NT: Official Personal Finances Thread

[airblaster503]

Thread seems a bit dead, but what are your guys thoughts on Employee Stock Purchase Programs? We have the option to enroll in this every 6 months and a % is taken from pay toward purchasing stock at a discounted rate.

 

[antidope]

My Ira is at betterment 100% equities.

My 401k plan is 45% US Large Cap Growth, 30% Developed Non US Equity and 25% Emerging Markets Equity

I don't own any of my employers stock. Imo my exposure to the company is reflected in the fact that I work there. I would reconsider that if I was getting a discount through an. Employee Purchase Plan instead of having to pay market price for it.

 

[206to813]

What does it take to become a 401(k) millionaire?

https://www.usatoday.com/story/mone...lionaire-what-does-take-become-one/530526002/

 

[$tatus $ymbol]

Good article figures were a bit unrealistic though. Sure you can be 30 years old and sock away 11% for a while but eventually your lifestyle will change and your expenses will along with it. Raising kids, homeownership etc will all eat into that. Think the big takeaway though is to be consistent and disciplined.

 

[antidope]

I max out my 401k and don't plan on stopping regardless of lifestyle change. In my mind it's just baked into whatever my take home pay is. I do it and don't even think about it at this point

I realize how fortunate I am to be doing so, but I suggest that everyone go ahead and raise their 401k contributions like 4-6% and watch how little their take home pay changes

 

[206to813]

Good article figures were a bit unrealistic though. Sure you can be 30 years old and sock away 11% for a while but eventually your lifestyle will change and your expenses will along with it. Raising kids, homeownership etc will all eat into that. Think the big takeaway though is to be consistent and disciplined.

I hear you, that’s certainly the case sometimes. I think the key is you better have a well paying job, and hopefully one that increases pay over time with experience and tenure. With that in place and living below means, people can avoid what you described even as expenses go up

 

[s0lefunk]

Welcome some input on what to do with the 401k from my last job.

Been going back and forth on whether I should transfer it to my new job’s plan or cash out (18k... maybe get 11k after taxes/fees). I want to use the money to finish off CC debt and get from underwater on my car loan. I’d still be in the same tax bracket with the withdrawal added to my salary. FWIW with my current pay and contribution + match I’ll get back to 18k in a little over a year.

Goal is to start my 30s close to debt free and use the next 2 years to improve my credit score and buy a house in 2020. Want to start saving more money for the down payment as early as possible.

Thoughts?

 

[aec23]

Thread seems a bit dead, but what are your guys thoughts on Employee Stock Purchase Programs? We have the option to enroll in this every 6 months and a % is taken from pay toward purchasing stock at a discounted rate.

Do it. Free money.

 

[pdino]

Welcome some input on what to do with the 401k from my last job.

Been going back and forth on whether I should transfer it to my new job’s plan or cash out (18k... maybe get 11k after taxes/fees). I want to use the money to finish off CC debt and get from underwater on my car loan. I’d still be in the same tax bracket with the withdrawal added to my salary. FWIW with my current pay and contribution + match I’ll get back to 18k in a little over a year.

Goal is to start my 30s close to debt free and use the next 2 years to improve my credit score and buy a house in 2020. Want to start saving more money for the down payment as early as possible.

Thoughts?

Transfer it to your new job, then do a 401k loan of 50% of w/e in there. No taxes, penalties, fees, and you pay interest to yourself. GL

 

[Brownstone]

Thread seems a bit dead, but what are your guys thoughts on Employee Stock Purchase Programs? We have the option to enroll in this every 6 months and a % is taken from pay toward purchasing stock at a discounted rate.

DO IT.

 

[Brownstone]

I max out my 401k and don't plan on stopping regardless of lifestyle change. In my mind it's just baked into whatever my take home pay is. I do it and don't even think about it at this point

I realize how fortunate I am to be doing so, but I suggest that everyone go ahead and raise their 401k contributions like 4-6% and watch how little their take home pay changes

I been waiting for the market to dip before trying this, but you might push me into it sooner.

 

[antidope]

I been waiting for the market to dip before trying this, but you might push me into it sooner.

Over the long term what does it really matter is my thinking. Markets are efficient and you'll make money regardless.

Welcome some input on what to do with the 401k from my last job.

Been going back and forth on whether I should transfer it to my new job’s plan or cash out (18k... maybe get 11k after taxes/fees). I want to use the money to finish off CC debt and get from underwater on my car loan. I’d still be in the same tax bracket with the withdrawal added to my salary. FWIW with my current pay and contribution + match I’ll get back to 18k in a little over a year.

Goal is to start my 30s close to debt free and use the next 2 years to improve my credit score and buy a house in 2020. Want to start saving more money for the down payment as early as possible.

Thoughts?

Roll it. Do not take that bread.

 

[206to813]

Welcome some input on what to do with the 401k from my last job.

Been going back and forth on whether I should transfer it to my new job’s plan or cash out (18k... maybe get 11k after taxes/fees). I want to use the money to finish off CC debt and get from underwater on my car loan. I’d still be in the same tax bracket with the withdrawal added to my salary. FWIW with my current pay and contribution + match I’ll get back to 18k in a little over a year.

Goal is to start my 30s close to debt free and use the next 2 years to improve my credit score and buy a house in 2020. Want to start saving more money for the down payment as early as possible.

Thoughts?

Taking 18k out to get 11k , and also lose future gains on what you had.... that sounds like the worst option

Roll it brotha

 

[s0lefunk]

Transfer it to your new job, then do a 401k loan of 50% of w/e in there. No taxes, penalties, fees, and you pay interest to yourself. GL

Decided to go this route versus a withdrawal. Thanks for the insight all.

 

[monstar]

Decided to go this route versus a withdrawal. Thanks for the insight all.

Bro look up Dave Ramsey debt snowball and just attack that debt you'll be much happier when its paid off. Part of our issue is we look for instant gratification, take the lumps save for the future and learn lessons along the way the process is what will serve you well over the long run

I shouldve rolled my 401k over but instead moved it to a traditional roth missed out on compounded gains but it is what it is live and you learn good luck

 

[s0lefunk]

Bro look up Dave Ramsey debt snowball and just attack that debt you'll be much happier when its paid off. Part of our issue is we look for instant gratification, take the lumps save for the future and learn lessons along the way the process is what will serve you well over the long run

I shouldve rolled my 401k over but instead moved it to a traditional roth missed out on compounded gains but it is what it is live and you learn good luck

I hear you man. The snowball approach was something I was looking into (not knowing it was an actual thing). But given that I have a hard set goal of buying a house in 2020, I need to improve my credit and maintain. The 401k loan is a way of immediately paying off creditors, stopping interest payments, and basically consolidating my debt.

True I’ll be missing out on potential gains. However, I see it as me paying off debt using money I’ve saved anyway. I just owe myself now instead of several other companies. All things considered it just seemed like the best course to take for my situation.

 

[monstar]

I hear you man. The snowball approach was something I was looking into (not knowing it was an actual thing). But given that I have a hard set goal of buying a house in 2020, I need to improve my credit and maintain. The 401k loan is a way of immediately paying off creditors, stopping interest payments, and basically consolidating my debt.

True I’ll be missing out on potential gains. However, I see it as me paying off debt using money I’ve saved anyway. I just owe myself now instead of several other companies. All things considered it just seemed like the best course to take for my situation.

I totally get it, however im not ever trying to use my retirement to solve debt paid today. 2 years is a long time and honestly we've been on a great run in the economy. Good times dont last forvever neither do bad times and bad times are due to approach possibly in the next 2-4 years, never forget to keep looking ahead

Good luck in your decision my opinon was nothing more than an opinion hope whatever option you take works best for YOU

 

[crcballer55]

The 401k loan is probably the worst thing you can do to pay off debt. Not only are you unplugging the money, you're borrowing the money at ~35% interest to pay off your debt. The IRS will issue a 10% penalty PLUS your tax rate on the money you borrowed. Forget shuffling the deck chairs and do the actual work to pay off the debt. You're essentially using higher interest debt to pay off your current debt. Trust me, the Dave Ramsey system works. I've seen it in dozens of families.

 

[tkthafm]

What % of your monthly income do y'all save?

 

[antidope]

What % of your monthly income do y'all save?

Right now, above 50% but that's about to change soonish. Trying to buy a house and then that number will drop to about 30%.

 

[antidope]

For those who own homes, what percentage of your take-home pay is your mortgage payment?

 

[superantigen]

I hear you man. The snowball approach was something I was looking into (not knowing it was an actual thing). But given that I have a hard set goal of buying a house in 2020, I need to improve my credit and maintain. The 401k loan is a way of immediately paying off creditors, stopping interest payments, and basically consolidating my debt.

True I’ll be missing out on potential gains. However, I see it as me paying off debt using money I’ve saved anyway. I just owe myself now instead of several other companies. All things considered it just seemed like the best course to take for my situation.

Something to consider -- you can actually borrow funds from your 401k to use as a downpayment for a home purchase with no penalty. I would personally only borrow from my retirement account for this purpose. As others have said, borrowing to settle debt is a terrible idea. You're depriving yourself of much needed future income to pay off debt that can, if worst comes to worst, be wiped out in bankruptcy (assuming no student loans). Also, we're likely at the tail end of this bull run and likely heading for a major contraction in the coming years, meaning you'd be hard pressed to make back any gains you lose resulting from a tax hit and divestment.


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[juice man]

I owe about $1300 in CC debt. I'm currently paying $350 a month to knock down the balance but my interest rate is 22%. Any hopes I could decrease the rate? I want to keep the account open and keep a slight balance on it each month but not sure it benefits me to have such a high rate. Would a balance transfer be an option, and if so does anyone have any positive experiences going that route?

 

[pdino]

Many of you are confusing 401k WITHDRAWAL from 401k LOAN. I just took out of my 10k from my 401k this last year as a LOAN for a down payment for an investment property. Didn't have the cash for a down payment at the time, so used that. It's already paid back now, with a few 100 in interest paid back to myself at 5.5% interest rate. I had tax attorney look over the process and there were no penalties or taxes for the loan.

 

[antidope]

I'm considering doing the same, the one thing I need to find out is if my employer is one of those places where the entire balance of the loan is due of you end up leaving for whatever reason.