marklar
New Member
Cash: $ 0.65
Posts: 3
Joined: 25 Aug 2017
Location: Bay Area |
Overall financial advice |
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Hi all,
Just signed up for the forum and wanted some advice on my overall financial status . Do I need to invest more, save more, contribute more for retirement? All perspectives appreciated!
I don't have any goals other than *maybe* owning a home one day. I would also like to be secure in retirement.
About me: mid 30's IT professional working in the Bay Area in a stable job
Income
• 87k
Debts
• None. No credit card debt, no loans, not a homeowner (and really can't afford to in the Bay Area!)
Retirement
• Pension - automatically taken out of my paycheck (CalPERS)
• 403(b) - Contribute $400 a month pre-tax, ~25k current balance
• Roth IRA - Contribute $100 a month, ~3.5k current balance
Savings
• ~15k in a savings account, contribute $300 each month
Investments
• ~$8k invested in a mutual fund
• ~$1k invested in FundRise
Thank you in advance for taking the time to respond
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Fri Aug 25, 2017 5:36 pm |
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oldguy
Senior Member
Cash: $ 751.85
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Joined: 21 May 2006
Location: arizona |
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quote: *maybe* owning a home one day. I would also like to be secure in retirement.
Both goals may be almost out of reach. You earn $87k in the Bay Area. Ca Tax, Fed Tax, Payroll Tax probably leave you with around $50k net. Your shelter - apt, utilities - probably takes over $25k, leaving you with $25k for "all other" - transportation, food, groceries, entertainment, medical, investing.
So - very hard to invest for retirement - and very hard to finance a house - even a small, older, house in a not-so-good area costs around $500k.
During the approx 30 years of "wealth-building" that you'll probably have, you'll need to invest about $500/m to $1000/m. (Then you move into your "wealth-preservation" years where you quit adding wealth and move into 'safe' things such as CD's, bonds, savings.)
To fix your problem at the root-cause level, (sky high housing, high taxes, high COL) you'd need to leave CA and move to fly-over country. If you are tied to CA, you could move Inland (Modesto, Fresno, etc). The taxes are still at CA levels but the housing in more in line with other states.
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Fri Aug 25, 2017 10:21 pm |
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marklar
New Member
Cash: $ 0.65
Posts: 3
Joined: 25 Aug 2017
Location: Bay Area |
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Thanks for taking the time to respond!
quote: Originally posted by oldguy
Both goals may be almost out of reach. You earn $87k in the Bay Area. Ca Tax, Fed Tax, Payroll Tax probably leave you with around $50k net. Your shelter - apt, utilities - probably takes over $25k, leaving you with $25k for "all other" - transportation, food, groceries, entertainment, medical, investing.
Wow, you are quite accurate there - those numbers are pretty close
quote: Originally posted by oldguy
During the approx 30 years of "wealth-building" that you'll probably have, you'll need to invest about $500/m to $1000/m. (Then you move into your "wealth-preservation" years where you quit adding wealth and move into 'safe' things such as CD's, bonds, savings.)
What about the pension (2% at 55) and 403b contributions. - would that not be enough for retirement?
quote: Originally posted by oldguy To fix your problem at the root-cause level, (sky high housing, high taxes, high COL) you'd need to leave CA and move to fly-over country. If you are tied to CA, you could move Inland (Modesto, Fresno, etc). The taxes are still at CA levels but the housing in more in line with other states.
That's a tough one - I'm very tied to the Bay Area and love living here. However, I do see your point that if I ever want to own a home, I would have to move.
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Fri Aug 25, 2017 11:41 pm |
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oldguy
Senior Member
Cash: $ 751.85
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quote: • 403(b) - Contribute $400 a month pre-tax, ~25k current balance
• Roth IRA - Contribute $100 a month, ~3.5k current balance
That $6000/yr for 20 years on top of your $28.5k balance, will be $268,000 at 5% - or $530,000 at 10%. (As you can see it is very important to you which investment that you select inside your 403 & Roth.)
You'll probably need quite bit more than that in 2037. How much does the CalPers pay? And do you get an SS pension?
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Sat Aug 26, 2017 1:26 am |
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marklar
New Member
Cash: $ 0.65
Posts: 3
Joined: 25 Aug 2017
Location: Bay Area |
quote: Originally posted by oldguy
You'll probably need quite bit more than that in 2037. How much does the CalPers pay? And do you get an SS pension?
CalPers pays depending on service years, so between 70-80% of my salary depending on retirement age. I am eligible for SS pension.
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Sat Aug 26, 2017 10:05 pm |
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Svarog
First Time Poster
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Joined: 20 Oct 2017
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Since you're an IT specialist - why don't you move to a cheaper country/state/area and work remotely? This is the best way for saving money you can possibly think of in your situation.
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Fri Oct 20, 2017 7:27 am |
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marthawilson710
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Location: Austin, Texas |
I am confused need more information. Are you saying that you currently have a house? Are you looking to buy a new home or a second home?
five nights at freddy’s game
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Wed Nov 22, 2017 7:13 am |
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marketsignals
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Financial & Investment |
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Wed Jan 24, 2018 9:01 am |
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marketsignals
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Bursa malaysia market watch trade. |
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Mon Feb 05, 2018 9:31 am |
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yatharthmarketing
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Thank you for sharing this information!!
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Wed Oct 31, 2018 10:59 am |
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