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Old 01-15-2018, 09:50 AM
 
841 posts, read 532,740 times
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so I am 31 now and started my 401k. it has 6% match and I am adding 10% in from my own income.
after I am done remodeling my house, I am thinking of saving and buying an apartment or town house and renting it out, so in 20 - 30 years, I can refinance to whatever I have left and have more residual income

thats about it. Not sure what I should do. I was wondering if you all have advice, please share the knowledge

I feel like I started off way too late and I should have started in my early 20s. BUt having a rough start, i am starting in my 30s
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Old 01-15-2018, 10:08 AM
 
5,392 posts, read 6,530,997 times
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wish I had started off as well as you. We did well with rentals at about your age, but became less so as tax laws changed. Still regular contributions to IRAs/401Ks put us in good shape at the end.

Additional advice.

It is not all financial.

Enjoy life.

Keep your health. Find lifetime activities and hobbies you enjoy.

Keep good friendships. Don't neglect your immediate family as you marry and have children/busy life (a phone call to Mom is always nice no matter how old you may be).
Good luck.
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Old 01-15-2018, 10:10 AM
 
2,215 posts, read 742,813 times
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Every time you get a raise or bonus up the 401K participation amount.
Never borrow or cash in the 401K...to your eyes that is money that does not exist.

Control your debt and don't let it control you.

Live beneath your means and you'll always have extra money.
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Old 01-15-2018, 10:15 AM
 
Location: Florida -
8,760 posts, read 10,834,959 times
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It sounds like you already have a serious view of the future and are taking steps to prepare. 31 is not too old; I didn't get serious until about 35, yet still retired early with plenty of reserves ... of course, my wife also worked and saved and earned a pension.

Many young people sabotage their future retirement by engaging in many "Woe is me, I'll have to work until I'm 75" laments, BUT, not actually doing anything now to prepare for something else. The attitude seems to be that retirement is still a long way off - and something is bound to happen between now and then - to prevent my living in a box and eating cat food.

Another major detriment is the attitude that every new raise or bonus should be consumed with an immediate lifestyle improvement. Another self-inflicted 'blind spot' is the notion that one will readily be able to pay off credit cards in the future, that they used to buy things they could not otherwise afford today.
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Old 01-15-2018, 10:17 AM
 
6,239 posts, read 4,721,373 times
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I suppose you posted in the retirement forum because you are thinking ahead long term regarding you finances. Setting aside money in your 401k is a minimum. Building additional savings, investment and wealth is important but at this time in your life nothing, aside from family, is more important than building your career. Think about what you need to do to move ahead. That might mean changing jobs, changing locations, additional education, continuing education.......


Invest in yourself and your growth.
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Old 01-15-2018, 10:17 AM
 
Location: Tampa, FL
27,798 posts, read 26,200,766 times
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What advice would you offer 38-year-old me?
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Old 01-15-2018, 10:37 AM
 
Location: VT; previously MD & NJ
2,186 posts, read 1,341,203 times
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31 is not too late to start. I didn't get serious about my own saving and investing until much later than that.

Stay out of debt. I always thought that paying interest on credit cards was just a total waste of money. I use credit cards for convenience... pay them off each month and get rewards points/dollars to boot. They lose money on me.

The only debt I ever had was for car loans and mortgage. At some point, if you continue to save and invest, you will be able to skip the car loans (pay cash) and pay off your mortgage sometime before retirement. Paying off a mortgage early will save big bucks on interest, plus without a mortgage payment, you have more money for savings.

Note: some will tell you to keep the mortgage because you may be able to earn more by investing that money than the mortgage costs you. That is another issue - you can find several threads on the mortgage topic here in the Retirement forum.
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Old 01-15-2018, 10:39 AM
 
6,306 posts, read 5,049,308 times
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take care of your health. Exercise, eat right, maintain a proper weight.
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Old 01-15-2018, 12:05 PM
 
1,828 posts, read 783,587 times
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Quote:
Originally Posted by willc86 View Post
so I am 31 now and started my 401k. it has 6% match and I am adding 10% in from my own income.
after I am done remodeling my house, I am thinking of saving and buying an apartment or town house and renting it out, so in 20 - 30 years, I can refinance to whatever I have left and have more residual income

thats about it. Not sure what I should do. I was wondering if you all have advice, please share the knowledge

I feel like I started off way too late and I should have started in my early 20s. BUt having a rough start, i am starting in my 30s
It is never too late. Contribute also to an IRA, you can write this amount off on your taxes and you pay when you withdraw after age 59 1/2 when hopefully you have less income coming in and therefore in a lower tax bracket. I can't advise you on the rental as income only to say we have a friend who has rental units and it is more hassle than worth it due to bad renters and you will encounter bad renters. I would work more towards paying down your current house instead to eventually own it without mortgage.
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Old 01-15-2018, 12:20 PM
 
Location: Mount Airy, Maryland
10,459 posts, read 5,922,719 times
Reputation: 16151
Quote:
Originally Posted by theoldnorthstate View Post

It is not all financial.

Enjoy life.
Great advice. I applaud the Opening Poster for thinking ahead so responsibly. But I certainly hope he/she remembers to enjoy the ride. Being in your 30's is a tremendous time. You are no longer a starving student or slaving away at entry level pay. It's time to be responsible but don't forget to live life. The ones who do it the best have enjoyed a nice balance.
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