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Old Today, 12:28 PM
 
Location: Lincoln, NE
19 posts, read 5,859 times
Reputation: 100

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Not certain - but how about contacting the student loan company and working out an income based repayment plan, and then making the minimum payments you need to make according to your income? And then apply for forgiveness of the loans (after 20 - 25 years of making payments). There might be tax implications so you'd need to look into all of that. You'd pay the monthly amount based on the repayment plan, and put any other savings into a Roth IRA. Say you worked for another 15 years, and assuming a 5% return rate, you'd have $158,602 at the end of those 15 years in the ROTH alone. That roth would generate almost $8K in annual income (assuming the same 5% return), without touching the principal, tax free.



In addition to this, put the MAX amount into your 401(k). NOTE: Since the ROTH contributions are after tax, you can always withdraw the principal you put in, without penalties. And in some circumstances, you can withdraw contributions + earnings without penalties (e.g. some medical expenses, first time home buying).
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Old Today, 12:32 PM
 
Location: Phoenix, AZ
1,919 posts, read 856,397 times
Reputation: 4917
Quote:
Originally Posted by Simpleasthat View Post
right now my 401k is zero and my saving are $1000.

Are you for real, or a troll?


You make $108,000 a year? What the hell do you do with your money?
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Old Today, 12:36 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
23,143 posts, read 40,659,783 times
Reputation: 24551
What is rate on student loan?
if less than 4%, keep investing (more)

At your low CoL, should be able to bank $30k / yr.
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Old Today, 12:57 PM
 
14,574 posts, read 7,840,472 times
Reputation: 26715
Quote:
Originally Posted by USNRET04 View Post
The OP is just being creative with his tag line.

I just changed mine.


53, $44k in school loans, no savings, low expenses...


In Maryland, you're in the 4.75% tax bracket for most of your income. The top part of your income is in the 24% Federal income tax bracket. Max your 401(k). That's $25K. Chip away at the school loan. $1,000/month. Use the bonus to create your emergency fund.


The other thing you need to do is register on the Social Security portal and see where you stand for projections for your Social Security benefit. Review the reported income to make sure there aren't any employers who neglected to file properly. That Social Security check is largely what you're going to be living on once you can't work. Make sure you understand the amount.
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Old Today, 01:23 PM
 
Location: Somewhere in deep in Maine
3,808 posts, read 2,904,375 times
Reputation: 4708
Bonus’s all go to retirement. The 401 K is being matched, so its effectively worth double to you.

Yourproblem is not that unusual. The best man at my wedding 46 years ago didn’t start saving any money until he realized I was retiring in 9 years. He made a huge amount of money in the film industry(400K+) in addition to his regional computer store management job in the 80’s but blew it all away.

Now he’s 70 working on commission in an Apple Store with lots of health issues, and no one else in the store is older than 34.

He also plays the lottery just hoping that he will be the 1 out of 2 million that wins big.
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Old Today, 01:30 PM
 
8,284 posts, read 5,225,633 times
Reputation: 14088
Quote:
Originally Posted by TimAZ View Post
'Bots Jack, 'bots.
What's the incentive for a bot-network to make such posts? Nothing is being sold, and assuming that nobody stumbles into revealing personal information, no useful data is being gathered. Is the aim merely to incite controversy? Then I accept the entertainment-value, however slyly and manipulatively it's infused.

Regardless, the point: people with a good income and low expenses can very substantially improve their situation, even if they're no longer young, and have frittered away decades of good opportunities.

I would much rather be 53, with a good income and realizable glide-path into retirement, even with student-loan debt and zero net worth... than 23, with a fresh college degree, zero debt and $1M in cash that was given to me by magic. Why? Because the 23-year-old still has a lifetime of obligations remaining, and of potential future mistakes. The 53-year-old has already inserted his quarters into life's video-game machine.
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Old Today, 01:34 PM
 
Location: Somewhere in deep in Maine
3,808 posts, read 2,904,375 times
Reputation: 4708
Quote:
Originally Posted by ohio_peasant View Post
than 23, with a fresh college degree, zero debt and $1M in cash that was given to me by magic. Why? Because the 23-year-old still has a lifetime of obligations remaining, and of potential future mistakes.
I would take being 23 again, an attainment I passed 47 years ago.
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Old Today, 01:47 PM
 
803 posts, read 632,563 times
Reputation: 770
Quote:
Originally Posted by Simpleasthat View Post
Hello,

I am debt to the tune of 44k in student loans and I make $108,000 a year not including bonuses.

No kids, no wife

My expenses are real low, my rent is only $700 a month and my car is paid for its a company car.

What should i do, right now my 401k is zero and my savings are $1000.

Thanks
the title & url says you are 53 yrs old !!!!

someting look berry, berry wrong to me and don't lose focus on intentional mis-spellings.

could it be you are 23 or 33?

Last edited by frankrj; Today at 01:56 PM..
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Old Today, 02:05 PM
 
8,284 posts, read 5,225,633 times
Reputation: 14088
Quote:
Originally Posted by slyfox2 View Post
I would take being 23 again, an attainment I passed 47 years ago.
That's an area of contention, where I'm invariably in the minority. At present I nearly split the difference between age-23 and yours. I'd much rather be your age - in fact, a decade older. Why? Because the mere fact, of having already arrived at a [relatively] advanced age, is a boon and an achievement, even if it so happens, that one has little by way of contributions to society, or creative endeavors, or plaudits or riches to one's credit. But if one's done quite well in early age, one still has many decades remaining, in which it's only too easy to suffer a reversal, to get mired in some blunder, in the fashion of the hare and tortoise.

Notice how we have a spate of two kinds of threads: (1) Help! I'm young, jaded and cynical. What should I do to retire early? And (2) Help! I'm [comparatively] old and unprepared. What should I do to still retire on time? My sympathy and concern is overwhelmingly towards (1).
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Old Today, 04:44 PM
 
Location: VT; previously MD & NJ
2,286 posts, read 1,432,770 times
Reputation: 6682
Quote:
Originally Posted by Simpleasthat View Post
Hello,

I am debt to the tune of 44k in student loans and I make $108,000 a year not invluding bonuses.

No kids, no wife

Here are my benefits at work:

401(k) RETIREMENT PLAN
Fidelity

...


Dave Ramsey says pay off the the student loan first. and dont do the 401k till then.

My expenses are real low, my rent is only $700 a month and my car is paid for its a company car.


What should i do, right now my 401k is zero and my saving are $1000.

Thanks
First world problem. You have no savings... so start saving.

Yes, you are paying interest on the student loans (waste of money to pay interest) so get rid of that first. Also put money away in a regular savings account each month until you have a 3-month emergency fund (has to cover necessities like rent and food).

So maybe that will take you a year or less to accomplish at your salary. By then we will probably be in a recession (fund and stock prices will be low) so you should start putting the maximum allowed into your 401k. If your 401k is traditional (not a Roth) you will not pay taxes on anything you put in there. Buying shares when low will benefit you greatly over time... it compounds.

Now that I have answered with a very obvious answer, I wonder if you are trolling. Where in MD are you paying only $700 per month for rent?
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