Is this too late to start investing?

[Anonymous]

I am 32, make $170K a year, have $150K in a 401K (which I know is low: I had a pretty significant jump in income over the past four years in which my salary about doubled). Husband and I own a home worth $700K with $500K to go on the loan (under 3% interest rate). I had about $15K in a car loan that is now down to $6K.

We don’t have kids but right now, I’m able to save 30-40% of my take home pay and want to start more aggressively investing after I replenish my emergency fund / ‘home repair’ fund (we bought the home less than a year ago) and pay off the car. I wasn’t able to invest much in my 20s aside from retirement but I do have a few thousand in a brokerage and have essentially stuck to the ‘Bogleheads’ distribution. Is it too late to start now? I’m currently only putting in around $500-1K a month.

[Anonymous]

too late? when you have THIRTY years til you retire?

No, not too late.

[Anonymous]

Of course it’s not too late. Start maxing out that 401k before you do anything else.

[Anonymous]

The only time it's too late to invest is when you don't have any money to save or are likely to need to spend it within 6 months to a year.

[Anonymous]

Anonymous wrote:Of course it’s not too late. Start maxing out that 401k before you do anything else.

I am definitely doing that!

[Anonymous]

Anonymous wrote:I am 32, make $170K a year, have $150K in a 401K (which I know is low: I had a pretty significant jump in income over the past four years in which my salary about doubled). Husband and I own a home worth $700K with $500K to go on the loan (under 3% interest rate). I had about $15K in a car loan that is now down to $6K.

We don’t have kids but right now, I’m able to save 30-40% of my take home pay and want to start more aggressively investing after I replenish my emergency fund / ‘home repair’ fund (we bought the home less than a year ago) and pay off the car. I wasn’t able to invest much in my 20s aside from retirement but I do have a few thousand in a brokerage and have essentially stuck to the ‘Bogleheads’ distribution. Is it too late to start now? I’m currently only putting in around $500-1K a month.

You are married. Think in terms of 'we', not 'I'. How much does your husband make? What's your combined net worth (outside primary residence)?

Even assuming you were single, you are doing great. Just keep doing what you are doing.

[Anonymous]

Definitely not too late.

I think you are on right path by prioritizing:

Retirement
Car loan (especially if rate it high)
Emergency fund
College (if kids are consideration and you want to help pay for their education)
Brokerage

The bogleheads distribution (three fund portfolio?) is a solid way to invest.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I am 32, make $170K a year, have $150K in a 401K (which I know is low: I had a pretty significant jump in income over the past four years in which my salary about doubled). Husband and I own a home worth $700K with $500K to go on the loan (under 3% interest rate). I had about $15K in a car loan that is now down to $6K.

We don’t have kids but right now, I’m able to save 30-40% of my take home pay and want to start more aggressively investing after I replenish my emergency fund / ‘home repair’ fund (we bought the home less than a year ago) and pay off the car. I wasn’t able to invest much in my 20s aside from retirement but I do have a few thousand in a brokerage and have essentially stuck to the ‘Bogleheads’ distribution. Is it too late to start now? I’m currently only putting in around $500-1K a month.

You are married. Think in terms of 'we', not 'I'. How much does your husband make? What's your combined net worth (outside primary residence)?

Even assuming you were single, you are doing great. Just keep doing what you are doing.

Thank you, I appreciate the vote of confidence!

I admittedly have a hard time thinking of finances as ‘we’ (I was single for most of my 20s and quite independent, living alone; buying and selling a condo alone, etc.)

My husband has $250K in retirement, $20K in a brokerage (this was an inheritance, I think he forgets it exists most days) and makes around $140K but his company fully pays for his car, gas, and insurance, which is a very nice perk. He definitely made more in his 20s than me but his increases have been more slow and steady. Between us, we have around $80K liquid savings (an emergency fund, if you will).
He owned a condo before we met that he rents out: it’s worth around $400K and I think the mortgage has about $325 to go.

[Anonymous]

My 90 year old grandfather (of sound mind and body) just made a stock purchase this morning.

[Anonymous]

Anonymous wrote:too late? when you have THIRTY years til you retire?
No, not too late.

Today's 30 year olds will probably have to work into their 70's. So only 4 more decades to go.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I am 32, make $170K a year, have $150K in a 401K (which I know is low: I had a pretty significant jump in income over the past four years in which my salary about doubled). Husband and I own a home worth $700K with $500K to go on the loan (under 3% interest rate). I had about $15K in a car loan that is now down to $6K.

We don’t have kids but right now, I’m able to save 30-40% of my take home pay and want to start more aggressively investing after I replenish my emergency fund / ‘home repair’ fund (we bought the home less than a year ago) and pay off the car. I wasn’t able to invest much in my 20s aside from retirement but I do have a few thousand in a brokerage and have essentially stuck to the ‘Bogleheads’ distribution. Is it too late to start now? I’m currently only putting in around $500-1K a month.

You are married. Think in terms of 'we', not 'I'. How much does your husband make? What's your combined net worth (outside primary residence)?

Even assuming you were single, you are doing great. Just keep doing what you are doing.

Thank you, I appreciate the vote of confidence!

I admittedly have a hard time thinking of finances as ‘we’ (I was single for most of my 20s and quite independent, living alone; buying and selling a condo alone, etc.)

My husband has $250K in retirement, $20K in a brokerage (this was an inheritance, I think he forgets it exists most days) and makes around $140K but his company fully pays for his car, gas, and insurance, which is a very nice perk. He definitely made more in his 20s than me but his increases have been more slow and steady. Between us, we have around $80K liquid savings (an emergency fund, if you will).
He owned a condo before we met that he rents out: it’s worth around $400K and I think the mortgage has about $325 to go.

So, between the two of you, you have $310K in income, $400K in retirement, two homes worth $1.1M (with $825K mortgage), about $100K in non-retirement accounts. No kids, early 30s. Way to go!

Not sure what you are spending each month, but you have a higher income and more savings than most people your age.

[Anonymous]

I started my 401k at age 30, making 48k-year and didn’t crack 100k until after 40. I didn’t own a home either. I will still retire just fine. You are way way ahead.

[Anonymous]

Yep, too late, you'll probably need to work until you're 75+ with the tiny amount of money you have.

/s

[Anonymous]

You are in your 30s! In what world would this be "too late"? First, it is NEVER too late. Second, I expected you to say you were 55.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Of course it’s not too late. Start maxing out that 401k before you do anything else.

I am definitely doing that!

If you knew how to invest, you wouldn't go anywhere near a 401k. Start learning now and in about 5 years, you wish you hadn't gone anywhere near a 401k.
I had a slow day today, but still made 5% in my retirement account. Can't do that in a 401k. And don't forget RMD and taxes.