Hello Everyone,
This is a newer account, but I have been reading PF for about two years now, and in that time I've gone from almost $16,000 in immediate credit card debt and initial student loans off a crummy $12/hr wage job to fully paid off credit cards, a better job, and some basic investments. I read the Frugal subreddit, learned to cook my meals, learned to budget better, studied my ass off for job upgrades over the course of 2 and a half years, and set aside considerable money for savings, investments, etc, but now I'm wondering what to do next.
My current set up:
- Working for Ad Tech Firm as a BI Analyst ($70k base) just started two months ago). No bonus structure, but decent benefits.
- Up to $50 reimbursed for gyms/ month
- Options for training relevant to job
- Healthcare covered %100 in NYC (because it's a Canadian company)
- Reimbursable MTA pass (factored into Net pay b/c weird system)
- Net Pay (after taxes + reimbursables): $4125 a month
- Catered lunch on Fridays
- Credit Score of 760 - 780 range
Current Liabilities:
- Student Loans: $3300
Assets:
- Traditional 401k (that I still need to rollover): $12,500
- Stash Invest ETF Funds (5 Funds at around equal distributions - AOR, ITA, ROBO, CIBR, GURU): $14,500 at 9.24% total return
- Digit Automated Savings Account: Variable, but usually rakes in $300 - $500 a month. Used as a travel fund.
- 180k miles with Chase Reserve at 16,500 credit limit + 7 other cards all paid off.
Basic Budget:
- Starting Monthly: $4,125
- Monthly Transit: -$120
- Gym: -$25
- Rent: -$600
- Stash Invest ETF Funds 5 x $125: -$625
- Parent Support (I help my parents out with some bills): -$150
- Student Loan Payment: -$150
- Food (for meal prep): -$260 (average)
- Food/ Going out (NYC social life/dating expenses ugh): $600 - $1,000
- Home Supplies, Internet, Electrical, Gas: $100
- Digit Savings (Mostly for travel funds, but any extra goes into Stash Funds currently): $300 to $500
Leaving a net operating income of around $595 to $1,195
Need to Dos:
- Rollover 401k of $12,500 from previous company
- Open up Roth IRA or go with Company 401k plan (theirs is full vestment in 6 years).
- Find other sources of investments/ passive income
Goals:
- Career Path Decisions: Product Manager, Manager of Analytics, Data Scientist?
- Begin acquiring cash flow rental properties as equity building tool (goal of net $500-700 dollars cash flow for first property as realistic goal. Hopefully possible this year)
Stumbling Blocks/ Future Headaches:
- Parents will need a contribution of $500 dollars a month after selling their home to fund their "retirement home/ last and final house." They are shooting for a $300,000 ballpark house with a $60k down payment most likely in North Carolina (They still have to sell their house first so this will take maybe 1 to 2 years by my book).
I managed to make my life in NYC fairly simple with some added benefits by moving to a nice 2BR apartment in Queens and choosing to rent out my living room at $500 a month (saving me and my other room mate $250 a month). Since eating out is expensive, I choose to cook for at least 4 out of the 5 days for lunch and dinner (most days), while I have catered lunch on Fridays at the company. I also started to learn more mixology and choose to "pre-game" with my whiskey collection rather than buy $15 bud-lights at bars/clubs. Helps to have a wholesale liquor store next to my apt and buying duty free for more quality liquors for my personal bar.
I have realized that investing in a 401k/Roth IRA is a good stable (and necessary) investment. Last job had a fully vested 100% match on 4% of contributions, current company's fallback is that it has a 6 year vestment schedule at 5% match for 5%, but not sure if I'd stay long enough to enjoy that benefit since hopping jobs in the advertising/tech industry leads to more experience, exposure, and raises.
I realized true positive returns come at increased risk. With national inflation at around 3% average, a mere savings account will not do for the growth I want to achieve.
Been able to write off the interest for student loans paid on taxes year after year (so basically paying principle in the end), but with Trump, not sure if that is possible for next tax season.
I am thinking of rolling over my old 401k and then contributing solely to a Roth IRA and max out the $5,500 limit every year with the net operating income I have.
The cash flow property goal I have is more risky as things can go south with bad renters or bad management of buildings/ law suits, but I have been reading more into this with housing laws, property investment blogs, and co-op rules and come from a background in building/ construction management (that $12/hour, $34k job).
I know my salary could definitely be higher, but I believe I positioned myself in the best way I could from around $34k a year when I was 23 years old as an assistant construction manager to 42k - 55k as a Marketing Analyst at 24 - 25 years old to $70k a year today as a BI Analyst as a 26 year old in NYC. Helps that the new company provides lots of benefits that I never experienced like the fully covered health monthlies and catered lunches (minus a good IRA option). Somehow I survived the tumult, but what else can I do? Do you guys have any suggestions on what I can do better/more or what IRAs to look into or if I'm not making some good decisions? I'd love to hear some input!
Submitted May 29, 2017 at 08:28AM by Korean_Yeezuss http://ift.tt/2rx1uIe
