Dave Ramsey, debt, credit cards, retirement, etc

[SuperJETT]

401ks? Roth's? Not planning to retire until you are 85? =P

I'd have to look at the projection for that scenario (they ran 3 for us) but it was normal retirement age. At retirement age the earnings were well over the projected living expenses so the accounts keep growing.

We have 401k, Roth 401k, IRA, Roth IRAS right now. Roth and regular 401k is from work since '98 (Roth 401k just since 2 years ago I think), regular IRA is my wife's rollover from 12 years ago, Roth IRAs are current and ongoing.

At work my contribution goes into the Roth 401k with the matching into regular 401k (has to, it's pre-tax). Between the regular and Roth accounts we'll be well set to pull money from whatever works out best tax-wise when needed.

 

[samsmith87]

Its funny reading the first couple pages of this thread when it was started in 06. People were balling, then they lost 50% of their equity.

Onward to the next cycle

 

[SuperJETT]

Its funny reading the first couple pages of this thread when it was started in 06. People were balling, then they lost 50% of their equity.

Onward to the next cycle

People were balling, then they were BAWLing.

I got more aggressive when it was down and it's paid off in spades. I've also been putting money into real estate funds because they are still down but 10 years from now should really pay off.

An 8 year old thread, wow.

 

[Mark44]

We also invested in real estate when the market crashed, we took advantage of a bad situation and it has paid off for us as well. We are still investing however soon to take a long needed break in a few months and move to our new estate. It has been a lot of work for the past few years but really paid off and will set us up for life.

 

[Scorn800]

The smart people never stopped balling!
I also invested in real estate, everyone with a brain and cash did.
Hard work always pays off.
and dave ramsey is still a dork

 

[Scraggly]

i also bought my first house while the market was down and basically paid half price for it.

 

[samsmith87]

i also bought my first house while the market was down and basically paid half price for it.

Half price? Or the price it is actually worth becuase it was no longer inflated by the real estate bubble.

 

[SuperJETT]

and dave ramsey is still a dork

I agree to some extent, but his deal is what got us on the right path since our parents never taught us anything about money.

 

[Scraggly]

Half price? Or the price it is actually worth becuase it was no longer inflated by the real estate bubble.

half price like i said. it appraised almost double what i paid before we finished the mortgage. worth more now!
motivated sellers, couldnt afford it so i snatched it up. i did look for a year and a half to find what i wanted, location i wanted anda good deal. patience pays off most of the time.

 

[Mark44]

The smart people never stopped balling!
I also invested in real estate, everyone with a brain and cash did.
Hard work always pays off.
and dave ramsey is still a dork

The key word right here is having cash.

 

[EfX]

Long before Ramsey, there was a book and a PBS showing of "The Wealthy Barber". That book has been the best gift I ever got, and it seems to be a bit timeless. That's what got me started long ago.

 

[makejetskiinggreatagain]

Awesome thread. No one on the lottery ticket retirement plan?????? lol. Call me paranoid but I don't trust 401k's as a safe long term option for us guys under 30. My step dad lost 100K in his when the economy tanked. I had a 401K and had an emergency issue with my house so I asked to pull out some cash and pay whatever penalty fine associated. Fidelity wouldnt let me pull a dime out unless a tornado hit my house or unless I quit my job. I even offered to take 75% hit on the amount I wanted to pull out. I coincidentally quit not too long after, and pulled out. It scares me knowing that I cant touch my own damn money even if tell tale signs say to get out before you take a catastrophic loss. With the world economy the way it is at this moment and the way many think its headed, I'd rather put my cash into more tangible investments. A bird in the hand is worth 2 in the bush. 10% of my paycheck goes straight towards real estate right now. Wont make me an overnight millionaire but its fairly safe and I'm a sissy girl when it comes to risks like that. I'm starting to dabble in the stock market a tad but not with savings money so I don't care if I lose it. Hoping marijuana related stocks keep going up. Hurry up guys. legalize it in your states! I want to make a killing!

 

[SuperJETT]

Awesome thread. No one on the lottery ticket retirement plan?????? lol. Call me paranoid but I don't trust 401k's as a safe long term option for us guys under 30. My step dad lost 100K in his when the economy tanked. I had a 401K and had an emergency issue with my house so I asked to pull out some cash and pay whatever penalty fine associated. Fidelity wouldnt let me pull a dime out unless a tornado hit my house or unless I quit my job. I even offered to take 75% hit on the amount I wanted to pull out. I coincidentally quit not too long after, and pulled out. It scares me knowing that I cant touch my own damn money even if tell tale signs say to get out before you take a catastrophic loss. With the world economy the way it is at this moment and the way many think its headed, I'd rather put my cash into more tangible investments. A bird in the hand is worth 2 in the bush. 10% of my paycheck goes straight towards real estate right now. Wont make me an overnight millionaire but its fairly safe and I'm a sissy girl when it comes to risks like that. I'm starting to dabble in the stock market a tad but not with savings money so I don't care if I lose it. Hoping marijuana related stocks keep going up. Hurry up guys. legalize it in your states! I want to make a killing!

I don't even know where to start here...401k plans are for RETIREMENT, not emergencies. They didn't let you pull money out to save yourself from messing up your retirement, and that's how the laws are written.

Did your Dad's account *value* go down 100K or did he move stuff around at the wrong time and had an actual loss of 100k? There is a big difference. My account's value went down over $50k but I didn't move anything around and actually put more in when things were low so now it's come back to well over $100k what it was at the bottom. If he got scared and moved things around when it was low, then he lost money because of that but if it went down and came back up, then he didn't lose anything.

I've been in my 401k since I was 29, if you're not taking advantage of the tax-free growth and match, then you're making a mistake IMO.

 

[makejetskiinggreatagain]

I don't even know where to start here...401k plans are for RETIREMENT, not emergencies. They didn't let you pull money out to save yourself from messing up your retirement, and that's how the laws are written.

Did your Dad's account *value* go down 100K or did he move stuff around at the wrong time and had an actual loss of 100k? There is a big difference. My account's value went down over $50k but I didn't move anything around and actually put more in when things were low so now it's come back to well over $100k what it was at the bottom. If he got scared and moved things around when it was low, then he lost money because of that but if it went down and came back up, then he didn't lose anything.

I've been in my 401k since I was 29, if you're not taking advantage of the tax-free growth and match, then you're making a mistake IMO.

I agree they arent meant for emergencies, but when **** hits the fan if that is your only access to cash then what else are you gonna do? at the time i didnt have savings. i do now. My main point though was that if everyone on earth foresaw that there was going to be an economic collapse you would have zero access to your own money. you could move your funds around however you please within that 401k but it may not make any difference. thats BS IMO. Dont think thats gonna happen with us printing more money, borrowing more money from our "frenemies", giving more money to lazy welfare retards, aiding more countries that hate us, etc etc?????? I personally do. If i knew the economy would be fairly stable for the next 20-30 years you bet i would take advantage of tax free growth. but i dont.

let me throw this scenario out there. you put in to your 401k when taxes are.... lets just throw out a round number of 10%. So congrats, you didnt have to pay that 10% and have enjoyed growth on that tax free money. but fast forward to post obamanation when he or any future president realizes they must increase income tax to 60 percent just to satisfy our debtors. coincidentally its time for you to retire, and pull your money out, paying in at an astronomical rate. did you still save money? rumor has it that france will hit their wealthier citizens with a 75% income tax this year. the good ol US of A may follow suit in a couple years with the growing hatred of its wealthy citizens from the lazy voters that refuse to work.

Like i said, I'm just paranoid. everything may be fine for hundereds of years to come. however, I dont think choosing to buy and rent real estate is less of a valuable investment than a 401k. Assuming equity to be similar to a savings account that i can cash out of later on in life, an average rental property here brings in 1000k+ every month. my employer wouldnt be matching even close to that.

Im not trying to offend anyone who has a 401k. Im just saying its not for me, probably because of illogical fears.

 

[IS0LD0UT]

A roth Ira would be a good hedge agaist your future tax fear. Also you can take out a principal investment at any point. Real estate can be good but much more work than stocks/funds. Also I am remembering a recent crash that hasn't fully recovered. Invest in what you understand.

 

[SuperJETT]

there was going to be an economic collapse you would have zero access to your own money.

And in that situation, how does having 'money' help you?

let me throw this scenario out there. you put in to your 401k when taxes are.... lets just throw out a round number of 10%. So congrats, you didnt have to pay that 10% and have enjoyed growth on that tax free money. but fast forward to post obamanation when he or any future president realizes they must increase income tax to 60 percent just to satisfy our debtors. coincidentally its time for you to retire, and pull your money out, paying in at an astronomical rate. did you still save money?

See my quote below, all my current contributions are from after-tax money, so at this point will be tax-free when withdrawn. I also have quite a bit in the regular 401k so I have options. If you earn 10% for 8 years you have over doubled your money and at 15 years you have quadrupled your money so even at 60% tax rate it's a deal.

We have 401k, Roth 401k, IRA, Roth IRAS right now. Roth and regular 401k is from work since '98 (Roth 401k just since 2 years ago I think), regular IRA is my wife's rollover from 12 years ago, Roth IRAs are current and ongoing.

At work my contribution goes into the Roth 401k with the matching into regular 401k (has to, it's pre-tax). Between the regular and Roth accounts we'll be well set to pull money from whatever works out best tax-wise when needed.

Like i said, I'm just paranoid. everything may be fine for hundereds of years to come. however, I dont think choosing to buy and rent real estate is less of a valuable investment than a 401k. Assuming equity to be similar to a savings account that i can cash out of later on in life, an average rental property here brings in 1000k+ every month. my employer wouldnt be matching even close to that.

Real estate is cool, but hopefully there isn't another real estate market problem when you're trying to cash out and there are a lot of headaches along the way due to areas coming/going in status.

 

[Ducky]

I started contributing to my 401k a little over a year ago and have a pretty decent amount in it already. It helps when your best friend is a good financial adviser at Morgan Stanley and he helps me make the right account choices.

Previously I was bad with saving money, always putting money I intended on saving towards impulse buys. Watching my 401k grow over this past year taught me that you are not just going to wake up with a large savings account one day, and that it takes a little at a time. Now I am more focused on investing my money and saving to buy a house rather than jet ski parts....which will come after I get the house!

 

[Quinc]

I agree they arent meant for emergencies, but when **** hits the fan if that is your only access to cash then what else are you gonna do? at the time i didnt have savings. i do now. My main point though was that if everyone on earth foresaw that there was going to be an economic collapse you would have zero access to your own money. you could move your funds around however you please within that 401k but it may not make any difference. thats BS IMO. Dont think thats gonna happen with us printing more money, borrowing more money from our "frenemies", giving more money to lazy welfare retards, aiding more countries that hate us, etc etc?????? I personally do. If i knew the economy would be fairly stable for the next 20-30 years you bet i would take advantage of tax free growth. but i dont.

let me throw this scenario out there. you put in to your 401k when taxes are.... lets just throw out a round number of 10%. So congrats, you didnt have to pay that 10% and have enjoyed growth on that tax free money. but fast forward to post obamanation when he or any future president realizes they must increase income tax to 60 percent just to satisfy our debtors. coincidentally its time for you to retire, and pull your money out, paying in at an astronomical rate. did you still save money? rumor has it that france will hit their wealthier citizens with a 75% income tax this year. the good ol US of A may follow suit in a couple years with the growing hatred of its wealthy citizens from the lazy voters that refuse to work.

Like i said, I'm just paranoid. everything may be fine for hundereds of years to come. however, I dont think choosing to buy and rent real estate is less of a valuable investment than a 401k. Assuming equity to be similar to a savings account that i can cash out of later on in life, an average rental property here brings in 1000k+ every month. my employer wouldnt be matching even close to that.

Im not trying to offend anyone who has a 401k. Im just saying its not for me, probably because of illogical fears.

Don't invest in any real estate next to an empty lot. My friend had the same plan and then the city put in Section 8 housing next to his investment property.

 

[SuperJETT]

Don't invest in any real estate next to an empty lot. My friend had the same plan and then the city put in Section 8 housing next to his investment property.

One of my good friends at work bought a small house with 5 acres so he'd have some room then expanded the house to triple the original size. Great, then 2 huge subdivisions went in across the street and now his road is crazy busy. You never know what will happen 5 years from now in your neighborhood.

 

[Mark44]

And in that situation, how does having 'money' help you?

See my quote below, all my current contributions are from after-tax money, so at this point will be tax-free when withdrawn. I also have quite a bit in the regular 401k so I have options. If you earn 10% for 8 years you have over doubled your money and at 15 years you have quadrupled your money so even at 60% tax rate it's a deal.




Real estate is cool, but hopefully there isn't another real estate market problem when you're trying to cash out and there are a lot of headaches along the way due to areas coming/going in status.

I will not care if there is a real estate down turn when I go to cash out. We will have gotten so much OPM (other peoples money) by then who cares. We plan on giving all our property away when we die anyway can't take it with us.