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Soon to be graduated student, just got first job
Old 09-25-2008, 01:34 PM   #1
Confused about dryer sheets
 
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Soon to be graduated student, just got first job

Currently live in Erie PA, but moving to Cleveland Oh to start first real job. I am just finishing up my masters in Computer and Information Sciences, and my job is related to my field (48k).

I guess I am just kinda lost for how I should approach everything. I got bout 5k in savings, 2.5k in a liquid checking acct (use for monthly expenses and everyday things). My internship lets me save a little (bout 100$ a week into savings) which will end in December when I start to pull my real salary in.

What should I do? I might rent a year before buying a starter home to sell in 3-5 yrs. Or Do i just go for home now with the same plan? I have no debt, and own a car. Do I try to shoot for max 401k contrib (15k a year or whatever) or Do i invest in something else? My main concern is, over investing for retirement at the cost of being able to sustain current life, but I also want to try to retire at 45-50 (24 now) with a decent retirement.

Anymore needed let me know, but I am glad I found this board, seems like it will be helpful!
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Old 09-25-2008, 02:13 PM   #2
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Some will just automatically suggest that you max out your 401k and roth ira but my suggestion would be to contribute enough to your 401k to get the full company match then max out your roth then save in a short-term cd or a money market for your house savings. Don't buy a house if you don't plan on living there at least 5 years and don't even consider putting down less than 20%. Make sure you leave yourself an emergency fund of at least 6 months living expenses after you buy your house. Don't buy more house than you need. That is a definite early retirement killer.
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Old 09-25-2008, 07:22 PM   #3
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I find myself in the same situation that you are in Marriott, only I think the housing costs are higher here in NYC. I too want to retire early and am trying to contribute to my 401k and IRA, however I dont have a company match. I am contributing just under half my salary to with all my contributions to my pension, 401k and IRA. My plan is to keep contributing the same, and just wait till my salary increases to begin thinking about a house.

Will your salary increase in the next few years?
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Old 09-25-2008, 07:56 PM   #4
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Originally Posted by marriott001 View Post
Currently live in Erie PA, but moving to Cleveland Oh to start first real job. I am just finishing up my masters in Computer and Information Sciences, and my job is related to my field (48k).

I guess I am just kinda lost for how I should approach everything. I got bout 5k in savings, 2.5k in a liquid checking acct (use for monthly expenses and everyday things). My internship lets me save a little (bout 100$ a week into savings) which will end in December when I start to pull my real salary in.

What should I do? I might rent a year before buying a starter home to sell in 3-5 yrs. Or Do i just go for home now with the same plan? I have no debt, and own a car. Do I try to shoot for max 401k contrib (15k a year or whatever) or Do i invest in something else? My main concern is, over investing for retirement at the cost of being able to sustain current life, but I also want to try to retire at 45-50 (24 now) with a decent retirement.

Anymore needed let me know, but I am glad I found this board, seems like it will be helpful!
Life's 4 big commitments are career, spouse, children, and house. What a new college graduate starting his first professional job needs with a house I can't quite fathom.

If you hit it right with your career you can become very wealthy. Don't screw around with distracting commitments.

Unless of course you already know you are not likely to hit it big with your career and think that a house in Cleveland might become an important part of your net worth.

Ha
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Old 09-25-2008, 08:02 PM   #5
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I have to agree with Ha Ha here.

This is your first job, and chances are pretty good that you will either need or want to work someplace else before five years are up. I would suggest giving yourself time to make sure you are settled for the long term in a location, before buying. Also before buying you will need to become familiar with neighborhoods and housing prices in the area, if you are not already.
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Old 09-25-2008, 08:15 PM   #6
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Quote:
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Life's 4 big commitments are career, spouse, children, and house. What a new college graduate starting his first professional job needs with a house I can't quite fathom.

If you hit it right with your career you can become very wealthy. Don't screw aroung with distracting commitments.
This is so very true.
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Old 09-25-2008, 08:17 PM   #7
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Congrats on graduation from college homeboy!

401k and start your financial self education. Since you are at this forum, I would say you are off to a good start.

Free to canoe - Cooksburg, PA
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Old 09-26-2008, 09:22 AM   #8
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Life's 4 big commitments are career, spouse, children, and house. What a new college graduate starting his first professional job needs with a house I can't quite fathom.

If you hit it right with your career you can become very wealthy. Don't screw around with distracting commitments.

Unless of course you already know you are not likely to hit it big with your career and think that a house in Cleveland might become an important part of your net worth.

Ha
Good points, My thoughts on the house was that I would buy a cheap one to live in and fix over a few years, and use it when i was going to buy a more perm. house. But thats one of the areas I am so unsure of since i know housing is kinda eh right now, and whatnot. Maybe rent for a year or 2 and make a decision then. It feels like throwing money away, but I do know of the hidden housing costs so i don't feel so stupid for renting.

Bigger issue right now is that the business i am interning for is making a counter offer to keep me, of course like 2 days before my other offer needs to be sent out. Leaves me in a good, albeit annoying position, since at this point in my life I am concerned with money and experience, and the job market in Erie for IT is fairly lackluster, so idk if staying in ERIE is good for me or not.
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