Looking for advice from the parent cafe

Parent Cafe
21

<p>If you are working for a Fortune 500 company chances are they offer a ROTH 401K. You might want to consider putting all or part of your 401k deferrals on an after tax basis, so it is tax free at retirement rather than tax deferred. Given your age that is a lot of years of tax free growth.</p>

22

<p>Regarding apartment lease- It will depend on your management company. In our case we will let you out of your lease if we can rerent your apartment. You would be responsible for the rent till it is rented. I know other landlords or management companies that aren’t so willing to work with you.</p>

23

<p>Yes, the 6 month nested eggs is referred to as 6 months expenses, not 6 months salary.</p>

<p>You don’t have to panic if you cannot get out of the lease, just ride it out. You are not in immediate danger of insolvency, you may very well be working over in that company for rest of your life. So please do not panic. People over here are ultra conservative. Fortune 500 companies do not fire employees left and right like small companies.</p>

<p>The world is your oyster, young men/lady, go get it.</p>

24

<p>My suggested order is</p>

<ol>
<li>401k contribution up to the employer match</li>
<li>Save 3 months of expenses - but sounds like you already have that</li>
<li>Pay off high interest loans (for your situation just the student loans, since the car loan is such a low interest rate)</li>
<li>Save 6 months of expenses</li>
<li>Contribute to a Roth IRA</li>
<li>Other savings, for a house, etc.</li>
</ol>

25

<p>OP - Lots of good advice by prior posters. Having been in your situation, figuratively speaking, I’d suggest allowing yourself small rewards. For me it was a sunroof in my economy sedan, something I enjoyed for years … and an occasional dinner out at a really nice restaurant. If you want to experience Europe or hike the Rockies, this is the time to do it. You’ll remember these “gifts” long after you forget how much you wasted on that uptown apartment. The main thing is, endeavor to live inexpensively so you have resources to do the things you want in life.</p>