Recommendations on 401K

[Apollo Creed]

While paying off debt do you guys think putting 10% of income into a a combo of 401k/roth ira (401k contribution at company max, remainder in roth), and another 10% into emergency savings is sufficient?

I have heard people make the argument of agressively paying off debt before trying to save large amounts of your income.

 

[Hahahaha]

While paying off debt do you guys think putting 10% of income into a a combo of 401k/roth ira (401k contribution at company max, remainder in roth), and another 10% into emergency savings is sufficient?

I have heard people make the argument of agressively paying off debt before trying to save large amounts of your income.

I'm sure others may think differently but I'd go in this order:
1. Pay off high interest debt
2. Emergency funds
3. Long term saving
4. Pay off low interest debt

 

[Apollo Creed]

I'm sure others may think differently but I'd go in this order:
1. Pay off high interest debt
2. Emergency funds
3. Long term saving
4. Pay off low interest debt

Ive been using zero intrest balance transfers on my CCs to avoid paying interest (the minimal transfer fees are much less than the interest id be paying normally). So far so good, i think i should be done next yr as long as I stay discipline.

 

[Truefan31]

While paying off debt do you guys think putting 10% of income into a a combo of 401k/roth ira (401k contribution at company max, remainder in roth), and another 10% into emergency savings is sufficient?

I have heard people make the argument of agressively paying off debt before trying to save large amounts of your income.

How much debt do you have is the question. I'm an advocate for being debt free before heavily investing.

How old are you? Income?

 

[Apollo Creed]

How much debt do you have is the question. I'm an advocate for being debt free before heavily investing.

How old are you? Income?

Im not going to go too detailed but the debt is much less than my total income so i have the abolity to put alot towards it in order to knock it out in less than 2 yrs. pretty much my car and some credit card stuff. Late last yr I got a good bump in pay where im now able to attack and get this debt out the way. Im in my late 20s btw, but my goal is to be debt free minus a last bit of student loans by 30 (which will be easy to clear once i get this other stuff out the way).

The main reason i want all this clear in the next yr or two is because theres a business i plan on starting around that mark. im trying to get it out the way Because i dont want that risk on top of trival debt.

 

[Truefan31]

Im not going to go too detailed but the debt is much less than my total income so i have the abolity to put alot towards it in order to knock it out in less than 2 yrs. pretty much my car and some credit card stuff. Late last yr I got a good bump in pay where im now able to attack and get this debt out the way. Im in my late 20s btw, but my goal is to be debt free minus a last bit of student loans by 30 (which will be easy to clear once i get this other stuff out the way).

The main reason i want all this clear in the next yr or two is because theres a business i plan on starting around that mark. im trying to get it out the way Because i dont want that risk on top of trival debt.

I understand. It's obviously your life but based on your goals I'd attack all of your debts hard, I mean focused, one at a time knockout punches. Big raise means big chunks to knock out debt. Debt is a wealth killer period. Budget yourself monthly, adjust as needed, but the leftover goes all to paying off debt. Believe me you'll feel like a boss knowing you don't owe anyone shyt.

People tend to perform better when focused on one task at a time. I understand wanting to invest but sometimes it distracts from going all in on being debt free. You've got plenty of time to save for retirement. It'll be easier to do that the sooner your money isn't going to making banks richer.

 

[Apollo Creed]

I understand. It's obviously your life but based on your goals I'd attack all of your debts hard, I mean focused, one at a time knockout punches. Big raise means big chunks to knock out debt. Debt is a wealth killer period. Budget yourself monthly, adjust as needed, but the leftover goes all to paying off debt. Believe me you'll feel like a boss knowing you don't owe anyone shyt.

People tend to perform better when focused on one task at a time. I understand wanting to invest but sometimes it distracts from going all in on being debt free. You've got plenty of time to save for retirement. It'll be easier to do that the sooner your money isn't going to making banks richer.

Yeah def, thats why i put off the bigger investments. I assume the time missed doing this i can just double down on saving when that bread frees up.

 

[Truefan31]

Yeah def, thats why i put off the bigger investments. I assume the time missed doing this i can just double down on saving when that bread frees up.

Yeah you got plenty of time to save for retirement. I say focus on setting yourself up for financial freedom especially being young. That way it's nothing to wanna max out retirement accounts like 401ks/Roth ira etc.

Credit cards n student loans in general are imo some of the worst things for people not careful. Especially student loans.

 

[Apollo Creed]

Yeah you got plenty of time to save for retirement. I say focus on setting yourself up for financial freedom especially being young. That way it's nothing to wanna max out retirement accounts like 401ks/Roth ira etc.

Credit cards n student loans in general are imo some of the worst things for people not careful. Especially student loans.

Yeah you live and you learn though.

 

[Truefan31]

Yeah you live and you learn though.

Oh yeah trust I know from experience. Spent years but I'm debt free now. Even own my current house. I have cc but only use them for traveling because the fraud protection is better, which I pay off completely every time. Don't even care about my credit lol even though last I checked it's pretty good. Go figure.

 

[Apollo Creed]

Oh yeah trust I know from experience. Spent years but I'm debt free now. Even own my current house. I have cc but only use them for traveling because the fraud protection is better, which I pay off completely every time. Don't even care about my credit lol even though last I checked it's pretty good. Go figure.

Yeah after student loans i may aggressively pay off my crib.

 

[88m3]

wrong thread

 

[ViShawn]

Any of you take advantage of HSA accounts? I max mine out every year now

 

[Truefan31]

Any of you take advantage of HSA accounts? I max mine out every year now

I max mine at my work. Yessir. Pretax monies to pay for medical care.

 

[Macallik86]

Any of you take advantage of HSA accounts? I max mine out every year now

Before I used to just take what the job contributed for free but last year I maxed mines out for the first time.

IIRC HSA's are like IRA's on steroids because you never pay taxes on contributions OR (medical) distributions. Also, if you wait til you are 65, then you can use the HSA account like a 401K and just pay taxes on withdrawals.

If applicable it should probably be among the top of your list to max out because of the flexibility.