401k or Roth?

[Jassi]

Originally posted by: Orsorum
Maxing your Roth out? I don't think so. You're going to need more than a Roth IRA to live on, but if you start young, it shouldn't be that big of a sacrifice to contribute to four areas each month:

- 401(k) (if you have employer matching)
- Roth IRA
- Regular brokerage account
- Savings

If your friend were to spend $2,000/month towards his retirement, he could donate a decent amount to all four each month.

I am planning to enter the job market soon and I'm just curious if 2k a month is even possible on an entry level position? That adds up to saving $24k a year, thats an insane amount. I know that it will really pay off in the future but is it worth the stress the frugality will cause?

 

[hellokeith]

Not enough info. Need to find out if/how the 401k is invested.

Accountants and Financial Advisers will disagree about pre-tax vs post-tax, so best to do some personal research on that as well.

 

[thomsbrain]

Originally posted by: Jassi

Originally posted by: Orsorum
Maxing your Roth out? I don't think so. You're going to need more than a Roth IRA to live on, but if you start young, it shouldn't be that big of a sacrifice to contribute to four areas each month:

- 401(k) (if you have employer matching)
- Roth IRA
- Regular brokerage account
- Savings

If your friend were to spend $2,000/month towards his retirement, he could donate a decent amount to all four each month.

I am planning to enter the job market soon and I'm just curious if 2k a month is even possible on an entry level position? That adds up to saving $24k a year, thats an insane amount. I know that it will really pay off in the future but is it worth the stress the frugality will cause?

no, that is not possible in an entry level position. you'll probably make barely more than that after taxes, and you have to live. however, you can definetely save more than the 4K/year you need to max a Roth. if you live frugally, you don't need much more than 15K/year to get by, even in CA.

 

[Orsorum]

Originally posted by: Jassi

Originally posted by: Orsorum
Maxing your Roth out? I don't think so. You're going to need more than a Roth IRA to live on, but if you start young, it shouldn't be that big of a sacrifice to contribute to four areas each month:

- 401(k) (if you have employer matching)
- Roth IRA
- Regular brokerage account
- Savings

If your friend were to spend $2,000/month towards his retirement, he could donate a decent amount to all four each month.

I am planning to enter the job market soon and I'm just curious if 2k a month is even possible on an entry level position? That adds up to saving $24k a year, thats an insane amount. I know that it will really pay off in the future but is it worth the stress the frugality will cause?

Depends on the field you're going into. I know some entry-level chemical engineers making in the mid-60s who could do it if they REALLY wanted to. However, it would be a stretch. After withholding, bills, insurance, for me, I'm looking at $1,500/month in disposable income.

 

[clamum]

Originally posted by: thomsbrain
no, that is not possible in an entry level position. you'll probably make barely more than that after taxes, and you have to live. however, you can definetely save more than the 4K/year you need to max a Roth. if you live frugally, you don't need much more than 15K/year to get by, even in CA.

You don't need much more than $15,000 a year to get by in CA? Man even up here in the Upper Peninsula of MI that isn't that much to live on (assuming the 15k is net).

 

[bennylong]

Originally posted by: Jassi

Originally posted by: Orsorum
Maxing your Roth out? I don't think so. You're going to need more than a Roth IRA to live on, but if you start young, it shouldn't be that big of a sacrifice to contribute to four areas each month:

- 401(k) (if you have employer matching)
- Roth IRA
- Regular brokerage account
- Savings

If your friend were to spend $2,000/month towards his retirement, he could donate a decent amount to all four each month.

I am planning to enter the job market soon and I'm just curious if 2k a month is even possible on an entry level position? That adds up to saving $24k a year, thats an insane amount. I know that it will really pay off in the future but is it worth the stress the frugality will cause?

Where do you live and what field are you in? I'm hearing a lot of entry level folks are making $70k a year, so if you live in a cheap area, and make $70k a year, you should have no problem saving $2k a month. I live in Los Angeles and I'm saving $2k a month without a problem and my rent is $1,600 a month.

 

[fbrdphreak]

Originally posted by: bennylong

Originally posted by: Jassi

Originally posted by: Orsorum
Maxing your Roth out? I don't think so. You're going to need more than a Roth IRA to live on, but if you start young, it shouldn't be that big of a sacrifice to contribute to four areas each month:

- 401(k) (if you have employer matching)
- Roth IRA
- Regular brokerage account
- Savings

If your friend were to spend $2,000/month towards his retirement, he could donate a decent amount to all four each month.

I am planning to enter the job market soon and I'm just curious if 2k a month is even possible on an entry level position? That adds up to saving $24k a year, thats an insane amount. I know that it will really pay off in the future but is it worth the stress the frugality will cause?

Where do you live and what field are you in? I'm hearing a lot of entry level folks are making $70k a year, so if you live in a cheap area, and make $70k a year, you should have no problem saving $2k a month. I live in Los Angeles and I'm saving $2k a month without a problem and my rent is $1,600 a month.

Not that many entry level folk make $70K/year, LOL

I'm looking at making ~$50K out of college in a non-entry level job and before paying loans I won't be able to put $2K in the bank, LOL

 

[bennylong]

Originally posted by: fbrdphreak

Originally posted by: bennylong

Originally posted by: Jassi

Originally posted by: Orsorum
Maxing your Roth out? I don't think so. You're going to need more than a Roth IRA to live on, but if you start young, it shouldn't be that big of a sacrifice to contribute to four areas each month:

- 401(k) (if you have employer matching)
- Roth IRA
- Regular brokerage account
- Savings

If your friend were to spend $2,000/month towards his retirement, he could donate a decent amount to all four each month.

I am planning to enter the job market soon and I'm just curious if 2k a month is even possible on an entry level position? That adds up to saving $24k a year, thats an insane amount. I know that it will really pay off in the future but is it worth the stress the frugality will cause?

Where do you live and what field are you in? I'm hearing a lot of entry level folks are making $70k a year, so if you live in a cheap area, and make $70k a year, you should have no problem saving $2k a month. I live in Los Angeles and I'm saving $2k a month without a problem and my rent is $1,600 a month.

Not that many entry level folk make $70K/year, LOL

I'm looking at making ~$50K out of college in a non-entry level job and before paying loans I won't be able to put $2K in the bank, LOL

That's what I thought! But every ATOT posters are posting "I'm starting an entry level job out of college and I'm going to make $75k..."

 

[fbrdphreak]

Originally posted by: bennylong

Originally posted by: fbrdphreak

Originally posted by: bennylong

Originally posted by: Jassi

Originally posted by: Orsorum
Maxing your Roth out? I don't think so. You're going to need more than a Roth IRA to live on, but if you start young, it shouldn't be that big of a sacrifice to contribute to four areas each month:

- 401(k) (if you have employer matching)
- Roth IRA
- Regular brokerage account
- Savings

If your friend were to spend $2,000/month towards his retirement, he could donate a decent amount to all four each month.

I am planning to enter the job market soon and I'm just curious if 2k a month is even possible on an entry level position? That adds up to saving $24k a year, thats an insane amount. I know that it will really pay off in the future but is it worth the stress the frugality will cause?

Where do you live and what field are you in? I'm hearing a lot of entry level folks are making $70k a year, so if you live in a cheap area, and make $70k a year, you should have no problem saving $2k a month. I live in Los Angeles and I'm saving $2k a month without a problem and my rent is $1,600 a month.

Not that many entry level folk make $70K/year, LOL

I'm looking at making ~$50K out of college in a non-entry level job and before paying loans I won't be able to put $2K in the bank, LOL

That's what I thought! But every ATOT posters are posting "I'm starting an entry level job out of college and I'm going to make $75k..."

I've got two engineering degrees (mind you I'm not doing engineering, LOL) and I'm looking at a pretty decent job here. I can't see an undergrad degree being worth $70K to most any company. Hell GlaxoSmithKline doesn't pay its people more than $50-60K starting and they don't hire fresh college grads (but they do have incredible benefits, perks, and bonuses).

 

[Azurik]

Originally posted by: fbrdphreak

Originally posted by: bennylong

Originally posted by: fbrdphreak

Originally posted by: bennylong

Originally posted by: Jassi

Originally posted by: Orsorum
Maxing your Roth out? I don't think so. You're going to need more than a Roth IRA to live on, but if you start young, it shouldn't be that big of a sacrifice to contribute to four areas each month:

- 401(k) (if you have employer matching)
- Roth IRA
- Regular brokerage account
- Savings

If your friend were to spend $2,000/month towards his retirement, he could donate a decent amount to all four each month.

I am planning to enter the job market soon and I'm just curious if 2k a month is even possible on an entry level position? That adds up to saving $24k a year, thats an insane amount. I know that it will really pay off in the future but is it worth the stress the frugality will cause?

Where do you live and what field are you in? I'm hearing a lot of entry level folks are making $70k a year, so if you live in a cheap area, and make $70k a year, you should have no problem saving $2k a month. I live in Los Angeles and I'm saving $2k a month without a problem and my rent is $1,600 a month.

Not that many entry level folk make $70K/year, LOL

I'm looking at making ~$50K out of college in a non-entry level job and before paying loans I won't be able to put $2K in the bank, LOL

That's what I thought! But every ATOT posters are posting "I'm starting an entry level job out of college and I'm going to make $75k..."

I've got two engineering degrees (mind you I'm not doing engineering, LOL) and I'm looking at a pretty decent job here. I can't see an undergrad degree being worth $70K to most any company. Hell GlaxoSmithKline doesn't pay its people more than $50-60K starting and they don't hire fresh college grads (but they do have incredible benefits, perks, and bonuses).

Also, keep in mind the national AVERAGE salary for a working single person is around $38,000 - 40,000 a year. If you have a job making more than that, you're already "above average". ATOT is a skewed community too - a lot of people here have computer/engineering degrees, giving them a higher starting salary.

Or you could just be a pimp like me and make much more than that trafficking people into the U.S. 😉

 

[Reckoner]

I make 24k a year even with a degree, I still manage to max out the Roth.

 

[Fingolfin269]

Originally posted by: PaulNEPats
I make 24k a year even with a degree, I still manage to max out the Roth.

Please post your budget. I need to understand where all my money is going. 😛 Granted, I'm single and decided to buy a house so that I would be throwing my money at myself as opposed to an apartment complex. I also throw money into my 401k up to the matching point. I guess that's around $4k/yr. after matching.