If you expect to buy a car and a house in around 10 years but don't have specifics in mind, would you reduce 401k contributions to save for those? If so, what asset classes?

like
Posting as :
works at
You are currently posting as works at

Are you based out of the US? If you are, a good strategy is not saving for car and rather put the money into your retirement. When you need a car ( assume you are buying a new one ), wait for low interest rate offer ( 0% - 0.9%). The money in 401k you invested 10 years ago will grow a lot faster than the 0.9% interest you are paying for the car.

like

In 10 years!? No. What kind of car you trying to buy - a lambo?

like

A normal car. My cash assets are limited to about 6 months of expenses and literally everything else is in the market, mostly in tax advantaged accounts that I can't get to. This is more of a consideration for a house I suppose

You can withdraw contributions from Roth IRA at any time so just plan to pull out from there when needed. Assuming you’re young and early in career, you should focus first here than 401k.

You’re far better off in the long run saving in Roth and withdrawing later than not maxing Roth and only using taxable.

like

I would suggest to max out your IRAs and contribute to get the full match for your 401k. After that if you plan on saving for a car / house, probably best to put the extra cash into a brokerage account instead of a savings account given your 10yr window. You can take a loan from your 401k for a down payment but that’s totally up to you.

like

Most cars can be financed with only a few thousand down and very low rates. My VW SUV was purchased at 0% last summer. It was cheaper to buy new than pay 2.49% on used. I plan to drive this car into the ground/ wasnt worried about depn.

like

Why not try to find other places where you can cut to save for the house and car? You need both of them, 10 years is long away… so many things can change in your life.

Makes sense, when your salary goes up, you should be able to save more. May be for now contribute small amount for car+house. You can takeout a loan (if you don’t have enough saved)

like

Straight out no to the car.

For a house, you could look into investing into a Roth IRA, as the principle can be withdrawn penalty free after 5 years from the first contribution in some cases. Means you still invest into your retirement, but can pull it out if you want to redirect that investment to property.

Related Posts

What % of post-tax income do Londoners usually spend on rent?

Offered 6.2k per month post-tax and thinking of spending 2k on base rent, single household. Does that seem reasonable for someone who wants to save and invest?

like

Hello...can anyone please tell me the average salary slab in Wells Fargo. Also, what are the benefits

My org will be pausing the Employer match to 401k for a few months. What's the best strategy to optimize my investment at this time?
Ride along/increase or decrease my percentage?

like

Why is there a culture of young realtors only? As a 40 year old realtor, I am far from retiring! As long as properties exist, I'll be here

like

What is normally asked for a Business Intelligence analyst role at GS?
The hike offering is quite low compared to other companies, so what are the other employee benefits?
How much is an average yearly hike one can expect?

When picking up a J2, how much should you include about J1 on a background check?

like

Really hoping to avoid judgment on this post. Has anyone had to sign up for government or state assistance after becoming unemployed? Was the process difficult? I have a young son who's at home with me all day right now and I'm looking for a job that I can work from home, but in the meantime we need to eat and I need to pay my rent. Thanks for any advice.

like

I’m new to freelancing. Does anyone have any tips/resources to figure out how to do taxes?

like

Need some advice! I live in Boise which is supposedly the most overvalued real estate market in the country right now. Bought my first home 2 years ago for 400k and it's now worth ~725k. Looking at homes in other western cities everywhere seems incredibly overpriced as well.

I plan to use the proceeds to pay off student loans and save the additional for a large down payment. Is it best to try and race interest rates and find a home or just sit on the big lump of cash and rent for a year?

like

Has anyone’s credit score dropped dramatically? Mine dropped almost 20 points in one month and the reason says because the age of my accounts are low but I haven’t opened any new ones? wondering if it’s covid related somehow?

like

Feeling grateful & proud as I reached my goal ($50K by 25) 5 months early. But I can’t help feeling a bit overwhelmed. In the lifelong scheme of things, $50K doesn’t seem like much. I worked really hard and sacrificed a lot (including mental health) to get to this but it seems a little tiring knowing I still have so long to go. I recently moved out and in with my BF so my expenses are split, but nonetheless they are still expenses. Any tips on continuing this journey and keeping the drive?

Post Photo
likehelpfulfunny

How to choose which financial advisor to work with.
I have no financial experience and an advisor reached out from equitable.

What's a good percentage (they're offering 2% as a fee)

like

Hi Fishes, I recently joined Pwc AC and was informed to update my checkpoint portfolio where we update all our investments. If we have some investments and if we do not declare them, will it be a problem or can I update it as Nothing to report. Recently I joined here so I'm having some confusion regarding this.

like

Will Amex restricting guess access for Centurion Lounge actually make any difference?

I can see short term changes but the way Amex has been aggressively marketing Platinum card, we just will have overcrowding of primary card holders 🤷🏻‍♂️

What's next, everyone has to spend min. 50k a year to get Centurion lounge access or pay per visit.

likeuplifting

@GSK can anyone tell me about Haleon? Good company, culture, salary/benefits? Seen some open roles and I’m curious.

like

I have a client who needs a 401k, or a solo retirement account w loan options. When I was at UBS/Ameriprise, it was no issue but now it seems tougher to find a firm that does solo 401k as a RIA's.

likehelpful

Hello, I've been working as a Healthcare Consultant for over 4 years now & I am currently a Consulting Manager near the Philadelphia area seeking an opportunity in NYC. Anyone know anything avail?

like

Hello Guys,

Just two simple questions, but need to know the ans!!

How to check eligibility for below questions?

1. Whether Earlier member of Employees provident fund scheme 1952 ?

2. Whether Earlier member of Employees Pension scheme 1995 ?

Working at Capgemini, soon to join Cognizant!!

like

Buy a home in the NYC area, think Hoboken, Jersey city, Edgewater West New York, etc. or continue to rent?

like

What kinds of things do you do in commercial healthcare? If that’s a thing?

like

More Posts

When there is FUD you buy

like

What's the average salary I can ask for for the role of BA4 Risk Regulatory?
YOE: 3

like
like

JOBS!!
Neptune Retail Solutions is hiring an Art Director/Senior Art Director. Amazing work life balance! Feel free to DM if you have any questions :)

like

Looking to relocate to the UK from South Africa. Which are the best recruitment companies for roles in financial services?

like

What were some effective tips or resources that helped you to learn the systems of your first firm? We feel like our firm admin/paralegal is not getting acclimated and not assisting the firm as we hoped. So we want to make sure we’re effectively training her and providing the best resources/tools for success.

like

Preschool classrooms often look so different from kindergarten classrooms. What are some of the ways you bridge the gap?

After going from big agency to in-house, I have the chance to move to a smaller in-house company to be the only creative and eventually begin to build my own team. Ideal situation or terrifying one?

like

Hello Fish! Does anyone have experience working for IQVIA in a non consulting, corporate role? How’s the work culture?

Wooohoo just landed a data project! Woohoo data! Data runs the world! Hello super high utilization! Hello cushy bonus! 🙌🏽

like

I just got an offer from another big 4 for 150k base and 10k signing bonus. Im a data scientist with 3 YoE. This is literary double my current salary. Should I negotiate or just take it?

like

Anyone know any Account Based Marketing Strategists with B2B experience looking to work at a great agency? Looking for referrals (will pay for successful hires) DM please!

like

Hi all. I’m a new hire as an associate tech consultant, been here for ~2 weeks.

This week, I’ll be meeting my senior manager (who is also my counsellor) in a 1:1 virtual session. Any tips on specific questions I should ask? I’m meeting him for the first time and thought I might want to learn a lot from him!

Thanks :D

like
like
like

Hey 🐠 cleared first technical round in l Tech Mahindra today got call for second round but didn’t declare technical or Hr..
Pls help if any one have idea how many rounds will be there…
YOE- 9.8
Tech stack - Apigee api gateway

like

Is there anyone around here with a combination of Data analytics - Finance & accounts OR Data analytics - Audit OR Data analytics - Risk consulting ? I am currently parr of industry - my role was created right before i joined and everyone is clue less how to utilize the role(I took this up right after graduating my MS) ! I am looking for some leads on how these combinations actually work incase any of you have time to spare for a quick chat here or comments on this thread ! TIA

like

Any therapist recommendations in the NYC/Jersey City/Hoboken area?

like

How often do people joining associate director or senior manager roles in pharma companies get sign on bonus? What about rsu and relocation ?

likeuplifting

Additional Posts in FIRE Financial Independence Retire Early

Why does fractional real estate have such a bad reputation? For context, have about 2 million saved plus house worth another million. Early 40’s. Generally follow FIRE, but being cooped up for covid has been tough, and wanna buy a fractional out west at Jackson Hole, where I’d love to go skiing every year....so I have something to look forward to. Would cost about 50k for access to 1 week in winter and 1 week in summer. Plus HOA fees of 5k/year. Thoughts? Watchouts?

like

Has anyone moved abroad to save money? I’m 100% remote with 0 work travel and the idea of living in a place like Medellin, Kyiv, Tblisi, or bouncing around a little sounds fun and would allow me to save more $$$$

like

After 7 years of actively managing my portfolio I have concluded that simple boring index funds are way to go. I did well in tech stocks but have some I'll times entries and exits which kinda took down profits. Do you still believe actively trading would produce better results. I have learned quite a lot in process but now I don't think I would be able to give same time when life gets busy with higher roles, kids etc. Anyone have been successful in managing their portfolios and beating indexes.

like

I was excited to cut cost and save but my townhouse HOA fees will be increasing significantly in 2022 (60%) to cover some land repairs in the community. We got this house in Dec last year. Did see mentions of land/wall repairs in the HOA document but was told by the agent that it’s extremely uncommon for the fees to increase by even 5%. The HOA tried passing this plan last year but couldn’t collect enough votes to proceed. This time around, the homeowners close to the land/wall are lobbing to ..

like

Does anyone know how to get funds that was in a 401k account years ago into your current IRA?

like

For any real estate investors

22 years old and currently focused on using my left over income to invest and pay off my debt. I am set to pay off my college loans by next year and, when I do, I want to look into investing into real estate. Does anyone have any suggestions on how to get into/learn more about real estate investing? Or how I can have enough knowledge on the topic to be able to invest wisely when the time comes?

Any books? youtubers? etc. How did you all learn about it?

like

Want to make investments but the market has been going up. Any advice on whether I should wait for a dip or just go in. Newbie here so looking for perspectives

like

I don’t get it why people post things like “I’m 28 and have a net worth of 2 million”… what is the purpose of posting and bragging about your net worth without and constructive comments or suggestions? Most wealthy people I know are very humble as mentioned in books like the Millionaire Next Door, but If you want to state how rich you are, then maybe at least give some comments or recommendations on how you achieved that wealth to help others do the same.

likehelpfulfunny

Open Enrollment Q:
Debating between High Deductible (for HSA) & PPO options.
My spouse has some expensive medications. Annual insurance allowed amount is ~$40K for us in 2021. Since we are currently on PPO, we only paid ~$500 out of pocket.
With a high deductible plan, we would pay ~ $7K out of pocket since HD Plan only pays 90% after the deductible. Is there anyone in similar situation? Does enrolling in a high deductible plan for HSA make sense in this case? Anyone in similar situation?

like

Anyone start later in life? About to turn 32 and my retirement savings are sad.

like

Anyone buy a small apartment building or small strip mall? What has the better ROI — residential or commercial income?

like

Hi,

I am 25 and am moving to NYC for a job that will pay 200K TC.

This is my first time making like serious money, so not entirely sure how I should break up my spending.

What percentage of my income should be going to savings/retirement? How much should I spend on rent?

likefunny

Listening to Rich Dad Poor Dad and I keep expecting every story to end “and then everyone clapped” 🙄

likefunny

For those of you who made your first million in net worth, what did you do next?

like

TC New grad Software Engineer
Base: $110k
Sign-On: $35k
RSU: $120k/3years
Relocation: $20k

Starting fresh with virtually $0 savings and $0 worth of financial literacy, whats the best course of action? any advice is greatly appreciated!

like

I’m maxing out my 401K, traditional IRA and HSA this year and paying for some house improvements. I have about $750K total investments and very close to $2M net worth, but realize that I am behind on investments if I want to do FIRE. I was focused on paying off huge chunks of my mortgage and managed to whittle it down to $75K left. Would you suggest I go ahead and pay that off this year? Or pause and do a mega back door roth instead? I’m mid 40s. Thanks!

like

Anyone have experience buying franchises or opening stores/businesses? Wondering how feasible it is to do this to move out of the rat race if you have the funds

like

Are there net worth checkpoints at which you should be adjusting your investment strategy (either motivated by taxes or returns)? If so, what are they and why? Not thinking for the super wealthy rather the average 🐟. Disregard the natural progression to less risky assets as you get closer to retirement. Just thinking more in line of "I now have $400k liquid, I should be doing x instead of y." Thanks

like

Pushing out my retirement date... Crypto down 60%, stocks down 30%.. I was a millionaire in Jan now only a 750kaire lolz. Just numbers on a sheet keep rolling

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal