Buying Engagement Ring - Financial Advice?
Hi - I am currently saving up for an engagement ring and wanted some general financial advice about my 401k. I am currently investing 5% and I know I should be maxing it out, considering my employer matches 50% up to a total of $7,500/year. I make about $165,000/year (gross) and my monthly expenses are approximately $2,500/month. Problem is, I need the cash to buy the ring and then save for the wedding, a house, etc. How should I go about investing at this point, if at all?
Perhaps keep my 401k as is, until I can invest a great amount more comfortably?
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I would begin by deciding on a ring that you feel comfortable buying - remember that bigger and flashier isn't necessarily better, and a lower-priced ring doesn't mean you care any less.
Then, figure your budget so you can maintain your current standard of living, and calculate in what you need to save for a down payment for a house, as well as the ring you chose and some money for a wedding. (Traditionally, her parents will pay for your wedding, but your situation may be one where that's not really possible, so... you'll have to evaluate what you need to save). Also, if you're getting married you'll have a combined income on which to draw for things like your retirement account (which, if you get a 50% match, should probably come out of your pay) and a house. While it's quite chivalrous to want to pay for everything yourself, with the state of the economy and the cost of housing, that second income could be what it takes to reach all your dreams. Take one step at a time, and remember to make your fiance a partner in your financial decisions. :)
Best of luck, and I hope this helps!
Don't take it out of your 401K. Wait till you invest a greater amount more comfortably, like you said. Really depends how fast you need the money as you didn't mention when your wedding is. Stock investing is probably the only way to make money quickly but its risky. Perhaps an ETF that tracks an index like the S&P 500. Great long term investment anyhow, so are individual stocks. Other then that just savings and bonds.... and selling used stuff on ebay.
two words for you: Cubic Zerconia
Ok don't listen to the person who says that 3/4 is too small!! My center stone is 1/2 carat and it looks really big on me because I have small hands. You don't want something that is just overwhelming because they can look obnoxious and fake. And don't listen to the insensitive jerk who is talking about divorce... rude!! And yes you can talk them down on the price. My fiance and I shopped for my engagement ring together. We originally went to one store and then went to another store (same company) in a town nearby. We asked them what they could do for us if we bought the ring from them instead of the other store. They gave us $500 bucks off! I am not sure about buying the stone and setting from different places, so I can't really help with that one. Sorry! Good luck :)
I am calling BS on this poster. You make $165,000 a year with not too many expenses and yet you don't have a financial planner or CPA? You instead want to seek advice from yahoo answers? BS!!!!
First off, I am pretty sure that your employer can match up to 3% of your salary which would be $4950 so the rest would just be regular income. I might be wrong.......
So you are bringing in $10,000 a month after taxes and you don't have any cash for a ring?
Once again, BS!!!!!!!!!!!!!!
Should you invest? DUH!!! You figure that out.