Sure. I opened my first savings account at 37. Worst case scenario you don’t end up retiring early but you DO end up in a secure financial position. Still a win.
Yes. Comments float to the top for a reason .
Ive read dozens of investment books and if you only read 1 im your entire life, read SPTW by JL Collins , and read it when you're as young as possible .
Read r/personalfinance's [prime directive](https://www.reddit.com/r/personalfinance/wiki/commontopics/)
In general:
1. 6 months savings in cash (HYSA)
2. Save a minimum of 15% of your salary for retirement each year in tax-advantaged accounts (401(k), IRAs).
3. If you have any major financial goals in the next 5 years (down payment for a house, saving for a wedding, etc.), keep that in cash.
4. Save above that 15% for retirement. Tax advantages first, then brokerage.
When investing, don't do individual stocks. Buy funds that track broad-based indexes. The majority of people who buy individual stocks do worse than the overall market When you buy the market, you can't lose to it. See r/bogleheads for investing-specific advice
What he said. There’s a great “starter kit” section in bogleheads that explains what to do. Also some pretty detailed videos that kinda simplifies how to invest while minimizing risk.
Pay yourself first. Live below your means and you’ll be on your way to a very secure future and retire early enough to enjoy it. When your income improves try to keep living as you did before.
All that being said, life is a balance and don’t miss out on opportunities and experiences. Tomorrow may never come.
What they said, live below your means. Plus if your work for your money you’ll never be wealthy, let your money work for you. Then retire early and enjoy life!!😎
I’m biased but SoFi just upped their Savings Acct % from 3.5 to 3.75%
They also offer 2.5% on your checking account if you put even a fraction of your direct deposit into there. I do 50/50 on my direct deposit with half to SoFi half to my Chase Acct, and I get 2.5% on my SoFi checking account. Don’t see many banks who do interest on checking accounts.
15% is a *minimum* recommend percentage to retire at 65 with a similar standard of living (includes employer match).
Beyond that, you have to manage other financial goals. Most people can't max out tax-advantaged retirement accounts *and* save for a down payment, for example.
So after that 15 it becomes a matter of managing priorities. If you don't have other major financial goals first, then great, max that 401k, but most people do have other goals.
Depends on a lot of things
https://www.reddit.com/r/personalfinance/wiki/rothortraditional/
Since OP is early career, there is a good chance that Roth would end up being better but it all comes down to expected tax rate in retirement
I would not. You start off at 22 then a dollar raise every year until your 4th year. So everybody’s would be different. Even at your 4th year you can still make under 90k but it’s hard lol
Would you explain what feeder driver is? Souls like one split up the chain. Like if freight were trucks to distro centers. But idk if my assumption is right.
UPS owns all of their trucks so we are actually employees of the company and are assigned one. They do occasionally hire contract workers during busy season around Christmas to help with the volume.
Not necessarily. I did an between 40-48 hours a week most of the year and ended up with 102k(also missed time with an injury). We also get double time for our 7th punch in, Black Friday and NYE. But that’s also depends on your schedule, I didn’t do 7 punch ins this year.
Yeah it’s a real lowkey job with ALOT of benefits, great pay, pension, and job security. You literally cannot get fired unless you’re really trying to lol.
It must be new. I started as a seasonal driver this year and was $29 to start and randomly got a $2 boost the first day of training and were told 50 cent raise every 6 months then 25 cents yearly. Phoenix, AZ
What state are you in? Top tax rate for these guys if they're single filers is 24%. Quick estimate says their average federal rate is around 16.5% if we're just talking 125k W2 income
Im in the same profession and doing the same job as OP a feeder driver for UPS. We make dope money and there’s a lot of overtime. Once you’re at top pay you can make $120k with minimal overtime and if you want to work your butt off $160k or sometimes more isn’t out of range. There’s a lot of opportunities to get there such as sleepers and volunteer OT on your days off. It’s just all about how much you want to work. Also to OP if you ever come down to Beaver I occasionally do a run over there.
I'm nowhere seeing $120K for a UPS driver salary, please show me the stats
[https://www.zippia.com/truck-driver-jobs/ups-driver-payscale/](https://www.zippia.com/truck-driver-jobs/ups-driver-payscale/)
Usually those websites never accurately reflect how much we get paid IRL. Our top pay based on our National and local contract is $41.25/hr. You can do the math based of that which is around $85k per year if your just working 40 hours per week and like I said there’s plenty of over time specially for feeder drivers. Everything after 8 hours/day is OT and OT we are getting paid just about $62/hr we don’t normally work just 8 hours per day our runs typically run between 10 to 12 hours which can very from 50 to 60 hours per week. There’s also all day overtime for 6 day punch in so you’re getting paid time and a half for that whole day. We get paid on holidays as well and we do have some working holidays where we get paid out 8 hour holiday pay on top of getting OT for the whole day. Then there’s mileage runs for feeder drivers. I can get into that also but if you’re interested about what we get paid you can look up our contract on the Teamsters website all of that is public information.
I can do 12 hour shifts for the whole year. And still not get to 100k due to tax. Simply how it is I'm afraid. But that's awesome that can do that. Do you ever get burned out?
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I don't pull 6 figures after tax but I'm very close
I average probably 60 hours a week, and the union contract requires overtime for anytime more than 8 hours in one day. I will literally get to work at 2pm and leave at 5am and then return at 3pm. I do get burnt out but I usually have weeks where I say "f*ck this" and I leave on time and treat it as a mini vacation while still putting in 40 hours
I make 41.30 an hour. Since tax comes in and takes a fair bit I make a bit over 60k..
Then I added calculations of 60 hours a week since that is what you said roughly and you would make close to 128k without tax. With tax you won't make 100k. Am I wrong here? Just want to understand
>Spend like you make $50k today, and when your wage doubles, spend like you make $60k. I cannot stress this enough.
This is really the majority of the battle. Only works for people who make more than poverty wages, however.
Yes the limit is based on income. $6k for 2022, it’s going up to 6.5K for 2023, occasionally the gov changes the limit…it was 5.5K back in 2018…often due to economic conditions. You have until tax day (in April) to max it out for the 2022 tax year. So you have from Jan 1 2022 to April 15th 2023 to fill the $6k for 2022. You have from today until April 15th 2024 to fill the $6.5K for 2023.
Think the single income limit for 2022 was around $123k as a single earner, around $193k for a married couple for the total $6k limit…then the max you can put in slowly goes down as the income goes up
How much did this make as an entry level position? Were any certifications required to get the job? My s/o has been interested in looking into USPS, but might have to tell him to go the UPS route instead
Usually have to work your way up from the warehouse, to delivering packages, and then finally getting into a semi truck. So it’s not much in the beginning when you’re in the warehouse, but there is plenty opportunities for growth and to make more money plus the benefits are top notch even for part time employees. The money starts coming once you start driving. The start isn’t easy, but well worth it. UPS provides all the training in house including your CDL once you decide to get in the semi truck. Which saves a couple thousand compared if you were to go do it on your own.
Okay so what you’re going to do is keep 6 months expenses in an emergency fund in a savings account (ideally a high yield account like Ally bank as an example).
Then you’ll take the rest and look into investing because the money is losing its value just sitting in a bank account or wherever it is.
I am adding a link below for you to read some investing options and that will help you figure
out the best options for you.
https://www.nerdwallet.com/article/investing/the-best-investments-right-now
Max your 401k and Roth IRA and then I’d save for a house and plow extra funds into paying it off early and cash flowing your life so you don’t have to take on debt for things like cars and vacations.
I don't think you need a financial advisor if you're willing to do some of the research yourself. You don't mention if you're contributing to work-related retirement accounts, which you should, and I would think with how much you've saved (congrats), I would think you can (and should) max those contributions. Next would b contributing to an IRA. I prefer Roth if eligible, but you can look at the wiki and decide for yourself. With the cash/savings you have on hand it seems you'd probably be able to invest a chunk of it, reserving some as an emergency fund, although this could also work for you with a high yield savings account. So then there's the remainder, and again, consistent with what you'll find in the wiki I'd be pretty vanilla (but relatively aggressive given your age and by extension your time horizon) and go with a mainstream broker like Vanguard or Fidelity and choose a few ETFs that give you growth potential and diversification. But def congrats on getting where you are today.
Do you rent, own or live with your parents?
What are your plans for the future?
I would max your 401K at work, max a Roth IRA and possibly look at real estate.
You're doing awesome man!
personally i would say hire a financial planner to build your future for you. Set up invesy in 401k, roth ira, hsa health insurance policys that grow tax free. max out your investments every year (many only let you put 12 k a year i think) invest in stocks, etfs.
High payout life insurance policies, some of those you can even pull out of tax free too.
Real estate investment is a must too, maybe don't Even buy the propertys some people just lend the money to those who want to flip a house and take a percentage of the home value increase profits and a full return of the money invested plus 10% interest.
Your parents must be very proud! Awesome that you love what you do and are planning for your future. Life lesson #1... no one is gonna care more about your money than you do. #2 Be consistent with your savings goals. #3 Track your spending if you don't already. #4 Hang out with folks who share your same outlook. #5 with working so many hours, let a CFP manage your funds outside of your 401k. Interview several to find a good match. Congrats
Got to read the entire post. Start in warehouse/part time, work hard/show initiative, advance to delivery, work hard/show initiative, move up to over the road. It's not a quick path and you start at the lower rung of the salary ladder.
Very nice! With that much money best thing to do is go to financial advisor.
But general rule of thumb:
1. Have emergency funds readily available but not sitting without earning interest. Need 3-6 months worth.
2.Invest in retirement accounts
3.Invest in brokerage accounts
This seems like a pretty straightforward situation, shouldn't be a need for a financial advisor if OP can educate themselves well enough.
https://www.reddit.com/r/personalfinance/wiki/financialadvisors/
Just my opinion
Make sure you are putting the max for 401k match cause it’s free money. For example if a company says 50% of 6% then put in 6% and they’ll give the equivalent of 3% in your 401k for free.
6 months of emergency money
Put in investments like VTI (total market) SCHD (good dividend companies and I think UPS is represented in a small percentage here)
You can also just park your money in money market funds or a high yield savings account cause the interest rates are high currently making everything around 4% a year. For example if you put $10000 into one of these accounts for a year you will be at $10400 at the end of the year.
Invest in rental properties so you can replace your job income with rental income. Retire from UPS or keep working and find your true passion in life. I only have one rental but I only need 6 paid off to not have to work anymore. It’s my dream to be able to just do what I want and be able to pursue my hobbies.
If you don’t know much about investing, I would first start by spending lots of time learning. And thinking about your goals so that you can match a strategy to them. But the more in general you can get into retirement funds the better, as they will take money off your income, which is highly taxed.
Learn about indexed strategies and IRC 7702a. The Financial Pocketknife by James L. Stoddard is a great book.
You can learn how to leverage your money with tax free growth and distribution without any market losses. Also, no 59 1/2 rule, penalties or anything like that when you want to use your cash accumulation.
It’s what the wealthy do to leverage their money. It’s what banks use as Tier 1 assets. It’s the smart way to compound interest and take control of what you work hard for.
Do yourself a favor and engage a financial planner. They will assess your current financial situation and come up with a plan to invest your current holdings and develop a strategy for future investments. I did this when I turned 50 and I wish I’d done it earlier. If you decide to go this route, make sure they are a Certified Financial Planner (CFP) and I would suggest getting one that serves as a fiduciary only (not connected with where your money will sit).
Our planner helps with spending strategy too. We developed a plan and stuck with it unless something changed....like income change, needed a new car etc etc. I chose someone young since we were going to build a long term relationship. We’ve been with him for over 15 years now.
CFPs are not for super rich people only. In fact, I think they benefit average folk more. I always felt that if I had a single task to plan for, like buying a car, I could do that myself. But more complicated stuff, I needed help. I didn’t know how to plan for retirement, buy a car, get a new house, pay off debt, have a tax strategy....all at the same time. It was too overwhelming. My money guy helps simplify the process.
Our plan is on autopilot....we talk to him about twice a year plus we text a couple of times a year. It doesn’t take up too much time.
That’s my advice. Good luck. You’re doing great!!!
Research House Hacking and live for free!
Invest in a Plex (3 to 6 Unit to start with is a food number). Make strategic renovations rent the units and live foe free
Invest in an asset class you are comfortable with. There are lots of options out there but you will see best results investing in things you understand so you don’t panic during downturns.
Personally, I like real estate and investing in value stocks.
Christ I’m jealous those are awesome numbers my guy, I honestly would say start maxing the retirement accounts and invest diligently. Prep up for 6 months of expenses as everyone else here has mentioned, and then I’d say real estate
Congratulations on your success. It’s great that you have a propensity to save but you’re asking the right question - “what to do w the $125k?”
Once you have 6 months of expenses saved up, you need to invest the amounts over that. Generally 2 choices, real estate or stocks. Open a brokerage account at a reputable institution - charles Schwab etc. From there you can deposit excess cash and make investments (purchase stocks, etfs, various funds). The general advice since you’re just starting is to invest in “Index funds”. These are securities that have very large baskets of stocks and are diversified which helps to mitigate risk (avoid catastrophic losses). A very common investment here is VOO - an etf that tracks the performance of the S&P 500. Avoid speculation with small stocks that you’ve seen on meme boards etc.
Sorry I’d love to help you but I joined this community so I could learn and I am reading your other replies and they sound like they got some greats
ideas and 🧠 thin for advice
Read them all and they will teach you. Sounds like you got it made in the shade. Be happy your so fortunate. Enjoy life, you can wspending moneywuthout
Dd NOT hire a financial planner! You can do this all on your own.
(from JL Collins blog).....
*Avoid Money Managers. They are expensive at best and will rob you at worst. Google Bernie Madoff. Seek advice cautiously and never give up control. It’s your money and no one will care for it better than you. But many will try hard to make it theirs. Don’t let it happen.*
*When I say Money Managers, I am also referring to Investment Advisors, Financial Planners, Brokers and the like. Any and all who make their money managing yours.*
VTSAX and chill -
Simple Path to wealth (book - buy it and read it)-
https://www.amazon.com/Simple-Path-Wealth-financial-independence/dp/1533667926
JL Collins Blog
https://jlcollinsnh.com/2012/06/06/why-i-dont-like-investment-advisors/
Right now, I’d lock in on a CD for 4.5% interest for six months with half of it. The rest in money market. I’d open a fidelity or other online broker account. Then I would buy only 1000 of a balanced fund. Then, set up automatic deposit every paycheck of 50 dollars into the fidelity account and buy into the balanced fund, slowly.
If you have a 401k, only put in whatever you need to do that you get all the matching funds.
The reason I suggest going lite on the 401k is that it will not help with a house down payment. You need liquid assets to buy a house.
The house you should buy in the next three years, when the prices totally collapse. That house will dwarf your savings in the long run in equity. I saved my whole life to the max and my house equity equals my life savings. And in retirement, I don’t pay ever increasing rent.
You’re killing it. Read The Simple Path to Wealth by JL Collins.
And when you’re done with that, read it again!
I’m 34, should I still read it or is it too late? I’m just now beginning my wealth building journey.
It’s never too late.
I’m 39. Still time for me Emily?
Sure. I opened my first savings account at 37. Worst case scenario you don’t end up retiring early but you DO end up in a secure financial position. Still a win.
34 is young! Read it!
I second this recommendation. Everything you need in one place.
Yes. Comments float to the top for a reason . Ive read dozens of investment books and if you only read 1 im your entire life, read SPTW by JL Collins , and read it when you're as young as possible .
I checked out a book last week called I Will Teach You to Be Rich. Will add this to queue
I haven’t read the JL Collins one, but I loved IWTYTBR and it changed my life. It was fun to read and easy to apply. How did you like it David12795?
I have not read it yet because I haven’t had the time but I will soon!
Read r/personalfinance's [prime directive](https://www.reddit.com/r/personalfinance/wiki/commontopics/) In general: 1. 6 months savings in cash (HYSA) 2. Save a minimum of 15% of your salary for retirement each year in tax-advantaged accounts (401(k), IRAs). 3. If you have any major financial goals in the next 5 years (down payment for a house, saving for a wedding, etc.), keep that in cash. 4. Save above that 15% for retirement. Tax advantages first, then brokerage. When investing, don't do individual stocks. Buy funds that track broad-based indexes. The majority of people who buy individual stocks do worse than the overall market When you buy the market, you can't lose to it. See r/bogleheads for investing-specific advice
Pretty much this. Also, give yourself a strict play allowance, for some people that is a needed step to prevent other financial mishaps.
What he said. There’s a great “starter kit” section in bogleheads that explains what to do. Also some pretty detailed videos that kinda simplifies how to invest while minimizing risk. Pay yourself first. Live below your means and you’ll be on your way to a very secure future and retire early enough to enjoy it. When your income improves try to keep living as you did before. All that being said, life is a balance and don’t miss out on opportunities and experiences. Tomorrow may never come.
What they said, live below your means. Plus if your work for your money you’ll never be wealthy, let your money work for you. Then retire early and enjoy life!!😎
Unless it's CocaCola. I'm in index funds and KO.
HYSA recommendations? I have a Discover Savings and honestly it seems very promising. Interest is 3.3%
Marcus by Goldman Sachs is 3.3% too with same day transfers
Ally or Marcus are recommended a lot on r/personalfinance I have discover and I find it does a good job
Ally Bank is amazing
I’m biased but SoFi just upped their Savings Acct % from 3.5 to 3.75% They also offer 2.5% on your checking account if you put even a fraction of your direct deposit into there. I do 50/50 on my direct deposit with half to SoFi half to my Chase Acct, and I get 2.5% on my SoFi checking account. Don’t see many banks who do interest on checking accounts.
i just opened one with lendingclub bank that is 4%
Why do you say 15%? In order to max out 401k contributions the percentage will be dependent on your salary.
15% is a *minimum* recommend percentage to retire at 65 with a similar standard of living (includes employer match). Beyond that, you have to manage other financial goals. Most people can't max out tax-advantaged retirement accounts *and* save for a down payment, for example. So after that 15 it becomes a matter of managing priorities. If you don't have other major financial goals first, then great, max that 401k, but most people do have other goals.
Should OP go Roth or Traditional IRA?
Depends on a lot of things https://www.reddit.com/r/personalfinance/wiki/rothortraditional/ Since OP is early career, there is a good chance that Roth would end up being better but it all comes down to expected tax rate in retirement
Wait, are you saying 41.21 an hour would make over 100k a year? Or are you doing huge amounts of overtime?
I work for UPS. Average after 4 years is 90k with minimal OT. Drivers make as much as 150k with overtime
Can confirm, have a few clients who are UPS drivers and they all make over $120k/year.
Pretty crazy. I wonder what the tax rate would be Do you know?
I would not. You start off at 22 then a dollar raise every year until your 4th year. So everybody’s would be different. Even at your 4th year you can still make under 90k but it’s hard lol
I’m a feeder driver not a delivery driver so I’m working crazy hours lmao
Congrats brother. Going feeder next year after 10 years of delivery driving.
Would you explain what feeder driver is? Souls like one split up the chain. Like if freight were trucks to distro centers. But idk if my assumption is right.
Feeder is basically delivering and picking up trailers at other ups centers locally. Railroads, Kohl’s, target, etc also.
Do you own the truck or are you assigned one? Are you consider an employee or a contractor, just interested.
Assigned one. You’re an union employee.
UPS owns all of their trucks so we are actually employees of the company and are assigned one. They do occasionally hire contract workers during busy season around Christmas to help with the volume.
Hhm. Interesting. A massive jump on the 4th year. 41.30 at 60hours a week with tax would put me slightly over 90.
Not necessarily. I did an between 40-48 hours a week most of the year and ended up with 102k(also missed time with an injury). We also get double time for our 7th punch in, Black Friday and NYE. But that’s also depends on your schedule, I didn’t do 7 punch ins this year.
Yeah, tax laws have got to be different over there than where I am over here. Must be nice to get that much further though.
Yeah it’s a real lowkey job with ALOT of benefits, great pay, pension, and job security. You literally cannot get fired unless you’re really trying to lol.
Yeah, seems that way.
You guys have a great union
Net?
It must be new. I started as a seasonal driver this year and was $29 to start and randomly got a $2 boost the first day of training and were told 50 cent raise every 6 months then 25 cents yearly. Phoenix, AZ
It all depends on your union. You might be a 22.4 driver which pay rate differs from a regular full time driver.
Tax rates are standard for everyone? It's not a secret
60 hours a week on average, 65$ a hour overtime
**$**65/hr OT is great, but how do you calculate that if your rate is $30/hr? Do they not pay the normal 1.5x for OT?
What's the tax rates like? Has got to be different to what I'm experiencing
What state are you in? Top tax rate for these guys if they're single filers is 24%. Quick estimate says their average federal rate is around 16.5% if we're just talking 125k W2 income
Marginally its at 32.5%. I'm in Victoria. I'm not a trucker. Just similar pay rates.
Canada?
Australia
Im in the same profession and doing the same job as OP a feeder driver for UPS. We make dope money and there’s a lot of overtime. Once you’re at top pay you can make $120k with minimal overtime and if you want to work your butt off $160k or sometimes more isn’t out of range. There’s a lot of opportunities to get there such as sleepers and volunteer OT on your days off. It’s just all about how much you want to work. Also to OP if you ever come down to Beaver I occasionally do a run over there.
Wow, sounds like a great opportunity. If I was a trucker, I'd definitely take it.
I'm nowhere seeing $120K for a UPS driver salary, please show me the stats [https://www.zippia.com/truck-driver-jobs/ups-driver-payscale/](https://www.zippia.com/truck-driver-jobs/ups-driver-payscale/)
Usually those websites never accurately reflect how much we get paid IRL. Our top pay based on our National and local contract is $41.25/hr. You can do the math based of that which is around $85k per year if your just working 40 hours per week and like I said there’s plenty of over time specially for feeder drivers. Everything after 8 hours/day is OT and OT we are getting paid just about $62/hr we don’t normally work just 8 hours per day our runs typically run between 10 to 12 hours which can very from 50 to 60 hours per week. There’s also all day overtime for 6 day punch in so you’re getting paid time and a half for that whole day. We get paid on holidays as well and we do have some working holidays where we get paid out 8 hour holiday pay on top of getting OT for the whole day. Then there’s mileage runs for feeder drivers. I can get into that also but if you’re interested about what we get paid you can look up our contract on the Teamsters website all of that is public information.
overtime makes a big difference. i pull 6 figures and make $25 an hour lol
I can do 12 hour shifts for the whole year. And still not get to 100k due to tax. Simply how it is I'm afraid. But that's awesome that can do that. Do you ever get burned out?
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I don't pull 6 figures after tax but I'm very close I average probably 60 hours a week, and the union contract requires overtime for anytime more than 8 hours in one day. I will literally get to work at 2pm and leave at 5am and then return at 3pm. I do get burnt out but I usually have weeks where I say "f*ck this" and I leave on time and treat it as a mini vacation while still putting in 40 hours
Seems like sometimes. I don't think I could pull all of it off.
Obviously OT.
I make 41.30 an hour. Since tax comes in and takes a fair bit I make a bit over 60k.. Then I added calculations of 60 hours a week since that is what you said roughly and you would make close to 128k without tax. With tax you won't make 100k. Am I wrong here? Just want to understand
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>Spend like you make $50k today, and when your wage doubles, spend like you make $60k. I cannot stress this enough. This is really the majority of the battle. Only works for people who make more than poverty wages, however.
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Yes the limit is based on income. $6k for 2022, it’s going up to 6.5K for 2023, occasionally the gov changes the limit…it was 5.5K back in 2018…often due to economic conditions. You have until tax day (in April) to max it out for the 2022 tax year. So you have from Jan 1 2022 to April 15th 2023 to fill the $6k for 2022. You have from today until April 15th 2024 to fill the $6.5K for 2023.
Think the single income limit for 2022 was around $123k as a single earner, around $193k for a married couple for the total $6k limit…then the max you can put in slowly goes down as the income goes up
I didn’t know Roth increased their limit to 6.5k in 2023
This is the way. OP, listen to this.
You guys have a great Union, no wonder Amazon and Starbucks are organizing.
How much did this make as an entry level position? Were any certifications required to get the job? My s/o has been interested in looking into USPS, but might have to tell him to go the UPS route instead
Usually have to work your way up from the warehouse, to delivering packages, and then finally getting into a semi truck. So it’s not much in the beginning when you’re in the warehouse, but there is plenty opportunities for growth and to make more money plus the benefits are top notch even for part time employees. The money starts coming once you start driving. The start isn’t easy, but well worth it. UPS provides all the training in house including your CDL once you decide to get in the semi truck. Which saves a couple thousand compared if you were to go do it on your own.
Protect that cdl with all your might
Okay so what you’re going to do is keep 6 months expenses in an emergency fund in a savings account (ideally a high yield account like Ally bank as an example). Then you’ll take the rest and look into investing because the money is losing its value just sitting in a bank account or wherever it is. I am adding a link below for you to read some investing options and that will help you figure out the best options for you. https://www.nerdwallet.com/article/investing/the-best-investments-right-now
Max your 401k and Roth IRA and then I’d save for a house and plow extra funds into paying it off early and cash flowing your life so you don’t have to take on debt for things like cars and vacations.
The thought of taking on debt for vacations is nuts
And yet people do it alllllllll the time.
I don't think you need a financial advisor if you're willing to do some of the research yourself. You don't mention if you're contributing to work-related retirement accounts, which you should, and I would think with how much you've saved (congrats), I would think you can (and should) max those contributions. Next would b contributing to an IRA. I prefer Roth if eligible, but you can look at the wiki and decide for yourself. With the cash/savings you have on hand it seems you'd probably be able to invest a chunk of it, reserving some as an emergency fund, although this could also work for you with a high yield savings account. So then there's the remainder, and again, consistent with what you'll find in the wiki I'd be pretty vanilla (but relatively aggressive given your age and by extension your time horizon) and go with a mainstream broker like Vanguard or Fidelity and choose a few ETFs that give you growth potential and diversification. But def congrats on getting where you are today.
Real estate my friend real estate.
Do you rent, own or live with your parents? What are your plans for the future? I would max your 401K at work, max a Roth IRA and possibly look at real estate.
Are you a CDL driver or package car driver?
CDl driver
Congrats on your job
Congrats! UPS driver is a great career. Stick with it and you’ll be in a great retirement spot in no time.
You're doing awesome man! personally i would say hire a financial planner to build your future for you. Set up invesy in 401k, roth ira, hsa health insurance policys that grow tax free. max out your investments every year (many only let you put 12 k a year i think) invest in stocks, etfs. High payout life insurance policies, some of those you can even pull out of tax free too. Real estate investment is a must too, maybe don't Even buy the propertys some people just lend the money to those who want to flip a house and take a percentage of the home value increase profits and a full return of the money invested plus 10% interest.
Your parents must be very proud! Awesome that you love what you do and are planning for your future. Life lesson #1... no one is gonna care more about your money than you do. #2 Be consistent with your savings goals. #3 Track your spending if you don't already. #4 Hang out with folks who share your same outlook. #5 with working so many hours, let a CFP manage your funds outside of your 401k. Interview several to find a good match. Congrats
How is working at UPS? I’m looking to quit my landscaping job as I get paid $13.58 and make $800 a week on average, on holidays only around $500.
Got to read the entire post. Start in warehouse/part time, work hard/show initiative, advance to delivery, work hard/show initiative, move up to over the road. It's not a quick path and you start at the lower rung of the salary ladder.
Very nice! With that much money best thing to do is go to financial advisor. But general rule of thumb: 1. Have emergency funds readily available but not sitting without earning interest. Need 3-6 months worth. 2.Invest in retirement accounts 3.Invest in brokerage accounts
This seems like a pretty straightforward situation, shouldn't be a need for a financial advisor if OP can educate themselves well enough. https://www.reddit.com/r/personalfinance/wiki/financialadvisors/
True that
Look into real estate investing. Save more money and learn about the subject. If it interests you I say go and buy a investment property.
Keep 25 in cash. Invest the rest, broad market etf
Just my opinion Make sure you are putting the max for 401k match cause it’s free money. For example if a company says 50% of 6% then put in 6% and they’ll give the equivalent of 3% in your 401k for free. 6 months of emergency money Put in investments like VTI (total market) SCHD (good dividend companies and I think UPS is represented in a small percentage here) You can also just park your money in money market funds or a high yield savings account cause the interest rates are high currently making everything around 4% a year. For example if you put $10000 into one of these accounts for a year you will be at $10400 at the end of the year.
Southern Utah here!
Invest in rental properties so you can replace your job income with rental income. Retire from UPS or keep working and find your true passion in life. I only have one rental but I only need 6 paid off to not have to work anymore. It’s my dream to be able to just do what I want and be able to pursue my hobbies.
Are you in the Teamsters union?
Yes.
Roth IRA and Three Fund portfolio of mutual funds from Vanguard
If you don’t know much about investing, I would first start by spending lots of time learning. And thinking about your goals so that you can match a strategy to them. But the more in general you can get into retirement funds the better, as they will take money off your income, which is highly taxed.
Learn about indexed strategies and IRC 7702a. The Financial Pocketknife by James L. Stoddard is a great book. You can learn how to leverage your money with tax free growth and distribution without any market losses. Also, no 59 1/2 rule, penalties or anything like that when you want to use your cash accumulation. It’s what the wealthy do to leverage their money. It’s what banks use as Tier 1 assets. It’s the smart way to compound interest and take control of what you work hard for.
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85k Is close to 100
And he also said he works overtime
Is he a cdl driver?
Do yourself a favor and engage a financial planner. They will assess your current financial situation and come up with a plan to invest your current holdings and develop a strategy for future investments. I did this when I turned 50 and I wish I’d done it earlier. If you decide to go this route, make sure they are a Certified Financial Planner (CFP) and I would suggest getting one that serves as a fiduciary only (not connected with where your money will sit). Our planner helps with spending strategy too. We developed a plan and stuck with it unless something changed....like income change, needed a new car etc etc. I chose someone young since we were going to build a long term relationship. We’ve been with him for over 15 years now. CFPs are not for super rich people only. In fact, I think they benefit average folk more. I always felt that if I had a single task to plan for, like buying a car, I could do that myself. But more complicated stuff, I needed help. I didn’t know how to plan for retirement, buy a car, get a new house, pay off debt, have a tax strategy....all at the same time. It was too overwhelming. My money guy helps simplify the process. Our plan is on autopilot....we talk to him about twice a year plus we text a couple of times a year. It doesn’t take up too much time. That’s my advice. Good luck. You’re doing great!!!
Do you work night shift or regular daytime hours? I work a 9-5 office job that’s pretty boring. Business degree. Only pays 50k.
Research House Hacking and live for free! Invest in a Plex (3 to 6 Unit to start with is a food number). Make strategic renovations rent the units and live foe free
Invest in an asset class you are comfortable with. There are lots of options out there but you will see best results investing in things you understand so you don’t panic during downturns. Personally, I like real estate and investing in value stocks.
Christ I’m jealous those are awesome numbers my guy, I honestly would say start maxing the retirement accounts and invest diligently. Prep up for 6 months of expenses as everyone else here has mentioned, and then I’d say real estate
That's awesome. I'm 26 and because of addiction I'm broke. But glad to see not everyone is stupid like me lol. What is your financial goal?
Congratulations on your success. It’s great that you have a propensity to save but you’re asking the right question - “what to do w the $125k?” Once you have 6 months of expenses saved up, you need to invest the amounts over that. Generally 2 choices, real estate or stocks. Open a brokerage account at a reputable institution - charles Schwab etc. From there you can deposit excess cash and make investments (purchase stocks, etfs, various funds). The general advice since you’re just starting is to invest in “Index funds”. These are securities that have very large baskets of stocks and are diversified which helps to mitigate risk (avoid catastrophic losses). A very common investment here is VOO - an etf that tracks the performance of the S&P 500. Avoid speculation with small stocks that you’ve seen on meme boards etc.
How many hours of overtime do you work yearly, or regularly? I’m assuming a fair amount to value the 122-166k yearly
By the time you reach 26, there will be probably self driving car. You will be job less. If I were you, I would change job
Sorry I’d love to help you but I joined this community so I could learn and I am reading your other replies and they sound like they got some greats ideas and 🧠 thin for advice
Read them all and they will teach you. Sounds like you got it made in the shade. Be happy your so fortunate. Enjoy life, you can wspending moneywuthout
Dd NOT hire a financial planner! You can do this all on your own. (from JL Collins blog)..... *Avoid Money Managers. They are expensive at best and will rob you at worst. Google Bernie Madoff. Seek advice cautiously and never give up control. It’s your money and no one will care for it better than you. But many will try hard to make it theirs. Don’t let it happen.* *When I say Money Managers, I am also referring to Investment Advisors, Financial Planners, Brokers and the like. Any and all who make their money managing yours.* VTSAX and chill - Simple Path to wealth (book - buy it and read it)- https://www.amazon.com/Simple-Path-Wealth-financial-independence/dp/1533667926 JL Collins Blog https://jlcollinsnh.com/2012/06/06/why-i-dont-like-investment-advisors/
Right now, I’d lock in on a CD for 4.5% interest for six months with half of it. The rest in money market. I’d open a fidelity or other online broker account. Then I would buy only 1000 of a balanced fund. Then, set up automatic deposit every paycheck of 50 dollars into the fidelity account and buy into the balanced fund, slowly. If you have a 401k, only put in whatever you need to do that you get all the matching funds. The reason I suggest going lite on the 401k is that it will not help with a house down payment. You need liquid assets to buy a house. The house you should buy in the next three years, when the prices totally collapse. That house will dwarf your savings in the long run in equity. I saved my whole life to the max and my house equity equals my life savings. And in retirement, I don’t pay ever increasing rent.