UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75777  
Subject: Re: Advice needed Date: 3/31/2000 1:23 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
If your employer offers no match and your costs are high, you will probably be best off to make sure your and your wifes Roth IRAs are fully funded at $2K each each year. Then put the rest of available funds into the 401K.

The Roth $$ are after tax, the 401K $$ are pretax, so decreasing your 401K contribution will reduce your take home pay. However, in the long run, Roth is the better investment--especially in your case.

You should be 100% in stocks. The choice between Foolish 4 and S&P Index fund is up to you. Foolish 4 requires a brokerage account (usually at a discount broker) and usually becomes cost effective only after you get to about $10K. Vanguard Index 500 can be a good place to begin while you accumulate that $10K and while you get comfortable with the market.

You may also want to look at putting some of your funds into technology sector funds. They are shakey at the moment, but have done very well over the last few years. Perhaps up to about 30% of your contributions could go there in a Roth.

Best of luck to you.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Value Hounds

Clorox Isn't Cleaning Up
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement