This podcast discusses the dilemma of balancing retirement contributions and saving for a house, analyzing the option of financing a Tesla Model Y, benefits of paying cash for reliable transportation, and navigating vesting periods and employer match in retirement plans.
Exercise discipline in saving and investing based on guaranteed income and use bonuses to fund additional lifestyle expenses.
Prioritize liquidity over paying down mortgage early for flexibility during transitions.
Deep dives
Budgeting with Inconsistent Income
Having a large bonus structure like 40% of income can make budgeting for big expenses challenging due to income fluctuations. Exercise discipline in saving and investing based on guaranteed income and use bonuses to fund additional lifestyle expenses.
Financial Strategy for Home Purchase
Prioritize liquidity over paying down mortgage early when considering moving within 5-7 years. Cash reserves help cover unexpected home costs and moving expenses, providing flexibility during transitions.
Employer Match with Vesting Schedule
Maximize employer match despite a three-year cliff vesting schedule to access free money and contribute to retirement savings. Count personal contributions towards savings rate and plan for potential vesting implications if leaving before the vesting period.
"How long is it acceptable to drop my retirement contributions to save up for a home? Is 2 years too long while only investing 5% to receive match? 30yrs old, no debt, 120k in my Roth 401k"
We'll walk you through that question and more in today's Q&A episode!
Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.
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Listen to the best highlights from the podcasts you love and dive into the full episode