younginvestor2013
Recycles dryer sheets
- Joined
- Feb 6, 2013
- Messages
- 226
Hello all,
I was wondering what you all think I should do given my situation. I am a younger investor (25), and hoping to be FIRE'd by my mid 40s, if not sooner. Therefore, I am only putting the minimum into my retirement plan to get my company's match. I have to put in 6% to get their 3% match.
I just recently started a new job, and recently bought and furnished a condo over the past year. So, to say the least, my "revenue" stream and especially my expenses have been all over the place. My income will be stable and predictable going forward. Now that I've almost finished furnishing/decorating my condo, my expenses should also level out.
I (*think*) I am in a position to save at least an additional 4-6% of my monthly take home pay going forward. I've already got a little over 2 months built up in my emergency (cash savings) fund. I don't foresee any big "life events" in the near future (i.e., wedding, moving, new car, etc) that would cause me to need substantial cash beyond what I already have.
So, since I want to be FIRE'd in my 40s, should I put the additional 4-6% into my Roth 401K or have Vanguard automatically pull the 4-6% amount each month from my checking and periodically invest it into my after-tax brokerage account? Another option would be to invest it into a Roth IRA through Vanguard.
I'm not talking about a substantial amount of money each month - the additional 4 - 6 % comes out to about $233 to $350. But, over time it will add up of course.
I'm inclined to continue to build up my cash savings even more, but I hate to pass up investment returns just to have cash on hand when I feel comfortable with what I already have.
Anybody else have a similar situation - how do you automate the savings?
I was wondering what you all think I should do given my situation. I am a younger investor (25), and hoping to be FIRE'd by my mid 40s, if not sooner. Therefore, I am only putting the minimum into my retirement plan to get my company's match. I have to put in 6% to get their 3% match.
I just recently started a new job, and recently bought and furnished a condo over the past year. So, to say the least, my "revenue" stream and especially my expenses have been all over the place. My income will be stable and predictable going forward. Now that I've almost finished furnishing/decorating my condo, my expenses should also level out.
I (*think*) I am in a position to save at least an additional 4-6% of my monthly take home pay going forward. I've already got a little over 2 months built up in my emergency (cash savings) fund. I don't foresee any big "life events" in the near future (i.e., wedding, moving, new car, etc) that would cause me to need substantial cash beyond what I already have.
So, since I want to be FIRE'd in my 40s, should I put the additional 4-6% into my Roth 401K or have Vanguard automatically pull the 4-6% amount each month from my checking and periodically invest it into my after-tax brokerage account? Another option would be to invest it into a Roth IRA through Vanguard.
I'm not talking about a substantial amount of money each month - the additional 4 - 6 % comes out to about $233 to $350. But, over time it will add up of course.
I'm inclined to continue to build up my cash savings even more, but I hate to pass up investment returns just to have cash on hand when I feel comfortable with what I already have.
Anybody else have a similar situation - how do you automate the savings?