2011 bmw x3
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Q: What do you think about 2011 BMW X3 ?
Versus X5 or Mercedes ML or GL
A: ya I think it looks ok well I’il get it
Q: As a 27 y.o, am I on the right financial track?
How would you rate my financial situation?
I’m a 27 y.o working professional with the following financial portfolio:
Savings high interest – $70,000
Own and Renting out a condo (have equity on condo and will pay off the condo in 5 yrs) – current tenant is paying 2/3rd of the mortgage per month
Own and Paid off my BMW X3
No Credit card debt
401k – $38,000 (Contribute ONLY up to employer match. Reasoning – I don’t like leaving my money in my 401k because I want liquid funds. There’s way too many hoops to jump through to pull out the money. I plan on contributing more when I get to my 30s, but for now…steady contribution of 6% only)
No Roth – Same reasoning as 401k – Don’t want to invest too much for something that I won’t see or touch till I’m in my 60s. Some people don’t even make it till that age…why bank on it?
No stock
Short future goal – Buy a Florida townhome ($120,000) in 2011 and pay with cash. No mortgage then and no interest.
Let me know if there’s any financial advise you want to give so I can improve my financial situation.
The tenant is only paying 2/3 of the mortgage since my mortgage is a 15 year fixed. Hence, the payment is much higher. I’m covering the 1/3 which includes HOA.
I have approximately $60,000 in equity on the property. Have $130,000 left on the mortgage.
A: Seems like you’ve got nearly all your bases covered. The 6% 401k contribution is plenty, especially if your employer is matching that amount.
The only hole you’ve yet to fill is long term financial security. A ROTH is an excellent tool for that. Why NOT contribute to it if you have all your monthly expenses covered easily. Plus the contributions are tax deductible– up to a point.
What happens if you live until you’re 80 or 90+. You’ll needs funds to cover your expenses for those years. Rationalizing by saying “some people don’t live that long” is poor financial planning.
If you really don’t want to contribute to a ROTH, consider a high yield dividend mutual fund. The dividends get reinvested and act like compound interest. Over many years you can build up some serious wealth without a lot of continued out of pocket investing.
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