No. of Recommendations: 0
5 Fuskie Foolish Recommendations

1) No mention of e-fund. You want to save up to 6 months expenses in case of emergency.

2) You are getting near the cut-off for Roths so you might want to contribute the full $3000/yr. If you are into self-managing your money, consider Scottrade where there are no IRA or account maintenance fees, and no mutual fund transaction fees.

3) On the other hand, if your marriage tax relief and new home deductions do not lower your AGI enough, your 401K may be another way to reduce your tax burden. If your 401k's plan has some really good funds, that may be another reason to park your assets there.

4) It is good you are already renting a home. I assume you are taking care of most of the fiancial and maintenance on your rental so you are prepared for the cost of owning. Don't forget to include any Association dues and be prepared for other incidentals. In addition to the e-fund, consider a UeX-fund, or Unanticipated Expense fund. You could should put either into a high interest savings or money market account (I can refer you to ING at 2% and you get a $25 bonus).

4) Are you and DW going to start a family? If so, consider starting a b-fund (Baby Fund) as well as a 529 Coverdell Education Savings plan and signing up fo Upromise.

5) Do you have access to a credit union? You should be able to get a better rate for a 15yr loan. If you can put 20% down, you can avoid PMI and have immediate equity in the home. Try to avoid putting your property tax into escrow. Better you stick that money into your ING account and make it work for you until you have to pay it.

Bonus Rec:

6) Consider additional expenses you want to save for, like a car or vacation. To save money for these, go on a fiscal diet. Shop at Costco or Sams instead of the Piggly Wiggly. Turn your home into a restaurant (cook for DW a couple times so she does't think you think she runs the restaurant) instead of going out so much. See afternoon movies at discount. Shop with coupons. Think about wants versus needs, and give yourself a spending cap on the wants.

Best of luck!
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