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Financial Tip of the Day - Start Early

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    #16
    Who can put 20 grand a yr into retirement, thats more then half of alot of peoples salary a year. I pay almost that in child support a yr, so mabye when im done, i will be able to start sticking some away. Gomna be very late to the retirement game and it sucks

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      #17
      I started in '82 at 38 years old and have done OK. Could have done way better if I had upped my contributions to the non-IRA account as I got promotions and raises. But, we have zero debt other than the usual monthly bills, all our healthcare is MEDICARE and military TRICARE so no co-pays, and prescriptions are most reasonable, so I'm not complaining. No complaints because my military retired pay is great, so the IRAs/investments are for the wife should I pass first. If she goes first--well, we'll see about how able I am with hunting a great S. Tx lease. ;<)

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        #18
        Now I need someone to convince me that the extra $100/month I am throwing at the mortgage would be much better served going into one of our retirement accounts. Been thinking on this heavily and I realize the math means that I am stupid not to be putting it into IRA. I am torn because I would love to pay the house off even earlier. Maturity date shows August of 2032 with 115K left to go. Please someone point me in the right (smartest) direction.

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          #19
          Originally posted by Tyrex750 View Post
          Who can put 20 grand a yr into retirement, thats more then half of alot of peoples salary a year. I pay almost that in child support a yr, so mabye when im done, i will be able to start sticking some away. Gomna be very late to the retirement game and it sucks
          Cut back on some of this in post #3 and you'll find $20k quick!

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            #20
            Originally posted by TxAg View Post
            Cut back on some of this in post #3 and you'll find $20k quick!

            https://discussions.texasbowhunter.c...d.php?t=796303

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              #21
              I had been adding 1% to my 401k every year at raise time. It has made a huge difference with my employer matching 6%. Unfortunately we parted ways and my new employer doesn’t match that much.

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                #22
                Originally posted by outlook8 View Post
                Was the Truth!
                Last edited by MLank; 01-19-2021, 07:48 PM.

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                  #23
                  Originally posted by Jon B View Post
                  Now I need someone to convince me that the extra $100/month I am throwing at the mortgage would be much better served going into one of our retirement accounts. Been thinking on this heavily and I realize the math means that I am stupid not to be putting it into IRA. I am torn because I would love to pay the house off even earlier. Maturity date shows August of 2032 with 115K left to go. Please someone point me in the right (smartest) direction.
                  It is a balance. I believe you need to put some monies toward retirement first and then put any extra toward the additional mortgage principle payment.

                  Are you completely out of debt except for your mortgage?
                  Are you putting 15-20% of your gross income toward retirement? 401K, IRA, other?

                  If you answered yes to the above questions, I would suggest putting that spare $100 toward your mortgage. Otherwise, first put it toward debt and then add to your retirement.

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                    #24
                    Originally posted by TxAg View Post
                    Cut back on some of this in post #3 and you'll find $20k quick!

                    https://discussions.texasbowhunter.c...d.php?t=796303

                    I thought of that same post as well. You can always convince yourself that you need that new truck, bow, gun etc or that you’ll start saving later or you’ll save what’s left after everyone else is paid. You have to pay yourself first, make it automatic, and stop putting your money towards things that don’t make you money. I started maxing out my 401k at 23 when it took half my salary. I sucked it up and did it and learned to live off the rest. Now that I’m 39 I’m thankful that I sucked it up and made it happen.


                    Sent from my iPhone using Tapatalk

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                      #25
                      Originally posted by captainsling View Post
                      I had been adding 1% to my 401k every year at raise time. It has made a huge difference with my employer matching 6%. Unfortunately we parted ways and my new employer doesn’t match that much.
                      That match is free $$$. Be sure and contribute enough to get the full match, assuming you are out of debt except for your mortgage, and then shift over to Roth IRAs, traditional IRAs and back to the 401k. If your company has a Roth 401k be sure and use that option too.

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                        #26
                        Originally posted by STGS View Post
                        It is a balance. I believe you need to put some monies toward retirement first and then put any extra toward the additional mortgage principle payment.

                        Are you completely out of debt except for your mortgage?
                        Are you putting 15-20% of your gross income toward retirement? 401K, IRA, other?

                        If you answered yes to the above questions, I would suggest putting that spare $100 toward your mortgage. Otherwise, first put it toward debt and then add to your retirement.
                        I'm at 17% towards retirement. 7% of that is a TMRS pension. Wife is at 5% with a 5% company match. The only debt we have left is the house. We have some older small retirement accounts with around 85K in them. We also have an emergency fund that will cover around 10 months to a year of expenses. Two kids and no real college savings as of yet. Second kid is making saving and maintaining a working balance in the checking account pretty tough; but we are treading water until one of them gets out of diapers.

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                          #27
                          Originally posted by Jon B View Post
                          Now I need someone to convince me that the extra $100/month I am throwing at the mortgage would be much better served going into one of our retirement accounts. Been thinking on this heavily and I realize the math means that I am stupid not to be putting it into IRA. I am torn because I would love to pay the house off even earlier. Maturity date shows August of 2032 with 115K left to go. Please someone point me in the right (smartest) direction.
                          This all depends if you want the Dave Ramsey approach, or the best mathematical approach.

                          I may be off but I believe you have a high mortgage rate compared to current rates based upon your payoff day.

                          But basically if you invest in a total stock market account your are supposed to semi-safe assume a ~6% rate of return on money. If you mortgage is 3-4% then the math says it’s okay to not throw extra at your mortgage.


                          Now more than ever people have fear of missing out when they hear on the news about on the 20% gains the past two years. But in the law of averages in the next 100 years there will be some mighty tough ones.

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                            #28
                            Originally posted by scott123456789 View Post
                            This all depends if you want the Dave Ramsey approach, or the best mathematical approach.

                            I may be off but I believe you have a high mortgage rate compared to current rates based upon your payoff day.

                            But basically if you invest in a total stock market account your are supposed to semi-safe assume a ~6% rate of return on money. If you mortgage is 3-4% then the math says it’s okay to not throw extra at your mortgage.


                            Now more than ever people have fear of missing out when they hear on the news about on the 20% gains the past two years. But in the law of averages in the next 100 years there will be some mighty tough ones.

                            Mortgage is at 3.375%. We initially signed a 30 year in 2014 re-fi'd into a 15 year in 2017.

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                              #29
                              Financial Tip of the Day - Start Early

                              Originally posted by Tyrex750 View Post
                              Who can put 20 grand a yr into retirement, thats more then half of alot of peoples salary a year. I pay almost that in child support a yr, so mabye when im done, i will be able to start sticking some away. Gomna be very late to the retirement game and it sucks

                              In my 20’s I probably put 2k at most because I didn’t know any better. My wife probably did 5k because she was smarter than me. I could have done more but I put in 3% and never really thought about it. When I went into sales at 32 I moved it to max out my 401k and my wife did the same. Now in my late 30’s my wife still is able to max her’s out but I’m limited to 6% into my 401 so I back door a Roth.


                              Sent from my iPhone using Tapatalk
                              Last edited by Black Ice; 01-19-2021, 10:36 PM.

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                                #30
                                how does that scale against inflation? it seems to me that it's definitely better than not investing but 8% interest compared to a 7%ish real inflation...i feel like there has to be something better. real estate maybe? i think a way to generate revenue would be ideal

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