Was helping my dad with some paperwork and somehow the conversation turned into retirement. I always assumed he was doing okay because he owns his house and has worked full time my entire life.

Turns out he has less than $30k in retirement accounts and is basically planning on Social Security plus working as long as his body lets him.

It kinda messed with me. My wife and I are finally at a point where we're comfortable, have some money saved and can actually think beyond our own bills. Now I'm wondering if part of our financial planning needs to include helping my parents eventually.

He hasn't asked me for anything and probably never would, which almost makes it harder.

For those with parents who didn't save much for retirement, do you actually budget for helping them later or do you wait until they genuinely need it?

I already keep about 6 months of expenses in an emergency fund, but I don't really want to keep putting additional money into savings. Between taxes on the interest and inflation, I'd rather put that money into a brokerage account and let it grow.

For example, my truck is 3 years old, and I have no idea when I'll replace it. Ideally, I'd pay cash unless I could get financing under 3%.

My thought is to invest the money in my brokerage and, when I eventually need the vehicle, wait for a good market year to sell and pay cash rather than selling during a downturn.

Is this how anyone else handles future large purchases, or do you keep separate cash/sinking funds for them?

I’m asking about elementary through high school for any school that charges tuition.

Edit: I’m curious about schools that require volunteering for receiving assistance with tuition. I know some schools have general volunteer requirements for everyone.

Moving into my first apartment soon. Got the obvious stuff covered like sheets, a broom, cleaning supplies, all that.

What I’m actually looking for is the unconventional stuff. The random thing you bought on a whim or almost skipped, and now it’s somehow non-negotiable.

Kind of like motion activated night lights for the stairs or bathroom. Small, cheap, not something you’d think to put on a checklist, but it genuinely changes how your place functions day to day.

What’s yours? What’s the thing nobody tells you to buy until you’re already living without it?

So I’m gonna ask opinions. 52yo with a 53 stay at home mom and a handicap son, we will likely have for life. I have $465k in a traditional IRA, she has $40k in a beneficiary IRA and $10k in a Roth.

We’re taking +\- $13k out of the beneficiary and sending 32% to fed and 10% to state (Oregon Sucks). Putting $7500/yr in a spousal IRA. Immediately converting to Roth. Gotta do something with the 10 yr rule 🤷🏻‍♂️

I’ve got about $700k in a 401k (22% Roth) and max out traditional plus add the catchup at Roth. Company gives 4%.

I also buy our company stock at a 10% discount for the second 6mo of the year as my 401 is maxed by then. (Totals $14,300). I usually just sell immediately and move to VOO. Got about $50k in value here in a regular brokerage. Got another $15k in traditional brokerage I just play with. $30k HSA.

Savings about 80k. Checking about $55k (I know it’s too much, but I like the comfort factor).

I certainly don’t count on it, but likely to inherit about $750k in next 10 years.

No debt, outside mortgage. 2 cars less than 2 years old, paid for. Mortgage is $180k at 3%. It goes till I’m 68 if I don’t pay extra.

Income +\- $340k wages. $50k Other (dividends, stock vesting, interest).

I want to walk at 59.5. Essentially puts me at 7 years.

Love thoughts on the following:

1. Should I be backdooring at this tax bracket?
   
2. How would you suggest I bridge from 59.5 to social security.
   
3. Should I go ahead and pay off mortgage? (Seems appropriate to lower cash needs in retirement and the need to take income). Also seems like I could lower income as I don’t need it to max Medicare subsidies.
   
4. Longevity is not high in my family, I question waiting to 70 for claiming ss. My dad passed at 77. Opinions?
   
5. Any other thoughts?
   

Just trying to get my head wrapped around it. I just worked my whole life, and winding down is a real change in mentality and financial philosophy.

What is the best investing option for 10 year old? High yield savings or regular savings or something else?

So, yes, I want my daughter to go to college. But it’s her choice, and I’m not going to hate on her if college isn’t for her.

But….. What concerns me is her retirement. As a GenXer whose retirement plan is to currently work until I’m dead, this weighs heavily on me.

I told my daughter a while back that she is welcome to live at home after college, and we discussed a plan to invest most of her income for 5 years in an index fund. Using the S&P 500 growth rate of 10% over the last 30 years, here’s what I worked out:

• Monthly investment: $2000
• Return: 10%
• Timeframe: 5 years
• End Balance after 5 years: $153k
• Retirement: Retiring at 67 leaves about 37 years of growth.
• End balance at 67 (with no other contributions): $5.2 million

However, if my daughter started this plan right out of high school (instead of going to college), she’d have close to $9.2 million! (Note that I’m figuring 6 years for college as the degree plan she’s considering would require a master’s degree.)

I want my daughter to go to college because I think it would make her life easier, but I have a hard time believing her retirement would be better. To make up for the delay in starting the 5-year plan, she would have to invest an additional $1000/month to get to $9.3 million at 67.

I get that I’ve made some assumptions (like getting a $20/hour job right out of high school), but if she’s willing to sacrifice so much income for 5 years when she’s young, then I have a hard time believing college is worth the time and expense. There’s a lot of value in following your passion, but dang, is it worth the college loans and $1k/month to hit that $9.3 million mark? And honestly, she could probably retire very comfortably at 62 if she didn’t go to college.

So help me make sense of this.

• Is college worth it? What would you tell your own kids?
• Does gambling on an index fund raise the risk too high?
• Would any young adult be willing to invest 90% of their income for 5 years just to have a sweet retirement when they turn 67?
• Am I focusing too much on retirement because my own retirement prospects are so lousy?
• What am I not taking into consideration?
• What am I missing?

I want my daughter to be happy. And since we’ll be leaving her very little when we pass, I worry about her future.

Thanks!

How did you feel about that?

What was your decision making process?

If you currently own a home with a low fixed rate right now, are you staying in your current home because of the rate, or because you like it? Maybe both?

And I often hear "I'm not going anywhere until rates come down." If this applies to you, what number would it take for you to even consider a move?

And if you hit that number, what would you actually do. Upgrade, downsize, relocate, move closer to family, or finally get out of a house you've outgrown?

Just trying to wrap my head around this market. thx

We currently make 150k combined, which is a good income, but thats with both of us working, and its practically split down the middle (75k and 75k).

We are both 27, no children yet.

We also live in a very expensive state - so affording a home here with just one of us working is just not possible.

We've lived in our current state (colorado) our entire lives. I understand my wife is having doubts.

But when I was applying for jobs out of state about a year ago, she told me she was very open to it, especially to states where housing is a lot more affordable.

My new job will pay 130k a year. A massive jump. I also don't want to be mean to my wife, but she is a teacher and she can get a job in most states relatively easily - its transferable. My job is not like that. Its much more specialized.

The job also has more benefits, has opportunity for advancement (to make even more money), etc.

My wife has also said in the past she wants to stay at home while the kids are really young. Makes sense but if we stayed put we would not afford a home and she could stay at home, it would be impossible. We would be living paycheck to paycheck at best.

This job is an opportunity that does not come by every day. My wife is having more and more doubts each day.

She is really scared of moving away now, and is scared of making new friends, leaving her extended family, etc.

I mean I get it, but this new job we could afford a home on one income, she could stay at home, etc. What she wants. She seems to want it all, stay where we are at, stay at home, we own a place, etc.

Our current support system where we live isn't really that good either. My parents live 5 hours away, all of our siblings don't live here anymore. The only parent is my wifes mom, and she works a ton, so i'm not sure we have a super great support system for kids either way to be honest.

I can't imagine saying no to this job. I would resent my wife for years, i'm not going to lie. The state we are moving too is begging for teachers, so she would find a job almost immediately, and might even get a pay increase, too.

Should we move?

EDIT: Its in illionois. I can live anywhre in the state, its a remote job. I just have to live in illionois.

Does anyone have any experience moving for a job? Is it worth it?

Alright- my two children (1 &3) are set to inherit about 100k each by the time they turn 18. This is not under our control and for the sake of time no need to comment about how we should do everything we can to have that come in a different form (529).

My parents made me have a job since I turned 15 and so by 18 I was already very good at saving money.

That being said- there is no way at age 18 or even 21 I would have made sound choices with 100k. Or even 50k. I also had no idea how to invest. RIP to all the money I had sitting in a checking account in my early 20s.

ANYWAY- My husband and I are a little apprehensive about requiring our children to have jobs year round because this seriously affected both our studies. So any tips on how we go about teaching them financial literacy? One thought I threw out was agreeing to fund that 100k each year so it can continue to grow well until they reach the age of 30. Or possibly including them in on our investments early high school so they can observe how money can grow?

But obviously there are flaws in those ideas. Would love to hear your thoughts. Aiming to do better than our parents.

Minimum wage is technically a livable wage where I live but only if you have roommates, have no debt, and aren’t saving a dime.

Household includes 2 AC units.

Car is just tires/oil changes and tax. (I have to buy 2 tires every 6 months).

Fitness includes Apple Watch and treadmill

Entertainment includes subscriptions, video games, the movies, 3 parties, anime convention ticket.

Beauty is makeup and jewelry

Cutting on essentials (living with two roommates, shopping at Aldi, getting a cheap car with no car payment) is how I can afford to spend a bit on non-essentials. And no I will not eat my cat. This shows my take home pay. I also make a lot (hoping for around $30K gross) at the end of the year with one big check. That’s 90% of my savings for the year.

No daycare needed.

Rough estimate living a minimalistic life. Almost paycheck to paycheck but not quite and still able to buy/do a few non-essential things each month.

my partner (we are 26) is potentially going into a 5 yr educational program so reducing income pretty decently.

I have 2 more years in my lower ish paying job as they are paying my masters before I can get a new job. the only win I can think of is some of the schools are in low/mid COL areas so we could live mostly off my modest income but how would did other people knew they were financially ready for kids?

I’m 36M living with my 27F girlfriend who is anxious about settling down and having a family. We’re currently dinks with an above average HHI, the majority of which comes from me.

We live way below our means and have an above average NW across retirement and non retirement accounts. Zero debt, and our rent is locked in at a below market rate for the area.

I always wanted a family, but the current state of the world is so uncertain that I just don’t think it makes sense. I have friends who make far less than we do who are settling down, buying homes, and talking about having kids. It feels insane to me and borderline financially reckless. One of my closest friends just bought a house with his wife for $800k and their combined HHI is $180k on top of mountains of college debt and they STILL talk about how they’re trying for a baby.

Am I stupid? Am I missing something they’re not?

Simply put, I’m starting to think the idea of making money, investing, and retiring early sounds a hell of a lot better than having kids.

Struggle for +20 years to give my kids a mediocre childhood, or, retire at 45 and spend the balance of my days truly living life to the fullest?

I have been tracking our budget super closely and I am not sure if we’re big spenders or not. We’re a family of 4, one toddler and one baby. DI, Both work full time. Our total monthly expenses including mortgage ($2700) and daycare ($3000) is about $11,500 per month. We’re spending about $1400 on food. We’re a low income family for this area making $230,000 per year, which really ends up being $148,000 in disposable income. Basically this means we have no savings other than retirement accounts, and cannot afford anything like a vacation unless grandparents pay for our flights to visit them. We do get take out sometimes which I included in the food budget, and I do buy second hand clothes for kids, and the occasional toy. Do we need to really cut out all take out ($400 per month mostly like grabbing a sandwich or in n out), and stop buying anything extra? I wanted to pay for gymnastics for my toddler and I just don’t see how we can, but I feel badly because he really wants to do it. How are you all affording this economy?

Editing to add, I didn’t put in my entire spreadsheet where I’m tracking everything because a lot is fixed costs like utilities, life insurance, phone plans, one car payment, 529 plans for the kids, home repair, gas, cleaning supplies, etc. I mentioned the things I can cut down on like gymnastics class and take out because that’s our wiggle room. We also have Hulu, but no other streaming services.

Edit. People are really wanting to help! Here’s some of our fixed costs.
Mortgage - $2840
Daycare - $3300 (woops looks like I mis estimated these)
529s for kids - $200
YouTube premium - $12
Data - $20
Solar - $371
Pest control - $60
House cleaning - $260
Life insurance - $493
Apple care - $20
Car payment - $540
Cell phone - $67
Internet - $105
Electricity/gas - varies $20-$100 per month since we have solar
Security system - $76
Water - varies about $65 per month
CC annual fee - $95
CC debt - $80
Appliance and home system insurance - $25
Car and valuable property insurance - $210
Hulu - $19

Our mortgage includes home owners insurance and taxes that go into escrow. I have a deal where my mom pays for my phone, but I pay for her Hulu. With two kids and working full time, we get our house cleaned twice per month to help us keep a baseline of cleanliness. We need regular spraying for ants. One car is from 2010 and is paid off, the other is a used car. We do not live in a walkable area or close to transit. We just got the home insurance because our stove and water heater are on their last legs and we don’t have any savings. People are asking why our paycheck is so low from gross. That’s from me, my spouse has a normal paycheck. I have a mandatory pension that is about $1200 per month, plus $200 per month union dues. I pay $300 into disability, because again, no savings and I’m not eligible for state disability because I work in a school. I put $300 per month into 403b, spouse does $200 per month into 401k for employer match. Per my calculations we’re on track for retirement, but it’s not excessive. We also put the max into dependent care and medical flex spending. None of that cost is on here since we get reimbursements, but it includes things like co pays, sunscreen, toothpaste, vitamins, band aids, pumping supplies, and $7500 per year for daycare. We grow a lot of our own vegetables in the garden. Our JetBlue CC helps us get miles to visit family, we use Target for Target, and Costco for food, diapers, and gas. We luckily do not have to spend any money on formula for our second child.

Looking over our discretionary spendings it is a mix of food, gas, clothing, toys, activities for kids (swim lessons over summer recently), diapers, diaper pail liners, toilet paper, tissues, paper towels, books, parking fees, tolls, fees for museums (had a pass for Cal academy recently, but it only covered three of us), lotion, shampoo, conditioner, gel, gifts for birthdays, home maintenance (fridge recently broke), East Bay Parks membership (we use this for parking and swimming), Ballers tickets, and gardening supplies.

Thanks for all the responses!

I’m saving toward a purchase in a HCOL area, and every thread I find is either “it’s impossible” or “we made it work” with zero actual numbers.

No judgment on your situation, family help, a lucky rate, a starter condo, whatever got you there. I just want real numbers to plan around.

Drop as many as you’re comfortable sharing:

• Age and year of purchase
• Salary at the time
• Cost of living area (HCOL/MCOL/LCOL or general region)
• Purchase price
• Interest rate
• Total cash out of pocket (not just the down payment)

After a decade in grad school making poverty wages at 40 years old in 2022 I got a decent middle class job making 70k that had a 3% annual raise (now at 77k) and a generous 401k matching program. I have no kids and no current health issues.

I have always been stressed out about my student debt (116k) but should get it forgiven after 6 more years of work. If I max out my 401k contribution for the next ten years I will have a 800k saved for retirement. My student loans will be forgiven and my salary will be around 100k. My house will have appreciated in value. And then I still have another decade or so to work.

That is of course if everything goes well. It seems too good to be true.

My real concern: even if I keep my job and benefits, what if the economy crashes? They have brought out the robot dogs to chase down immigrants and every country on the planet is talking about getting more nukes. Am I just going to be hovering over a trash fire munching on my money in ten years hoping it provides some nutrients?

On a different note, you can see from my other post my mother made twice what I did for over 20 years and had no retirement saved and no assets. It blows my mind. What would I have done during such a long period of global stability? Is this all just a futile exercise?

Wife and I bought townhome last year before we found out she was pregnant. Planning to have 1-3 more kids over the next handful of years. Current townhome is 3 beds and 1500 sqft, in a good neighborhood, with great schools. However, I work from home 2-4 days per week and can’t imagine having 2 more kids in our current place. Current house is roughly 2x gross income. I make mid $100ks and I’ll top out making $200k-$400k in a handful of years, but how quickly that happens is somewhat out of my hands. I’ve dropped retirement contributions down to match and funneling all excess cash 50/50 to HYSA and paying down 6.6% mortgage (only 5% current equity in home) in hopes to upgrade in house ideally before baby #2, worst case before baby #3. We can upgrade in about a year and have it be more of a stretch, or stay in the smaller townhome for an extra year or two and possibly deal with being cramped in exchange to not stretch so much for second home. What would you do? Appreciate all tips as a young dad.

8 1oz American Eagles. 1oz Canadian Maple Leaf.

I'm so tired of seeing generic budgeting advice telling people to skip their daily coffee. Nobody is going broke over a five-dollar latte. The real budget killer is the invisible 'convenience tax' we’ve all quietly accepted as a normal cost of living.

I’m talking about DoorDashing a single meal for $35 because we're 'too tired' to cook. Paying $15 a month for three different streaming apps we haven't opened since last winter, or buying pre-cut groceries at a 300% markup. We’ve been conditioned to pay a massive premium to avoid even the slightest bit of daily friction, and then we wonder why our savings accounts are flatlining despite making decent middle-class wages.

I finally did a brutal audit of my own bank statements last month. I was shocked by how much I was spending just to save five minutes of effort. Cutting out food delivery apps alone put almost $300 back in my pocket. It wasn't even a sacrifice; I just had to stop being lazy and keep some easy frozen meals on hand for the exhausted nights.

What is the one convenience expense you finally cut out of your budget that made you realize you were actively robbing yourself? How did you actually break the habit without hating your life?

At what point does a side hustle stop being a little extra money and start requiring actual bookkeeping?

Currently getting paid through three different platforms plus direct clients and I’m realizing this is going to be a mess at tax time if I don’t organize it now.

I mainly want something that can track income and expenses by each self employed income stream so I’m not trying to reconstruct everything months later.

What are you guys using?

We live in the suburbs of Salt Lake City. Cost of living skyrocketed here during covid. We don’t care for our neighborhood and living in a townhome (3 levels) has been taking a toll on me. We have two kids under two and I have POTS so all the stairs lugging two kids around is hard. Our home was rodent infested when we bought it and everything needed work. It took us two months to even get it livable before we moved in.

Here are the numbers:

Current mortgage $2300
Total cost with HOA, warranty, mortgage and utilities $2700-2800
Gross income (varies) $120,000-135,000

I’ve been looking at apartments and we could get a 3 bedroom in a better neighborhood closer to both of our jobs for anywhere between $1900-2200. Those numbers include fees and utilities.

Our house always needs work and we currently only have one out of three bathrooms that’s usable because of all the issues.

I’m over it. I don’t want to worry about repairs anymore. Nearly every month it eats most of our leftover money. My husband is tired of moving though. We’ve been in this house for three years and we moved twice the two years before that. He doesn’t want to move again until we’re moving into a single family home, but if we stay put I don’t think we’ll be able to afford one for at least five years.

The downside to my idea is that we have very little equity in our house. The market has come down here recently so after realtor fees and closing costs (assuming a buyer would have us pay those), we’re looking at walking away with less than $10,000.

What would you do?

I have two young kids and we have been diligently saving in 529s for them since birth. I just ran a projection of expected savings against the cost of a 4 year private university and was shocked by how far off we were. And the projected savings we would need is like what people retire on. I feel like I'm losing my mind about this. Like we make pretty decent money, but not good enough to save that amount without some big sacrifices and we make too much to get and financial aid. How are others managing this? Do you budget to save more? Don't let the kids apply to anything outside the budget without scholarships? I don't think a large amount of debt is worth it, so I'd steer away from that. Do we just hope that the Higher Ed bubble will burst in time?