U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old Yesterday, 09:18 PM
 
Location: maryland
2 posts, read 34 times
Reputation: 10

Advertisements

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
 Employee can defer pre-tax dollars or post- tax dollars (Roth)
automatically from your paycheck to be invested in multiple
investment options from the available choices
 Must be at least 21 years of age to participate in the Plan
 New hires are eligible after three months of employment.
Employees will be auto-enrolled at 3% once the three months has
passed.
 Company matches 100% of the first 4% you contribute
 Matched funds are vested immediately
 Catch-up contributions for participants age 50 and over


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
Reply With Quote Quick reply to this message

 
Old Yesterday, 09:36 PM
 
Location: Florida
4,538 posts, read 3,861,574 times
Reputation: 4376
Invest in the 401k to get the match.
Build up an emergency fund
pay off the student loan as fast as you can.
Bonus goes to student loan
Reply With Quote Quick reply to this message
 
Old Yesterday, 09:55 PM
 
Location: maryland
2 posts, read 34 times
Reputation: 10
Default Thanks

Good play
Reply With Quote Quick reply to this message
 
Old Yesterday, 11:07 PM
 
8,284 posts, read 5,225,633 times
Reputation: 14088
Situations such as this, need not be dire. If the OP can maintain his salary and keep working into his 60s (ideally to age 70), then Social Security alone will be very substantial, and may be enough to support a tolerable (if constrained) lifestyle in perpetuity. I say this, because it's so easy to pile scorn onto higher income-earners who have little in savings. These are tarred as being the profligate types who have mismanaged their money. Maybe so. But just the mere fact of having been employed at high salary for a long time, is quite a handsome advantage to enjoy. The key risk is in being able to maintain such employment.
Reply With Quote Quick reply to this message
 
Old Today, 03:53 AM
 
Location: Colorado Springs
4,983 posts, read 5,122,598 times
Reputation: 17783
If you make $108K+ per year, you likely know how to construct a spreadsheet.

Excel is your friend. Make a model. Let the numbers tell you what to do.
Reply With Quote Quick reply to this message
 
Old Today, 05:22 AM
 
Location: The Triad (NC)
29,164 posts, read 63,380,721 times
Reputation: 33487
Quote:
Originally Posted by Simpleasthat View Post
(age 53) I make $108,000 a year not including bonuses.
No kids, no wife... my saving are $1000... my 401k is zero

I am debt to the tune of 44k in student loans...
With 25+ years past BA/MA ages... How much could the student loan debt have been originally?
And what else have you been spending your money on all this time?

Quote:
What should i do, right now and...
You (still) need to do it all...
and likely just as you would have been (were?) advised to do 25 years ago.

Commit to a Save/Invest (and debt) payment as a % of your gross.
Because of the time lag that needs to be higher than when you were 25.

4% to the 401K plan, another 4% to personal savings, 20% to debt.
$108,000 x 28% = $30,000 ($22,000 to the student loans)

After two years... the student loans will be paid off
and that $22,000 can go into the retirement account(s) you'll set up then.
At that point you should plan to commit even more to the Save/Invest options.
= = =

$108,000 less 28% to Save/Invest/Debt less 20% to Taxes,SS/Fica, etc...
will leave you a still comfortable NET of $56,000; $1080 per week to live and budget off of.
Your ($700) rent + utilities (@ $150) puts your $850/mo housing costs inside the safe zone.

Last edited by MrRational; Today at 05:41 AM..
Reply With Quote Quick reply to this message
 
Old Today, 05:27 AM
 
Location: DFW - Coppell / Las Colinas
32,590 posts, read 37,234,108 times
Reputation: 39641
Why is OP Not a Member.
Reply With Quote Quick reply to this message
 
Old Today, 06:41 AM
 
Location: Upstate
5,891 posts, read 6,687,143 times
Reputation: 4315
Quote:
Originally Posted by Rakin View Post
Why is OP Not a Member.
The OP is just being creative with his tag line.
Reply With Quote Quick reply to this message
 
Old Today, 06:49 AM
 
Location: Florida -
8,902 posts, read 11,071,883 times
Reputation: 17240
You sound young, so, based on that premise, let me offer this: NOW is the time to get into the habit of maximum (matched) retirement savings, emergency fund savings - and student loan pay down (in that order). The point is, you cannot spend money you don't have in your hand and you need to get into the habit of living within your means.

Then, as you earn more and receive bonuses, you will more readily be able to apply that to your debts and savings ... instead of having to cut your spending in order to do so. Beyond that, this approach will pay huge benefits as you move through life.

Far too many young people take exactly the opposite approach. They get into the habit of spending everything they earn and then find themselves overwhelmed by their debt. For now, you seem to have a good, stable income, limited family responsibilities and a manageable debt load -- so take advantage of your situation while you can!
Reply With Quote Quick reply to this message
 
Old Today, 07:59 AM
 
932 posts, read 439,449 times
Reputation: 2899
Quote:
Originally Posted by Rakin View Post
Why is OP Not a Member.
'Bots Jack, 'bots.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top