John, New York, Sterling Colorado discussed on The Dave Ramsey Show
Got seventy five well, that gets you and your kids and your husband started in New York they need to they need to rent. He's working or buy something really cheap there near the family don't go for the family plot. You're not there yet financially do that when you are ready to come back to New York and we're GONNA get settled that's the family homestead that would be my. That would that's that's what I think. You should do because now you're going to be in great financial situation and your husband and kids are GonNa get stable there in New York I just don't like the idea of you buying another house. Yeah I. Think you got slowing down a little bit and put that money aside and still saving to buy eventual lake but again, clearing up the mess going, hey, we're not going backwards with another car loan we're not going back. With the credit cards, cutting them up, shutting them down, and Dominic you starting to change your thinking, right you know by every place you go. But again, you you and your husband talking about this and I want to applaud you and I can understand you not wanting your kids to have that move around lifestyle that you had. But but also your deployment, you know make sure that they're seeing you and spending time with you because that's going to be tough are all. The way around. Yeah. Listen this is not such an easy situation though but no, but you know the mindset is again we WANNA make two year decisions everybody what I mean by that is you WanNa make a decision that you look back on in two years and you go poor that was tough and it was rough but I'm glad I made that decision. It puts you on a trajectory. Yeah. All right. Let's go to John in Sterling Colorado. John How can we help? Hey Yeah I just have a quick question for you. My employer puts in fifteen percent into like traditional 401k automatically. Realize just curious I was curious if so I maxed out my. 401k Roth that for the year whatever I didn't know if that was a good decision or if just that fifteen percent would be. John, what what type of company do you work for? I'm a lion out in Sterling Colorado and they put in fifteen percent in retirement for you every year. Yeah they you have to stay there for one year and then they start putting fifteen percents. Okay. Well, here's the deal buddy. I'M GONNA. Tell you something I still want you contributing fifteen percent Okay. Okay. Because here's the deal John that company could decide that they're going to stop doing the fifteen and if you're only banking on their fifteen, you're going to have a problem so I want you to look at this like a a dollar for dollar match literally up to fifteen percent, which is so rare. I've never heard of a company going this high. So you get in the habit of being doing fifteen percent. If the company is doing fifteen, listen to me, you're going to have a whole lot of money one day. Okay would you on my side? Would you do roth? I would definitely do the Roth. Here's the deal. The Roth is after tax dollars. So you're not you're going to have tax free growth. You're not going to have to deal with Uncle Sam anymore but what the employer is contributing and matching you quote unquote. is going to be pre-tax. So that's going to be like traditional. So they're part you're GONNA have to pay taxes on. When you start withdrawing that money at fifty nine and a half, this is unheard of Ken I. Again I've never heard of a company going fifteen percent. I've heard of matches of of of up to nine and ten, but never fifteen. That's huge it is. But people often you stand there is a limit to how much that you can that a company can put in your 401k. You get to certain points to nineteen thousand still is that correct? But you but you have the percentage that you get focused but you're right there is the dollar cap on what will get to but that's okay. Use The apple. You stay focused on that and I think it's at nineteen five they keep flipping. Stuff but the bottom line is you have an opportunity to put in two, thousand, twenty it's nineteen five, and if you're over fifty, then you have an opportunity to do some additional catch up as well. So save people and invest your money, it'll grow. That's why it's important to Chris said putting fifteen percent in anything that you get from your company that's bonus i. Love it hey own think my pal my colleague, my good friend, Chris. Hogan. Hanging out with me this hour WanNa think our producer, Zach Bennett WanNa, think our associate producer, Kelly Daniel and you America. Thank you so much for joining us. This is the Dave Ramsey.