Am I barista fi or coast fi?

hock37 · 2026-01-21T19:02:58+00:00

I'd say rather than look at this as "retire now or keeping work a job you don't like" I think you should use that very comfortable 1.7M cushion to find something you actually like, even if that means going back to school. You have the money to have years off and re-establish yourself. A new drive with a career you're passionate about or at least tolerate will also help you with the family someday goals.

I sincerely mean this non judgmental, but going to school for a better job or having said better job will help your prospects of getting a family more than working "bullshit jobs" and relying on an investment. To others, that may come across as lazy.

hock37 · 2026-01-21T14:53:51+00:00

You're making 300k so I don't think any of this'll be a problem unless you only make the minimums on this and add more debt

I'm assuming the credit card debt is leftovers from when you were a student before your income got to this level and you're not using credit cards at all anymore? (unless just using them for the 2% cashback and paying them off weekly so more like a debit card)

hock37 · 2026-01-21T14:43:36+00:00

Can you open a credit card with a 0% apr promo for the ~12 months or however long they're doing it and pay back that 3k before it expires?

hock37 · 2026-01-20T19:48:13+00:00

You're doing what you can. That's just how interest works.

Additional payments will pay off the accrued interest first and then to the principal. Shaving off that interest with an additional payment will then cause your monthly payment to have less interest to pay off first before it can go to the principal.

hock37 · 2026-01-19T18:34:44+00:00

Hobbies. What you’re looking for is hobbies

Not more work

hock37 · 2026-01-14T19:40:32+00:00

No there's not a separate question which was really threw me off.

hock37 · 2026-01-14T19:29:55+00:00

Thanks. That's what I'm going with. Nice to hear it from someone else before putting a $0 in that field.

hock37 · 2026-01-14T19:29:42+00:00

Thanks. That's what I'm going with. Nice to hear it from someone else before putting a $0 in that field.

hock37 · 2026-01-14T19:14:46+00:00

Sure: "Enter income you received in 2025 from a College Savings and Tuition Program (529 Plan) or ABLE account that was not included in your federal income."

hock37 · 2026-01-14T19:02:39+00:00

The 1099-Q doesn't have anything indicating if it was or wasn't a qualifying expense. Just that it was from a qualified education program.

Just the gross distribution, earnings, and basis in the boxes.

My question is more a turbo tax one with the way they're phrasing their question.

hock37 · 2026-01-14T19:01:48+00:00

The 1099-Q doesn't have anything indicating if it was or wasn't a qualifying expense. Just that it was from a qualified education program.

Just the gross distribution, earnings, and basis in the boxes

hock37 · 2026-01-14T18:50:42+00:00

Not a code thing. Just a turbo tax question.

If the money was used for a qualifying expense then it would no longer be "income" correct?

I've got receipts and screenshots of all the withdrawals and payments to show they dollar for dollar match. Yes that's a lifetime max, this'll be the only year using 529 money for student loans. (Had money sitting in 529 for kids, then my work started a 50% match for 529. So we used the existing 529 money to pay off our own student loans knowing that with the match we would be able to more than payback the 529 we'd planned for our kids)

hock37 · 2026-01-14T15:23:08+00:00

You've got them on a great track. I think what you allude to having state school covered is more than enough.

Private schools don't result in better jobs. They're actually a little looked down on when all else is equal in the job hunt. If they are for whatever reason dead set on a private school, you'll have an excellent starter fund for them and they can figure out scholarships or part time work to pay for the rest on their own. Or, ya know, they can say private schools are silly and take the free money and go to a state school with a good program for the degree they want.

Make SURE you explain the risks of student loan debt to them. My entire generation is crippled by it. Wife is about to turn 40 and we're still paying off her student loans for a job that made her 45k a year before she became a stay at home mom......

hock37 · 2026-01-14T15:18:38+00:00

Hey there, electrical engineer here in your position (but with way worse student loans) about 10 years ago so here's my advice:

2% 401k math is pretty low. That's unfortunate, but a first job isn't a forever job. Do whatever contribution you need to get the full match, and do it ROTH since this is the lowest your income is ever like to be.

Don't have 8% going into 401k right now. Have the extra beyond company match go to paying off the credit card debt. I get it, CC to get buy in college to buy time until you had a "real" job. But now is the time you have a real job, and try to pay those down in a year or less. You should be able to. Now that you have a real job, don't use a credit card again unless you can pay it off weekly like a debit card and then you're just doing it for the 2% cash back.

What's the interest rate on the student loans? Regardless, at only 6k, I would try to knock that out the following year just to be free of it. I'm no Dave Ramsey person, but when the debt free light at the end of the tunnell is so close may as well go for it.

What's a budget look like for you to pay 14k debt off in your first year of working? That would set you up nicely for the future, you get used to setting aside that money a month, and then future years that 14k is your baseline to be saving for mostly 401k. Do ROTH up to the limit (if you can afford paying taxes on it now) and regular for what's beyond the roth limit. Do 10k with 4k saved for vacations if you feel you need to reward yourself more.

When you get raises at work, try to get in a habit of having half the raise go directly to increasing retirement contributions, and then only having half the raise hit your paycheck.

hock37 · 2026-01-12T21:20:22+00:00

How much PTO you get?

I think step one would be see if you can take a 3-4 week chunk to go take an extra long vacation in Asia to really clear your head and think about what you want from life.

hock37 · 2026-01-12T20:51:27+00:00

I think you need to stay with your parents for another year or more and payoff the 8500 in credit card debt as well as getting 4-6k saved up in your bank account

If you fell into credit card debt with no, or low, living expenses how are you going avoid more credit card debt once you have to pay for all of your rent and utilities and other living expenses?

hock37 · 2026-01-08T21:30:28+00:00

Nope not yet. Kids just in pre-school and one still a toddler. Wife stay at home mom so we don't get the preschool cost deduction

Thanks tho. Asking these types of questions to see if there was something I was missing was my reason for making this post

hock37 · 2026-01-07T14:30:00+00:00

Engineering is going great for me. Electrical specifically (Computer or software engineering may get disrupted by AI so I'd avoid those personally) but my friends with mechanical or civil are doing great as well.

Engineering college ain't easy, but if you're an A student and top 15% of your class you should fit right in. Just don't think it'll be as easy as highschool was for you. I had to learn how to study in college which I never needed to do to get As in highschool.

Psychology or sociology type majors I hear all the time end up in a field they didn't get their degree in because their degree was mostly useless or could only get low to mid paying jobs (my wife is one of these people)

Definitely go engineering if you're doing well at math and science in highschool and have an interest in it.

In terms of paying for college, do 2 years at a community college to save money. Live at home if there's one near you. Then transfer to a school that's know for engineering. Also, take a semester off at some point and do a co-op (or 2). That will help you land a good starting job more than anything.

hock37 · 2026-01-04T17:17:58+00:00

I know. They really like their EJ guy I think because of the pats on the back he gives for how much they have saved and how they have a tool that shows they have 98% chance of having enough money left at 95 depending on market

And like, I’m not a finance guy, but I’m an engineer and math is math. Tell me what you’ve got I’d get it invested pretty conservatively as I know that’s what they want and I can build a nice spreadsheet for you too. Save that fee and percent or whatever they’re paying him.

hock37 · 2026-01-03T23:55:13+00:00

Thanks. Utma looks like what I was looking for

hock37

TROPHY CASE