I put 15% of my pre taxed check back in a 401K and my company matches 6%. I was reading through this thread and it made me think maybe I need to not put so much back in the 401K but instead put some of that in an IRA of some other sort.

 

Are you saying that your company matches 100% of your first 6%?

 

What type of return are you getting in your 401k? Do you have investment options for the fund?

Thats funny:laugh:

 

What? You wouldn't pass up a job that can substantially increase your earnings because you don't want to offend DR by having a car loan?

 

BTW, I don't for one second believe DR passes up the car loan in my scenario.

Are you saying that your company matches 100% of your first 6%?

 

What type of return are you getting in your 401k? Do you have investment options for the fund?

 

They will match up to 6% pretaxed if you invest 6%. I went ahead and put 15% in before my wife could go spend it:lol:

You have options on how it is invested. You can put it into different kinds of funds and you can be more reserved, aggressive or in between. They just started a new thing at the start of the year that you can pick your investments yourself. Right now I don't have that kind of time on my hand but I am interested in investing some on my own pretty soon. I'm going to start another thread on that one..investtools.

I have not read the book, nor will I waste a penny on buying it. This stuff is basic common sense personal finance. I have not seen one thing on here that I haven't heard before. Cut up the credit cards, don't buy what you can't afford, pay down your debt. Wow what insight! This guy has reinvented the wheel.

They will match up to 6% pretaxed if you invest 6%. I went ahead and put 15% in before my wife could go spend it:lol:

You have options on how it is invested. You can put it into different kinds of funds and you can be more reserved, aggressive or in between. They just started a new thing at the start of the year that you can pick your investments yourself. Right now I don't have that kind of time on my hand but I am interested in investing some on my own pretty soon. I'm going to start another thread on that one..investtools.

 

I'm going to assume that your plan is like most companies' 401k plans in that , in your case, for every $1,000 earned, the company is going to put in $60 (6% of $1,000) and you're going to put in $150(15% of $1,000). SO right away, you've got a return of 40% ($60 free money from company / $150 invested). You cannot discount that and your IRA isn't going to give you that - smart move by you.

 

I'm curious as to why you would want to put in less (I'll assume you would do at least 6%) and put it into an IRA. If , as you say, you have investment options as far as the types of investment vehicles, the only reason I could see putting it into a separate IRA is if your 401k fund options simply aren't doing very well. Is that the case?

One more question for the DR followers: If I've paid off all of my debts (credit card, cars) and only have my mortgage, what does DR advise you to do with available investment funds?

One more question for the DR followers: If I've paid off all of my debts (credit card, cars) and only have my mortgage, what does DR advise you to do with available investment funds?

 

Now you can buy the stuff you couldn't pay cash for before. You know when the fridge went out last year, now you can get one. Furnace has been out for two years. Now instead of huddling around the fireplace you can buy one.

I'm going to assume that your plan is like most companies' 401k plans in that , in your case, for every $1,000 earned, the company is going to put in $60 (6% of $1,000) and you're going to put in $150(15% of $1,000). SO right away, you've got a return of 40% ($60 free money from company / $150 invested). You cannot discount that and your IRA isn't going to give you that - smart move by you.

 

I'm curious as to why you would want to put in less (I'll assume you would do at least 6%) and put it into an IRA. If , as you say, you have investment options as far as the types of investment vehicles, the only reason I could see putting it into a separate IRA is if your 401k fund options simply aren't doing very well. Is that the case?

 

Most 401K plans now have as many options as other investment portfolios.

The pretax savings is another reason everyone should be in a 401K

Now you can buy the stuff you couldn't pay cash for before. You know when the fridge went out last year, now you can get one. Furnace has been out for two years. Now instead of huddling around the fireplace you can buy one.

 

Lets assume that the slush fund took care of that and I have no emergencies I have to fix. I've got extra income and my mortgage. What now?

Lets assume that the slush fund took care of that and I have no emergencies I have to fix. I've got extra income and my mortgage. What now?

 

At your age

1. Max goes in 401K

2. Creat an investment portfolio that is farely aggressive. But one where you can handle the daily ups and downs of the market.

3. Real Estate. You also need time and knowledge for this to work for you.

4. Go on vacation. Because if you've been adhering to DRs formulas, you haven't had any fun in a while.

Hello? Hello? Are all of the DR folks out paying their bills?

Hello? Hello? Are all of the DR folks out paying their bills?

 

I agree with the post above yours.

I agree with the post above yours.

 

My question is not what you, me and Malachi think. I'm trying to get an accurate read on DR's philosophy.

 

If you've paid your bills , have your slush fund in hand, and now have your mortgage left, what does he advise you to do with available funds?

Hello? Hello? Are all of the DR folks out paying their bills?

 

I think the DR folks are tired of being needlessly ridiculed by those that feel they already have all the knowledge in the world, so DR couldn't possibly have any good ideas. I think DR offers a great, Christian-based way to help motivate those that cannot motivate themselves. Many people are so deep in debt and financial problems that they feel hopeless and give up. DR offers some hope and if that saves one family from financial ruin or allows one child to have a decent Christmas, than I say DR's book is a good thing.

My question is not what you, me and Malachi think. I'm trying to get an accurate read on DR's philosophy.

 

If you've paid your bills , have your slush fund in hand, and now have your mortgage left, what does he advise you to do with available funds?

 

mutual funds