That’s kind of what I’ve been leaning towards honestly. A coworker is a proponent of Roth IRAs and I’ve been communicating with him the last couple weeks.
Maybe so, but anybody who hasn't started seriously saving and investing for retirement at age 31 needs to start NOW, do not pass go, do not wait any longer. NOW. And max it out.
Just had a 45 second conversation with my wife that went about like this:
Me: I still think we need to meet with an advisor about opening a Roth IRA and seeing how we are looking long term at our current patterns.
Her: I don’t know why you’re so set on a Roth. They’re limited on what you can put in. What do they earn? Im sure it’s not as much as a 401k. You still have to do a 401K. I don’t know why you keep saying yours doesn’t match. I’m sure I saw somethinf where they match.
Me: *Realizing I'm wasting my breath again* Ok. But trust me, I don’t get matched. I’d be doing it if they did.
Her: I’ll believe it when I see it.
I don’t know why I bother ****ing talking to the smartest woman in the world when I’m such an uneducated waste of breath.
For reference they say you should have 1X your salary by 30 and 2X your salary by 35. I'll be 30 next month and I'm just shy of 2X my salary. My wife is way behind but shes doing great now. She just started saving about a year ago and has about 10k tucked away for retirement
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It sounds like you are doing good. I would definitely get an ROTH IRA started ASAP. One nice thing about the ROTH IRAs is you can withdraw whatever you put in with no penalty, you just can't touch any of your gains. As for the car, if it is paid off I would keep it.
For reference they say you should have 1X your salary by 30 and 2X your salary by 35. I'll be 30 next month and I'm just shy of 2X my salary. My wife is way behind but shes doing great now. She just started saving about a year ago and has about 10k tucked away for retirement
For reference I have a 401K that I put 9% into plus a company match of 4%. I also max my ROTH IRA every year. FYI this year they increased the max from $5500 to $6000. My wife doesn't have a company match so she just maxes her Roth IRA every year and saves a little extra. The only debt we have is our home and I owe about 6k on my truck that will be paid off this year. I have about 6 months in the bank and my wife has about 4 months.
1x salary in retirement savings by 30? Yeah, looks like I'm a little bit behind there if we're looking at 401k only. Once I get the easy debt knocked out (car payments, wife's student loans), then I'll split the monthly savings between mortgage and nest egg / emergency.
Sounds like you're well on your way to a good retirement, but...Dave Ramsey advises to not contribute to retirement until all non mortgage debts are paid off, just sayin...
Thats what I've read. Basically every 5 years after 30 you should increase your savings by 1X your income (30=1X, 35=2X, 40=3X, etc.) I started at a really young age and put a decent percentage away. I also didn't have student loans to worry about besides helping my wife a bit with hers. Thats what has allowed me to put that much away. I thought that amount was a pretty steep to have saved by 30 too but over the last few years my savings has increased rapidly. Like anything the more you have saved the quicker it can grow. I've seen a 20k increase in my portfolios this year already.
I agree with most of what he says but some of it doesn't make sense. Not saving anything for retirement because you have debt seems silly. Maybe it makes more sense for people with $40-50k+ of debt with interest rates at 15%+. For me a $20k dollar truck note @ 2% doesn't justify not saving for retirement. I saw 20% gains in 2017 and still saw 10% last year even with the mini-crash at the end of the year. I would have missed out on those gains if I only focused on my paying my tuck off. Hell my checking account pays 2.51% APY as long as you have over 15k in the account.