Hello, I am 27. Have a job in refining out of college. Fortunate to have no student debt or other debt. Want to understand if I’m properly utilizing my income. Also, I know that I’m doing most of this right, I am very lucky to be in the position I am in. This is more for optimization of an already great financial picture.
Primary Income: 121k, yearly bonus: 0-14,500 dependent on company performance and personal performance, usually we hit target and go above so it could be upto 16k
Secondary Income: rental property with a mortgage of 73k left, around 80k in equity, have tenants. After mortgage and reserves I can usually pull around 500-800 per month but I keep it in a HYSA for the property in case I need to renovate, repair, etc.
15k in personal HYSA, 43k in taxable robinhood, 121k in Roth 401k, company matches 6%, and also gives a free 7% per paycheck. 43k in Roth IRA. 6k in rental property savings.
Total Assets: 413k
Total Liabilities: 78k
Net worth: 335k
I have some questions. Should I be trying to hit the max contribution on Roth 401k? I was doing 15% of paycheck, but I recently set it to 6%. Ive been trying to start a company, save for a future wedding/house, and be more liquid by investing into my robinhood brokerage. By doing so Ive gone to a structure that is $279 per paycheck for 401k, $637 for Roth IRA, and about $1145 for robinhood brokerage, monthly with some smaller monthly deposits ranging from $600-$250 for slush funds, startup venture capital, and wedding/house.
Do i need to do HSA? Why do this at all and not focus on things like taxable brokerage to stay liquid? Same question for term life insurance, seems unnecessary.
I save around 50% of my pay currently, when is it okay to splurge? I still drive a 2017 honda civic, but have always thought about just getting the current year civic. Id also love to get an omega watch but it feels dumb. At the same time, I wonder how I might feel in the future and end up never having some of these things, and regret.
***Update: I believe my current healthcare plan doesn’t allow for an HSA, the company is canadian so we dont pay for health insurance. May have the wrong but I dont see an option for an HSA with current plan.