Hi Money Minder,
Hey there, I’m Dave, a 32-year-old dude making 90k (around 107.5k usd) a year. I’ve got 25k in savings, a 5% matching 401k, around 12k in my old 401k, 55k in student loan debt, and 10k left on my car loan. Luckily, I don’t have any credit card debt.
I’ve been thinking about chatting with an investment/portfolio manager. I know I’m a bit late to the financial planning game, but I feel like I’m getting the hang of things now. What steps do you suggest I take to better plan for my future? I’m not looking to retire super early, but maybe a few years ahead of time.
Thanks in advance for your help!
Farewell,
Dave
Response from THE MONEY MINDER:
Hello There,
It sounds like you’ve already taken some important steps in the right direction by being conscious of your financial situation and seeking advice on how to strategize for your future. First and foremost, it’s great that you don’t have any credit card debt, as that can often be a significant obstacle to financial stability.
Given your current financial snapshot, here are some practical steps you may want to consider:
- Emergency Fund: Ensure your emergency fund is robust enough to cover at least 3-6 months of expenses. This will provide you with a safety net in case of unexpected financial setbacks.
- Debt Repayment: Prioritize paying off your student loan debt and car loan. Start by tackling the loan with the highest interest rate first while making minimum payments on the other. Once one loan is fully paid, direct those payments towards the next one. This will help you reduce debt faster and save on interest payments.
- Investment Strategies: Given your stable income and savings, you may want to consider exploring investment opportunities that align with your risk tolerance and goals. Continuing to make contributions to your 401k, especially with the employer match, is a good start. You could also look into opening a Roth IRA or exploring other investment options that could help you grow your wealth over time.
- Financial Advisor: While speaking to an investment/portfolio manager is a good idea, consider finding a reputable financial advisor who can provide holistic financial planning guidance and help you navigate towards your financial goals. They can help you create a personalized financial plan that takes into account your current situation and future aspirations.
Remember, achieving financial stability is a journey, and it’s never too late to start planning for your future. Take one step at a time, stay consistent with your financial goals, and be patient with the process. All the best from THE MONEY MINDER in your financial journey!
