UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next
Author: FuskieFool Big funky green star, 20000 posts Top Favorite Fools Old School Fool Ticker Guide SC1 Red Winner of the 2010 Rule Breakers Challenge Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75339  
Subject: Re: Contributng Too Much towards Retirement??? Date: 1/28/2004 3:08 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
In summary, order of importance:
#1--emergency fund/credit card debt
#2--401k to company match maxiumum
#3--Roth IRAs
#4--taxable accounts


I would revise this as follows:

1) eFund (build up 3-6 months expenses in case of sudden loss of income). This neccessitates your creating a budget to see on what you are actually spending money. I recommend an ING Direct Orange Savings (2%) for risk-free access.

2) 401k up to company match (10% at $115/wk for you). If there is a company match for DWWT (Dear Wife who Teaches), then factor that in. If not, DWWT may want to put in a minimum amount just to say she is participating.

3) Fund Roth IRA $3000 ($57.69/week each). If your Roth account has transaction fees, put it into an ING Direct Orange Savings account (2%) until you accumulate sufficient funds to invest.

4) I am guessing your kids are young. That won't last long, so consider opening 529 for each of them to prepare for their college education.

5) Do you rent? See a new car or home in your future? Consider an Freedom Fund (fFund), which like an eFund, is money sest aside for a future major purchase. If the purchase is a few years away, consider a high yield bond fund or other low-risk investment.

6) Now we go back to your 401k. Fill'er'up! If you don't need it to save or spend, put it into your future.

In general, I would steer clear of taxable accounts unless you have this uncontrollable need to pay taxes. Hope this helps.

Fuskie
Who believes all investments should focus on your goal of future happiness and financial security...
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
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