350 a month. Here is my plan for that money.
Cash: $260 (For down payment)
Gold/Silver: 90
401k: (3% pre tax, 3% company match)

My girlfriend is also savings and has 5k saved for a house. I’m not counting that towards my savings.
Is savings rate calculated based on pre tax pay or after tax? I was just curious. Thank you.
Where do you have your "cash" and what interest rate do you have?

Is your" Gold/Silver" in an IRA?

What funds are offered in your employer's 401k plan? Please give fund names, tickers and expense ratios.

How much (in dollars) do you have to contribute to your 401k annually in order to get the full employer match? How much (in dollars) is the full employer match annually?

Please simply add this to your original post using the edit button (the pencil icon near the upper right corner of your post), it helps a lot if all of your information is in one place.

I suggest no purchases of gold/silver, and contributing more to your 401k if any decent funds are offered in the plan.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
Topic Author
happydaze412
Posts: 26
Joined: Thu Aug 27, 2020 3:37 pm

Re: Getting Started

Post by happydaze412 »

ddurrett896 wrote: Wed Nov 11, 2020 3:46 pm
happydaze412 wrote: Wed Nov 11, 2020 10:03 am Gold: $2250
Silver: $400

Been able to save up to $350 a month. Here is my plan for that money.
Cash: $260 (For down payment)
Gold/Silver: 90
Sell the Gold and Silver - add to emergency fund.
Put the $350 each month towards your emergency fund until you hit your number.
Then I'd start contributing to a Roth IRA.
Gold and silver is an insurance. Consider that as my emergency fund.
Topic Author
happydaze412
Posts: 26
Joined: Thu Aug 27, 2020 3:37 pm

Re: Getting Started

Post by happydaze412 »

ruralavalon wrote: Wed Nov 11, 2020 4:57 pm
happydaze412 wrote: Wed Nov 11, 2020 10:03 am Here it is, not much but you gotta start somewhere.

Age: 27

Debt: None

Tax Rate: Fed: 12% State: 5.05%

Filing Status: Single


Gold: $2250
Silver: $400
401k: $1550
Cash: $2600 (House downpayment fund)/emergency fund)

Total: $6800

Been able to save up to $350 a month. Here is my plan for that money.
Cash: $260 (For down payment)
Gold/Silver: 90
401k: (3% pre tax, 3% company match)

My girlfriend is also savings and has 5k saved for a house. I’m not counting that towards my savings.
Is savings rate calculated based on pre tax pay or after tax? I was just curious. Thank you.
Where do you have your "cash" and what interest rate do you have?
Savings account earning next to nothing as the banks love savers lol.

Is your" Gold/Silver" in an IRA?
Physical bullion

What funds are offered in your employer's 401k plan? Please give fund names, tickers and expense ratios.
I think I’m in the target retirement fund.

How much (in dollars) do you have to contribute to your 401k annually in order to get the full employer match? How much (in dollars) is the full employer match annually?
Whatever 3% of my income is and they match 3%. Not sure exactly to the exact dollar.

Please simply add this to your original post using the edit button (the pencil icon near the upper right corner of your post), it helps a lot if all of your information is in one place.

I suggest no purchases of gold/silver, and contributing more to your 401k if any decent funds are offered in the plan.
I appreciate your suggestion I want to be well diverse. My goal is to add alittle bit of gold and silver and buy the dips as my budget allows but more so my goal is to add any extra savings into my house down payment fund (savings acct).
ddurrett896
Posts: 1387
Joined: Wed Nov 05, 2014 3:23 pm

Re: Getting Started

Post by ddurrett896 »

happydaze412 wrote: Thu Nov 12, 2020 5:30 pm Gold and silver is an insurance. Consider that as my emergency fund.
Your insurance or emergency fund shouldn’t change in value that much.
Topic Author
happydaze412
Posts: 26
Joined: Thu Aug 27, 2020 3:37 pm

Re: Getting Started

Post by happydaze412 »

ddurrett896 wrote: Thu Nov 12, 2020 6:40 pm [quote=happydaze412 post_id=5596466 time=<a href="tel:1605220222">1605220222</a> user_id=165051]
Gold and silver is an insurance. Consider that as my emergency fund.
Your insurance or emergency fund shouldn’t change in value that much.
[/quote]

Yeah be much better in a savings acct earning nothing and losing value to inflation. I do have 2600 in my savings but I know one day it’s going for a house. Then I’ll have to rebuild that savings.
ddurrett896
Posts: 1387
Joined: Wed Nov 05, 2014 3:23 pm

Re: Getting Started

Post by ddurrett896 »

happydaze412 wrote: Thu Nov 12, 2020 8:26 pm Yeah be much better in a savings acct earning nothing and losing value to inflation. I do have 2600 in my savings but I know one day it’s going for a house. Then I’ll have to rebuild that savings.
An emergency fund shouldn’t earn much, it’s there got an emergency. Putting it somewhere else could make more, but could lose more too.
sd323232
Posts: 743
Joined: Thu Jun 21, 2018 4:45 pm

Re: Getting Started

Post by sd323232 »

happydaze412 wrote: Wed Nov 11, 2020 10:03 am Here it is, not much but you gotta start somewhere.

Age: 27

Debt: None

Tax Rate: Fed: 12% State: 5.05%

Filing Status: Single


Gold: $2250
Silver: $400
401k: $1550
Cash: $2600 (House downpayment fund)/emergency fund)

Total: $6800

Been able to save up to $350 a month. Here is my plan for that money.
Cash: $260 (For down payment)
Gold/Silver: 90
401k: (3% pre tax, 3% company match)

My girlfriend is also savings and has 5k saved for a house. I’m not counting that towards my savings.
Is savings rate calculated based on pre tax pay or after tax? I was just curious. Thank you.
What is ur income? Top priority should be maximizing ur income
Doctor Rhythm
Posts: 501
Joined: Mon Jan 22, 2018 3:55 am

Re: Getting Started

Post by Doctor Rhythm »

As I said above, allocation is a very personal decision. However, for reasons that people have already said, it’s very unconventional to keep “emergency expense” money in the precious metals, just as they wouldn’t recommend using stocks for this purpose. This is especially true if a sudden major expense would represent a significant chunk of your net worth. If you’re committed to metals, I would flip the allocation and keep your emergency money as cash and keep your downpayment fund in metal.
Adfmacro
Posts: 72
Joined: Fri May 17, 2019 8:12 pm

Re: Getting Started

Post by Adfmacro »

happydaze412 wrote: Wed Nov 11, 2020 10:03 am Here it is, not much but you gotta start somewhere.

Age: 27

Debt: None

Tax Rate: Fed: 12% State: 5.05%

Filing Status: Single


Gold: $2250
Silver: $400
401k: $1550
Cash: $2600 (House downpayment fund)/emergency fund)

Total: $6800

Been able to save up to $350 a month. Here is my plan for that money.
Cash: $260 (For down payment)
Gold/Silver: 90
401k: (3% pre tax, 3% company match)

My girlfriend is also savings and has 5k saved for a house. I’m not counting that towards my savings.
Is savings rate calculated based on pre tax pay or after tax? I was just curious. Thank you.
You may not have much net worth, but at least it is positive net worth. I am also one who would not be adding to gold. But for whatever reason you really seem set on staying with gold. Maybe that was your start in investing and it’s something you want to keep. Just think that the 90 per month would work toward your goals in a better place.

If you have a 401k Roth option, I would suggest that you consider going to the Roth 401k. Your matching will
Still be in pre-tax, but that way a portion will Roth after tax that does not get taxed in retirement.

Starting out, striving for 10% to 15% of gross income is a good goal. Saving 3% to get the company match is a smart play. If you increase it by 1% each time you get a raise until you reach your desired percentage will allow you to ease into the percentage. You want to invest for the future, but most people would like to have a life in the mean time. So have a balance. With you saving for a down payment you may wish to leave the % going to the 401k at the amount for a full match as long as saving for a down payment is going to take quite a few years.

Many people have invested slowly and steadily with nothing fancy and let time do the work.
Topic Author
happydaze412
Posts: 26
Joined: Thu Aug 27, 2020 3:37 pm

Re: Getting Started

Post by happydaze412 »

sd323232 wrote: Thu Nov 12, 2020 8:49 pm
happydaze412 wrote: Wed Nov 11, 2020 10:03 am Here it is, not much but you gotta start somewhere.

Age: 27

Debt: None

Tax Rate: Fed: 12% State: 5.05%

Filing Status: Single


Gold: $2250
Silver: $400
401k: $1550
Cash: $2600 (House downpayment fund)/emergency fund)

Total: $6800

Been able to save up to $350 a month. Here is my plan for that money.
Cash: $260 (For down payment)
Gold/Silver: 90
401k: (3% pre tax, 3% company match)

My girlfriend is also savings and has 5k saved for a house. I’m not counting that towards my savings.
Is savings rate calculated based on pre tax pay or after tax? I was just curious. Thank you.
What is ur income? Top priority should be maximizing ur income
Just got a raise now about 32k. I couldn’t agree with you more. Can’t beat the math that as you make more it’s easier to save. By the time I buy a home realistically speaking I’m going to have to increase my income. I have a lot of respect for how hard you all work to improve your life and the lives of your families.
Topic Author
happydaze412
Posts: 26
Joined: Thu Aug 27, 2020 3:37 pm

Re: Getting Started

Post by happydaze412 »

Doctor Rhythm wrote: Thu Nov 12, 2020 9:04 pm As I said above, allocation is a very personal decision. However, for reasons that people have already said, it’s very unconventional to keep “emergency expense” money in the precious metals, just as they wouldn’t recommend using stocks for this purpose. This is especially true if a sudden major expense would represent a significant chunk of your net worth. If you’re committed to metals, I would flip the allocation and keep your emergency money as cash and keep your downpayment fund in metal.
I like the idea to remain flexible. It’s something to consider so thank you for that. I appreciate it!
Topic Author
happydaze412
Posts: 26
Joined: Thu Aug 27, 2020 3:37 pm

Re: Getting Started

Post by happydaze412 »

Adfmacro wrote: Thu Nov 12, 2020 9:44 pm
happydaze412 wrote: Wed Nov 11, 2020 10:03 am Here it is, not much but you gotta start somewhere.

Age: 27

Debt: None

Tax Rate: Fed: 12% State: 5.05%

Filing Status: Single


Gold: $2250
Silver: $400
401k: $1550
Cash: $2600 (House downpayment fund)/emergency fund)

Total: $6800

Been able to save up to $350 a month. Here is my plan for that money.
Cash: $260 (For down payment)
Gold/Silver: 90
401k: (3% pre tax, 3% company match)

My girlfriend is also savings and has 5k saved for a house. I’m not counting that towards my savings.
Is savings rate calculated based on pre tax pay or after tax? I was just curious. Thank you.
You may not have much net worth, but at least it is positive net worth. I am also one who would not be adding to gold. But for whatever reason you really seem set on staying with gold. Maybe that was your start in investing and it’s something you want to keep. Just think that the 90 per month would work toward your goals in a better place.

If you have a 401k Roth option, I would suggest that you consider going to the Roth 401k. Your matching will
Still be in pre-tax, but that way a portion will Roth after tax that does not get taxed in retirement.

Starting out, striving for 10% to 15% of gross income is a good goal. Saving 3% to get the company match is a smart play. If you increase it by 1% each time you get a raise until you reach your desired percentage will allow you to ease into the percentage. You want to invest for the future, but most people would like to have a life in the mean time. So have a balance. With you saving for a down payment you may wish to leave the % going to the 401k at the amount for a full match as long as saving for a down payment is going to take quite a few years.

Many people have invested slowly and steadily with nothing fancy and let time do the work.
I appreciate your advice! Mostly I need to work hard and do my best to increase my income. It will be worth it in order to save alittle more and to find a balance and be an informed consumer always trying to find value in what we buy and our expenses. That down payment is going to take about 5-7 years but in all honesty I’d be okay with just continuing to save until we have 25% of the market value. I know standard is 20% I guess it depends on I see the best opportunity around that time.
Adfmacro
Posts: 72
Joined: Fri May 17, 2019 8:12 pm

Re: Getting Started

Post by Adfmacro »

20% down will get you away from having to pay PMI. The more down payment the lower the monthly payments will be. In the early years of a loan, not much will go toward paying down the principal balance, so unless a larger down payment shortens the number of years on the loan, that 5% will not move the needle all that far, but you can run the numbers to see.

In the mean time don’t consider renting as throwing money away. It is a means by which to get you to your goal. Buy a home when you are ready. If you are expecting to move out of an area in less than 5 years, owning is not always a good thing. I thought I would stay out for a while, but ended up moving in 3 years. It cost me almost 20% of the value of the home between lowering the price and paying sales commission. It was between 2008 and 2011. The longer you stay in one place, the better owning usually is.
Topic Author
happydaze412
Posts: 26
Joined: Thu Aug 27, 2020 3:37 pm

Re: Getting Started

Post by happydaze412 »

Adfmacro wrote: Fri Nov 13, 2020 6:08 am 20% down will get you away from having to pay PMI. The more down payment the lower the monthly payments will be. In the early years of a loan, not much will go toward paying down the principal balance, so unless a larger down payment shortens the number of years on the loan, that 5% will not move the needle all that far, but you can run the numbers to see.

In the mean time don’t consider renting as throwing money away. It is a means by which to get you to your goal. Buy a home when you are ready. If you are expecting to move out of an area in less than 5 years, owning is not always a good thing. I thought I would stay out for a while, but ended up moving in 3 years. It cost me almost 20% of the value of the home between lowering the price and paying sales commission. It was between 2008 and 2011. The longer you stay in one place, the better owning usually is.
Thank you for that. I do plan to get 20% in that case.
Topic Author
happydaze412
Posts: 26
Joined: Thu Aug 27, 2020 3:37 pm

Re: Getting Started

Post by happydaze412 »

Early update: Thank you for all of your suggestions. I’m only buying more gold or silver depending on pullback opportunities.

Last question: Being 50/50 risk adverse. Where should I put my 401k in terms of stocks to bonds? Are bonds even worth holding at this point? Is Target Retirement an easy 401k set it and forget it kind of thing?
User avatar
Wiggums
Posts: 2960
Joined: Thu Jan 31, 2019 8:02 am

Re: Getting Started

Post by Wiggums »

happydaze412 wrote: Sun Nov 22, 2020 9:47 am Early update: Thank you for all of your suggestions. I’m only buying more gold or silver depending on pullback opportunities.

Last question: Being 50/50 risk adverse. Where should I put my 401k in terms of stocks to bonds? Are bonds even worth holding at this point? Is Target Retirement an easy 401k set it and forget it kind of thing?
Time in the market and your consistent contributions matter more than the fund. Nothing wrong with a target or fund of funds.

Good luck to you.
User avatar
ruralavalon
Posts: 19733
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Getting Started

Post by ruralavalon »

happydaze412 wrote: Sun Nov 22, 2020 9:47 am Early update: Thank you for all of your suggestions. I’m only buying more gold or silver depending on pullback opportunities.

Last question: Being 50/50 risk adverse. Where should I put my 401k in terms of stocks to bonds? Are bonds even worth holding at this point? Is Target Retirement an easy 401k set it and forget it kind of thing?
What funds are offered in your employer's 401k plan? It's not possible to suggest what to use without knowing what the choices are. Please give fund names, tickers and expense ratios. Expense ratios are critical in selecting funds to use.

A target date fund may be the best choice. Bonds are worth holding, the primary purpose of any fixed income allocation is to reduce portfolio volatility (reduce risk).

Establishing a high rate of contributions is the most important investing decision you can make, even more important than the funds you select. How much do you contribute annually?
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
Topic Author
happydaze412
Posts: 26
Joined: Thu Aug 27, 2020 3:37 pm

Re: Getting Started

Post by happydaze412 »

Wiggums wrote: Sun Nov 22, 2020 10:03 am
happydaze412 wrote: Sun Nov 22, 2020 9:47 am Early update: Thank you for all of your suggestions. I’m only buying more gold or silver depending on pullback opportunities.

Last question: Being 50/50 risk adverse. Where should I put my 401k in terms of stocks to bonds? Are bonds even worth holding at this point? Is Target Retirement an easy 401k set it and forget it kind of thing?
Time in the market and your consistent contributions matter more than the fund. Nothing wrong with a target or fund of funds.

Good luck to you.
Agreed about contributions and time in the market relative to cost. And thank you!
Topic Author
happydaze412
Posts: 26
Joined: Thu Aug 27, 2020 3:37 pm

Re: Getting Started

Post by happydaze412 »

ruralavalon wrote: Sun Nov 22, 2020 10:13 am
happydaze412 wrote: Sun Nov 22, 2020 9:47 am Early update: Thank you for all of your suggestions. I’m only buying more gold or silver depending on pullback opportunities.

Last question: Being 50/50 risk adverse. Where should I put my 401k in terms of stocks to bonds? Are bonds even worth holding at this point? Is Target Retirement an easy 401k set it and forget it kind of thing?
What funds are offered in your employer's 401k plan? It's not possible to suggest what to use without knowing what the choices are. Please give fund names, tickers and expense ratios. Expense ratios are critical in selecting funds to use.

A target date fund may be the best choice. Bonds are worth holding, the primary purpose of any fixed income allocation is to reduce portfolio volatility (reduce risk).

Establishing a high rate of contributions is the most important investing decision you can make, even more important than the funds you select. How much do you contribute annually?
I can find that information out. Busy this week with work and family but will update in a few weeks with it. Right now I put 3% of my income with a 3% employer match. It’s almost a no brainer to want to get the match. Are we in a bond bubble? Are interest rates going lower? Banks restricting lending?
Monsterflockster
Posts: 439
Joined: Thu Nov 21, 2019 12:03 am

Re: Getting Started

Post by Monsterflockster »

happydaze412 wrote: Wed Nov 11, 2020 10:03 am Here it is, not much but you gotta start somewhere.

Age: 27

Debt: None

Tax Rate: Fed: 12% State: 5.05%

Filing Status: Single


Gold: $2250
Silver: $400
401k: $1550
Cash: $2600 (House downpayment fund)/emergency fund)

Total: $6800

Been able to save up to $350 a month. Here is my plan for that money.
Cash: $260 (For down payment)
Gold/Silver: 90
401k: (3% pre tax, 3% company match)

My girlfriend is also savings and has 5k saved for a house. I’m not counting that towards my savings.
Is savings rate calculated based on pre tax pay or after tax? I was just curious. Thank you.
Wish I would’ve found this board in my 20’s...

If the goal is to buy a house put the predetermined amount there first then increase your 401k. VTI or a target retirement fund. You didn’t mention how much you make. It was tough for me in my 20’s but I probably had an extra $50-$100 I could’ve put into my retirement accounts. When it’s taken out of your check it’s like it’s not there.

Good luck... 👍🏻
Topic Author
happydaze412
Posts: 26
Joined: Thu Aug 27, 2020 3:37 pm

Re: Getting Started

Post by happydaze412 »

Monsterflockster wrote: Sun Nov 22, 2020 11:09 am [quote=happydaze412 post_id=5593561 time=<a href="tel:1605107024">1605107024</a> user_id=165051]
Here it is, not much but you gotta start somewhere.

Age: 27

Debt: None

Tax Rate: Fed: 12% State: 5.05%

Filing Status: Single


Gold: $2250
Silver: $400
401k: $1550
Cash: $2600 (House downpayment fund)/emergency fund)

Total: $6800

Been able to save up to $350 a month. Here is my plan for that money.
Cash: $260 (For down payment)
Gold/Silver: 90
401k: (3% pre tax, 3% company match)

My girlfriend is also savings and has 5k saved for a house. I’m not counting that towards my savings.
Is savings rate calculated based on pre tax pay or after tax? I was just curious. Thank you.
Wish I would’ve found this board in my 20’s...

If the goal is to buy a house put the predetermined amount there first then increase your 401k. VTI or a target retirement fund. You didn’t mention how much you make. It was tough for me in my 20’s but I probably had an extra $50-$100 I could’ve put into my retirement accounts. When it’s taken out of your check it’s like it’s not there.

Good luck... 👍🏻
[/quote]

A modest 32k. I put in 3% just to get the 3% employer match. Trying to live less and save what little I can. Just got to continue to grind. It’s not about a destination it’s all in the journey.
User avatar
ruralavalon
Posts: 19733
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Getting Started

Post by ruralavalon »

happydaze412 wrote: Sun Nov 22, 2020 10:35 am
ruralavalon wrote: Sun Nov 22, 2020 10:13 am
happydaze412 wrote: Sun Nov 22, 2020 9:47 am Early update: Thank you for all of your suggestions. I’m only buying more gold or silver depending on pullback opportunities.

Last question: Being 50/50 risk adverse. Where should I put my 401k in terms of stocks to bonds? Are bonds even worth holding at this point? Is Target Retirement an easy 401k set it and forget it kind of thing?
What funds are offered in your employer's 401k plan? It's not possible to suggest what to use without knowing what the choices are. Please give fund names, tickers and expense ratios. Expense ratios are critical in selecting funds to use.

A target date fund may be the best choice. Bonds are worth holding, the primary purpose of any fixed income allocation is to reduce portfolio volatility (reduce risk).

Establishing a high rate of contributions is the most important investing decision you can make, even more important than the funds you select. How much do you contribute annually?
I can find that information out. Busy this week with work and family but will update in a few weeks with it.
Will wait to see that, can't make any suggestions without the information on the funds available in your employer's 401k plan.

happydaze412 wrote: Sun Nov 22, 2020 10:35 amRight now I put 3% of my income with a 3% employer match. It’s almost a no brainer to want to get the match. Are we in a bond bubble? Are interest rates going lower? Banks restricting lending?
If good funds with low expense ratios are offered then it's better to make more contributions than just enough to get the employer match.

Establishing a high rate of contributions is the most important investing decision you can make, much more important than the other issues you are worried about.

When young the most important investing decision you can make is to establish a high rate of contributions. "Savings rate is the most important retirement savings decision, not only because of the math but because of the way it drives your financial mindset and habits. The basic raw stock/bond risk decision comes second. And the finer details--index or active, factors or total market, alts or no alts--are a distant third." Forum discussion on Jonathan Clements’ article "Show me the Money".
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
Post Reply