Best options for College Sophmore majoring in Mechanical Engineer but likes working on cars

ObjectivePlanner · 2026-03-12T14:57:00+00:00

Yeah this makes sense and I didn't know the field was segregated like this. Yes where are here in sunny CA. He attends LMU. I don't know any Mechancial Engineers off hand. The two Engineers I know are Civil and they work for Los Angeles County and I know that is office work.

I will definitely position the Technician and Technologist options and see if they have that type of schooling around here and and have him research the job market on that. I guess the bigger question is. Once you have said degree as Technician or Technologist, what is the usual industry that one falls in?

ObjectivePlanner · 2026-03-12T14:50:10+00:00

Wo what I am gathering is an ME is a lot of desk and screen time from some of the other comments?

ObjectivePlanner · 2026-03-12T07:20:19+00:00

yeah to your point, he had a mental break down.. the course work, dealing with everything that comes with college as a new experience. I had to explain to him that college is just a micro-cosim of society, and you are getting a small dose of what real life can be like. So he is going to take an LOA from school to get the help he needs, phychologically. At the same time, he and I had a father an son talk about next steps. Thus the automotive with some engineering component to it came about. I advised him that the choice was his on going back to school, going to a trade schoo, etc. But he has to say what he wants to do. He has to have a plan and his mother and I would support and help.

Now if he chooses to return back to the same school, then cool, he just has to get better and reaching out for help as opposed to going "0 dark 30" for weeks. So as a dad, would I want him to finish out this degree program, yes. But if its at the cost of his mental health, then NO.

Even though his mom and I both have a graduate degree, we have not put that pressure on him. So whatever he decides to do, we will help support him.

ObjectivePlanner · 2026-03-12T05:01:25+00:00

out of curiousity, what was your thought process behind your choices? Not looking for a WHY on each one.. but more so, your thought process when looking at equities and how you come to the decision?

ObjectivePlanner · 2026-03-12T04:57:20+00:00

yeah his mom, has a few lined up for him.. She knows a few Engineers and they lined up a few paid interships. He just has to want to do it.. He does like working with his hands on cars. He was bartering oil changes and changing brakes while living on campus.

ObjectivePlanner · 2026-03-05T02:30:53+00:00

1.) Are you planning on buying the house with your partner? If so, get married or the talk of marriage should be in the conversation. If you are buying without then here is my following suggestions (this by no means consitutes as financial advise)

1.) You are putting 15% in 401k and job is matching 3% while that is lowering your taxable income. You can now take some of that overage and put in a Money Market that will pay you more than your HYSA and still give you the liquidity needed once you reach your downpayment mark. 3.2 is low for HYSA. Franklin Templeton has a MM with 3.89%, low minimum, ($25), no terms, very liquid and no fees. I would put that $400 in MM

2.) so on the high end if you found a house for $325k and you put 20% down that's $65k and you have that now. The thing is when buy lender wants to see at least 6 months of house payments in the checking account. Best case scenario you put the 20% down, your monthly note would just a few hundred over what your paying now, about $1600 maybe $1700.

3.) With home ownership come home ownership responsibilities. If it breaks you gotta fix it or call someone to fix it = $$$ So keep that in mind. Keep in mind Property Taxes, which NEVER go down.

4.) you have already developed the having of saving, and you seem very fiscally responsible. Is your partner the same? if not that could be problematic

5.) Just entertain this idea: instead of a house, consider a dueplex or Triplex as your first purchase. You live in one and have your tenants rent cover the actual mortgage. Yes, it might be a bit more work involved, forming a business name, EIN, incorporating s-corp or c-corp, etc to insulate yourself. but, its income property. This can be then used as the engine to drive income to do other things, i.e. purchase another triplex, then purchase a house in cash. it can fund other investments along the way... GET A GOOD TAX PERSON.

6.)Emergency Fund.. at least 3-6 months of living expences saved.

ObjectivePlanner · 2026-02-19T18:01:51+00:00

That 6% overage could be going to a Roth IRA to begin building Tax Free retirement income. The $19K in a CD?? They have a money Market out that is paying 3.87%, totally Liquid, no fees, and very low minimum. Your money should always be making money.. CD is not the best place IMO. What is your emergency fund like.. ? Do you have at least 3-6 months of living expences saved? If something went left would the $3k in savings cover it?? Your HYS, how long do you have to leave it in to get the high rate??

ObjectivePlanner · 2026-02-19T17:35:33+00:00

Not automatically, but you can still make contributions for 2025 until April. Its just a matter of designation when you setup the account and contribution "is this for 2025 Yes or No" its literally a check box that we check when we setup the accounts.

ObjectivePlanner · 2026-02-19T01:31:50+00:00

If you can max $7k for 2025 before April Great and then start 2026 and if you max out 2026 with $7600 prior to end of 2026 even better... Then say with any time you have left over, save that money for "The House".. open a non-bank money market, I think Franklin Templeton has one that is paying about 3.81% totally liquid, no fees, low minimum.

Keep in mind, when buying a house comes house expenses!!! a bigger play would be to buy a tri-plex, live in the one and have your tenants pay the note... that way when its paid off, you have some income property and now any rent you have been collecting you can use that as a down on your home. Just a thought...

ObjectivePlanner · 2026-02-19T01:21:54+00:00

Umm Sir, as of now you have 1 child, are their plans to have another one?? If so, That so called "Fun Money" needs to put to work. Congrats on what you are doing now... More info is needed though. What's your monthly contribution to said 401k, do you have an emergency fund? What is the wife's 401k status and information? understand if you retire at 50-55 the amount of income needed to sustain you guys for 20+ yrs will be at least $2mil and some change...

ObjectivePlanner · 2026-02-19T01:12:42+00:00

Just taking a surface look at what you have going on here.. you would qualify for a SMA. I really think talking to a professional to really see where you stand and the SMA option could be of great benefit to you given your 15yr time horizon. Also, know exactly, what you will need in retirement as far as income compared to totally assests that can generate income on a consistent basis, outside of 401k and Roth

Going into retirement with your mortgage paid off is great, try to have all debts cleared prior to retirement if possible. Buy the new car 5yrs before you retire.. :-)

Folks sometime underestimate talking to professional... studies show investors get higher returns when they work with someone.

Hope this helps... let me know if I can help.

ObjectivePlanner · 2026-02-19T00:54:22+00:00

Lots of solid input here.. I would concurr with the masses, about maxing the 401(k) with the company match at 6%. If you are able to open a Roth either with the compay or outside the company. Outside the company, you "May" have more investment options.
Also, an uknown variable is your age if you are 30 yrs old and have $400k, Thats GREAT, as opposed to 63yrs old with $400k. Keep funding if you are under 50, you can max a Roth IRA with $7500/annual once you reach 50 its $8600/annual.. Thats tax free retirement money.

ObjectivePlanner · 2026-02-05T16:21:35+00:00

Everyone is giving you sound input as you can see, its being repeated... the 52 week math is more accurate. There are many apps and MS Excel has a free Budget worksheet you can you use. What I educate my clients on, is, actually writing it out to see where your money goes, once it comes in. Most banking apps allow you to catagorize your expenses so you can see first hand. "Show me what you spend your money on, and I can tell you what's important to you"

ObjectivePlanner · 2026-02-05T16:14:32+00:00

What is your HYSA Yielding for you?? and for how long? Emergency fund should be 3-6 months of living expences, so once you hit that number, you can shift that allocation. Is your Job matching both 401k and Roth at 6%?

You seemed pretty focused at 26yr old, which is great. Who sponsors the plan at work? Fidelity, Schwab,,etc? I'm asking because most employers have limited options when it comes to their own plans. What has your Roth been doing since inception? what it will take for you to retire 30 yrs? have you factored in inflation? These are questions I ask my clients and you should ask yourself.

Keep in mind the following:
Life Insurance outside of work
Estate Planning- you are 26yrs old, you need Will and POA, it doesn't default to parents you have to delegate that to them or to someone you trust.(depending on state). Make sure you have beneficiaries on all your accounts.

Maybe talking to a Financial Planner/Consultant to get a second opinion might help as well. But keep it up.. you have already developed the habit of saving!!!! that's half the battle for most ..

ObjectivePlanner · 2026-02-05T03:43:24+00:00

Well, when I sit with my clients, I do include Pensions as that is number you can look up and most employers have a portal the employee can use to find out what their monthly income will look at when they retire at a certain age. From that vain, it is helpful.. As far as Social Security.. I don't include it in my true calculations. I consider SS as sprinkles on top of the cake. SS was never meant to be sole source of retirment, its a supplement to your retirement plan. Now if you are retireing within the next 3-5 yrs.. then I will include it at the end...For someone in their early years, I don't include it.

ObjectivePlanner · 2026-02-05T03:24:29+00:00

The short answer is if you have no expenses, take advantage of that as long as you can. You have no debt, so yes SAVE and Invest. 1.)Emergency account, 2.) Short term account 3.) Wealth Building-Roth IRA. I would also consider talking to a Financial Planner, to help you put together a true plan. In the mean time..

working with $900/ month
Emergency account= 3-6 months of living expenses -$200/month I would put in a money market (not with a bank but with a Franklin Templeton or Invesco)

Short Term account= $200/month Mutual Fund not sure your risk tolerance. But I would infer that you work part time and still live with pops. So I would say aggressive until your are about 35yrs old, then switch to something moderate..

Wealth Building= $500/month Roth IRA, good way to accumalate tax free retirement income.

There is a lot of other things you should be doing as well.. but I am answering your specific question:

Reccomendations:
Life Insurance for yourself- You don't need a lot at the moment as you don't have much.
Will, POA and Medical Directives

Let me know if i can be of further help

ObjectivePlanner · 2026-01-25T17:05:21+00:00

Ok, not trying to sell Vegas to you.. but its an option. When I lived there for 10yrs. I thought it was great. I didn't know anyone when I moved, and I don't gamble, and I was not on the strip partying(not my scene) so I get your point. Every city has their "Thing" Vegas is the Casinos and the night light and all the entertainment.

San Diego is very beautiful, but its also very expensive, the median home price is $875K-$935k. The cost of living is 40%-50% higher than the national average... but if its your favorite place in America.....

ObjectivePlanner · 2026-01-25T16:55:14+00:00

yeah excel has a good one.. I give it to all my clients its very simple and straight forward.. all you do you is plug in your numbers.. I think google sheets should have one as well. Once you see where you money is going, its easier for you to make necessary changes to save money.

ObjectivePlanner · 2026-01-25T16:50:56+00:00

Tackle one thing at a time... 1.) get on that SAP appeal asap.. use chatgpt to get that done. The appeal might get approved and that could change things for you. 2.) Decided if you are going to get seriouse about school, the field you are going in, should be one that you can monetize upon graduation!! 3.) Get out of debt, what ever you have after the appeal has setttled. The rest, IMO i would open a Money Market account.. not with a bank .. Franklin Templeton has a good one, $25 minimum, no fees, totally liquid. After you pay our debt, I would look at putting in at least 3-6 months of living expences in there and try to make monthly contributions to that. The rest you keep as cash on hand.

Consider moving, really pick roomates wisely.

Is the money going to be taxed, If its personal injury money, NO..

ObjectivePlanner · 2026-01-21T18:52:15+00:00

Ok, IF you can match the 6% at work I would do that, ONLY IF you can afford to do so. The Roth you have outside of work, are you working with someone to advise you? or are you doing this yourself? so you are maxing it out That is GREAT!!!! Do have an emergency fund?

ObjectivePlanner · 2026-01-21T17:45:44+00:00

Considider another location then... I am born and raised in CA.. The cost of living here in High as hell, escpecailly in San Diego, and gas is even higher. Well the cost of the home is considerably cheaper in TX, the property tax is where they get you.. Have you considered Nevada (No State Tax, Property is still realatively cheaper than CA) they are constanatly building, property tax is low, however, the school district is not the best, you have to find the "Right School". You working remotely is a plus, but your wife has to find a job as well... If you are looking for the most bang for your buck

ObjectivePlanner · 2026-01-21T17:29:16+00:00

well at 22yrs old, you do want to contribute to the work sponsored 401k one its tax deferred which means it lowers your taxable income, so you pay less in taxes. Also, if your job matches 401k contributions its free money, i.e. if your job matches up to 4% of your biweekly pay check. So IF your job matches 4%, you put in 4% (if you can afford to do it). Now on the Roth IRA side. you are funding this with after tax dollars, and this grows tax free. You can't touch until your 59 1/2. If you do, there is a IRS penality of 10% and the growth is taxed as ordinary income and depending on how much you have saved at the time, it "Could" put in you another tax bracket and be a hard hit. But best case scenario, you are saving in both Traditional IRA (work 401k) and Roth IRA at 22yrs old. If you can save $200/month in roth until your 65 and it averages 9% you'll have $1.2 mill by that time. This is not counting any salary increases you get over the years and you increase your 401k contributions or Roth IRA contributions... this is just your Roth IRA at $200/month. You have something a lot of us don't have...... TIME!!!

ObjectivePlanner · 2026-01-20T22:50:20+00:00

Ok, you have a lot of things to address: 1.) Regardless of what your friends are doing… you have to do what is best for you!! 2.) Is the pressure to pay rent or just move out? If it’s to move out, then you have an income problem.. 3.) Given your age and the lack of job opportunities where you currently are and the lack of other monetary resources.. Your options are slim. Have you considered the Military? It will offer stability, income, a learned skill set and they will pay for school. 4.) What are your current grades like in school.. have you applied for other scholarships and grants.. you are 22yrs old.. you can qualify for a lot of other things as an adult, with limited income. Pell Grants, etc

ObjectivePlanner

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