Reply to I'm 44, net worth of about 1.3 million

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]And worried.[/quote]

You've got work to do.  Good news is, you've got some time, so there's that.

Increase 401k to max.
Opt for HSA if available and max HSA contributions.
Max Roth contribution.
If you have IRA or rollover, consider backdoor Roth since market currently down.

Stop eating out.  
Cut cable, should be internet only, shop for best deal.
Cut streaming services.
Shop and compare Auto and Homeowners insurance(particularly if it's been more than 5 years w/ current provider).
Shop and compare cell phone plans(Mint Mobile typically cheapest)
Do most of your shopping at Aldi/Costco/Trader Joes
Gasbuddy for best gas prices.

For every $40k/yr you you'll need in retirement, you need $1mil saved/invested.  You have a decent start and time is on your side so if you're smart and disciplined about this, you should be fine in 25 years.

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Are you serious about this? [/quote]

What posted above makes you question if I'm serious or not?  It's all fairly basic and straightforward advice.
[/quote]

The "you've got work to do." It seems a bit out of touch. [/quote]

Ok, if you think so.  They should just go with your helpful advice then.

[/quote]

Do you know that most people have barely three months' worth of savings?[/quote]

A lot of what I wrote would be useful for them as well.  Do you have anything helpful to add?

Here is another one: Don't buy cars "new" buy one that is 3 to 5 years old w/ 30-60k on the odometer.  Do not finance this purchase for longer than 4 years.  If you find a car that fits this criteria and the monthly payment is too much for you to afford over a 4 year note, that means you can't afford that car and need to adjust your standards.

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I once financed a brand-new car that cost $14,000 including tax and title, because the interest rate was 0.5 percent, which meant I paid a total of about $250 in interest over the five years we took the loan out for. We've had this car for nearly 12 years. Pretty sure that worked out fine for us financially.[/quote]

That's a nice story, and not a bad deal overall.... but you only further illustrate my point - you could have saved money buying the same car at 3 years old for $8-9,000 and financing it for 3 years to pay less interest and drive it for 12 years since it's clearly reliable.

Now, lets take that $5,000 you didn't pay for the same transportation and invest it in the market for w/ an average rate of return of 7% and in 25 years it's $27,000.

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You got it. I have never and will never buy a brand new car. I buy 2 or 3 year old certified used cars. They are as good as new. [/quote]

Congrats on sticking to outdated ideals?[/quote]

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