spikeymikey
Member
Cash: $ 5.25
Posts: 24
Joined: 14 Nov 2005
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| Home or retirement???? |
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Hi, I am 23 years old and i am about to graduate from collge. I have had the same job since I was 16 so I make a decent amount of money for a full time student. I have about $800 that goes unspent every month. Right now I contribute 2% of my income to my company 401k plan. The $800 i use to buy stock in my company they give me 15% up to $1,800 so $270 of stock for free each year. I have a few questions.....I have always been opposed to the idea of living in an apartment. It seems like a waste of money to me, so ever since 12th grade i have been using the stock ownership plan to save for a house. I have about $40,000 in stock. I was just wondering if instead of saving for a home should i be saving for retirement?? instead of maxing out my stock...maxing out my 401k????
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Mon Nov 14, 2005 12:43 am |
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Rajun Cajun
Preferred Member
Cash: $ 32.17
Posts: 158
Joined: 22 Mar 2005
Location: Texas
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| Re: Home or retirement???? |
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Hi, I am 23 years old and i am about to graduate from collge. I have had the same job since I was 16 so I make a decent amount of money for a full time student. I have about $800 that goes unspent every month. Right now I contribute 2% of my income to my company 401k plan. The $800 i use to buy stock in my company they give me 15% up to $1,800 so $270 of stock for free each year. I have a few questions.....I have always been opposed to the idea of living in an apartment. It seems like a waste of money to me, so ever since 12th grade i have been using the stock ownership plan to save for a house. I have about $40,000 in stock. I was just wondering if instead of saving for a home should i be saving for retirement?? instead of maxing out my stock...maxing out my 401k?
I sure wish I was in your position. It seems like you are way ahead of the game at age 23. Others may disagree, but I say PAY YOURSELF FIRST, which means put as much as you can afford in your 401K, especially if your company matches. It may mean the difference between struggling to retire at 65 and retiring easily at 55.
Paul
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Mon Nov 14, 2005 1:39 pm |
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MattL
Senior Member
Cash: $ 46.85
Posts: 234
Joined: 25 Jun 2005
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If you have $40k you should be able to buy a starter home and keep your mortgage around the same as rent or maybe a bit more. I would do both.
Buy the house with $40k down and increase you 401k to as much as you can afford, preferably at least up to the company match.
If you can do that you will be in great shape!
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Tue Nov 15, 2005 6:03 pm |
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