Truck Fund and IRA Maxed

[myrdale]

I'd made a post last year discussing the thought about purchasing a new truck or investing in the IRA.

https://www.savingadvice.com/forums/forum/financial-chit-chat/general-discussion/699663-retirement-savings-carloan

Luckily the discussion here helped talk me off of the new truck ledge. I did end up making a few financial changes I wanted to share.

1) I did max out the IRA for 2018, that was posted in the old thread so no big new there.
2) I opened a savings account at a local credit union. The purpose of this account is strictly truck fund.
3) I've decided to set a goal of maintaining roughly $20k in my normal checking and savings account. At the end of the month, anything I have in the accounts above $20k is moved to the credit union account.
4) I upped my 401k contributions from 7.5% to 10%
5) I've just maxed out the IRA for 2019 (Its now $6,000 per year vs $5,500). I'm going t try to make this a priority to do at the start of each year just to have it done with.
6) With the truck fund, the intention is not to consider purchasing a vehicle, new or used unless I can pay cash with that fund alone.

Are there any major holes in my thinking here?

[disneysteve]

Thanks for the update. I think that all sounds great.

[scfr]

This all sounds good.
What are your plans for paying for a new roof and AC when you need them?

[Jluke]

One thing I would change (perhaps) is if you are going to be holding 10k or more in checking/savings plus the truck fund, I would open an online account at Ally (no minimum) or CapOne Money Market (10k+ required) and get at least 2% interest on that money.

I (keyword) also wouldn’t pay cash for a vehicle IF I could get a 3% or lower car loan. But I believe some of those deals are harder to find now.

ETA: specified no minimum for Ally as my post was not clear.

[disneysteve]

One thing I would change (perhaps) is if you are going to be holding 10k or more in checking/savings plus the truck fund, I would open an online account at Ally or CapOne Money Market (10k+ required) and get at least 2% interest on that money.

The 10K minimum is only with CapOne. Ally has no minimum for their rate which is currently 2.2%. So if you are earning much less than that with the credit union, I would consider moving it.