How am I doing so far???

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Topic Author
jrthmas
Posts: 1
Joined: Wed May 15, 2019 11:28 am

How am I doing so far???

Post by jrthmas » Wed May 15, 2019 11:49 am

First post on the forum so go easy on me...

Wife and I are 27yo

Investments:
401k = $50k
Rollover IRA = $20k
Roth IRA = $7k

House Value = $410k
Mortgage = $322k

Cash savings = $25k

0 CC debt
0 student loan debt (paid cash for wifes grad degree, explains under funded investments)
0 car debt

wife starts new job soon with advanced degree...our new household income will be close to 185k pre tax or 125k post tax

What order should I start investing our new additional revenue? 401k, Roth, mortgage, other?

Any insight would be awesome, thanks for having me!

snailderby
Posts: 189
Joined: Thu Jul 26, 2018 11:30 am

Re: How am I doing so far???

Post by snailderby » Wed May 15, 2019 12:28 pm

Welcome to the forum, jrthmas!
What order should I start investing our new additional revenue? 401k, Roth, mortgage, other?
Ask 10 people and you might get different answers, but https://www.bogleheads.org/wiki/Priorit ... nvestments and https://mymoneywizard.com/correct-order-investments/ may be helpful.

Silk McCue
Posts: 2223
Joined: Thu Feb 25, 2016 7:11 pm

Re: How am I doing so far???

Post by Silk McCue » Wed May 15, 2019 12:34 pm

Welcome to Bogleheads!

Given that you have been paying off student debt your and have $77k invested at your ages I think that is good. The new job for your wife with the bump in income should allow you to make some serious progress in funding your planned future (retirement, children etc.).

The best thing you can do at this point is to avail yourself of the resources on this site which are designed to get folks like started. You and your wife should spend some time getting a free education. You will learn the principles of our philosophy and will then be in a position to ask specific questions for your situation that are not answered in the resources provided.

This site changed the financial future of our lives when I first came across it in late 2016. It can do the same for you if you invest the time.

https://www.bogleheads.org/wiki/Getting_started

Cheers

ExitStageLeft
Posts: 1340
Joined: Sat Jan 20, 2018 4:02 pm

Re: How am I doing so far???

Post by ExitStageLeft » Wed May 15, 2019 12:35 pm

Welcome to the forum, and awesome job at getting an advanced degree with no debt!

You might also consider working with your spouse to develop an Investment Polcy Statement.
https://www.bogleheads.org/wiki/Investm ... _statement

272 Sheep
Posts: 140
Joined: Thu Mar 26, 2009 4:14 pm
Location: Hooksett, NH

Re: How am I doing so far???

Post by 272 Sheep » Wed May 15, 2019 6:01 pm

Welcome!
You've laid the foundation for bigger and better!
Congrats, keep going! :happy

eer_no_evil
Posts: 20
Joined: Thu Jun 29, 2017 1:50 pm

Re: How am I doing so far???

Post by eer_no_evil » Wed May 15, 2019 6:12 pm

You're crushing it.

Fully Fund Roth, Max 401k, then low cost, efficiently placed indexed funds in taxable.

:sharebeer

soccerrules
Posts: 820
Joined: Mon Nov 14, 2016 4:01 pm

Re: How am I doing so far???

Post by soccerrules » Wed May 15, 2019 6:23 pm

Great Start! -- agree with the rest of the comments.

1) Live below your means and save as much as possible
2) Be patient --this is a long race.
3) It will seem like nothing is happening the first 5-10 -15 years. Keep adding and increasing your savings. Compounding is working, just wait :happy .
4) Read and educate yourself on investing
5)Take full advantage of company 401k/403b matches, Tax deferred space each year if you can.

You will read that you have a huge advantage by saving in your 20's vs waiting until your 30's -- Be Committed!

Let us know how things turn out in 25-30 years :wink:
Don't let your outflow exceed your income or your upkeep will be your downfall.

finagle
Posts: 64
Joined: Sun Oct 30, 2016 9:33 am

Re: How am I doing so far???

Post by finagle » Wed May 15, 2019 7:36 pm

If their combined nw is 77k, that's 39k per person.

How many years will that last? 2 years for the average person? Ok.

rascott
Posts: 25
Joined: Wed Apr 15, 2015 10:53 am

Re: How am I doing so far???

Post by rascott » Wed May 15, 2019 7:39 pm

finagle wrote:
Wed May 15, 2019 7:36 pm
If their combined nw is 77k, that's 39k per person.

How many years will that last? 2 years for the average person? Ok.
What's your point? They are 27 years old, just getting their professional lives going. And they are in a great spot.

Silk McCue
Posts: 2223
Joined: Thu Feb 25, 2016 7:11 pm

Re: How am I doing so far???

Post by Silk McCue » Wed May 15, 2019 7:42 pm

finagle wrote:
Wed May 15, 2019 7:36 pm
If their combined nw is 77k, that's 39k per person.

How many years will that last? 2 years for the average person? Ok.
This is retirement savings not living expenses. What is your point?

Care to rethink your response for this first time poster?

Cheers
Last edited by Silk McCue on Wed May 15, 2019 7:47 pm, edited 1 time in total.

rascott
Posts: 25
Joined: Wed Apr 15, 2015 10:53 am

Re: How am I doing so far???

Post by rascott » Wed May 15, 2019 7:44 pm

jrthmas wrote:
Wed May 15, 2019 11:49 am
First post on the forum so go easy on me...

Wife and I are 27yo

Investments:
401k = $50k
Rollover IRA = $20k
Roth IRA = $7k

House Value = $410k
Mortgage = $322k

Cash savings = $25k

0 CC debt
0 student loan debt (paid cash for wifes grad degree, explains under funded investments)
0 car debt

wife starts new job soon with advanced degree...our new household income will be close to 185k pre tax or 125k post tax

What order should I start investing our new additional revenue? 401k, Roth, mortgage, other?

Any insight would be awesome, thanks for having me!

Good (great) start. If I were you a I'd start just maxing everything out right now....$19k x 2 401ks....+ 6k x 2 Roth's. That's $50k/yr.

Then set your lifestyle off what's left. If you never see it, you'll never miss it. It'll be a lot harder to ramp it up later if you adjust your lifestyle up first. Trust me on that.

Something is off on your tax numbers. You shouldn't be paying $60k in taxes off $185k combined.
Last edited by rascott on Wed May 15, 2019 7:47 pm, edited 1 time in total.

User avatar
Wiggums
Posts: 820
Joined: Thu Jan 31, 2019 8:02 am

Re: How am I doing so far???

Post by Wiggums » Wed May 15, 2019 7:46 pm

soccerrules wrote:
Wed May 15, 2019 6:23 pm
Great Start! -- agree with the rest of the comments.

1) Live below your means and save as much as possible
2) Be patient --this is a long race.
3) It will seem like nothing is happening the first 5-10 -15 years. Keep adding and increasing your savings. Compounding is working, just wait :happy .
4) Read and educate yourself on investing
5)Take full advantage of company 401k/403b matches, Tax deferred space each year if you can.

You will read that you have a huge advantage by saving in your 20's vs waiting until your 30's -- Be Committed!

Let us know how things turn out in 25-30 years :wink:
+1

GlacierRunner
Posts: 34
Joined: Mon Apr 16, 2018 5:29 pm

Re: How am I doing so far???

Post by GlacierRunner » Wed May 15, 2019 8:35 pm

rascott wrote:
Wed May 15, 2019 7:44 pm
jrthmas wrote:
Wed May 15, 2019 11:49 am
First post on the forum so go easy on me...

Wife and I are 27yo

Investments:
401k = $50k
Rollover IRA = $20k
Roth IRA = $7k

House Value = $410k
Mortgage = $322k

Cash savings = $25k

0 CC debt
0 student loan debt (paid cash for wifes grad degree, explains under funded investments)
0 car debt

wife starts new job soon with advanced degree...our new household income will be close to 185k pre tax or 125k post tax

What order should I start investing our new additional revenue? 401k, Roth, mortgage, other?

Any insight would be awesome, thanks for having me!

Good (great) start. If I were you a I'd start just maxing everything out right now....$19k x 2 401ks....+ 6k x 2 Roth's. That's $50k/yr.

Then set your lifestyle off what's left. If you never see it, you'll never miss it. It'll be a lot harder to ramp it up later if you adjust your lifestyle up first. Trust me on that.

Something is off on your tax numbers. You shouldn't be paying $60k in taxes off $185k combined.
What is said here would be my advice, with the caveat that, if you can, commit to living on (less than) one income. You will be able to really crush the mortgage and keep maxing your retirement accounts if you keep your lifestyle to one income. It also will provide options for changes in employment or when/if you have children - and I don't just mean having your wife stay at home. Child care is a killer expense, you'll have more options if you've been keeping your lifestyle in check.

User avatar
Wiggums
Posts: 820
Joined: Thu Jan 31, 2019 8:02 am

Re: How am I doing so far???

Post by Wiggums » Wed May 15, 2019 8:45 pm

Well said glacierrunner

3funder
Posts: 980
Joined: Sun Oct 15, 2017 9:35 pm

Re: How am I doing so far???

Post by 3funder » Thu May 16, 2019 6:17 am

Wiggums wrote:
Wed May 15, 2019 8:45 pm
Well said glacierrunner
Amen to that.

3funder
Posts: 980
Joined: Sun Oct 15, 2017 9:35 pm

Re: How am I doing so far???

Post by 3funder » Thu May 16, 2019 6:20 am

OP,

Give yourself some credit; your investments are nowhere close to underfunded. Frankly, to most of your peers, I would imagine your financial position is rather enviable.

3funder

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