What is the typical rule of thumb these days for expenditures. Plus, do you take your pre-tax income or after-tax income paycheck for calculating purposes?

a) mortgage should account for what % of your income?

b) how much should a person be setting aside? E.g., assume a person maxes out their 401k -- how much additional should the person be allocating aside to a normal savings account?

Should I be also investing in stocks in addition to the 401k?

How do you guys do your budgets?

I am trying to set up a budget -- and cut some expenditures; but, not 100% sure how to allocate funds.

TIA

p.s. -- this is all so I can afford to drive a spankin' old e36 M3 in the mid-atlantic region :)

James-

Check your PM. No one can (and shouldn't) give advice without knowing the whole picture (current income, expenditures, debt, time horizon, risk aversion, insurance coverage, etc).

What do you mean?? I put all of my money in my car....where it belongZZZZ.

People with nice cars= RICH!!= Respect. :)

:D

James-

Check your PM. No one can (and shouldn't) give advice without knowing the whole picture (current income, expenditures, debt, time horizon, risk aversion, insurance coverage, etc).

I was asking for a general rule of thumb. I thought a mortgage was supposed to be 25% of your income -- but, could not remember if it was pretax or after taxes. I believe mortgage companies, as a general rule, will do up to 33% of your income.

I was wondering if people built budgets based on pretax/aftertax. Also, do you budget for your mods/RACING season -- or is it by seat of the pants?

What do you mean?? I put all of my money in my car....where it belongZZZZ.

People with nice cars= RICH!!= Respect. :)

:D

You got a jeep wrangler andy? Damn, how many cars do you have now? Like 5? RICH!!!

You got a jeep wrangler andy? Damn, how many cars do you have now? Like 5? RICH!!!

No, I didn't get one. "96" Wranglers don't exist. I was just trying to get people to like me. :(

No, I didn't get one. "96" Wranglers don't exist. I was just trying to get people to like me. :(

Oh... I thought you finally checked the VIN number and found out it was a special edition RACING wrangler that came with an additional 35 hp and 50 ft*lbs of torque.

Oh... I thought you finally checked the VIN number and found out it was a special edition RACING wrangler that came with an additional 35 hp and 50 ft*lbs of torque.
:laugh

I agree with Jed. I think more info is required to decide how you should plan out your finances. I don't think this is the place to ask. A financial advisor is best to consult.

I saw one once based on a recommendation from a friend and he didn't tell me anything I already knew. My mom and dad taught me how to manage everything.

Plus some legalities involved-especially if an NASD registered individual gave advice on a public forum.

I mean if someone asked me "what is an option" or "how does a stop loss work" or "what is a ratio spread" that's different-just black and white facts.

I saw one once based on a recommendation from a friend and he didn't tell me anything I already knew. My mom and dad taught me how to manage everything.

They taught you how to manage the checks they send you? Talk about a tight leash. :rolleyes

ouch.

Ouch.

I was asking for a general rule of thumb. I thought a mortgage was supposed to be 25% of your income -- but, could not remember if it was pretax or after taxes. I believe mortgage companies, as a general rule, will do up to 33% of your income.

I was wondering if people built budgets based on pretax/aftertax. Also, do you budget for your mods/RACING season -- or is it by seat of the pants?

Mortgage companies go up to 50% of your gross income...Pm'd you

They taught you how to manage the checks they send you? Talk about a tight leash. :rolleyes

Yeah. They said something about being mature and taking care of myself. I can't remember exactly what they said. I was playing a video game at the time. :dunno

No, I didn't get one. "96" Wranglers don't exist. I was just trying to get people to like me. :(


But nobody likes you. :stickoutt

Pete

No, I didn't get one. "96" Wranglers don't exist. I was just trying to get people to like me. :(
http://www.4wdonline.com/Jeep/Wrangler.html

:stickoutt

---Eric

http://www.4wdonline.com/Jeep/Wrangler.html

:stickoutt

---Eric

:eek:

http://www.4wdonline.com/Jeep/Wrangler.html

:stickoutt

---Eric

If I am ever on who wants to be a millionaire, Eric is going to be my phone a friend. :stickoutt

Hey Eric and Pete:

Go to the official Jeep page-www.jeep.com (not a forum, not a 3rd party page). I am talking about the manufacturer page.

Go to site map.
Scroll to the bottom
click on "Jeep Heritage"

You then get a map of the history of the Jeep.
Scroll to the right.
Click on "Jeep Wrangler TJ"
You will get a pop up that reads:

"After not producing a Wrangler for the 1996 model year, the new Wrangler TJ was introduced in April of 1996. "

There have been cars introduced far early into a year but designated as a model year ahead. I am thinking that it was introduced in 96 as a 97 model. As most people know, model year doesn't reflect year of production. My E30 325es was built in 86 but is an 87 model.

I am the resident Jeep-Know-It-All on BF.C :buttrock

James, if you need help with your Jeep, feel free to contact me. :D

Oh yeah, on that link Eric posted:

"1996: The coil-sprung Jeep Wrangler arrived in Australia for the Australian International Motor Show (Sydney) and the National 4x4 Show (Melbourne), October 1996. It went on sale in November '96. Earlier in the year the Grand Cherokee went on sale - Jeep Australia is getting serious. "

That sounds like the introduction at car shows was done. Again, as people have seen, cars are introduced sometimes before the actual model year.

Kinda like seeing a car being shown off at a car show for next year's model year. Doesn't mean because it was shown on one year that is the model year.

I am the resident Jeep-Know-It-All on BF.C :buttrock

James, if you need help with your Jeep, feel free to contact me. :D


Yeah, let Andy work on it. I hope it works since he's the expert. :D

Pete

well, i know i have some pretty frugal friends and generally your mortgage shouldn't be more that 30% of your pretax income, and one should have the equivalent of 6 mos to a years worth of net pay saved.

One should always be maximizing their 401Ks if the company matches, and stocks is a whole different story...

jeff

Yeah. They said something about being mature and taking care of myself. I can't remember exactly what they said. I was playing a video game at the time. :dunno
andy we were high at the time, remember? Your dad waz trying to hand u sum stupid family heirloom from india from like 1000 years ago but we kept laughing at him b-cause he had a job. and then we carved it in to a bowl and smoked out of it. That waz awesome, i cant beleive ur stupid dad got mad :rolleyes:

Thanks guys. GoBlue put me in touch with an AMEX financial advisor. I am just wondering if it is going to be worth the $500-1K to employ his services. :dunno

Is his services tax deductible?

James-

Financial Advisor or Financial Planner? Didn't know you were specifically looking to employ the services of someone. I know several experienced people at firms like Legg, Smith Barney and T Rowe Price.

The services MAY possibly be deductible as an "investment expense"-check with your accountant.

andy we were high at the time, remember? Your dad waz trying to hand u sum stupid family heirloom from india from like 1000 years ago but we kept laughing at him b-cause he had a job. and then we carved it in to a bowl and smoked out of it. That waz awesome, i cant beleive ur stupid dad got mad :rolleyes:

That doesn't narrow it down for me. We play video games high all the time. :confused

Financial planner Jed. Is there a difference between a financial advisor and financial planner?

I did not know they charged for these services. I thought if you used them as investment people/their firm -- their services were free. Guess I was a bit wrong, lol.

No not saying that at all.

I said some things MAY be tax deductible. Depends on what it is. For example some commissions on transactions may be deductible as in a NET sale of a security may result in an overall loss (which may or may not be deducted-depends on your what you can write off as a loss or if you have what is called a wash sale).

Some advisors may charge commissions for transactions (fairly antiquated now, unless you are self directed and dealing with a discount broker) some are fee based.

Again, I am NOT a tax advisor nor am I an accountant. It's best to discuss that issue with someone in that arena.

depends if they're comission based or not. if they're commission based, they're going to recommend investment vehicles that maximize their commission first, and meet your needs as best they can with those vehicles.

it's like going to a BMW dealer and asking them to pick out the best car for you, versus paying Jed $100 to test drive cars and tell you which you should buy ;)

The financial planner that I consulted with did not charge me anything. He went over all the different investment options. He said that he makes money when I make money off of the investments.

most likely he makes money when you buy the investments.

Financial planner Jed. Is there a difference between a financial advisor and financial planner?

I did not know they charged for these services. I thought if you used them as investment people/their firm -- their services were free. Guess I was a bit wrong, lol.

Yes, generally there is.

Financial Advisor/Financial Consultant/etc are just another name for stockbroker. Some are trained in financial planning (CFP certification) some are not.

For the most part Financial Planner generally denotes someone in the actual financial planning discipline, such as attaining or having the aforementioned CFP (Certified Financial Planner certification) as opposed to having just a Series 7 or 6, RIA (I think Series 65) licences and any necessary blue sky licenses (Series 63). The RIA is really like a legal test that we take which denotes that you are a Registered Investment Advisor.

Financial Planners look at the overall picture.

There is another designation called the CFA which is the Chartered Financial Analyst which for the most part deals with securities analysis and portfolio management. It is more in depth than the CFP, however isn't necessarily geared specifically for financial planning on a retail/individual level. It's generally taken by securities analysts, portfolio managers, investment bankers and some traders.

I've been in this business for awhile and have met many people at different firms-let me know if I can help you look around. As for charges, it depends on how the firm structures their payouts/fees, whatever. Check your PM by the way.

Blah blah blah. :rolleyes When I sat down with the planner, first question he asked was what kind of car I had. I told him, "BMW". He said, "Wow, you're already rich. :eek: Can you give me some advice??" It was cool. I felt better about myself too. :)

Plus some legalities involved-especially if an NASD registered individual gave advice on a public forum.

I mean if someone asked me "what is an option" or "how does a stop loss work" or "what is a ratio spread" that's different-just black and white facts.
Jed, what kind of money guy are you?!?!?! Didn't they teach you at money school that the BEST OF THE BEST financial advice is available free for the asking on automotive bulletin boards? Sheesh!

I did not know they charged for these services. I thought if you used them as investment people/their firm -- their services were free. Guess I was a bit wrong, lol.

A lot of places don't actually charge for advice, per se. I mean like you talk to someone and they go over things with you. But of course it is expected that one wouldn't take that advice and go do business with another broker/dealer or investment firm.

it's like going to a BMW dealer and asking them to pick out the best car for you, versus paying Jed $100 to test drive cars and tell you which you should buy ;)

Well... actually Rob, I like quote stuff from magazines and make generalizations based on car stats.

If I did happen to drive a car someone asks about, I will exaggerate any weaknesses as well then recommend a BMW-regardless of intended use.

"Audi? They plow. Get a BMW"

"But...I am only using it as a daily driver."

"That's cool. If you want to die on an off ramp."

Well... actually Rob, I like quote stuff from magazines and make generalizations based on car stats.

If I did happen to drive a car someone asks about, I will exaggerate any weaknesses as well then recommend a BMW-regardless of intended use.

"Audi? They plow. Get a BMW"

"But...I am only using it as a daily driver."

"That's cool. If you want to die on an off ramp."
nice disclaimer... you're definitely in the industry