^^^ why does that gif appear to have like 2 cuts in it. Makes me feel like im having a stroke
I didn’t save anything until about 26, then started to slowly ramp up and got pretty aggressive over the past 5 years (33 now). I’m doing ok, 401k wise, in that I’m above the threshold mentioned earlier. But you also have to take into account things like how much debt a person is carrying (mortgage etc) and asset values. Then there’s the whole family money aspect that varies across people.
All I was just pondering is what people, especially NYCers are carrying in their 401k. I’ve been curious about that lately given the high cost of living and rat race lifestyle in New York.
That sucks, hopefully no long term issues.
Yah, my brother has it made, married an Indonesian whose parents just bought him a $1.2M in house in cash (and furnished it) among other things.
Are you sure that liquidity is more valuable than benefits of tax deferral? My understanding is it’s still better to max 401k even with truly crappy (active ER>1) choices…
bunch of medigans here living within their means - if you are saving you arent spending or gambling enough.
^^^ dayum thats impressive. My gfs parents own several properties in NYC although that is the basis of their retirement but they have been dropping hints they may be willing to rent one to us at below market rate aka their mortgage payment which would certainly save me some cash.
As for my 401k sadly my last employer didnt offer 1 at all so my savings was virtually 0. Been working at my current employer for almost exactly 2 years and have around 18k in my 401k so a bit behind. I put in slightly over the full match amount, also have about 6k in a taxable investment account. Have wanted to open an IRA but due to general liquidity concerns of possibly needing to put money up for security deposits and such I keep just putting the cash into my taxable account. I think at some point the liquidty concerns may go away and ill open an IRA as well, but yea btw paying 7k a year in student loans and 1350 a month for rent its tough to save.
All I see here is that dinner is on you tonight.
Thanks, all is good now. It was a long time ago.
that’d be the case if you were a hcb, that said i’ll flip for it?
KMD - we are doing another af meetup tonight. I expect to see you there
Definitely make her pay it off herself. Zero recourse if you pay off her loans and she leaves you. #reddithorrorstories
^sounds like she’s a liability. Time to cut her loose and move into a van by the river
I had 6 figures in savings by the ripe age of 24. Had 0 student debt (live in a place with the cheapest student tuition in North America where working full-time in summer and 15 hours a week during school was enough to cover cost), graduated university at 21 and got a major break by getting hired by a prop trading firm at a time when floor traders were getting obliterated by screen traders and when HFT hadn’t reached its potential yet.
Aren’t you nearing 40 now?
I got a full scholarship to an Ivy League school, started a precursor to Uber that I sold to zip car for eight figures at 22, then rode the early 2000s PE wave, PM’d at a hedge fund and now work at my own company with a revolutionary financial product. We’ll IPO IN 2020. Also, I’m younger, richer and better looking than you.
I’m 35.
I was on pace to reach 7 figures by now but spent a tremendous amount of cash during the last decade. Bought property for $300k all cash back in '09 (hate debt), traveled a $hitload (including taking twice multi month sabbaticals to live abroad), bought 2 expensive cars and although I earn a good living I make less today than I was making as a futures trader in my early 20s.
There are many advantages to living in a low COL city, but among the drawbacks is low real estate returns. 8 years later, my place is only worth $450K. The same property in Toronto or Vancouver would be worth closer to $700k. Dropping $300k in the S&P index 8 years ago would be worth $900k today (pre capital gains tax).
Being able to predict 16 out of 16 NFL games correct per week on the moneyline should have made you a billionaire a few times over by now.
For my intentions in life. If I knew I’d always just work for a company, buy target date funds, and enjoy retirement then I would max out my 401k. And who knows, maybe that is all I will end up doing and will loose a few years of progress. But I want the ability to start, buy, or invest in businesses, real estate, and other assets. If I get a few years down the road and realize that path isn’t going to happen anymore, I’d start maxing out my retirement savings. So far, my investments have produced returns far superior. And I’m just getting to the age where I’m having more and more opportunities to deploy capital into interesting avenues. Especially now that I have zero debt except for rental properties.
I agree with the people who say to max out your 401k. I mean, there’s no practical reason not to, if you’re working in a high paying profession like finance. My wife and I both max out our contributions within the first two months of every year, and get the employer match to boot. So that’s already $50K+ of forced savings by the end of February. Makes the rest of the year easier when you know you’ve got money banked away.
rawraw, you are not maxing out your retirement plan? You must be earning a LOT more on outside investments if you are giving up the tax deduction. Even if I thought I could beat the stock market return over a long period of time, I would have no illusion about beating it by 50% overall.