Pay it off?

How much does it take to max out a 401k? I’m assuming it’s similar to RRSP up here in Canada ?

RRSP is 18% of gross income, to a max of $27,000 I think. Or something close to that.

 

More like some us are old enough to wish we had listened to Dad earlier in life and once we finally pulled our head out of our ass, life became much easier financially.

We tend to look at income as the most important thing financially when income and outgo are both equally important.

And bad stuff never happens when you are financially flush, it always waits until you are broke.

 

I'm not buying this thread.

If you are that financially responsible, how did you get talked into a 5 percent rate?

Refinance this truck with your CU, take the $100/month savings and invest it.

I won't judge on the amount you have in the checking account. Some want money at easy reach.

 

It wasn't until I was 30 that I understood why my dad drank on the weekend and mowed the lawn. My mom was a spend thrift.

 

Bought in March, these are avg auto loan rates for 60 months. I knew the rate was going to be higher with the longer term. I needed to get out of my 2 door Jeep, because my son was beginning daycare. I don’t know if you’ve ever tried getting a kindergartener and an infant in a 2 door Jeep but it sucks. I did the 84 mo loan with intent to pay the truck off in 2 years max. I went with the longer loan, lower payment just in case I got in a bind.

 

To Max a 401k/403b tax year 2019 = 19,000 if under 50, if over 50 add 6k to that. Tax year 2020 will be 19.5k. employer match is not included in the 19k. Total combined employer plus employee contribution limit is 56k for 2019 and 57k for 2020. You can also be eligible for a Roth IRA depending on income limits and what tax preferred retirement options are available with your employer and your spouse's employer.

 

I hate to say it, but maybe you should have bought a mini van. Kids come 1st.

A Tacoma to haul the young one around is just kidding yourself into trying to hang on to your own youth .

This is my opinion. You asked for opinions

 

Makes no sense. You have “50k cash in an account” but worried about getting in a bind? What kinda bind are you worried about?

 

It seems to be working out fine.

 

Financially it makes 100% sense when you just look at the numbers. If those $11k are all you have in your savings then that may not be such a good idea. Just consider what you have saved up after paying the $11k and if will be enough for an emergency should it come up.

 

I’ve always been one to not want to touch savings for anything. I got a divorce about 15 years ago and had no home an unreliable car and wasn’t making jack for money. I had about $1500 to my name. I don’t wanna go back there. I guess that’s why I like having a good nest egg. Say everything in my current life exploded, I could still swing a $240 truck payment. I always look at worse case scenarios.

 

Understandable but damn 50k. Big rainy day fund

 

I mean aren’t we all trying to work our way up there?

 

Nah that's about standard. Anywhere between, well, zero I guess and 6 is to be expected.

 

Are you a federal employee?

Edit: ignore my post. Reading too fast.

 

For real. I know guys my age that can’t put together $30 for the copay to see a doctor when they are sick...

 

Damn...

 

I'd look at moving some / most of that $50k into the market, and earning some better returns. Historically the market had returned about 7% annually.

Keep making the payments, and when you have it paid off invest that money too.

 

The thing is that its suppossed to be a nest egg for emergencies, or am I wrong? I havent really read the thread. It would still make sense to have it in a higher yield bank like say Simple or LiveOak Bank.