After about six weeks of intense job insecurity due to my company financially imploding, I accepted an offer to join my current client full-time. My previous salary was 68K and now I'm making 105K. This is my first foray into the six-figure club and I'm extremely grateful but somewhat intimidated by how to manage my money going forward.
Background: I'm 30 years old, 800+ credit score, zero debt, and a 5-month emergency fund saved up. I own my car and rent an apartment. My current retirement assets equal about $25,000 total (spread across three accounts--I need to get around to rolling that money over) but I ceased contributions a couple months ago because I thought I might lose my job.
I have a lot of questions but I've narrowed them down to three main ones:
- Retirement: My new employer provides a 401K account but no match. My plan is to open an IRA account and max out the contributions each year, then put the rest (equaling 15%) in the 401K. Or is there an alternative I should consider?
- Home ownership: I've never been someone who cares much about owning a home. I'm kind of a committophobe (that's a different post for a different sub lol) so I don't like the idea of being tied down, and I like being able to call a landlord to fix something for me instead of having to pay for it out of my own pocket. Should I reconsider now that I could easily afford a home where I live? My parents always said that paying rent for too long is "throwing money away" but I know there's disagreement about that these days.
- Extra income: Even after calculating my net paychecks, subtracting expenses, savings, and withholding a 15% retirement contribution, I still have extra income that's not accounted for. I'm open to suggestions for what to do with these funds.
Thanks in advance for your help.
Submitted May 05, 2020 at 10:08PM by mysearchformeaning89 https://ift.tt/3cbJMOm
