Where do I stand financially compared to others at 27?

[_zman]

Its good to make six figures in your 20s. It doesn't really matter how much you make though, the ideal financial strategy is pretty much always the same:

1. max out 401k ($18.5k/yr)
2. max out IRA ($6k/yr)
3. buy house ($15-30k/yr)
4. buy stocks (rest of your money)

Don't forget the HSA.

[SouthDakotaBrah]

Don't forget the HSA.

Interesting... I know nothing about HSAs. I've never used it because my company allows us to roll over only $500 each year (unless I'm missing something) and I never use it for any healthcare expenses. I didn't realize it could be used as an investment account.

[_zman]

Interesting... I know nothing about HSAs. I've never used it because my company allows us to roll over only $500 each year and I never use it for any healthcare expenses. I didn't realize it could be used as an investment account.

That's odd and chitty, is that an FSA?

Read up on it tho. There's a lot to learn. Triple tax advantages. You can even withdrawal after 65 for non-health expenses and only pay ordinary income tax. Mine allows me to invest into stocks/indexes. I haven't looked into that yet, because I just hit the 2k threshold to do that. And watch out for the management fees. They're typically high, but the tax benefits are unbeatable. Then there's the whole reimburse yourself later strategy...So when you need money down the road or in retirement, you can pay yourself back.

I believe this is the correct order?

-401k up to match
-Max HSA
-Max Roth
-Then max 401k/403b

[Jasonw1178]

Upper single digit of your age bracket. Coming from a regular middle class working family (not a senator's son) probably the 1%. Most 27 year olds dream of $15/hr and are in debt up to their eyeballs while renting.

[ppxldan]

I have $88k cash in the bank.

No car debt, roughly 40k between 401k/Roth

I’ve been trying to buy a home but honestly haven’t been aggressive enough, I’m always above asking but getting outbid by everyone unfortunately.

Why don't you invest it. Isn't it just collecting fees from you in a savings account ?
Could just invest in a passive index fund ( or pick your own stocks if you know what you're doing )
https://youtu.be/5o5bRaCvfWk

The video might help you with your decision. I believe its always better to stay invested and collect dividends & appreciation

[ppxldan]

If you have no debt you are ahead of 95% of the 27yo's I reckon

agreed thats already a huge accomplishment

[cydeon55]

Growing up pretty frugal with parents that were blue collar I noticed the importance of money. My parents disciplined the chit out of me and I want to know where I stand in life. I'm always in competition with others and hearing what some of these other people make makes me anxious and nervous that I'm not gonna make it.


Just turned 27:

0$ in total Debt (full ride to college, no car, no credit card debt, nada)

-6k in checking account
-50k in Savings account
-27k in Stock market (amazon, tesla & apple shares)
-10k in van guard ETF's
-45k in 401k

Salary = 87k
Bonus = 20k

107k total salary


Monthly expenses = 1600/1700 for rent, food, utilities, phone, internet, etc.


Am I gonna make it brahs?

No idea what the fook my goals are. Just want to make a lot more money and hopefully start a family & buy a nice house with home gym.

Put half of your savings into crypto.

BTC, ETH, LINK

[frezKo]

You’re basically a millennial 1%, so compared to others your age you are killing it.

I understand your trepidation on dropping your savings into the market right now with the election, you might want to consider starting to acquire property, and maybe picking up a service industry business like a dry cleaners, huge profit margins with little to no effort on your end. They can bring in an easy 20k/year net profit per store.

There are thousands of ways to invest your money including the market. Time to start aiming for millionaire status brah.GJDM

How would one go acquiring a service industry like dry cleaners?

Where in Chicago OP? Like the "city" city? Or the burbs/surrounding neighborhoods?

Cuz at the rent cost you either have roommates or live in a roach motel if you are "downtown".

Lincoln park boyo

Depends on your goals. Live alone? Get a roommate to save even more cash? The appreciation on real-estate is typically very good depending on the market. Is there currently a trend that people are moving out of Chicago or are they still moving in? Do your research to see what the appreciation is like. For example, my house has appreciated nearly 100% since 2011. If your house/condo is worth 250k, in ten years it could be worth 500k. Sometimes people see more appreciation than this, sometimes less. The person that bought my house before me sold it at a loss.

It's best to review the financial documents of the Condo to see what their expenses have been and get a projection for the future. I say this because you'll be paying a housing fee to the management company. So you're looking for what they've spent their money on in the past and what they have coming for maintenance in the future. If they aren't willing to share that info, then I'd walk. Nothing worse than expenses to a management company that does nothing and takes your money. Obv compare Condos to other Condos fees and use a percentage to see if they are in line.

Don't compare your finances to others. Your position is good, but there's no point in comparing. Just strive for excellence for yourself, just like anything else in life. Financial managers have compared me to others and even their own kids. I exceeded their expectations at your age, but none of that really mattered to me, because I always thought I could be doing better. That's why I was there in the first place. I do all my own financial management now. I don't know how I'm doing compared to others, I just know I'll be retiring soon based on my budget and spending. I've talked to empty nesters at work that have a million or two saved and could retire now, but they don't because they spend too much money.

I definately want to buy a house that will increase in appreciation as welll as buying a multi unit house in Chicago where I can rent our 1-2 floors and make the rent pay out the martgage.

Anyone know where I would start my research on this???

[AccountingMajor]

In on subtle brag thread. I'm a loan officer and you're doing better than some 37 year olds out there (and me too at 28 years old). But these things take time and no point in comparing yourself. Some are doing extremely well, some live paycheck to paycheck, some are comfortable. This goes for all age ranges.

OP don't be retarded, you are doing better than most 57 year olds

[Arthax]

I'm 29 and you've got me beat brah. Keep up the hustle

[RobParks2M]

That's odd and chitty, is that an FSA?

Read up on it tho. There's a lot to learn. Triple tax advantages. You can even withdrawal after 65 for non-health expenses and only pay ordinary income tax. Mine allows me to invest into stocks/indexes. I haven't looked into that yet, because I just hit the 2k threshold to do that. And watch out for the management fees. They're typically high, but the tax benefits are unbeatable. Then there's the whole reimburse yourself later strategy...So when you need money down the road or in retirement, you can pay yourself back.

I believe this is the correct order?

-401k up to match
-Max HSA
-Max Roth
-Then max 401k/403b

HSA is nice especially when you get the match from your company. Single folks max it out quick @ $3,550 and families get I can contribute $7,100. With how health expenses are going it isn't like you won't use the funds in your lifetime LOL. Also nice to pay health things with pre-tax income instead of taxed money which is nice.

[SouthDakotaBrah]

How would one go acquiring a service industry like dry cleaners?






Lincoln park boyo





I definately want to buy a house that will increase in appreciation as welll as buying a multi unit house in Chicago where I can rent our 1-2 floors and make the rent pay out the martgage.

Anyone know where I would start my research on this???

BiggerPockets is a good source for real estate investment research

HSA is nice especially when you get the match from your company. Single folks max it out quick @ $3,550 and families get I can contribute $7,100. With how health expenses are going it isn't like you won't use the funds in your lifetime LOL. Also nice to pay health things with pre-tax income instead of taxed money which is nice.

Realized I was thinking of FSA which is entirely different than HSA. I don't get HSA match, but $3.5k per year in a tax-free investment account is pretty good so maybe I'll start one

[All-Star11]

for rent

don't brag until you own something.

[RobParks2M]

BiggerPockets is a good source for real estate investment research



Realized I was thinking of FSA which is entirely different than HSA. I don't get HSA match, but $3.5k per year in a tax-free investment account is pretty good so maybe I'll start one

I'm not positive you have the ability to open one unless you have a high deductible insurance plan. Haven't looked into it though from the other side- I've always had the HSA because I don't incur many expenses so I've stacked a lot of money from adding to get the match year after year.

[Tdriin]

I am 27 and you do a lot better than me.

[inb4everything]

These days, I think just having zero debt in 20s and some 50kish savings is really good.

[HannoCometh]

Growing up pretty frugal with parents that were blue collar I noticed the importance of money. My parents disciplined the chit out of me and I want to know where I stand in life. I'm always in competition with others and hearing what some of these other people make makes me anxious and nervous that I'm not gonna make it.


Just turned 27:

0$ in total Debt (full ride to college, no car, no credit card debt, nada)

-6k in checking account
-50k in Savings account
-27k in Stock market (amazon, tesla & apple shares)
-10k in van guard ETF's
-45k in 401k

Salary = 87k
Bonus = 20k

107k total salary


Monthly expenses = 1600/1700 for rent, food, utilities, phone, internet, etc.


Am I gonna make it brahs?

No idea what the fook my goals are. Just want to make a lot more money and hopefully start a family & buy a nice house with home gym.

If true, this is fairly impressive for a 27 year old. The $0 in debt is even more impressive tbh. The amount in savings also rivals even folks twice your age. Salary is respectable for age and country. Occupation?

[SouthDakotaBrah]

These days, I think just having zero debt in 20s and some 50kish savings is really good.

cash is trash brah

[JungleJenetics]

You’re doing well. I’m a financial planner and I’ve seen all types.

SRS: check out r/financialindependence

Deadsrs most of them are trying to retire early, but it helps to clarify your goals between spending/family life/ home gym, and retiring. Lots of great info and perspectives.

You’re doing great brah

this

[SoutheastBeast1]

no car
don't take into account health insurance as it's subtracted from my salary at work


rent = 1200 (includes gas)
food = 350
internet/phone = 150
electricity = 70

What else am I missing?

Basically anything you do for fun?

Coming from someone who already stated you’ve traveled too much I have a very hard time believing you stay at home and stare at the walls every month.

Also no gym membership? Also if you’re just counting food I can see $350, but no way if you also include other grocery store items (paper towels, toothpaste, deodorant, cleaning products, etc)

My guess is you’ve understated your monthly expenses by $500 at least, possibly more depending how much you go out or buy materialistic items.

[samsbolton]

Thank you boyos.

I hope to double my savings & investments & 401k by the time I'm 30.

Any tips?

Thinking about moving in with my parents for a year or 2 to save extra cash?

I really have traveled a little too much and i'm over it. I think I just need to find my better half, settle down, and start a family sometime soon.

Don't even think about settling down in your position.

This is 2020. Build some wealth, secure your bag before worrying about anyone else's

[MotorCityCobra]

ur doing pretty well. im 29 myself and own an apartment which is almost paid off. my net worth right now after debt ect is about 200k $. I have 40-50k which is going into stocks in the near future, but im new to this even though i lost some money i crypto 2 years ago. ur salary is awesome so you will make it big time if u keep it up. this year i started a side gig which has brought in a good amount of money with little effort

[BiGx5MurF]

Just wondering, why are your investments tilted so far towards individual stocks, and not vanguard? If I'm not mistaken, the stocks you listed actually makeup the top holdings in vanguard. I would probably tilt that from individual stocks to vanguard, to minimize losses during a down turn. I would also try to max out 401k before other investments, as it's more tax favorable in the long run.