Looking for some advice/suggestions here. 24 years old, TC is now 110k. I have 40k cash savings. $6,500 in my 401k and $6,400 in Roth IRA. Just was promoted and wondering if that’s too much cash to hold onto AND if contributing to a Roth makes sense. I contribute 7% with 100% match and 10% profit sharing at the end of the year to the 401k. Contributing $550 a month to the Roth. Would appreciate any ideas as I know it’s a good spot but just wanted to see if it’s the smartest approach.

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

$40k is too much. You’re losing 8% per year in buying power.

Easy route would be to index fund and chill. If you want some diversity, you can drop $10k in IBonds, and/or look into some REIT’s.

like

I believe you have to hold IBonds for at least a year before you can sell. So you need to know that going in.

But it would make sense that gains are taxed as ordinary income / interest income. Its not like you’re going to owe thousands in taxes from it, so I wouldn’t stress the tax aspect of it.

100% contribute to a Roth and max it out while you can. You won’t pay tax on that money again, and eventually you might make too much to contribute to one.

like

Oh true, great point!

If you are getting your full employer match, I personally would max Roth before increasing 401k. It’s money that you’ll never pay taxes on again.

like

Yes, 7% gets me the full match

Get your match in 401K, then remainder in ROTH IRA, can’t go wrong there.

like

This

40k is not too much but put it in the highest yield saving account you can find so it at least earn interest. Leave it as an emergency fund. Max out your Roth and 401k, then do a brokerage account. Albeit, make sure you can access what you need before you retire

Not sure I can max 401k just yet. But hopefully within 2 years

OP how is it a 100% match and 10% profit sharing, profit sharing of what?

10% of your yearly income = Profit sharing at end of year

Cash accounts are for short term needs. A good rule of thumb is to hold enough cash to cover 6 months of expenses.

I’d suggest contributing $20,500 annually to Roth 401k and $6,000 to Roth IRA. These are the max amounts allowed if under 50 years old. I like Dave Ramsey (Finance guru…Financial Peace University) and his 7 Baby Steps, really got my financial life in order (debt free).

Related Posts

Next stop: retail investor class action lawsuits against hedge funds that decide to get together and put a lid on the trading activities of retail folks

Also crypto:

Post Photo
like

Anyone letting out a 3BR house/flat in the near future? Budget up to £3k. Prefer East Dulwich, Greenwich Station area, Peckham Rye, Archway, N5, N1, but we’re flexible in this crazy market! Also open to 2BRs with a study or separate dining room.

like

What % of an HSA do you guys like to invest? I’m generally healthy and don’t expect to withdraw over the next year.

like

Hey New York peeps, any advice/words of wisdom on acquiring A/C units for apartments in the city?
Living in a 1-bed and about to sink a cool $500 into two units on that AMZN site kids use these days, not sure if there’s a more cost-effective option.

likefunny

Hi,

Kindly ping me if you need any help for filling up the ITR. I will help you to get maximum return.

Charges applicable.

Thank you

likefunny

Retiring now in my late 40’s. What’s your ideal portfolio mix to find the right mix of available cash, durability of the portfolio over a long retirement, and upside/higher withdrawal rate?

like

Hello all,
I’m stuck in a bit of a hole.
In short, I used to be an engineering manager that led a team of 15. Two years ago I changed companies. The new position I took was a huge step down to senior design engineer however the pay was actually the same and the benefits better. I thought it would be a good chance to get me out of the toxic company and then reset my career however, I’m struggling to now get a job as an engineering manager again.
Any advise would be greatly appreciated. Thanks

like

2018 call at a large Bay St. firm, in corporate. I want to work in a business role and have offer for legal counsel role for large entertainment company. What kind of salary/benefits are good offer?

like

I’m buying a 40 year old practice in Feb. It’s mostly older life insurance policies, but a lot of annuities and retail mf too. There’s about 1600 households in the book total...

like

Need some advice. I am a simple person and have not thought much about some massive or strategic diversification of my net worth. I am 40 yrs old. Net worth of $2.2M. It is simply categorized in three buckets - $1M in 401K, $0.8M in bank and $0.3M in fully paid house. My house and 401K are appreciating at a good rate of 10-15%. Now after joining this app, I am seeing alternatives such as Roth IRA, Index Funds, Kids 529(?), annuity, tax saving strategies…there is so much. Where should I start?

like

Thoughts on investing in market? Do you anticipate another downside due to ukrain us war?

What is the scope after MS in Pharmaceutical/ health care management in USA. I am a pharmacy graduate and have been working as a quality control analyst in lab, I wish to switch my department and am looking for MBA-Pharmaceutical management or MS in healthcare management in USA. what is the scope of these fields in the states.

like

I am almost done with FNP and I am so sick of patients now. I've been in healthcare for almost 20 years and it is what I know, but the pandemic has burnt me out so much. What about corporate wellness jobs? Has anyone gone there? Or gotten a job for a federal agency (not the VA, I don't want to work with patients)? How does one "break into management" if you're over 40?

like

Hi fishes,
Currently I am invested in two mutual funds:
UTI nifty index
Parag parikh flexi

Which other MFs are worth investing?

like

In your opinion - What type of property is the easiest to sell?

like

AST Science. IPO after 2 funding rounds without a properly defined product. They’ve reached out to me via an outsourced recruiting firm (Pandion Research). Offer consists of stock options potentially worth “millions” in 3-4 years. What’s your take?

like

How is S&P Global?.
Pros and cons
Employee benefits and Culture

Thanks in Advance! 😊S&P Global

Dividend reinvestment plans? Good way to build up an income to retire early? Best ones to invest in? Negatives?

like

How to overcome fear in scaling real estate portfolio? I have couple of rentals but worried about risks in scaling so trying to play safe.

like

Any Med Express or other Urgent Care Managers out there? Is it worth it? Is pay decent? Etc. I have a BA in Healthcare Administration and Management and 3 YOE as a PCP office manager, 5.5 YOE in Healthcare altogether.

More Posts

What would you pick for a 36mm daily wear Rolex? Oyster Perpetual, Explorer, or Datejust?

like

Which card is better for travel chase sapphire reserve or Amex platinum?

like

Next Spiderman movie!

Post Photo
likefunny

McGuireWoods vs Katten?

like
like

Hello Fishes .
I answered the Manual Testing questions correctly and automation questions fairly. I got a rejection mail from HR as below , Is this the common template for everyone or should I hope for future roles after several months .I am already in notice period and feeling low.

"Although we didn’t find a strong fit for this particular role, we would love to keep in touch -- Amazon is growing and changing quickly, and there may be additional opportunities in the future"

like

Microsoft:

Do you receive a referral link after someone refers you? Or no need for an application after a referral is submitted?

like

I have joined Capgemini in the month of July and have never been on bench before. After joining till today (5th sept) I'm on bench. I keep checking internal job posting as will as jobs in R2D2. nothing found yet. Still I'm getting those harsh alert mails mentioning you have get a project within so and so date..as if I have done a crime. So my question is this risky for my career in all and appraisal cycles?

like

Which doctor appointments are key/fun for SO to go to?

I don't want to make my hubs go to all of them, so which ones should we focus on for milestones or major decisions? I brought the hubs to the 8 week appt for first ultrasound and heartbeat and have the 12 week appt coming up.

like

I want to get my foot in the door as a data analyst. I’m good with SQL, tableau and python not an expert yet but I am working on that. Right now I work as an IT technician, any suggestions or advice would helpful.

like

Hi fishes,
How many of you have an MBA in HR. And how important an MBA in HR is to excel in the field of HR. Because I'm pretty mba in Marketing isn't that important to get you a Marketing job.

like

my coworker cracks me up, he tells everyone that he just spends all day checking his social media (we're in advertising so I guess he's right)

like
like

Quick question - Should I put emergency fund at Ally bank (or other HYSA) or Vanguard Money Market Fund?

The money market funds seem to have higher return over 5 years but also has expenses of 0.09-0.16%. Any advice on how to think about this? Thank you!

like

When a job posting says 3-5 years of experience, does that mean a 3rd-5th year associate? Asking because there’s a bit of a discrepancy between the two, since if I graduated in May 2017, I’d be a third year associate this October, but only have two full years’ experience.

like

L.E.K. Consulting fishes - What are some of the non-monetory perks that you get? (International trainings, office lunch, reimbursements, etc.?)

like

Hey Fishes - my team has added a lot of people within the past year and I have started to wonder whether or not my salary as a Sr level employee is “equitable” ( i.e: are these new hires reporting into me getting paid more ?) . Any recommendations on how to have a productive conversation with my director about this?

like

What are the odds of actually landing a position? How many people are typically making it to final round interviews at amazon?

likehelpful

Any female 🐠?

like
like

Additional Posts in Personal Investment Chatter

How does one deal with being house poor? My family purchased a home for me in VHCOL city, and it has a ton of deferred maintenance. I cannot save much money as property taxes and large repairs are killing me. I don’t want to sell either as if I do I will be priced out from owning in this city.

like

Is the American Express gold and/or Platinum worth the annual fee?

like

What do you think is a reasonable % of revenue to ask for from a billable rate? I work part time (~5 hours / week) for a company where they bill $250 and hour for mine time. I’d assume my costs as an employee are minimal. What do you think would be an appropriate hourly rate?

like

Is it possible to contribute the annual maximum (19.5k) to two separate 401k's from unrelated employers? So total contributed over the two accounts would be $39k. Or is the 19.5k the combined maximum one can contribute to any number of employer 401k accounts? Thank you in advance.

Theoretically, is maxing out 401k contributions enough for savings in a given year? I have a lot of expenses this year so wondering if I can do less savings when I’m already contributing to 401k with the employer match (~25k) and HSA max ($3.6k)

like

So earnings were priced in? No in fact, we were at “return to normal”. sell sell sell.

Post Photo
like

I want to start investing my coins. I have $3k to start and plan on putting at least $500 towards the investment account, each month. Looking into opening a vanguard account. Is it better to invest mutual funds or etfs?

like

Just moved to the US, what are the things I should do and mistakes I should avoid? (Financially, of course)

Is today a chance to buy? Or should we wait for more dip.

Please don’t reply “Don’t time the market” :) Already in the market for long term. Little bit of speculation won’t hurt :)

like

What are your thoughts on vechain

like

Thoughts on pltr, nio and ICLN for this dip?

like

Big legends Guide to Three-Fund Portfolio. Yay or nay? Additionally, please share personal finance books that you recommend to newbies! Thank you and happy holidays!!✨

like