pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Oh.... misunderstood what you wrote before. Sorry.
This is my most recent pay stub. Note: there is not PII in this screenshot and "Geoff Blinks is not my real name (in case a mod is inclined to delete it).
A few notes:
- Medical / Vision / Dental is paid bi-weekly
- This does not include 2 Fed Exemptions (adjusted today)
- My 401K doesn't kick in until after 1 yr of employment
- $1K in child support (which is post-tax) is not shown here. This will double by summers end.
If you are getting paid bi-weekly (26 paychecks per year), then your monthly net is actually $3238.69 * 26 / 12 = $7017.16.
Your housing cost is $2150 / $7017 = 30% of net, so that's not particularly out of line. It's more than you paid in Boston, but presumably you earn more in CA too. Also, you have lower energy costs, lower food costs, need less clothing, etc. Overall, cost of living in Los Angeles is not going to be more expensive than Boston. (Actually a search I just did gave me Boston as 6% more than LA, though having your own house there does change the equation.)
What is "Ee Reimbursemen"? That is costing you over $6K per year. Can you reduce that?
Your max 401K contribution will be $673.08 per check. You may get a raise before you can start contributing. You could also look at directing the positive cash flow from the Boston house into that. It might be better to save than to pay down the debt right now.
The $2K in child support is high. That alone is going to be 28.5% of your net, but yeah, kids are expensive. Supporting them from afar is even more so. Can the child live with you for part of the year and you not pay child support for those months, or collect it from the other parent?
I would like to share my financial situation with you in hopes that you can help me evaluate and formulate a solid investment strategy.
Here are my current holdings:
- $28K in Money Market Savings
- $13K Roth IRA $10K in Wealthfront (90% stock / 10% bonds)
- $3.5K in Betterment (90% stock / 10% bonds)
- $2.5K in Acorns.com (90% stock / 10% bonds)
- $46K in Fidelity Rollover IRA - Me
- $20K in Fidelity IRA - Wife
- No debt. I make about $150-175K yr
I have one rental property out of state worth $315K conservatively with a $180K balance on 1st and $9K balance on HELOC.
Wife and I are about 35 yrs in age. We have very little debt.
I'd like to know: Am I on track for retirement? What, if any, additional investments could I make that would be financially responsible or should I just keep saving?
Thanks!
You're pretty much my double except I'm 41 and my child support is less than your's (but I did have a hefty alimony at one point). I'm also in SoCal, make a bit less than you and my mortgage is approx what your rent is. The divorce without a question set me back 10 yrs financially (I calculated what I had to divide up, sell, time lost, lawyer fees etc).
At 32 you have lots of time on your side. What is your target retirement date/expenses?
After the dust settled from the divorce to get back on track I've been maxing out the pre-tax savings, and I invest $2k per mo in a Vanguard account I opened a couple of years ago- these are automatic payments. To give this a bit more numbers in 2013 at the age of 38 I think I had $240k to my name with not a lot of equity. I just passed the $430k mark (and $200k in home equity but I don't really count this) and hope to cross the $500k mark next year. My goal is to be FI by 50, it'll be close but we'll see. I'm happy to post my expenses etc if that helps you but I spend approx $55k per year and a big chunk of that is mortgage.
You need to start playing catch up. You should have probably 2-4 times your income saved by that age, unless it just jumped up.
I'm 37, 550 saved. Make probably less than you do. It varies.
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I don't know how many hours a week your DW works as a realtor ,but if you want to get ahead money wise, she should think about a career change and a better paying job. All of her earnings can go to savings...
She has her Masters in Special Ed and that isn't a field that makes a lot of money so even if she does switch careers at her age, it's not necessarily going to yield a substantial change in income.
Thank you. I would love to hear how you manage to put away $2k / month as well as see your income/expenses. Do you own your home?
One of the things we're struggling with is that we want to buy a home here in LA but saving 20% or even 5% is going to take forever when, as evident by all of the posts here, we're behind and not saving enough for retirement.
This thread has me worried to say the least.
What about your daughter's college expenses and future wedding? You seem to be planning no more expenses once she hits 18. Is that your plan for your child/children with your current wife as well?
How did you get to 550? Were there any major cash in-flows like inheritances or bonuses that helped speed things up? Is that inclusive of real estate?
PS Because I can't help myself: There is some typical American Consumer Nonsense above implying your retirement plan is miscalculated because you must pay for kids' expensive weddings. LOL! We paid for our own, had a blast without in-law interference, and are still married 20 years later. My brother just got married at the courthouse. And who says your kids' educations must cost you your retirement plans? Read some Dave Ramsey and think through your options for yourself.
I agree with what you wrote but there is a difference between paying for ALL those extras and assuming the day your kid turns 18 your child expenses will be over!