welcome to the Jill on money call of the
week we are presented by Marcus by Goldman Sachs is there something going
on in your financial life that’s bugging you maybe keeping you up at night
maybe distracting you from your job well we’d love to help you out all you have
to do is send an email ask Jill at Jill on money.com
ask Jill at Jill on money.com that way we’ll get a little background
mark we’ll arrange it we’ll get you on the air and that is exactly what Natasha
did Natasha is on the line and is calling from Dallas hello Natasha how
can we help you out today hi first of all I love the podcast I
have been pinching it for the last couple weeks since I discovered it and
I’m really just glad to be talking to you because I need some help
well thank ya that’s a nice intro I’ll take it I am pretty early in my career I
am 27 years old I’ve been working for five years and I you know through your
podcasts I’ve heard of the fire movement it’s really been got me thinking about
what I want to do with my career and I’m wondering if I’m saving in the right way
to have potential flexibility down the road right now I’m you know at a high
paying job and I think I’ll might want to go into something like teaching maybe
in my 40s if I can afford to so I’m wondering how to make that happen for me
great okay so Natasha first starting with you’re 27 years old how much do you
earn right now I make $100,000 but I will make 115 at the end of two years
I’m doing a program at work where I get constant raises every six months so I
should make around 115 in the near future any debt that you graduated from
college with is something that you’ve assumed since then even no no dad I love
that okay how about rent do you rent or own or was that something that you think
about would you rather put yourself in a position to own something what’s going
on on your living arrangements yeah so right now
I’m living at home so I don’t have any French or living expenses which is
pretty sweet but in a year I’m going to be renting and I think that’ll be pretty
pricey because I’d like to just look like myself yeah I know how do we mate
yeah you know when people say like what is it that you want to spend money on I
would say even if it were a teeny tiny hovel if it’s just mine I’m with you
yeah I know I know really and and you know it’s
great that you you’re living home it’s funny because I think that you know
you’re making a ton of money you’re probably socking a lot of money away but
when you do rent what do you think you’re gonna have to spend to get
something of your own that you want you don’t want to live in you know I summon
the fire movement people they live in these horrible places but it doesn’t
sound like that’s something you’re necessarily wanting to do so what type
of rent range are we looking at I’m thinking something allowed this was
gonna sound bad but something around $2,000 including utilities bills all of
those things that come with the run um yeah that doesn’t sound bad I’m from New
York you can’t scare me right now at work do you have a retirement plan I do
so I’ve been working for the last five years
I’ve sucked the way in my 401k which includes employer matching $100,000 oh
my god that’s amazing that’s fantastic and how about outside of retirement any
savings yeah so I have a I have a brokerage account just an investment
account that I am taxed on I’ve gotten 90,000 in there and I should also
mention I have a Roth IRA that’s personal and not through work that has
25,000 you’re rocking it Natasha I’m telling you right now you’re doing great
where are the Roth and the non retirement brokerage accounts held so
the rod is held at fidelity and then the non retirement investment is at
Scottrade sorry TD Ameritrade Oh yep CDI okay great okay so both are fine
do you prefer one platform to the other in general or not I do I actually do
prefer fidelity because everything else is in there my sorrow on Kaizen man my
HSA so maybe I should roll my TDA account probably yeah just to make it
easy look it doesn’t matter really so if you’re listening and you love TD
Ameritrade if you said to me I love TD Ameritrade I just said whatever platform
you like sometimes it’s easier to manage from one interface I find it if
whatever’s easier and works for you then do it and the only thing is that you
just have to ensure that what you’re holding in that brokerage account can
also be held in a fidelity brokerage account my guess is yes but just in case
there’s some something that can’t be just want to make sure you understand
that before you make the transition okay right okay are you putting in the
$19,000 a year in the maximum into your 401k right now I’m not I’m hitting about
15,000 a year and that’s including the employer match okay all right that’s
fine because you’re also doing are you doing the Roth every year I am yeah I’m
maxing that out so you’re doing a great job and then how much is going into this
non qualified brokerage account them you know either annually or monthly or does
it happen sporadically I don’t know how you you fund it yeah it’s pretty
sporadic if I get a bonus at work I’ll usually throw it in there or if I just
have extra money and my savings it tends to be between a thousand and two
thousand months though okay so that money that could be the money that
starts to go away once you have to rent what I would suggest is this I think
you’re doing a great job before you finish the year out and before you start
renting I’d love for you to just have a nice emergency reserve fund do you
usually hold that reserve fund in the brokerage account or in a bank or
somewhere else yeah I have that through a bank until I have six months of living
expenses in there great so you maybe just want to put a little bit more in
there before you start renting just in case you have to pay a couple of months
upfront in rent or you know I write one month in a security deposit there will
clearly be some moving costs you’ll buy a few things not a lot you’ll make it
cheap you go to Ikea you and your friends will make yourselves crazy
glass of wine you put the furniture together it’ll never fit it will never
be the right thing it’s okay but I would this is what I would do I think you’re
doing a fantastic job and I think you were well on your way to cranking and
actually being in a position to do something different in 15 years from now
of course your life could change a million times right you might fall in
love and be like oh we’re moving to Bora Bora okay fine but for now I would keep
doing exactly what you’re doing which is I like the 15 grand and the 401 K the
six grand in the Roth IRA and then you can let the brokerage account just sort
of keep clicking along once you start renting you’ll get a better sense of
your cash flow and maybe your salary will rise and maybe you’ll be able to
put more money in that non qualified brokerage but we have to get through
that first hurdle which is you’re gonna rent your cash flow is gonna change a
little bit and then you can reassess and say okay is there actually any other
money that I can put into this brokerage account should I be doing something
different I like you building up that non retirement brokerage account because
you might need to tap into that if you really wanted to do something different
down the line because you won’t be 59 and a half you’re gonna be doing
something well before that time so I think you’re doing a fantastic job you
are I’m gonna call you fire light like
because if you’re a real fire adherent you’d say I’m going to live at home
forever until I say no I’m half a million dollars our million dollars that
wouldn’t be my choice I’m sure there are some people out there
who would love to do that but I think you are on track and I think that you
can keep reassessing and give us a holler back just be sure that as you go
forward that you know you keep checking in with yourself is this really the best
thing do I have the right allocation all those questions that you can ask
yourself but you sound to me to being fantastic shape great thank you so much
I needed that confirmation that I was doing the right thing you are I did
receive that thing yeah great good luck let us know if there’s anything else you
need help with we’re right here for you okay thanks so much all right thanks so
much bye bye okay that’s the call of the week if you have a financial question
just give us a holler send an email to ask Jill at
on money calm or go to the website Jill on money calm you can click the contact
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and our show is presented by Marcus by Goldman Sachs see you next week you