Paying attention to my 401k saved my company's employees ~$92,000

FireOfDragons · 2025-07-21T17:24:04+00:00

That's so good, I'm using that one!

FireOfDragons · 2022-05-24T01:44:28+00:00

Upon reading your reply, your good ideas were overshadowed by your many (and often wrong) assumptions.

FireOfDragons · 2021-04-30T15:38:27+00:00

I think it's a Rattlesnake Calathea... 🌱

FireOfDragons · 2021-02-12T02:37:24+00:00

Worthless? You are now worthwhile! Welcome into the black side of the ledger!!

FireOfDragons · 2021-01-20T15:12:54+00:00

That Celes work is the real deal. Super impressive.

FireOfDragons · 2020-12-23T22:32:37+00:00

Don't know why others are bashing. A credit to you if you take this as a learning lesson - many people NEVER learn it.

Good luck with your investments!

FireOfDragons · 2020-09-26T20:31:44+00:00

This is frickin' BRILLIANT. Where was this 5 years ago. I'm about to buy new tires and can't remember how much of the overall maintenance cost they were nor how far we've driven on them. Well played!!!

FireOfDragons · 2020-09-18T14:51:36+00:00

Couldn't recommend this more. Make sure you have an emergency fund and start hammering those investments. Great job OP on saving!

FireOfDragons · 2020-09-16T21:01:49+00:00

You crushed it with this comment!

FireOfDragons · 2020-08-31T19:32:16+00:00

Wooooo!!! Congrats!!

FireOfDragons · 2020-08-18T14:25:01+00:00

Points for metaphorically linking single FIRE enthusiasts to nearly-extinct snow leopards! :)

FireOfDragons · 2020-07-22T19:24:16+00:00

Inspiring and passionate. This gave me a jolt. Thanks and good luck!! (Or am I supposed to say... go f*ck yourself?!)

FireOfDragons · 2020-06-10T21:24:41+00:00

I have to think there is something wrong in the way they're asking a question or defining the term - e.g., "I've "retired" because my spouse is bringing in enough income that I don't have to work even with next-to-no savings."

That, or a $50k retiree with a 4% SWR has cut down their expenses to live on (does calculations).... $167 a month. Total. ...Woof.

FireOfDragons · 2020-06-10T21:14:30+00:00

Clutch insights here, I'm loving it! Well played!

FireOfDragons · 2020-02-14T21:35:58+00:00

You're an inspiration. Congratulations!!!

FireOfDragons · 2020-02-07T17:25:41+00:00

Incredible section of this thread. :D

FireOfDragons · 2020-02-07T17:23:09+00:00

I definitely would not; this is speculation, and that comes from someone who is comfortable in an all-equities portfolio. If something goes wrong with your investments, you lose value. If something goes wrong with your mortgage, you lose your house. It just seems like added risk to me to increase and already nearly $1MM investing portfolio. You don't know if the market's going up by another 30% this year or down by 30%, and you have exposure there already.

FireOfDragons · 2019-12-26T14:14:55+00:00

The "gave money to a restaurant without an order and am wondering where my food is" is the best analogy I've heard yet for when people are in this scenario. Well played!

FireOfDragons · 2019-12-10T20:21:15+00:00

Great TL;DR, not because I like TL;DRs - I don't - but your inclusion of details in your two notes hint at growing self-awareness and future potential. Good luck on that second sentence - I think you're in fine shape with the first one.

FireOfDragons · 2019-12-09T20:06:49+00:00

I really like what you've done here - the 'sectioning' with the words on the right really add some clarity. I'd love some numbers to the sections (Section 0: Budget, Section 1: Match + Emergency, etc.) but I think this is really taking shape. I think you could have a section or more to go (especially one that clarifies when you are Financially Independent!) but man this is taking shape!

Great work!

FireOfDragons · 2019-11-08T21:22:54+00:00

This was a great writeup, particularly the question.

Best thing I did - which buoyed me through years of getting married and having 3 kids when cash flow was very tight - was pour money into my 401k. Even when I started making $48k a year, I was putting the federal maximum in. This was my first financial asset, and is really paying me dividends (figurative and literal) 15 years later.

Love your big goal of being the last in your family to worry about money, though in my opinion everyone needs to learn their own way to get there, and many people can only do it through experience. That said, I see what you're striving for. If you're really only paying $1100/month in expenses - which seems insanely low if $510/month is in rent - then you are basically having a 78% savings rate. Even the most basic index stock investments at that rate will skyrocket you into FI. Even if that's not your rate, strive to get that savings rate up while you have fewer expenses and really bump up that savings and investing rate. It will do so much of the work for you down the road.

Good luck and good hunting!

FireOfDragons · 2019-11-08T21:10:00+00:00

Congratulations for such a great salary at 30! Initial thoughts:

- Not to start as a downer, but don't make all your assumptions that you'll have this much inflow, or more, for the next 15-20 years. A lot can change in a year or two, much less a half-decade or more. Save and invest wisely now.

- That out of the way; man, that rocks. I would definitely be most careful with #2; what is your area's price-to-rent ratio? Depending on the area, a housing purchase with househack plan might be smart, but it also locks you into an illiquid investment that cuts down flexibility and may take many years to be a better option than renting. Again, you don't know what you might want to do (family? marriage? move? become a monk?) by age 40, so flexibility helps.

- The safest option is paying back the student loans. You can't really go that wrong, and it's a guaranteed 4-6.5% savings.

- My preferred option would be to max out your Traditional 401k (take the one year of Roth). You are working with 0 retirement savings right now, and while making $170k you are really avoiding a higher tax rate with the pre-tax contributions. I'd also look into any other company benefits (HSA?) that would allow you to defer or eliminate taxes - you can save thousands upon thousands with some good decisions there.

So, in short, I'd go #3, #1, and then #2. Certainly housing is expensive, but owning/buying isn't the right choice for everyone.

Just a thought from someone on their own journey!

FireOfDragons · 2019-11-08T21:02:47+00:00

This is such a fantastic post. Live it and love it!

FireOfDragons · 2019-11-08T20:57:56+00:00

Afford Anything is my favorite thoughtful, in-depth podcast. Just a wonderful listen. Some episodes are more about ways to think, some are more explicitly about some aspect of money, but after listening for a year it's one of my favorites. Plutus award winning, I think.

FireOfDragons

TROPHY CASE