[USER]

Hi everyone I’m new to the FORUM. I’m 23 and making around 84k/year as an contract engineer. I help my parents 2k/month for their mortgage payment. Since I still live with them, I pretty much don’t pay for anything except for phone bill and online shopping when they ask me to get something.

I’ve maxed out my Roth IRA last year and plan on maxing out this year. I put away around $1200/month towards a HYSA and the balance at this moment is enough for my family’s 6 month emergency fund. I also started learning to invest and have around $3k in investment.

Is there anything else you can suggest me do differently? What should I do with my HYSA after having enough emergency fund, given that I would probably not move out in the next few years?

[Giovanni]

I understand maybe paying $500 a month towards your parents mortgage but $2,000?! What do they put towards it? Or do you guys live in like Beverly Hills.

[Peter]

2k is a lot if you’re are living at home unless you were planning on helping them out but ideally you should be working to your own retirement and you can always help them later when you are making more income.

[Charlotte]

You are paying $2,000/month and funding their emergency fund? This sounds like more than just living with your parents and paying your share. It sounds like your parents can’t make ends meet on their own. Is that the case? Is supporting your parents a continuing long term plan?

[Zimmermann]

• Taxes
• Keep maxing out your ira
• Stay debts free
• Invest account

Maybe safe for house or condo.

[Allison]

If you’re throwing $2,000/month at your parents mortgage, move out asap and throw $2,000/month at your own mortgage.

[Anna]

If you’re a 1099 contract employee I’d be saving to pay your taxes also and then the rest start investing in s&p index funds through either Vanguard or Fidelity.

Explore these too: We opened Roth IRAs with an advisor last year – and I think the fees are too much!

[Andrew]

What brokerage is your Roth with? I hope it’s a discount one like Vanguard or Fidelity. Full service brokers will eat you alive with FEES.

[Mark]

“your familys 6 month EF”. $2k a month in rent. you make $84k a year with no plans to move out in the next few years…. somethin don’t sound right here.

[John]

As a contract employee, save for quarterly taxes, they may be more than you think. Open a Solo 401(k) or SEP ASAP and stash as much away as possible while you’re young.

Don’t forget to take a look at: Question about wash sales, Roth IRA, and tax loss carry forward

[Kim]

What’s that $3k invested in? There isn’t much to learn about investment, read The Simple Path To Wealth, use the whole market and let it be boring.

If you’re worried and asking about what to do with the extra you might be overthinking “investment”.

[Lindsay]

My partner and I are on about $390k combined and have just bought our 4th home. We’ve only got one cars but we’re managing to live pretty comfortably. But the more you make, the more you spend and we are still terrible at spending though. What we did was to make another stream of income for the majority of the bills, I’m only advising, this gave us a higher level of financial stability.

What I’m saying is there’s a lot to things out there you could do and make some good income from, all you need is the right information. Passive income has to do with investing, you can put a fraction of savings into real estate (REITs) and get paid dividends.

You can open an account with some financial institutions which I can recommend to you which operate on REITs and lock your account for the number of months or years you want while dividends would be paid monthly into the account over total duration and accumulate profit.

You can decide to space it within 1 to 3 months each and you can also get this done for your kids too.

[Maureen]

This seems like an overly elaborate life change just to ensure bonding to your child.

Bonding can and does occur really well when parents work outside the home in other countries.

I see way more risk – financial (you will miss out on compounding effect of earlier savings in your life), social (though flights just 3 hours my experience is people don’t visit as often as you think) and cultural (is lower cost of living necessarily better for thinks like education of child?).

And then what is plan when child is 10, move again? A child that age would really not want to move.

Don’t miss: I’m trying to make all the best choices for us and our children

[Andreia]

Keep in mind that there’s more to it when you think of moving countries. Everything you pointed out seems good, but reflect also on the downsides of living abroad, no family support, not knowing the language, dealing with the most basic things working differently.

If this excites you, then it’s okay to do a big move.

Just beware of the challenges that come with moving to a different country.

[Steve]

It’s a deeply personal decision. I’d go nuts without friends. Our social circle is very important to us.

So, for us moving to another country just because it’s cheaper is a non starter. Also, without speaking Portuguese I’d never truly feel a part of society there.

[Katherine]

If bonding with your child is the goal, find a way to work less. Both of my parents worked (full/part time), but were always there when I needed them & I couldn’t ask for a better relationship with them.

Maybe adjust your career to have the flexibility through the years to be present more vs leaving the country. Extended family is also important in a child’s upbringing (given they want to be involved) we live 2000 mi away from my parents but my son and my mom have an amazing bond and their time together is so special.

Don’t forget to take a look at: How do you “justify” working sun up to sun down to pay off bills and not spending any time with your child?

[Author]

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