Almost 30 - Check In

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acejacksingh
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Joined: Thu Dec 04, 2014 10:15 am

Almost 30 - Check In

Post by acejacksingh »

Hi BHs,

Turning 30 in a few months and haven't checked in a while. Just wanted a review of my current plan as things have changed over the last few years. Moved from DC to LA this year, moved in with girlfriend (soon to buy engagement ring), etc. Below are all the details with questions:

Age: 29
Salary: $85,000
Marital Status: Single, no kids
Fed Tax: 25%
CA State Tax: 9.5%
Bi-Weekly after-tax, 401k & HSA contribution paycheck (26/year): ~$1,900

Monthly Budget (I keep things high level):
Groceries: $600
Gas: $250
Entertainment: $800
-$500 eating out/nights out
-$300 other (movies, activities, random stuff)
Car Insurance: $160
Cable/Internet: $150
Rent including utilities: $1,500
Savings Account: Remaining funds

Investments:
Roth IRA (currently maxing this using individual stocks):
$62,000, VTTSX, Vanguard Target Date 2060 Fund (ER: 0.15%)

Pre-tax 401k (currently contributing 10% + 2% company match):
$90,000, Vanguard Target Retirement 2055 Trust Select (ER: .05%)

Taxable (future downpayment, secondary emergency fund):
$3,800, VWAHX, Vanguard High-Yield Tax-Exempt Fund (ER: 0.19%)
$7,400, VWITX, Vanguard Intermediate-Term Tax-Exempt Fund (ER: 0.19%)

HSA (maxed every year):
$1,000 Cash
$15,000, S&P500 Index fund (ER: 0.15%)

Stocks:
$15,000 in various individual stocks (slow reducing to fund Roth IRA in coming years)

Checking: Varies but usually +$1000
Saving: $29,000
Debt: None, pay CC in full, no loans
Net-worth: ~$200,000

Questions:
I would like to buy a house next year instead of renting. Should I shoot to have 20% of the downpayment no matter what or is it ok to put less?
Planning to propose soon, thinking about a $15k ring. Question is how best to pay for this to maximize CC rewards and minimal impact to savings?
Any changes to budget/spending you would recommend? I know I should increase 401k contribution but find it hard while living in DTLA.
Any other comments, concerns, or considerations?

Update About Ring
Completely understand everyone's concerns about the ring. I agree $15k is a lot to spend based off of income/savings, but I'm not making this decision lightly. I've done plenty of research and planning. To alleviate some concerns, I've confirmed through her friends she's going to love the ring and it's the right cut, carat, etc. It is also completely custom and not something I saw in a window walking down the street. Thanks for the feedback everyone!

Thanks,
AceJ
Last edited by acejacksingh on Tue Aug 14, 2018 3:25 pm, edited 3 times in total.
stoptothink
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Re: Almost 30 - Check In

Post by stoptothink »

That is one heck of an engagement ring considering the current financial situation. I'm sure that is what many of the responses will focus on.
harrychan
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Location: Pasadena

Re: Almost 30 - Check In

Post by harrychan »

Your grocery and entertainment budget it high for a single guy. We're a family of 4 and our grocery and eating out is $800. Not sure how much of your entertainment is eating out vs. other items. Can you break out whats in your entertainment budget?
This is not legal or certified financial advice but you know that already.
Flyer24
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Re: Almost 30 - Check In

Post by Flyer24 »

15K for a ring? That is insane. The average person spends around 6K. Here is a little marriage advice (married 18 yrs). Treat your bride good and don’t be too cheap. However, if you start out too high then you just raised expectations for future purchases.
Topic Author
acejacksingh
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Re: Almost 30 - Check In

Post by acejacksingh »

Flyer24 wrote: Mon Aug 13, 2018 8:43 pm 15K for a ring? That is insane. The average person spends around 6K. Here is a little marriage advice (married 18 yrs). Treat your bride good and don’t be too cheap. However, if you start out too high then you just raised expectations for future purchases.
stoptothink wrote: Mon Aug 13, 2018 8:32 pm That is one heck of an engagement ring considering the current financial situation. I'm sure that is what many of the responses will focus on.
Completely agree, but found one that I really like and think she will appreciate. I don't splurge a lot on "things" for her so I want to spend more than "normal/average" on it.
harrychan wrote: Mon Aug 13, 2018 8:40 pm Your grocery and entertainment budget it high for a single guy. We're a family of 4 and our grocery and eating out is $800. Not sure how much of your entertainment is eating out vs. other items. Can you break out whats in your entertainment budget?
Done. Did an average based on last few month. FYI my spending as increased since my recent move to DTLA.
DVMResident
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Re: Almost 30 - Check In

Post by DVMResident »

acejacksingh wrote: Mon Aug 13, 2018 8:27 pmQuestions:
I would like to buy a house next year instead of renting. Should I shoot to have 20% of the downpayment no matter what or is it ok to put less?
I'm a SoCal lifer and am not fixated on 20% down, which deviates from the general BH advice. I've watched the market both wipe low equity friends out ('93 and '08) and watched the market rise so quickly even savers can't keep up. RE is bipolar out here.

I'd rather focus on a combination of job stability, commitment to the area (some people leave after the kids...schools suck generally), commute times (which you won't understand until you lived it), and the rent:PITI +/- PMI relationship. Personally, I would look for a 20% discount on PITI vs rent. Almost impossible to find a buy that makes sense these days and, for you, I really don't see that happening vs $1.5k/mo rent.
Last edited by DVMResident on Tue Aug 14, 2018 3:06 pm, edited 1 time in total.
Nissanzx1
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Re: Almost 30 - Check In

Post by Nissanzx1 »

I'd slow down a touch. Get her a nice ring ($15K is probably a touch rich for your numbers) and let's get married. After you two are married see what she can save (with you) for home down payment. She needs to have some skin in the game. Is she coming in with debt?
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Nate79
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Re: Almost 30 - Check In

Post by Nate79 »

I would put the idea of buying a house on pause until married and settled for at least a year. Pile up money in a taxable account in the mean time. Do you also plan to save up for the cost of the wedding? Ring + wedding = expensive, especially such an expensive ring at your income level.

I would work on tightening the budget and try and get your 401k contribution higher. That's a win win.
Goal33
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Re: Almost 30 - Check In

Post by Goal33 »

That ring is a little rich. You should find something similar to the one you liked online at bluenile or brilliant earth...
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FlyAF
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Re: Almost 30 - Check In

Post by FlyAF »

I'll echo others, a 15k engagement ring is a mistake.
daheld
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Re: Almost 30 - Check In

Post by daheld »

A $15,000 ring is insane given your current financial situation. Insane. Do not buy a $15,000 ring.

I know you love your girlfriend. Like, a lot. I get it. But $15,000 is far too much to spend. It constitutes 30% of your yearly take home pay. That's too much.

You say you want to buy a house soon, but you have no money set aside in cash/money market to do this. Even if you buy a $200,000 home (do they even have those in LA?), that's a $20,000 down payment at 20%, which you say you want to target. Closing costs are, conservatively, another few grand. You'll need to spend a grand or two to move. All that with a $15,000 ring is roughly $35,000. Given your current assets, where is that money coming from?

I really am not trying to be rude, I promise. But you're getting an overwhelming response as far as the ring goes.
shell921
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Re: Almost 30 - Check In

Post by shell921 »

As I woman I want to ask this: is it usual and customary for the MAN to pick the ring?

I did not want an engagement ring - although my husband wanted me to pick one out for him
to purchase. But had I WANTED a ring, I would have wanted to have chosen it myself.

Sorry if I am hijacking the thread. I also think $15K is way too much - who ever picks it. :!:
3funder
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Re: Almost 30 - Check In

Post by 3funder »

$15,000 is way too much to spend on an engagement ring. I spent half that, and my wife still would have been happy with something a little cheaper. This is not an investment; the value of this ring will do nothing but decrease every year. I know people who make twice what you do and spent 65% less. And, as you know, LA is expensive. Don't piss several thousand extra dollars away on a highly priced engagement ring.
Global stocks, US bonds, and time.
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gunn_show
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Re: Almost 30 - Check In

Post by gunn_show »

daheld wrote: Tue Aug 14, 2018 11:23 am A $15,000 ring is insane given your current financial situation. Insane. Do not buy a $15,000 ring.

I know you love your girlfriend. Like, a lot. I get it. But $15,000 is far too much to spend. It constitutes 30% of your yearly take home pay. That's too much.

You say you want to buy a house soon, but you have no money set aside in cash/money market to do this. Even if you buy a $200,000 home (do they even have those in LA?), that's a $20,000 down payment at 20%, which you say you want to target. Closing costs are, conservatively, another few grand. You'll need to spend a grand or two to move. All that with a $15,000 ring is roughly $35,000. Given your current assets, where is that money coming from?

I really am not trying to be rude, I promise. But you're getting an overwhelming response as far as the ring goes.
This. Ring, no, spend less than half if even that. House, too soon. Get engaged, pay for the ring and wedding, live together, then decide how you will proceed with marriage and possibly having a family. And also see what new combined income and NW is, will give you more buying power. The last thing I would do is buy a house this early and young. Cart before the horse. I am currently negotiating on a new home because the one we bought 4 years ago, before getting married and having a kid, does not fit our current family lifestyle and needs. Wait and save until you really need a home, and you know exactly what you need to buy. Plus, as daheld mentioned, I don't really see how you could possibly afford a house in LA on your current financials. Homes in Socal average $500-750k, meaning $100k - $150k down payments and double your current cost of living plus prop tax and maintenance. Why?
acejacksingh wrote: Mon Aug 13, 2018 8:56 pm
Flyer24 wrote: Mon Aug 13, 2018 8:43 pm 15K for a ring? That is insane. The average person spends around 6K. Here is a little marriage advice (married 18 yrs). Treat your bride good and don’t be too cheap. However, if you start out too high then you just raised expectations for future purchases.
stoptothink wrote: Mon Aug 13, 2018 8:32 pm That is one heck of an engagement ring considering the current financial situation. I'm sure that is what many of the responses will focus on.
Completely agree, but found one that I really like and think she will appreciate. I don't splurge a lot on "things" for her so I want to spend more than "normal/average" on it.
"I think she will appreciate" .... means... you are guessing. Not only SEVERELY over spending relative to modest ($85K) income and modest ($200k) net worth, but you are guessing on a ring based on how you wrote your response.

Two massive mistakes I have seen friends make: severely overspending (#1 by long shot) and guessing on a ring - unless you have gone ring shopping and know the exact specs of what your wannabe fiance wants, don't do it. My wife and I have sat with many of her female friends who are thankful their man bought them a nice fat engagement ring.. yet secretly divulge that the style IS NOT their taste. Every guy thinks his girl wants that perfect cushion cut.. when in reality she may have been dreaming of a princess cut. NOT worth gambling, at all, without her input. Once we went shopping in fact, we were so turned off by the ridiculous prices we got a $12k ring setting we found done in Moissanite for less than half. Look it up. No one has a clue her huge ring is not "real" by normal standards. FWIW my income and NW are many multiples of yours and I could afford whatever I wanted to spend. But why? Frankly the last thing I would want my 20-something year old fiance walking around the streets of LA with.. is a 15k ring. Think about it.

Heed this:
shell921 wrote: Tue Aug 14, 2018 11:45 am As I woman I want to ask this: is it usual and customary for the MAN to pick the ring?

I did not want an engagement ring - although my husband wanted me to pick one out for him
to purchase. But had I WANTED a ring, I would have wanted to have chosen it myself.

Sorry if I am hijacking the thread. I also think $15K is way too much - who ever picks it. :!:
"The best life hack of all is to just put the work in and never give up." Bas Rutten
jgdsss
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Re: Almost 30 - Check In

Post by jgdsss »

Ring. My fiancé bought me an fairly expensive ($13k) platinum ring when we got engaged. I do like it but it’s not really that important nine years later. Sometimes I think of selling it but probably wouldn’t get near what he paid. Maybe we will sell it eventually. I would be perfectly happy with a nice diamond band. If she likes to impress people then I can see why she would want a big ring; but you need to determine what’s important. As years go by I feel better about keeping wealth under the radar and not being flashy. The people who matter to me couldn’t care less about a ring on my finger.
Phronesis
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Re: Almost 30 - Check In

Post by Phronesis »

15k?! Dude... I spent $850 seventeen years ago and that was BANANAS. But here's some advice you're not asking for that did the job: I stylized and personalized the ring with a jeweler. Look, anyone can throw money at things to win hearts, but money is weak sentiment. Make the ring your own! That is what my wife of 15 years still likes the most about her ring.
Last edited by Phronesis on Tue Aug 14, 2018 1:48 pm, edited 1 time in total.
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bampf
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Re: Almost 30 - Check In

Post by bampf »

daheld wrote: Tue Aug 14, 2018 11:23 am A $15,000 ring is insane given your current financial situation. Insane. Do not buy a $15,000 ring.

I know you love your girlfriend. Like, a lot. I get it. But $15,000 is far too much to spend. It constitutes 30% of your yearly take home pay. That's too much.
I spent $600 on the ring I gave my wife 23 years ago. It was every penny I could afford at the time with no credit at all. It wasn't huge and I guarantee that she likes the ring in that it doesn't get in the way, represents that we agreed to live a life based on substance and not flash. Up to you of course and I won't judge your thoughts, but, for me and for my wife, the $600 was much more in line with how we wanted to live our lives.
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Topic Author
acejacksingh
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Re: Almost 30 - Check In

Post by acejacksingh »

Update about the ring. Thanks for the feedback everyone!
daheld
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Re: Almost 30 - Check In

Post by daheld »

acejacksingh wrote: Tue Aug 14, 2018 3:23 pm Update about the ring. Thanks for the feedback everyone!
Nothing in your update changes anything about the fact that financially, it is a very bad decision to purchase a $15,000 ring. This is a financially focused forum. People are going to question these things, and this is a particularly bad idea.

You asked her friends if she would like a $15,000 ring. What did you expect them to say?

You've also not addressed concerns related to a home purchase. For what price can you reasonably expect to purchase a home? As far as I can tell, you don't have any money saved for a down payment. How will you accumulate that money plus purchase a ring?

[EDIT: I now see you have roughly $10k saved for a down payment in a taxable account.] My question is still valid--how much will a home cost and can you reasonably expect to get to a down payment soon?
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FlyAF
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Re: Almost 30 - Check In

Post by FlyAF »

I will say this OP, you've done a lot better for yourself than I had at 29, so congrats.

I still think a 15k ring is bad idea for many different reasons. It's value as a % of your NW is only one of the small ones.
shell921
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Re: Almost 30 - Check In

Post by shell921 »

Check out cubic zirconia rings! I have some great CZ cocktail rings. You can not tell
they are not diamonds.
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Brantley
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Re: Almost 30 - Check In

Post by Brantley »

Great job saving! You are in great shape.

I think $15k on a ring is reasonable. Ensure you shop around and you may be able to get a better deal. Jewelers can always recreate a design. I would also ensure you look closely at what dropping down in quality does to the price, and whether you can even notice the difference. Maybe you can get it closer to $10k?

I would also suggest seeing if you can get a better price by paying cash vs. credit card. Just be blunt with the jeweler.

How much are you looking to spend on a home? I would avoid paying PMI.
~Brantley
harrychan
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Re: Almost 30 - Check In

Post by harrychan »

Well, you have about $45k liquid to play with. If you spend $15k on the ring, that leaves you $30k for the wedding and downpayment for your home. The problem with a $15k ring is that the expectation is that much higher for the wedding. Your spending is on the high side (back to my comment on entertainment) and rent (I presume you live alone). You are going to have to change your lifestyle dramatically unless you are planning a 2 year engagement!
This is not legal or certified financial advice but you know that already.
maggabelle
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Re: Almost 30 - Check In

Post by maggabelle »

acejacksingh wrote: Tue Aug 14, 2018 3:23 pm Update about the ring. Thanks for the feedback everyone!
I know a lot of the posters on here are male, so I thought I'd give you a female perspective on this in case that might mean more to you. $15k on a ring is absolutely insane. No question about it - insane. If your girlfriend has the same financial priorities that drove you to this forum, then I'm sure she would agree. If not, and she's also ok with a $15,000 ring, then maybe you both need to sit down together and figure some things out. A good question to ask is whether she would spend $15,000 on a ring for herself. If the answer is "no" then you shouldn't either. Marriage isn't about spending money or showing off to others. I don't know you well, obviously, but it seems to me that maybe you aren't ready for marriage.

My engagement ring cost $400 and I literally never wear it. It sits in a drawer. I wear a $15 (Yes, you read that right. And that included shipping.) titanium band or a $35 rose gold band daily. They don't get in the way, they aren't top heavy and spin around, they don't scratch babies (a real concern), I don't have to take it off to wash my hands, put on gloves, it doesn't tear my clothing or get caught in my hair, etc. Large rings are a real nuisance.

On another note, I know far too many people who have lost their expensive engagement rings. It's exciting at first, yes, but it quickly loses that novelty as it becomes just another everyday item. Many people don't even wear their engagement rings - they only wear the band. What does your girlfriend do for a living? There are some professions where you can't wear a ring at work for safety reasons. A lot of people have to take their ring off to wash their hands and then leave it at the gym or it falls in a drain somewhere or gets left in a gas station bathroom.

The jewelry industry is a huge scam in my opinion. You don't even need rings to be married (gasp! it's true!).
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Brantley
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Re: Almost 30 - Check In

Post by Brantley »

harrychan wrote: Tue Aug 14, 2018 11:43 pm Well, you have about $45k liquid to play with. If you spend $15k on the ring, that leaves you $30k for the wedding and downpayment for your home. The problem with a $15k ring is that the expectation is that much higher for the wedding. Your spending is on the high side (back to my comment on entertainment) and rent (I presume you live alone). You are going to have to change your lifestyle dramatically unless you are planning a 2 year engagement!
OP, have you budgeted out how much you expect to pay for the wedding and down payment? Do you expect parents to chip in for the wedding?
~Brantley
jharkin
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Re: Almost 30 - Check In

Post by jharkin »

FIrst off, let me say that your overall situation is not bad at all... You are in the same neighborhood of salary i was at that age (inflation adjusted its more like 65 for me)... but your NW is 3x higher so really well done. Keep it up like that and some good luck in the markets and you may join the two comma club before 40.

Having said that - I agree with everyone else a 15k ring is completely insane. I know you probably did some google research and came up with an old "rule of thumb" to spend 3 months of salary or something - but keep in mind that rule of thumb originated from a 1940s ad campaign of the De Beers Diamond Co... i.e. it was intended to make them rich, not us. :twisted:

Its easy for people who are already FI or get help from their parents on these expenses to say its OK, but on your income its really, really really stretching. That's a new car or a big chunk of the house downpayment you just gave away. And don't forget the wedding wont be cheap either. Biggest concern of all - it would cut your emergency fund down to only 3 months of expenses - which is dangerously low on a single income in a HCOL area.

I spent 1/3 of that on my wife's ring at the same age and that stung. My now wife and I picked it out together... very glad we did and its really not "unromantic" at all.

For buying a house - Yes, do everything you can to get 20% down, especially in the hot CA real estate market. When I bought my house I stretched and put 10% down, but that was in 2009 to take advantage of the huge slump in Mass home values, some temporary tax incentives and strong buyers market and I got lucky that it worked out. CA may be a bubble waiting to explode, we may be due for another recession, the stock market may be due for a major correction.... i.e. you could get burned badly if you stretch now.




Side comment - your federal tax bracket is not 25, the law changed last winter - with your income and health/401 deductions you should be in the 22%.
jharkin
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Re: Almost 30 - Check In

Post by jharkin »

daheld wrote: Tue Aug 14, 2018 11:23 am A $15,000 ring is insane given your current financial situation. Insane. Do not buy a $15,000 ring.

I know you love your girlfriend. Like, a lot. I get it. But $15,000 is far too much to spend. It constitutes 30% of your yearly take home pay. That's too much.

You say you want to buy a house soon, but you have no money set aside in cash/money market to do this. Even if you buy a $200,000 home (do they even have those in LA?), that's a $20,000 down payment at 20%, which you say you want to target. Closing costs are, conservatively, another few grand. You'll need to spend a grand or two to move. All that with a $15,000 ring is roughly $35,000. Given your current assets, where is that money coming from?

I really am not trying to be rude, I promise. But you're getting an overwhelming response as far as the ring goes.

Typo in the math... 20% down on that 200k house would be 40k; add in closing costs, all the prepaid interest, and movers and you probably need 50k upfront + the EF. Bank probably wants to see an additional reserve to cover 3-6 months of mortgage payments after closing.

And your right, I suspect there is no such thing as a 200k house in SoCal.... probably more like 500k for an apartment so now we are talking 6 figures of up front money... not to mention a monthly payment that probably just not affordable on 85k income. They will likely need to wait until after the wedding to see what they can manage on both incomes combined.
daheld
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Re: Almost 30 - Check In

Post by daheld »

jharkin wrote: Wed Aug 15, 2018 8:25 am
daheld wrote: Tue Aug 14, 2018 11:23 am A $15,000 ring is insane given your current financial situation. Insane. Do not buy a $15,000 ring.

I know you love your girlfriend. Like, a lot. I get it. But $15,000 is far too much to spend. It constitutes 30% of your yearly take home pay. That's too much.

You say you want to buy a house soon, but you have no money set aside in cash/money market to do this. Even if you buy a $200,000 home (do they even have those in LA?), that's a $20,000 down payment at 20%, which you say you want to target. Closing costs are, conservatively, another few grand. You'll need to spend a grand or two to move. All that with a $15,000 ring is roughly $35,000. Given your current assets, where is that money coming from?

I really am not trying to be rude, I promise. But you're getting an overwhelming response as far as the ring goes.

Typo in the math... 20% down on that 200k house would be 40k; add in closing costs, all the prepaid interest, and movers and you probably need 50k upfront + the EF. Bank probably wants to see an additional reserve to cover 3-6 months of mortgage payments after closing.

And your right, I suspect there is no such thing as a 200k house in SoCal.... probably more like 500k for an apartment so now we are talking 6 figures of up front money... not to mention a monthly payment that probably just not affordable on 85k income. They will likely need to wait until after the wedding to see what they can manage on both incomes combined.
I recently commented on another thread that I am dumber than a bag of hammers. Just trying to live up to expectations here... :beer
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yukonjack
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Re: Almost 30 - Check In

Post by yukonjack »

I agree with most of the previous posts in that $15k is way too much but if you decide to go down that path do lots of research on diamonds and learn how to use a jeweler’s microscope. It is a common practice for jewelers to sell flawed diamonds for an inflated price. At the very least you might be able to negotiate a better price if the ring you like has numerous flaws.
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Brantley
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Re: Almost 30 - Check In

Post by Brantley »

yukonjack wrote: Wed Aug 15, 2018 8:54 am I agree with most of the previous posts in that $15k is way too much but if you decide to go down that path do lots of research on diamonds and learn how to use a jeweler’s microscope. It is a common practice for jewelers to sell flawed diamonds for an inflated price. At the very least you might be able to negotiate a better price if the ring you like has numerous flaws.
Or get a GIA certified diamond.
~Brantley
JT05
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Re: Almost 30 - Check In

Post by JT05 »

I don't want to pile on about the ring, but please reconsider the purchase. I purchased my wife's ring in fall of 2007 and spent ~$5k on a custom ring and she loved it. However, fast forward 10 years and with 3 young kids she RARELY wears it. Her daily ring is a $50 James Avery band. My wedding ring is a $50 James Avery band too (I'm on my second because I lost my first while swimming in a lake). Good luck whatever you chose to do.
Topic Author
acejacksingh
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Re: Almost 30 - Check In

Post by acejacksingh »

Brantley wrote: Wed Aug 15, 2018 8:55 am
yukonjack wrote: Wed Aug 15, 2018 8:54 am I agree with most of the previous posts in that $15k is way too much but if you decide to go down that path do lots of research on diamonds and learn how to use a jeweler’s microscope. It is a common practice for jewelers to sell flawed diamonds for an inflated price. At the very least you might be able to negotiate a better price if the ring you like has numerous flaws.
Or get a GIA certified diamond.
Yup it is GIA certified.
asdfasdf
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Re: Almost 30 - Check In

Post by asdfasdf »

this is unfortunately something that i know too well. there is this 'unwritten' rule that I have heard before...that men should spend three months gross salary on engagement ring. it is absolutely the most backward and ridiculous thing I've heard and unfortunately i think OP has fallen down into this 'tradition' (probably conjured up by those evil people at de beers).

OP - just because you get something that is only 2 months gross salary does not mean your future fiancee any less.
e5116
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Joined: Mon Oct 05, 2009 11:22 am

Re: Almost 30 - Check In

Post by e5116 »

I realize this is a financial forum, but basically anytime somebody brings up buying an engagement ring, people say it's too expensive and not worth it. The person I'd ask about that is your girlfriend. You know her better than anonymous people on the internet. Many women -- not all -- really want a specific ring/diamond that is pricey. I got an engagement ring at age 24 that was like $7.5k while making like $60k, and let me tell you my net worth was much much less than $200k like yours. Now, 9 years later, I'm glad that I did that....I wouldn't call my wife materialistic, but she did have a certain expectation for the engagement ring.

If I bought a ring now, it would be a lot more expensive as my net worth and salary have gone up considerably. So, long story short, do what you and your gf want for that single special purchase! I agree that the diamond industry is a bit of a ruckus and people can't tell the difference from a nice CZ, but such is life. We do things something that are not entirely logical to make those we love happy. As long as it's a single purchase and you're aligned on spending/saving habits together for the future.
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