How Closely Do You Monitor Your 401k / Retirement

[_19disnA]

How often you look at your investments means less then what you are actually doing to manage them. If your company provides choices of where to put your 401K money, then it is good to have some basic knowledge of investing, how the markets are doing and how to diversify your account. Markets in the future will likely go up as well as down for reasons no one can predict ahead of time. Financial advisors have no magical insight into how future markets will perform and mostly make projections based on historical data. A lot of them talk investing mumbo/jumbo and when you pin them down to what the market will do THIS year you are as likely to get 'they will go up by X%' from one as 'they will go down by Y%' from another. What happened in the past may/may not be what happens going forward. They mostly tell you things will go up in the future as an incentive to invest with them. Financial advisors make their money off the fees you pay them regardless of which way the markets are going.

Everyone should save for the future, regardless of your income. Living within your means is where it all starts.

 

[disneychrista]

How often you look at your investments means less then what you are actually doing to manage them.

Which I also asked but very few actually answered. Most seem to just “let it ride” it seems.

 

[Disneypro1]

Almost daily. lol. The markets are doing great and economy. So it’s definitely the best of times.

 

[tvguy]

Maybe in a world where they haven't moved out of the parents home yet until they've bought and paid off a car and saved $25,000 for a house? Significantly different than paying rent, utilities, legal fees, debt, and raising 2 teenagers and saving that much up.


Answer the same as mine. Have to ask, do you think she could do that if she had 2 teenage daughters, one of which started college, and had rent and all the other living expenses of 2 households?

She was out of the house for 2 years paying rent while living 200 miles from home and then living in England. She has been working and stashing money for over 10 years. Enough so she could have paid cash for the car and still had the money needed for the house payment but she didn't have the credit history for a mortgage. She had to get and keep the auto loan for 8 months to get the credit history. That is the downside to living within your means and paying your credit card in full every month.
No way for me to know if she could support 2 teenagers etc, because she hasn't done that. But we are all free to make choices, and some of those choices have financial implications. I really think you are making it sound far more difficult to save that it is. It just has to be a priority. We are always amused when the Poshmark ad comes on and the woman at the end says she made enough selling her unwanted used clothing to buy a new car! I can't imagine spending that much on clothing.

 

[Alli1988]

She was out of the house for 2 years paying rent while living 200 miles from home and then living in England. She has been working and stashing money for over 10 years. Enough so she could have paid cash for the car and still had the money needed for the house payment but she didn't have the credit history for a mortgage. She had to get and keep the auto loan for 8 months to get the credit history. That is the downside to living within your means and paying your credit card in full every month.
No way for me to know if she could support 2 teenagers etc, because she hasn't done that. But we are all free to make choices, and some of those choices have financial implications. I really think you are making it sound far more difficult to save that it is. It just has to be a priority. We are always amused when the Poshmark ad comes on and the woman at the end says she made enough selling her unwanted used clothing to buy a new car! I can't imagine spending that much on clothing.

FYI the Poshmark ad is misleading. People on there (I was one) are flipping Goodwill clothes or re-selling bulk order clothes from overseas wholesalers. They are her unwanted used cloths that she bought used, paid $2 for and sold for $40. lol It's very profitable. I work a full time job and profited $1500 in three months, focusing on it 5 hours a week at most. My cousin does the goodwill version and makes her mortgage and truck payment monthly. Sounds like some of those on here could benefit from such a hustle.

 

[DLgal]

I just want to know how $25k is enough of a downpayment on ANY home in California. Apparently we are doing it wrong. We would need a minimum of $200,000 as a down payment on the house like the one we are currently renting, if we wanted to buy a similar home. It's an 1800 sq ft 3 bedroom condo.

Where in CA can one buy a $125,000 home?

 

[NYCgrrl]

FYI the Poshmark ad is misleading. People on there (I was one) are flipping Goodwill clothes or re-selling bulk order clothes from overseas wholesalers. They are her unwanted used cloths that she bought used, paid $2 for and sold for $40. lol It's very profitable. I work a full time job and profited $1500 in three months, focusing on it 5 hours a week at most. My cousin does the goodwill version and makes her mortgage and truck payment monthly. Sounds like some of those on here could benefit from such a hustle.

I do fine at local consignment shops, and various spots places like Poshmark. Never got rooked by Goodwill belonging items so far but who knows what tomorrow will bring? Made a nice chunk of change selling well loved but no longer needed clothing before I moved.

 

[DLgal]

1980 and 1981 like I posted. I don't know, my daughter bought a car ($16,000) in 2018, paid it off in 8 months to established credit, and saved $25,000 down payment for the house she bought a few months ago. $12,000 in 1980 would be just over $37,000, which is about what she makes, so it is absolutely possible today, if you work at it.

You do know that federal minimum wage is only an annual full time salary of about $15000 in 2020, right? That would be $5000 in 1980 money. Would your wife have been able to invest any money if her gross income had been $5000/year?

And your daughter was living at home, which is why it was so easy for her to pay things off early. That is not a reality for most people.

 

[disneychrista]

I just want to know how $25k is enough of a downpayment on ANY home in California. Apparently we are doing it wrong. We would need a minimum of $200,000 as a down payment on the house like the one we are currently renting, if we wanted to buy a similar home. It's an 1800 sq ft 3 bedroom condo.

Where in CA can one buy a $125,000 home?

FHA loans only need 2.5% down payments. I think I put down less than 10k on a 190k home and was asked if I wanted to put less.

 

[tvguy]

I just want to know how $25k is enough of a downpayment on ANY home in California. Apparently we are doing it wrong. We would need a minimum of $200,000 as a down payment on the house like the one we are currently renting, if we wanted to buy a similar home. It's an 1800 sq ft 3 bedroom condo.

Where in CA can one buy a $125,000 home?

That's 10% down on a $249,900 duplex. Here is the public record info from Zillow.

3 beds 1 bath 919 sqft
SOLD: $249,900
Sold on 07/29/19
Zestimate®: $256,530

 

[DLgal]

That's 10% down on a $249,900 duplex. Here is the public record info from Zillow.

3 beds 1 bath 919 sqft
SOLD: $249,900
Sold on 07/29/19
Zestimate®: $256,530

3 bedrooms in 900 sq feet? Holy cow!

 

[Cannot_Wait_4Disney]

FHA loans only need 2.5% down payments. I think I put down less than 10k on a 190k home and was asked if I wanted to put less.

Considering a condemned 1600 sf house on 1/5 acre sold for 1.2 million in the bay area and that is well above the FHA cap, FHA loans probably aren't going to be widespread in some areas of the state.

That's 10% down on a $249,900 duplex. Here is the public record info from Zillow.

3 beds 1 bath 919 sqft
SOLD: $249,900
Sold on 07/29/19
Zestimate®: $256,530

Do you know how tiny 919 sf is? My bonus room is just 100 sf under that. Even in a place like Sacramento, the only thing I could find resembling such currently available is not in a good part of town. In fact, it was a house that had been changed into a duplex.

 

[tvguy]

You do know that federal minimum wage is only an annual full time salary of about $15000 in 2020, right? That would be $5000 in 1980 money. Would your wife have been able to invest any money if her gross income had been $5000/year?

And your daughter was living at home, which is why it was so easy for her to pay things off early. That is not a reality for most people.

That's about half of what she was making, so probably she would have been able to save a little under half as much (41.6% as much actually). I'm in California, minimum wage is $12 an hour, but not sure what THAT has to do with anything. Hey, my mom grew up in the depression. My dad died when I was 9 and she had to support both of us. I grew up being taught, and observing my mom always find a way to save a little money. I'm 62 now, just how I've lived my light. DD observed me, her mom and my mom. You're right, it was easier for her to save money living at home. She saw and opportunity to cut costs and she took it. THAT is all I am saying, you need to do, look for money saving opportunities, and take advantage of them. A little here, a little there, over time adds up.

 

[tvguy]

Considering a condemned 1600 sf house on 1/5 acre sold for 1.2 million in the bay area and that is well above the FHA cap, FHA loans probably aren't going to be widespread in some areas of the state.



Do you know how tiny 919 sf is? My bonus room is just 100 sf under that. Where exactly was that Duplex and in what shape was it?

It is in Sacramento. 919 sf is plenty of space for one person. Completely remodeled, new carpet, paint and landscaping. 3 bedroom, 1 bath, one car attached garage. Built in 1973..
She was looking at condos, and could have saved almost $100,000 going the condo route. https://www.zillow.com/homedetails/1019-Dornajo-Way-212-Sacramento-CA-95825/64541084_zpid/?

 

[Cannot_Wait_4Disney]

3 bedrooms in 900 sq feet? Holy cow!

250k might buy you a homeless guy's box in a buy your spot car park in San Francisco.

 

[DLgal]

250k might buy you a homeless guy's box in a buy your spot car park in San Francisco.

That's about what it would buy here too. A 900 sq foot 1 br townhouse here is around $600k.

 

[Disneypro1]

I just want to know how $25k is enough of a downpayment on ANY home in California. Apparently we are doing it wrong. We would need a minimum of $200,000 as a down payment on the house like the one we are currently renting, if we wanted to buy a similar home. It's an 1800 sq ft 3 bedroom condo.

Where in CA can one buy a $125,000 home?

Just a tick south of the 105.

 

[Disneypro1]

I love using the VA loan. 0 down and no pmi. Also the seller has to cover all closing costs. VA loans are great if one is a veteran.

 

[DLgal]

I love using the VA loan. 0 down and no pmi. Also the seller has to cover all closing costs. VA loans are great if one is a veteran.

Yeah, unless the homes are so darn expensive that they exceed the loan limits. Although, I heard they are eliminating those, but you would still need to qualify for the mortgage with your income. How much income does one need for a $1M home these days? Asking for a friend...

Not sure we could swing a $7000 monthly payment.

 

[DLgal]

Just a tick south of the 105.

No. Mobile homes don't count.