one that people here don't talk about: making more financially

dudette10, MSN, RN · Jul 12, 2014

Put simply, put in at least your company's match, and, even better, put in the maximum allowed by law. $17,000 per year to 403b's and 401k's if under 50, and $23,000 for those over 50. Do it while you're young and you won't even miss it. You'll adjust your standard of living to your take home income, and you'll pay less in taxes. You will be able to withdraw without penalty at age 59 1/2, even if you are still working and your company has an "in-service" withdrawal provision. Still fairly young, so you can enjoy it.

If the market takes a downturn, DO NOT stop investing in your 401k/403b. I'll give you a real life example. In 2008, we had $250K in my husband's 401k. At the bottom of the market, we lost $100k, dropping our balance to $150K. We continued to shovel in the max contribution. Over six years, we have contributed almost $135K because my husband is over 50. The account now has $415K. That's $130K in mostly returns (and a little bit of company match) because we didn't stop investing...we bought funds dirt cheap knowing that the market would come back.

Never stop contributing. Ever.

brandy1017, ASN, RN · Jul 13, 2014

Many employers are even getting rid of 401(k) altogether.
My employer has no retirement plan whatsoever.
Health insurance costs me $480/month alone.
As a result,at 32 yrs of age,i have nothing besides a savings account.
I have looked into a Roth IRA,but the max contribution is $5000/yr.
I live cheaply btw,but in this area if you try to be cheap while paying for housing you risk safety.
Now that i need a BSN,any money I have left over will be used toward that purpose.
To the OP,i realize that nobody pointed out advancing your education to make more money.
What is your current degree?
Why not become an APN,so that you can work 1 job instead of 2?

I would look for a different employer. $480 a month is ridiculous,plus no retirement! What are you doing? Where are you working what type of company doesn't provide benefits?

You might be able to make more money as an NP if you are able to get a job that is, but you will be dealing with the drag of student loans sucking up your hard earned money so it's not a guarantee of more money! The student loan companies are sure to be getting rich off all the poor people running back to school!

brandy1017, ASN, RN · Jul 13, 2014

You will NEVER regret saving for retirement, but you will definitely regret not doing it.

I agree the sooner you start the better off you'll be when you are old! However, I suggest you invest in the 401k/403b at least to the company match and also invest in a Roth IRA.

The Roth IRA can function as an emergency fund worse case scenario, while if you have to withdraw money from your 401k/403b before you are 59 1/2 or quit working for your employer after your 55 you will have to pay 10% early penalty fee and may even have to pay a state early penalty fee (varies by state). The Roth IRA helps diversify your retirement funds between taxable and non taxable.

When you factor in an unknown tax rate for your retirement your 401k is not as great as it first appears. Also many people have been caught in the early withdrawal trap when the economy sank and they lost their jobs and were forced to rely on their 401k because they had no other choice.

Did the govt and congress give a damn, no they did not! They refused to cancel the early withdrawal penalty when millions had lost their job. They stood by and bailed out banks, but refused to give homeowners the same assistance when many were mired in predatory subprime mortgages because of greedy bankers! Sure they offered HARP but it was voluntary and most banks refused to work with homeowners because it was simply more profitable to foreclose instead!

Even our crappy health insurance situation is because the govt refuses to provide national healthcare. Instead they offered FSA that will not roll over so you are forced to guestimate how much money you will need to spend on medical/dental care. They offered HSA that does rollover and is taxfree but only if you can afford a high deductible health insurance plan where prescriptions are not even covered until you reach your deductible! The least the govt could have done was make an FSA roll over so people would be able to safely save some money for medical care while still getting prescription drug coverage. Thank God for $4 generics that Walmart started and it has spread to Target, Kmart, etc. Even CVS and Walgreens have a similar though less generous version. Also Costco is the best for prescription because they have a policy of a very low markup on their meds. If you live near a Costco i would look into getting any prescriptions thru them!

Also the affordable care act requires people to purchase health insurance if they do not get it thru their employer, but fail to mention you are paying market rates with after tax money. If you don't qualify for a subsidy you will be spending thousands a year for health insurance with a $5,000 deductible! Plus it's after tax so it is going to cut into your take home pay much more than the premium that is pretax that you pay for your employer's health insurance plan! The only ones that really benefit are the ones that can get medicaid, but some states will take your money and house if you are older and on medicaid! They didn't mention that though!

brandy1017, ASN, RN · Jul 13, 2014

I have coworkers who advised the same thing, that with PRN you get more money in your pocket, but the government is actually pretty smart and will get its money from you whether you earn it at one job or two. A financial advisor might be helpful to work out tax scenarios SPECIFICALLY based on your info. But again, when I worked more I did in fact make more. Working overtime I earned more with fewer extra hours than working a per diem. For me, the big benefit to working per diem somewhere else is having your foot in the door at another place for possible future job moves and spending too much time at one place made me SUPER sick of that job.
Getting a tax return means you gave the government an interest free loan. It's nice to get a chunk of money at the end of the year but that's money that didn't earn you interest or improve your quality of life of go towards paying down any debt. If you get no tax return it means that you calculated your tax withholding correctly the entire year. I've been told that ideally, you work out to OWE the max without having to pay a penalty every year and pay that out of savings you've been accruing interest on, but that's not something that would work for me.

The other problem with getting a tax return for anyone that has defaulted on a student loan they will find their tax return confiscated to pay the student loan. Don't default on your student loans! Some states will actually take away your license to practice if you default. Many jobs require licenses not just nursing! Even hairdressers, massage therapists and bartenders have licenses.

Make paying off your student loans a priority! It is better to go income based vs getting a deferment or forbearance because than interest is growing and the loan will become exponentially larger! If you don't pay it off before retirement you could find your social security garnished!

I've never defaulted, but have been paying off the loans for years because of the high interest rates back in the day and making the mistake of putting them in forbearance. Don't do it unless you want to be on the 25-30 year plan!

mhy12784 · Jul 13, 2014

You can save money on taxes by living in a state with no or low income taxes. Another great way to save on taxes is by funding an HSA and choosing a high deductible health insurance plan. That money grows entirely tax free, not even social security taxes are paid on it, it can roll over and can be used at a later time for any medical or dental expenses. Ideally you would allow that money to grow to retirement and then use it after 65 for medical expenses or insurance.
A roth IRA is a better way to save for retirement because it is yours free and clear, no penalties for early withdrawal and the interest is tax free. While a 401k or 403b allows a tax deducation, it is only temporary and you will pay taxes on withdrawal, also comes with strings and early penalty clause. Then it is taxed at ordinary income rates which may be more than capital gains tax rate and on top of that you are paying taxes on the interest. If you choose a Roth it is all yours and it is all tax free!
To save on taxes you need to be able to itemize and that requires deductions such as home mortgage interest, student loans, charity or business expenses. But I wouldn't buy a house just for a tax deduction, rather I would make sure I wanted to stay in the house and the area for a long time and had a secure job.
Overtime or agency is the quickest way to make money, but I find nursing too stressful to actually do this. You could climb the ladder if you don't mind all the BS that comes with it. I for one never did this because there was too many strings attached with ever changing requirements and the threat of a demotion and pay cut in the future. While I have missed out on all the money that raise could have given me over the years, I have kept my self respect and my sanity. The rest who climbed the ladder find themselves subjected to ever changing rules, being twisted like a pretzel for a one time raise. I've seen the rules change so often and are changing once again to prove to me I made the right decision not to climb the ladder!

For the overwhelming majority of people, most of a time a traditional 401k is better than a Roth.

If youre talking about which has better benefits on early withdrawals and stuff thats a different story, but no smart investor is investing their money with the intentions of probably pulling it out early.

The exceptions to a Roth making more sense is if you plan on maxing your roth 401/403b, or possibly if you have a pension.

But for most people just the 401 is usually better.

Although ideally maxing out a traditional 401/403 (or a roth 401/403b) and then maxing out a roth ira is by far the most ideal scenario

Though id imagine most people are not wise enough with their money (at least at a young age) to do so

Lennonninja, MSN, APRN, NP · Jul 13, 2014

Look into transferring to the float pool/resource pool in your hospital. Both places I've worked have paid a float pool differential and you won't be in the same place every shift and you generally get involved in less drama.