"Hi Money Minder,"
I’m reaching out for some advice on my savings situation. I’m 32, just got married, and planning to have a kid in a couple of years. We live in a low-cost area and spend around 3.5k per month. My salary is $150k.
Here’s where I stand with my savings:
- Roth IRA: $25k
- 401k: $68k (employer matches 5%)
- 403b: $11k (employer matches 5%)
- 457b: not contributing
- Brokerage account: $18k (automatic buys $850/month)
- Crypto: $45k
- Cash: $18k
Other stuff:
- Home equity: around $160k
- Mortgage: $1100/month
- One car paid off, one with $500/month payment
What do you think I should do differently to retire in 18-23 years? Any tips on how to maximize my savings and investments? Thanks in advance for your help!
Cheers,
Savvy Saver
Response from THE MONEY MINDER:
Hello There,
Congratulations on taking the initiative to assess your current savings and plan for your future retirement! Based on the details you provided, it seems like you are on the right track, but there are a few adjustments you can consider to improve your financial outlook.
Firstly, considering your age and income level, it’s great to see that you are already maxing out your Roth IRA and taking advantage of your employer’s matching contributions for your 401k and 403b. However, since there is no match for your 457b, you may want to consider contributing to that account as well to diversify your retirement savings.
In terms of your investment strategy, your automatic buys in your brokerage account show consistency, but you may want to review your asset allocation and consider diversifying beyond just VOO and VTI. Given your age and time horizon, you may want to explore more aggressive investment options to maximize growth potential.
When it comes to your crypto holdings, it’s essential to monitor this asset class carefully as it can be volatile. Considering the significant amount you have invested in crypto, you may want to reassess your risk tolerance and possibly consider rebalancing your portfolio to reduce exposure.
Additionally, while you have a solid equity position in your home and manageable mortgage payments, it’s worth evaluating whether it makes sense to accelerate your mortgage payoff or invest the funds elsewhere for higher returns.
Overall, with careful planning and strategic adjustments, you are well-positioned to achieve your retirement goals in 18-23 years. Keep monitoring your progress, stay disciplined in your savings and investment strategy, and adapt as needed along the way. All the best from THE MONEY MINDER!
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