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Question for the Money Doctors

Question submitted on Nov 11, 2011.

Question

I have a question regarding Net Worth. My husband and I both work and are 29 and 30 respectively. Our annual combined income is approximately $120,000. We cannot agree on what our Net Worth should be at our age. We own a house worth $200,000, he has $50,000 away in liquid savings for retirement purposes and I have $20,000 in retirement accounts. We will also be debt free except for our house by June 2012.

Our we doing ok financially? How much should we be putting away for savings and retirement? And more importantly what should our Net Worth be based on our age and income?

Answer

with just this littele bit of information here we go....

Why have 50,000 in LIQUID for retirement at age 29? That only ensures you lose purchasing power!!!

Max out of your 401K's and can add to a ROTH IRA.

Strive to save 20% (if you fail you'll still be way ahead of the pack). Start a college account to earn tax free earnings if you plan to have kids (use your name since there are no kids presently).

Don't worry about what you "should have" (i.e NY folks need to save more than Texans simply because of location and cost factors - housing, food, etc).

If you use a doctor then use a financial planner!!! After all just because you know you're innocent would you let your spouse defend you on a murder case? use an EXPERT!!!


For additional information visit http://www.360financialliteracy.org/