Credit Card Center Advertiser Disclosure

Reply
New Contributor
Posts: 57
Registered: ‎07-01-2016
0

Re: The Savings Playground for June, 2017 -- summer break!


iced wrote:

To extend on tacpoly's comments, I would also urge you to plan out your endgame goals in retirement before rolling everything over to a Roth. Roths are often talked up as a whiz-bang-awesome way to go because you withdraw tax-free, and while that sounds really appealing, it doesn't always make the most sense.

 

It's not a simple black-and-white question to answer, but the easiest way to start thinking about it is to understand if you plan on having more income withdrawn in retirement than you currently make or less. The goal is to pay taxes on the lesser of two incomes - either now or later. If you think you'll take home less in retirement, think twice about rolling it all over to Roth (and more importantly, contributing to a Roth 401k when you can take the tax shelter on your higher income today). If you think you'll take home more in retirement than you make now, then roll away and start maxing out that Roth 401k ASAP.


Ah, I didn't think of it that way - thanks for pointing this out! I was focused on trying not to pay taxes on withdrawals since I thought those taxes would be more than the taxes I'm paying now. Income wise, I am definitely making less now than I will (hopefully) make in later years Smiley LOL I'm also spending less, as most of my expenses are just taking care of myself. In later years and into retirement I may have family, property, medical, travel, etc. that would increase my expenses and likely require more income withdrawn from accounts. I will start on the Roth 401k asap! Smiley Happy 


Disc It 10300 | Quicksilver 4000 | Double Cash 6600 | Freedom 4500
TU 08: 3.2017 - 802 | 7.16 - 735 | 7.15 - 768 | 7.14 - 710
EX 08: 3.2017 - 779
EQ 08: 3.2017 - 784
Util 3% | Oldest TL 3 yrs | Gardening since 7.16
New Contributor
Posts: 57
Registered: ‎07-01-2016
0

Re: The Savings Playground for June, 2017 -- summer break!


tacpoly wrote:
Generally, if a person is young (twenties) I advise contributing to a Roth IRA and Roth 401K. Do not take money out and allow it to grow grow grow until retirement. Then you'll be taking maximum advantage of totally tax-free growth.

Around late 30s to 40's, a person is usually entering peak earning levels, I would switch to a regular 401K to take advantage of the immediate tax break.

This is very general and YMMV, of course.

Applies to me, thanks! I do hope I don't have to take money out but grad school is expensive Smiley LOL But I will do my best to put everything into the Roths and keep them there! I never thought about switching to regular accounts at peak earning levels - great idea, I will remember it for the future. 


Disc It 10300 | Quicksilver 4000 | Double Cash 6600 | Freedom 4500
TU 08: 3.2017 - 802 | 7.16 - 735 | 7.15 - 768 | 7.14 - 710
EX 08: 3.2017 - 779
EQ 08: 3.2017 - 784
Util 3% | Oldest TL 3 yrs | Gardening since 7.16
Regular Contributor
Posts: 122
Registered: ‎07-23-2014
0

Re: The Savings Playground for June, 2017 -- summer break!

Awesome thread! Very creative all around. Love to read & see where I fall into the grand scheme of these types of things.

Happy to say I am somehow on the Merry-Go-Round stage! Smiley Happy

 

As far as savings go...

- I have 1 savings account with roughly 6-7 months worth of emergency fund in it. Each paycheck I put a portion of it away into the savings account ($2100 total for the year). Usually put in half of my tax return as well.

- I have a Roth 401K that I started when I got my first well paying job. This currently has right around the same amount as my savings account does. I put in 6% of each paycheck, and my employer matches $.25 per dollar on the first 6%.

- I have another account where I've saved away $500 or so from "round-ups" on my spending.

 

I have been considered starting a Roth IRA as well, but haven't just yet.

Overall goal is to be completely debt free within the next 2.5 years, and if all goes as planned at the start of next year (Jan 2018) I may finally have some networth for the first time ever.

 

 

  • What credit union or bank do you lilke for a savings account?  Interest rate?  Ease of transfer?  Fees?
    • Right now I am using PNC, as they are who I bank with. The interest rate is pitiful, and within the next year will definitely be considering opening another savings account with better interest rate. Have been considering Ally, and have heard good things from a few friends that use them.
  • What things have you cut from your spending habits to increase your Playground savings account?  How much has it helped you save over time?
    • I haven't cut any spending. I spend the same amount I do now, that I have for the past few years. If I wanted to I could cut costs, but I live comfortably and within my means.
  • Have you ever considered tapping into savings for non-emergency related spending, and how did it affect your stress and goals?
    • No, this isn't something I really have ever had to do consider doing before. A few times, I have charged larger purchases to a credit card but would PIF within 2-3 months (depending on salary).
  • What's the biggest mistake you've made in overspending and how do you work to avoid it now?
    • In college, I would spend a grand or so on books and other supplies. Only worked a minimum wage, so it took some time to pay that off. I think that's pretty standard for most students.
  • If you got into credit trouble before and can analyze it now, how much savings would have saved you the FICO destruction from your past dealings with The Bully?
    • Have been lucky enough to not have to deal with anything such as that.

 

Scores & AAoA (7/2016): AAoA: 30 months | Barclaycard - 757 | Capital One - 752 | Discover - 764
My Wallet: PNC CashBuilder $5000 (AU) | Sears Card $4250 | Macy's $1000 | JCP $1900 | Sears MC $2500 | Victoria's Secret $1000 | Sallie Mae $5000 | QuickSilver $3000 | Discover IT Chrome for Students $2000 | Chase Freedom $7000 | Target $3000
Last App: March 7, 2016
Frequent Contributor
Posts: 368
Registered: ‎06-04-2015
0

Re: The Savings Playground for June, 2017 -- summer break!

Some more bills trimmed, a $225 checking account bonus came through, $250 of this week's paycheck, and I've managed to sock $1400 away in the last few weeks Smiley Happy

Ch 7 Discharge May 2015: EQ 588/TU 552/EX 570
July 2017: EQ 681/TU 668/EX 671

Discover IT $3800/Target $1300/NFCU CLOC $2000/NFCU Cash Rewards $20,000/PenFed Power Cash Rewards $18,000/Total Utilization 13%
Regular Contributor
Posts: 197
Registered: ‎05-06-2008
0

Re: The Savings Playground for June, 2017 -- summer break!

Just opened a Vanguard brokerage account today.  My plan is to divert my emergency fund here once I accummulate 6 months worth of expenses.  My goal is to have this achieved by the end of the year.  So for now, I'm transferring a small amount over to the new Vanguard account monthly in preparation for the large amount I plan to deposit at the end of the year.  I'm very excited!

 

Nothing else new on the regular savings front - it's automated twice a month to my savings account.  I also have some misc funds going to my other investment account as well.  

 

I need to find a part time job for extra money.  I'm fortunate to have an above average salary but I have too much free time after work!  I could be making money!!  

Established Contributor
Posts: 502
Registered: ‎03-09-2011
0

Re: The Savings Playground for June, 2017 -- summer break!

Hmm...I guess you could say I'm on the swingset; I have more than $50 in the account, but not quite enough to be playing on the slide (maybe in 2 - 3 months).  I fairly recently increased my contributions to my 401k, my secondary retirement account, my savings account, and my savings bond account (a savings bond is automatically generated when the account reaches $25).  All contributions are automatically withdrawn from my paycheck; that way, I don't miss it.

 

Before I started the job that I have now, I didn't think I'd ever have any savings or anything for when/if I retired; mainly because I never stayed at one job long enough to save anything; due to the fact (at the time) that I was a caregiver for my husband at the time (who has since passed away).  Before I moved to Florida, I was out of work for about two years, and when I got this job, I waited for about a year to start my 401k account with my employer.  I felt so good knowing that I'll be saving for my retirement, because I knew no one else would be taking care of me.  Fast forward to 2014....that's when I first got medical coverage (got a life insurance policy a couple of years before) , and signed up for long term disability; I know it was a big risk not having it, but I had a lot of things that had to be done. 

 

In November 2015, my fiance's father passed away; we went back to our home state (Michigan) to attend the funeral.  Shortly after returning home, I began having health issues.  Three trips to the emergency room in less than month (I had a boatload of issues); after the second trip to the emergency room, my doctor scheduled me for surgery a few weeks later.  About a week or so after he scheduled the surgery, I made my third trip to the emergency room.  My surgery was scheduled for 01/27/16; my doctor had to meet with a medical board to allow him to perform the surgery the next day, or keep me in the hospital until my original surgery date (I have no idea why they don't perform that kind of surgery on a weekend).  To make a long story short, if I didn't have medical insurance, I would have been on the hook for a medical bill for nearly $300,000!  Smiley Surprised

 

After that experience, I was even more determined to have an emergency savings account; the chance of me having to experience that medical issue again is almost non-existent...but that doesn't mean that I couldn't have a different medical issue that could possibly be even more costly. 

 

Sorry that I kind of got off-topic...  Smiley Embarassed

 

  • What credit union or bank do you lilke for a savings account? Penfed Interest rate? Not sure; will have to look that up.  Ease of transfer? Pretty easy  Fees?  None.
  • What things have you cut from your spending habits to increase your Playground savings account? I've cut back on supplying my hobbies (scrapbooking and crocheting); I think I have enough to last me for a while).  How much has it helped you save over time? On average, about $15 - $20 per month.
  • Have you ever considered tapping into savings for non-emergency related spending, and how did it affect your stress and goals? Haven't had to do that.
  • What's the biggest mistake you've made in overspending and how do you work to avoid it now? Realizing (after I bought it) that it was more of a want than a need.
  • If you got into credit trouble before and can analyze it now, how much savings would have saved you the FICO destruction from your past dealings with The Bully? A few thousand.
Enjoying your freedom? Thank a servicemember and their family!

In the garden since 26 Jun 14...
Valued Contributor
Posts: 1,180
Registered: ‎06-05-2015
0

Re: The Savings Playground for June, 2017 -- summer break!

Currently at Swingset: Added $34 into my USAA Savings last week (after switching from Chase) then $1000 more on Monday.  I have direct deposit going into my USAA Savings every check (twice a month). I will be having $45k available in August that will be used to pay off CC debt. The rest will go to USAA Savings. My goal is to reach $5k by December 2017 then $15k-$20k by December 2018. I will be opening a college account for my 8 year old in August 2017 stating with $700 with Discovery. I’m currently paying about $1,400 in CCs per month, but now that most of them will be paid off next month, that $1,400 will be going into:

 

  1. $350/month on the remainder CCs (total of 2) minimum payment is less but wan to pay them faster to be CC debt free
  2. $500 extra/month on mortgage ( so I can hopefully pay house off in 18 to 20 yrs)
  3. $500 to son’s college fund
  4. $50 towards USAA Savings (on top of the direct deposits I already have going there twice a month from work)

I continue to day trade and been successful at gaining between $15-$20/day averaging $200-$250 per month. I then get that and goes into USAA Savings as wel.

 

    • What credit union or bank do you like for a savings account? Discover  Interest rate? 1.01% APY  Ease of transfer?  Unknown Fees? Unknown
  • What things have you cut from your spending habits to increase your Playground savings account?  Buying lunch – Cook at home and bring lunch lol. How much has it helped you save over time? About $100/month

 

    • Have you ever considered tapping into savings for non-emergency related spending, and how did it affect your stress and goals? Been lucky not to
    • What's the biggest mistake you've made in overspending and how do you work to avoid it now? Impulsive shopping. Now I think before I spend “Do I really need it”?
  • If you got into credit trouble before and can analyze it now, how much savings would have saved you the FICO destruction from your past dealings with The Bully? If I had not made mistakes in the past, I would have several thousand dollars saved.
Regular Contributor
Posts: 197
Registered: ‎05-06-2008
0

Re: The Savings Playground for June, 2017 -- summer break!

Happy Friday!

 

Finally - one month of living expenses has been saved!!  Only five more to go!!

 

After doing some back of a napkin calculations, I've decided that it would be in my best interest to 1) increase the amount of what I consider "living expenses" and 2) save 6 months of expenses versus 3 months.  Reasons: 1) I want to include in my living expenses amount,  enough money to accommodate the things I enjoy - dinners out and travel to my home state. 2). I want to be able to look for another job without a lot of pressure - 3 months is plenty of time but 6 months will allow me to make sure it's the right fit.  Or even to take a lower paying job that will be less stressful.  Or to move back to my home state! Options, I want options!

 

 

 

Hope everyone has a great weekend!

 

 

Valued Contributor
Posts: 1,180
Registered: ‎06-05-2015

Re: The Savings Playground for June, 2017 -- summer break!

Great plan!! 6 months is better.

 

 

Regular Contributor
Posts: 203
Registered: ‎05-06-2017
0

Re: The Savings Playground for June, 2017 -- summer break!

So I got my bonus check and I'll use it to pay off some bad stuff open a PenFed secured card and still have enough left over to pay bills and put a weeks expenses into savings. So all in all a decent week I believe. I'll get to where I need to be by December at the latest. More bad stuff I pay off that is more that I don't have to worry about honestly and the savings can then snowball. 


Gardening since 05/13/2017

Starting Scores 03/17/2017 EQ 491 TU 495 EX465 Currently 07/15/2017 EQ 545 TU 543 EX 541

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.