E46 BMW Social Directory E46 FAQ 3-Series Discussion Forums BMW Photo Gallery BMW 3-Series Technical Information E46 Fanatics - The Ultimate BMW Resource BMW Vendors General E46 Forum The Tire Rack's Tire Wheel Forum Forced Induction Forum The Off-Topic The E46 BMW Showroom For Sale, For Trade or Wanting to Buy

Welcome to the E46Fanatics forums. E46Fanatics is the premiere website for BMW 3 series owners around the world with interactive forums, a geographical enthusiast directory, photo galleries, and technical information for BMW enthusiasts.

You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is fast, simple and absolutely free so please, join our community today!

If you have any problems with the registration process or your account login, please contact contact us.

Go Back   E46Fanatics > Everything Else > The Off-Topic > Money Matters

Money Matters
Financial, Stock, Investment etc. posts here.

Reply
 
Thread Tools Search this Thread Rate Thread Display Modes
Old 08-09-2011, 11:11 AM   #1
04titan
Registered User
 
Join Date: Dec 2003
Location: FL
Posts: 52
My Ride: 08 G37S
Am I saving too much?

In light of all the doom and gloom talk about the stock market, I reviewed my spending/savings and wondered if I need to give it a checkup.

I've been contributing to TSP since its inception in 2003 and currently contributing 15% of my monthly income ($604) goes to a Target retirement fund L2040. It has about 30k (too chickens*** to look after the drops). I have $1000 a month going into a Navy Fed savings account and $400 going into an ING account. They used to recommend 3-6 month nest egg, but now it is advised for 10-12 months of savings. Monthly income is about $4200/month after taxes and TSP allotment.

I thought I had too much in savings so I started an IRA with USAA last December with another Target retirement fund ($3000) but have not been contributing after losing confidence in the market.

I'm 30, no mortgage, car payment is $500 a month and have one credit card that I pay monthly.

Some of you guys have this down to a science, so I'm seeking advice. Any advice is appreciated.
__________________
Image hosted by Photobucket.com
04titan is offline   Reply With Quote
Old 08-09-2011, 11:13 AM   #2
evolved
Registered User
 
Join Date: Dec 2007
Location: Saint Louis, MO
Posts: 816
My Ride: 2011 BMW 135i
I wish I could save 50% of my gross pay every month

It sounds like you're doing an awesome job!
__________________

Present
2011 BMW 135i - BSM
Past
2006 Mazdaspeed 6 GT, 2000 BMW 323ci, 2003 Evolution VIII, 1995 Nissan 240sx w/ SR20DET

E46Sig
evolved is offline   Reply With Quote
Old 08-09-2011, 11:21 AM   #3
04titan
Registered User
 
Join Date: Dec 2003
Location: FL
Posts: 52
My Ride: 08 G37S
Quote:
Originally Posted by evolved View Post
I wish I could save 50% of my gross pay every month

It sounds like you're doing an awesome job!
Thanks man! I don't really have anyone to talk to about these things, all of my friends are in different financial situations and I don't really want to pay anyone for their advice. But a part of me wonders if I'm doing the right thing, or screwing something up.
__________________
Image hosted by Photobucket.com
04titan is offline   Reply With Quote
Old 08-09-2011, 11:29 AM   #4
BmwMan325
Registered User
 
Join Date: Dec 2004
Location: St.Louis
Posts: 759
My Ride: 2011 Infiniti G37s
You say you have $1,00 going into a savings account and $400 going into an ING account. Is the ING account a money market or savings account also? How much do you have in savings (emergency funds now?? I'm assuming this would be your checking account, Fed savings account and ING account).
__________________
BmwMan325 is offline   Reply With Quote
Old 08-09-2011, 11:41 AM   #5
04titan
Registered User
 
Join Date: Dec 2003
Location: FL
Posts: 52
My Ride: 08 G37S
Quote:
Originally Posted by BmwMan325 View Post
You say you have $1,00 going into a savings account and $400 going into an ING account. Is the ING account a money market or savings account also? How much do you have in savings (emergency funds now?? I'm assuming this would be your checking account, Fed savings account and ING account).
The Fed account is a money market acct and the ING is just a regular savings acct, I've had it for a few years back when interest was 5%. Now it's just 1%. Still more than Fed. Combined is about 53k. (Way more than the TSP. Stupid, I know)
__________________
Image hosted by Photobucket.com

Last edited by 04titan; 08-09-2011 at 11:43 AM.
04titan is offline   Reply With Quote
Old 08-09-2011, 03:34 PM   #6
eperalta
Registered User
 
Join Date: Nov 2009
Location: Arlington, VA
Posts: 0
My Ride: Metro for now
Are you planning to purchase a home? If so, when?


Quote:
Originally Posted by 04titan View Post
In light of all the doom and gloom talk about the stock market, I reviewed my spending/savings and wondered if I need to give it a checkup.

I've been contributing to TSP since its inception in 2003 and currently contributing 15% of my monthly income ($604) goes to a Target retirement fund L2040. It has about 30k (too chickens*** to look after the drops). I have $1000 a month going into a Navy Fed savings account and $400 going into an ING account. They used to recommend 3-6 month nest egg, but now it is advised for 10-12 months of savings. Monthly income is about $4200/month after taxes and TSP allotment.

I thought I had too much in savings so I started an IRA with USAA last December with another Target retirement fund ($3000) but have not been contributing after losing confidence in the market.

I'm 30, no mortgage, car payment is $500 a month and have one credit card that I pay monthly.

Some of you guys have this down to a science, so I'm seeking advice. Any advice is appreciated.
eperalta is offline   Reply With Quote
Old 08-09-2011, 04:10 PM   #7
04titan
Registered User
 
Join Date: Dec 2003
Location: FL
Posts: 52
My Ride: 08 G37S
Quote:
Originally Posted by eperalta View Post
Are you planning to purchase a home? If so, when?
That was the plan, but if I do, it will be in San Diego. I'm currently stationed in FL. Planning for a purchase in Spring 2012. I actually had this money market allotment set up for a home purchase and just kept it that way after I decided to wait on the buy.
__________________
Image hosted by Photobucket.com
04titan is offline   Reply With Quote
Old 08-10-2011, 01:45 PM   #8
BmwMan325
Registered User
 
Join Date: Dec 2004
Location: St.Louis
Posts: 759
My Ride: 2011 Infiniti G37s
Quote:
Originally Posted by 04titan View Post
That was the plan, but if I do, it will be in San Diego. I'm currently stationed in FL. Planning for a purchase in Spring 2012. I actually had this money market allotment set up for a home purchase and just kept it that way after I decided to wait on the buy.
If your planning on buying a house, that cash is good to have, once you put it in your TSP, your locking your money up.
__________________
BmwMan325 is offline   Reply With Quote
Old 08-10-2011, 04:33 PM   #9
04titan
Registered User
 
Join Date: Dec 2003
Location: FL
Posts: 52
My Ride: 08 G37S
Quote:
Originally Posted by BmwMan325 View Post
If your planning on buying a house, that cash is good to have, once you put it in your TSP, your locking your money up.

Yea, I was going to use some of the money for closing costs, but was going to finance the whole amount with the VA loan. Someone suggested I up my contributions to 20% a month, but it still wouldn't bring me to the max of $16,500 a year. Sucks that we don't have employer matching.

The savings account really isn't doing anything, except maybe losing value, like how some people like to put it.
__________________
Image hosted by Photobucket.com
04titan is offline   Reply With Quote
Old 08-10-2011, 04:34 PM   #10
Ynot
Registered User
 
Join Date: Jun 2005
Location: Rockies
Posts: 286
My Ride: 997
If you have to ask, then you are probably not saving enough.




















I kid, good job, not many people can say the same.
__________________
Ynot is offline   Reply With Quote
Old 08-15-2011, 08:10 PM   #11
eperalta
Registered User
 
Join Date: Nov 2009
Location: Arlington, VA
Posts: 0
My Ride: Metro for now
Try to max out on the contributions. You can pick up C,S, and I shares cheap right now.

I agree I wish employer matching more than 5%.

Quote:
Originally Posted by 04titan View Post
Yea, I was going to use some of the money for closing costs, but was going to finance the whole amount with the VA loan. Someone suggested I up my contributions to 20% a month, but it still wouldn't bring me to the max of $16,500 a year. Sucks that we don't have employer matching.

The savings account really isn't doing anything, except maybe losing value, like how some people like to put it.
eperalta is offline   Reply With Quote
Old 09-28-2011, 01:05 PM   #12
avglushk
Registered User
 
Join Date: May 2011
Location: Marlton, NJ
Posts: 316
My Ride: e92
Send a message via Skype™ to avglushk
The more u save the better. It's never too much to save.
__________________
Quote:
Originally Posted by Arsevader
Sorry to hear about your mirror. This is what happens when you don't change your mirror fluid at the recommended intervals.
For Sale: 1. OEM used headlights and corners, see link http://forum.e46fanatics.com/showthread.php?t=884565
2. 2 brand new Bosch post cat oxygen sensors
avglushk is offline   Reply With Quote
Old 09-28-2011, 04:38 PM   #13
Wraisil
Registered User
 
Join Date: Apr 2004
Location: Acworth, GA
Posts: 216
My Ride: 2010 Infiniti G37
Quote:
Originally Posted by 04titan View Post
In light of all the doom and gloom talk about the stock market, I reviewed my spending/savings and wondered if I need to give it a checkup.

I've been contributing to TSP since its inception in 2003 and currently contributing 15% of my monthly income ($604) goes to a Target retirement fund L2040. It has about 30k (too chickens*** to look after the drops). I have $1000 a month going into a Navy Fed savings account and $400 going into an ING account. They used to recommend 3-6 month nest egg, but now it is advised for 10-12 months of savings. Monthly income is about $4200/month after taxes and TSP allotment.

I thought I had too much in savings so I started an IRA with USAA last December with another Target retirement fund ($3000) but have not been contributing after losing confidence in the market.

I'm 30, no mortgage, car payment is $500 a month and have one credit card that I pay monthly.

Some of you guys have this down to a science, so I'm seeking advice. Any advice is appreciated.
Your savings total right now is right about where it should be. The following is what I would do if I was in your situation.

I would take the total savings and put that in the higher interest savings (your emergency savings account) minus the total amount you want to put down on a home. I would then leave the "down payment" money in another account and contribute to your emergency savings at half the rate you do currently. When your emergency savings reaches 1 years take home pay I would reduce contributions there to about $50-100 per month to account for pay raises.

The other $700 I would split into $350 into a ROTH IRA and the other $350 into your TSP.

When you reach your "down payment" desired amount, assuming you haven't bought yet at that point, cut that in half again and max our your ROTH and TSP contributions to the legal limits. The left over at that point I would use to increase quality of life in whatever way you feel is best for you.

imo, you are saving enough, but you are not investing enough of that savings. The above plan is what I would do to immediately start investing more, reach your emergency savings level of comfort, and save for your home at the same time.

If you do buy a house, it may be more beneficial to take the money you were putting in the down-payment account and continue putting that away, but as extra payments on the home instead.

Last edited by Wraisil; 09-28-2011 at 04:40 PM.
Wraisil is offline   Reply With Quote
Old 09-29-2011, 09:05 AM   #14
bimmerfan08
Registered User
 
Join Date: Feb 2009
Location: Hampton Roads, VA
Posts: 4,890
My Ride: Phoenix Yellow M3
Good advice, Im young now so Im reading everyone elses opinions
__________________
"Economics cannot answer such normative or prescriptive questions about how much of our market incomes, if any, should be transferred to poor families. This is a political question that can only be answered at the ballot box, or in some countries, at the point of a gun."
bimmerfan08 is offline   Reply With Quote
Old 09-29-2011, 11:24 AM   #15
Wraisil
Registered User
 
Join Date: Apr 2004
Location: Acworth, GA
Posts: 216
My Ride: 2010 Infiniti G37
Quote:
Originally Posted by bimmerfan08 View Post
Good advice, Im young now so Im reading everyone elses opinions
Young is the best time to learn personal financial management and start investing. If you start putting away $300/month at 21 and retire at 65 you'll be worth over a million dollars at retirement (assuming an average 7% growth which is a bit conservative). If you start at 31 instead you need to put away $600/month to get to that million mark. Starting at 21 costs $132,000 in contributions to become a millionaire over 44 years. Starting at 31 costs $244,800 over 34 years to reach the same mark at the same age. Wait until you are 41 and you'll need $1,350/month for a total contribution of $388,800 out of pocket.

Learn while you are young how to live within your means, minimize or avoid debt that costs you interest (in most cases), and save for emergencies as well as retirement and you can live a comfortable, enjoyable life both now and when you retire. Wait too long, get in too much debt, or fail to plan your financial future, and the results are less likely to be so optimistic.
Wraisil is offline   Reply With Quote
Old 09-29-2011, 11:35 AM   #16
BimmerFerret
Registered User
 
Join Date: Jan 2010
Location: Cardinal Country, KY
Posts: 1,882
My Ride: 08 G37S, 07 Sky RL
Send a message via Skype™ to BimmerFerret
Wise words people ^^
__________________
2008 Infiniti G37S - Big Brakes, Limited Slip, etc.
2007 Sky Redline
1998 Honda Civic EX Sedan


Quote:
Originally Posted by Roxlo View Post
Class of '03, yet you're still an idiot. Whats your point? Do you really think that you're somehow a god because you joined a site before someone else? ****ing nerd.
BimmerFerret is offline   Reply With Quote
Old 09-29-2011, 11:47 AM   #17
Erikx559
Registered User
 
Join Date: Nov 2010
Location: Coalinga California
Posts: 159
My Ride: 2002 325i
Quote:
Originally Posted by Wraisil View Post
Young is the best time to learn personal financial management and start investing. If you start putting away $300/month at 21 and retire at 65 you'll be worth over a million dollars at retirement (assuming an average 7% growth which is a bit conservative). If you start at 31 instead you need to put away $600/month to get to that million mark. Starting at 21 costs $132,000 in contributions to become a millionaire over 44 years. Starting at 31 costs $244,800 over 34 years to reach the same mark at the same age. Wait until you are 41 and you'll need $1,350/month for a total contribution of $388,800 out of pocket.

Learn while you are young how to live within your means, minimize or avoid debt that costs you interest (in most cases), and save for emergencies as well as retirement and you can live a comfortable, enjoyable life both now and when you retire. Wait too long, get in too much debt, or fail to plan your financial future, and the results are less likely to be so optimistic.
I'm learning a lot from your responses. I'm sure it's a dumb question but, what kind of an account do I go ask for at my local bank so it grows that 7%. I'm 19 so I want get started as soon as possible. Sorry don't mean to thread jack. :/

Last edited by Erikx559; 09-29-2011 at 11:51 AM.
Erikx559 is offline   Reply With Quote
Old 09-29-2011, 11:58 AM   #18
Wraisil
Registered User
 
Join Date: Apr 2004
Location: Acworth, GA
Posts: 216
My Ride: 2010 Infiniti G37
Quote:
Originally Posted by Erikx559 View Post
I'm learning a lot from your responses. I'm sure it's a dumb question but, what kind of an account do I go ask for at my local bank so it grows that 7%. I'm 19 so I want get started as soon as possible. Sorry don't mean to thread jack. :/
7% is what you should expect as an average over the lifetime of an investment account. Whether you choose an IRA (roth or traditional), 401k, or brokerage account investments is up to you. Some banks offer some or all of these services but they are not like opening a savings account and just watching it grow.

If you have access to an employer matching 401k or similar plan, that is generally the best place to start. If you do not, then an IRA through a brokerage is generally your best bet for most people, which brokerage is up to you to decide upon but I favor TDAmeritrade (helps that I have my account through thinkorswim first so I have a lower commission schedule than TDAmeritrade's original or new customers), though Fidelity and Schwab are also highly recommended.

The disadvantage of using "investment" accounts like 401k's or IRA's are the restrictions on withdrawing money. Some people are not comfortable with those and instead just invest in a regular brokerage account, whether professionally or personally managed. If you choose that route I would recommend professionally managed until you learn enough to manage it yourself. When using a professionally managed account, however, you must be careful about who you choose, what fees etc you will pay and all the fine details in the set-up.
Wraisil is offline   Reply With Quote
Old 09-29-2011, 01:10 PM   #19
Erikx559
Registered User
 
Join Date: Nov 2010
Location: Coalinga California
Posts: 159
My Ride: 2002 325i
Quote:
Originally Posted by Wraisil View Post
7% is what you should expect as an average over the lifetime of an investment account. Whether you choose an IRA (roth or traditional), 401k, or brokerage account investments is up to you. Some banks offer some or all of these services but they are not like opening a savings account and just watching it grow.

If you have access to an employer matching 401k or similar plan, that is generally the best place to start. If you do not, then an IRA through a brokerage is generally your best bet for most people, which brokerage is up to you to decide upon but I favor TDAmeritrade (helps that I have my account through thinkorswim first so I have a lower commission schedule than TDAmeritrade's original or new customers), though Fidelity and Schwab are also highly recommended.

The disadvantage of using "investment" accounts like 401k's or IRA's are the restrictions on withdrawing money. Some people are not comfortable with those and instead just invest in a regular brokerage account, whether professionally or personally managed. If you choose that route I would recommend professionally managed until you learn enough to manage it yourself. When using a professionally managed account, however, you must be careful about who you choose, what fees etc you will pay and all the fine details in the set-up.
Thanks I'll look into that. They didn't teach much financial stuff in my school so I'm trying to learn.
Erikx559 is offline   Reply With Quote
Old 09-29-2011, 09:22 PM   #20
Amoeba
Registered User
 
Amoeba's Avatar
 
Join Date: Sep 2003
Location: Fremont, CA
Posts: 1,147
My Ride: his: zhp hers: 325ci
Send a message via Yahoo to Amoeba
You can never save too much. I do my best to max out all tax-beneficial retirement accounts every year.

And max out your roth before you do IRA.
__________________
Amoeba is online now   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Censor is ON





All times are GMT -5. The time now is 09:40 PM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
(c) 1999 - 2011 performanceIX Inc - privacy policy - terms of use