Quote:
Originally Posted by XutvJet
Quote:
Originally Posted by bimmerfrk
So Im 34, i have about 500k in assets, that's 100k cash, 250k house equity, and 200k in 401k. And im a slum lord in north western CT, though this is more of a liability then an asset time has proven
I have been maxing out my 401k for last 4 years. These gains were strictly from blue chip fund gains.
As far as other accounts i do not. But i dont think I'm doing to poorly for my age.
Oh yeah i drive an ///m car which we all know is the true measure of financial success  |
Sounds like you're doing ok. I say ok because you do live in a pricey part of the country and you didn't provide your net worth, just your assets. Regardless, you're still ahead of the majority for you're age assuming you're not carrying some huge note on a home in a terrible area. Maxing your 401K is a solid choice assuming you've got good investment options, the match is good, etc. I'd definitely look into other investment options too like a Roth, brokerage, etc.
I do agree that a correction is coming in the near future (i.e. between next and sometime in 2021), but you're young. You have lots of time to make back losses. You will get lit up in the investment world That's inevitable. You'll have a few big losses followed by a lot HUGE gains assuming you're well invested and smart. As others have noted, timing the market is crazy difficult. I've lost massive sums of money over the past 25 years in the market. However, I never sold during the crashes and stuck to my plan. The only things that changed was that I wised up with the things I was invested in.
I'm 45 and I'm well aware that I'll likely lose 20-30%, maybe worse, of my portfolio's value sometime in the next 2 years. I also know that in the 2 to 5 years following I'll make back all of it plus another huge sum. The only thing I'm doing in preparation to ease the pain is that I plan to sell a small portion of my portfolio in the near future and the proceeds will then serve as my "war chest" when the market tumbles so that I can purchase blue chips and similar at highly disconnected prices.
My Roth, company 401k, traditional IRA, and brokerage account are heavily invested in S&P 500 index funds (~65%) and ~15% in Berkshire Class B and the remainder in a handful of bond, money, small cap funds, and random stocks (for fun). It's done extremely well for me over the years. |
I don't have any except for the note on my house. It's roughly a 750 note in a nice favorable town in jersey. Most houses are in the median range of 900k to 1.2mil and I have over 200k in equity.
The misses and I bring in roughly 310k a year. So I'm not concerned about the note unless I kick the bucket since I earn 2 thirds of the annual income. Other than that just basic debt some credit under 10k and vehicle payments and lease payments.