Comments on: Net Worth Update: $157,729.89 (Down $9Gs…)

By: J. Money

J. Money — Sun, 06 Jun 2010 20:32:23 +0000

@Khaleef @ KNS Financial – Thanks :) As for our cash sacing goals, I kinda and kinda don’t have a plan there. In general I’m trying to save save save for when the time comes to go 100% on my own & work for myself. So in theory, we’ll stop saving that much until that occurs. Now, if I don’t go down that path one day then no – no plans on what to use it for. Probably paying off the mortgages more than we are now, but def. not trying to do it aggresively. I’d much rather have $300k in the bank than $300k less mortgage debt, at least for now :)
@Darren – Yeah, it’s actually kinda convuluted right now but in a nutshell the 401(k) matches will be disappearing for sure. I certainly took advantage of it while it lasted :)
@Donna Freedman – Thanks! We certainly plan to.
@Laura – Hey Laura! GREAT questions indeed, and I’ll have to echo what StackingCash has already said – it’s always best to first contribute up to the company’s match in the 401(k) plan first. Then, if you have the leeway, usually the Roth is the next avenue but it depends on people’s personal situations.

To be honest, the first thing I’d do (after the 401k match) is build up a nice fat Emergency Fund. A few months worth of expenses, or maybe a nice round figure like $5K OR $10K, and THEN back to the investments. If you guys dropped a lot into your house, it’s more important to have liquid money you can touch NOW if needed rather than money in the future – does that make sense? Either way it’s great you’re looking into this stuff now!!! I started myself once we bought our first house so I totally get what you’re going through :)
@Single Guy Money – It’s a good thing we don’t need that money anytime soon ;)
@Financial Samurai – Haha, whatever you say big man. If I cash it all out now it sure turns into cold hard cash ;)
@Investing Newbie – Yeah? Oh man, if I had the money I’d invest as much as I can while it’s low again…a dream for those waiting to jump back in – at least I think so.
@StackingCash – Hah! 360 months? So basically the same as owning a home ;) Quite an accomplishment though! And great answer to Laura’s question too.
@myfinancialobjectives – Yup! Exactly. Our nest egg may go down a bit but we’re picking up future stocks cheaper! Pro and con to all, eh?
@Brian – “dreams are more fun than paying off mortgages” Love it! haha…I may have to tweet that ;)

By: Brian

Brian — Sat, 05 Jun 2010 16:14:52 +0000

I wouldn’t pay that mortgage down aggressively either just because your goal/dream is working for yourself. It just makes sense to keep those cash reserves, and dreams are more fun than paying off mortgages :). Just don’t look at the interest section of your mortgage statements or you’ll feel the pull to pay it down!

By: myfinancialobjectives

myfinancialobjectives — Thu, 03 Jun 2010 11:19:53 +0000

Nice Recap. Seems as though almost everybody has been taking a hit in their 401k’s lately. For you and me however, I actually view this downturn as an extremly positive thing. The market could be down for the next 5 years and I’d be happy. Why? Beacuse I have (like you) 30-40 years until reitrement…All the down market means is that I am getting stocks for cheaper!

Also, Impressive emergency fund! That takes some true discipline to hold an emergency fund of that size for so long!

By: StackingCash

StackingCash — Thu, 03 Jun 2010 03:07:16 +0000

Laura, most financial advisers will tell you to contribute to your 401k to get your companies match and then fund a Roth IRA. Please be careful about what specific types of investments you pick in your retirement accounts, they can make you or break you. Even though I’m anti investing these days, I would probably recommend one of the 3 big mutual fund companies for your Roth IRA, Fidelity, Vanguard, and/or T.Rowe Price. Oh, depending on the interest on your house, it sometimes is a good idea to pay it off faster than the typical 30 years most people do.

J. Money, like you there’s nothing like looking at a fat savings account. Especially after your recent work drama. I forgot where I saw it but someone mentioned having a 360 month emergency fund. That’s what I’m working on :) You should too!

By: Investing Newbie

Investing Newbie — Thu, 03 Jun 2010 02:53:20 +0000

The market is on an emotional roller coaster right now, so I suggest everyone just steer clear! I’m just going to watch from the sidelines and cross my fingers that the markets go back up again.

By: Financial Samurai

Financial Samurai — Thu, 03 Jun 2010 02:16:02 +0000

Money ain’t a thing J! It’s all an illusion except for the cold hard cash.

After today’s 2% move up, you’re back big bucks!

Sam

By: Single Guy Money

Single Guy Money — Thu, 03 Jun 2010 01:50:19 +0000

Wow dude, you losing over $10k in your 401k last month makes me feel much better about the $4k I lost in mine. It sucks and I know it will eventually come back but patience is not one of my strong points.

By: Laura

Laura — Wed, 02 Jun 2010 23:36:39 +0000

Hi. I’ve got a question that maybe somebody can help me out with? I’m sitting down this month to look seriously at our finances and work at making wise investment, savings, etc. decisions. Which is something my husband and I have been lackadaisical about. We just bought a house, though and a lot of our cash savings went into that. Anyway, its kind of the wake-up call we’ve needed to get in action re: personal finances.

Anyway, my question is related to 401Ks and IRAs. My husband is able to contribute to a matched 401K through his employer, which he does. We need to up it to maximum matched, I think, but otherwise ok. I work for the city and do not have the option of a matched 401K. I do contribute each month to a pension plan and the city contributes to that on my behalf as well. I have a 401A (or somesuch) that is not doing very much at all. I don’t even know if it is worth it to continue or if it makes more sense to focus on an IRA for myself? Or perhaps I should be pursuing both options? Does anyone have any suggestions? I am a total newbie at this and reading all the net worth accounts recently have made me think…

Thanks!

By: Donna Freedman

Donna Freedman — Wed, 02 Jun 2010 20:31:27 +0000

Congratulations on a zero credit card balance. Keep it that way!

By: Darren

Darren — Wed, 02 Jun 2010 19:41:39 +0000

I know that you’ve mentioned that your company isn’t doing the best. Is that why they stopped matching your 401k contributions?

From 100% to 0%… that would not be pleasant!