How do you all set up your investing?

[winb83]

Housing costs are expected to fall under Trump?
I might finally be able to afford a crib out here
Rent alone takes 42% of my take home not counting my other monthly expenses

Salute to all the brehs in here dropping knowledge. It's inspirational

Your rent is too high. My rent is 19% of my take home pay and I live in a lower to mid middle class area and 6% of my rent is dog fees.

My fixed monthly expenses combined are about 26% of my take home pay.

 

[acri1]

Your rent is too high. My rent is 19% of my take home pay and I live in a lower to mid middle class area and 6% of my rent is dog fees.

My fixed monthly expenses combined are about 26% of my take home pay.

Yeah, the rule of thumb I've always heard is that your rent/mortgage should never be more than a third of what you take home after taxes.

 

[winb83]

Yeah, the rule of thumb I've always heard is that your rent/mortgage should never be more than a third of what you take home after taxes.

if your rent gets up to almost half your take home pay it just leaves you right at the edge of a financial catastrophe. the moment something happens that requires a decent amount of money all hell breaks loose.

the spot I stay at isn't the best or the worse place to stay. My place was broken into 4 years ago but that's cause of the company I kept meaning I'm sure a person I knew was responsible for it not because I live in a bad area.

 

[Truefan31]

Obviously the #1 thing to do in order to increase your investing power is to increase your income. I work in technology and as of last year I've been in the low six figures salary.

The next step I'd like to take is to do better investing. I put about 12% of my income into my 401K last year and set my investment allocations aggressively and I got a high return.

I'm wondering how much money I should keep liquid right now. I max out my HSA (I believe the limit is $3500 for individuals) each year and will do it this year. This year I will contribute 5-6% towards 401K since I took an income hit. The kicker is I will have an opportunity to get a lot of equity in my current employer if I stay there four years.

I'm at the $10000 mark with savings but thinking I should put $5500 of that into a ROTH IRA. I'm holding on to a lot of money since I got a severance during my last role.

I think I keep too money into my checking account so I'm thinking I need to reallocate things. Thoughts?

My opinion.

Ok first are you looking long term? Smart investing is typically a marathon not a race.

Typically you want at least 6 months emergency fund in liquid form. And it's just that. Put it in a credit union or online account.

Any debt? Pay it off. Increasing income builds wealth, debt kills wealth. Try to be debt free.

You have a matching employer 401k? Max it out. If there's a Roth 401k option I prefer that as tax free growth is the shyt. Make sure you have it in good funds that have low expense ratios.

If you're self employed please do a SEP.

Max out a Roth IRA. 5500 under 50, 6500 over 50. The contributions can be withdrawn at any time no penalty, it's the growth that they would penalize you. But just leave it alone. Let it do its thing.

If you make more than the income limit for a Roth IRA then do a backdoor Roth using a traditional Ira.

If you've got all that covered then I suggest good no load mutual funds, emerging market funds, and if you want real estate.

 

[ViShawn]

I'm getting a 2.5% ROI on my HSA Investing now. Definitely should look into it!

 

[Pimp]

What would you guys invest in with $100,000?

 

[dark_magic]

What would you guys invest in with $100,000?

Equities market is HOT right now as to capital growth. And I haven't even mentioned dividends .

The bond market is probably in a bit of doldrums for the time being. Feds will raise interest rates for awhile to stem inflationary growth of the economy.

 

[sayyestothis]

Obviously the #1 thing to do in order to increase your investing power is to increase your income. I work in technology and as of last year I've been in the low six figures salary.

The next step I'd like to take is to do better investing. I put about 12% of my income into my 401K last year and set my investment allocations aggressively and I got a high return.

I'm wondering how much money I should keep liquid right now. I max out my HSA (I believe the limit is $3500 for individuals) each year and will do it this year. This year I will contribute 5-6% towards 401K since I took an income hit. The kicker is I will have an opportunity to get a lot of equity in my current employer if I stay there four years.

I'm at the $10000 mark with savings but thinking I should put $5500 of that into a ROTH IRA. I'm holding on to a lot of money since I got a severance during my last role.

I think I keep too money into my checking account so I'm thinking I need to reallocate things. Thoughts?

Propers breh u doing alot of good stuff already. Rule of thumb is 6 months living expenses like someone already said. Only reason to have more than that in cash is if you plan to buy a house, large purchase etc within the next two years. I'd first work on maxing your 401k out first before doing outside investing. Once you get to your 18k max out then look into iras. Be cautious of roth phase out tho. Begins at around 120k filing single.

 

[Truefan31]

Propers breh u doing alot of good stuff already. Rule of thumb is 6 months living expenses like someone already said. Only reason to have more than that in cash is if you plan to buy a house, large purchase etc within the next two years. I'd first work on maxing your 401k out first before doing outside investing. Once you get to your 18k max out then look into iras. Be cautious of roth phase out tho. Begins at around 120k filing single.

Yup. That's when u do the backdoor Roth using a traditional ira

 

[sayyestothis]

Yup. That's when u do the backdoor Roth using a traditional ira

Very true. Didn't want to get into details on a delicate rule but props for knowing and understanding the rule!!!!

 

[Ice_MF_Mike]

What would you guys invest in with $100,000?

assuming you already have an emergency fund and no high interest debt, then just invest in a S&P tracking index fund with low expense ratios and leave it alone for 20 years.

 

[Pimp]

assuming you already have an emergency fund and no high interest debt, then just invest in a S&P tracking index fund with low expense ratios and leave it alone for 20 years.

I have a index fund and like 6 dividend stocks going right now. I still have a lot of money just sitting in might add more into each investments in already have. I'll probably start renting out houses too.. I don't like to have money that's not growing.

 

[Ice_MF_Mike]

I have a index fund and like 6 dividend stocks going right now. I still have a lot of money just sitting in might add more into each investments in already have. I'll probably start renting out houses too.. I don't like to have money that's not growing.

Yea i mean if you dont need the money short term(saving to buy a property, etc). Then get it in the market. I assume you are also maxing out 401k, Roth IRA, etc?

 

[Truefan31]

Very true. Didn't want to get into details on a delicate rule but props for knowing and understanding the rule!!!!

yup, the roth ira is imo the best entry level form of investing for real. So much to like.

 

[Truefan31]

I have a index fund and like 6 dividend stocks going right now. I still have a lot of money just sitting in might add more into each investments in already have. I'll probably start renting out houses too.. I don't like to have money that's not growing.

Man you killin it. Well if you got everything (emergency fund, maxing out things like 401k/IRA), and already doing capital stocks, then yeah i like real estate. With that kind of money you should buy property/house outright so no mortgage. Rental income would be almost all profit.

Forgot to ask, you got kids? Go ahead and do a ESA or maybe a 529 too.