UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next
Author: dustinp Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: Re: Retirement planning and other considerations Date: 8/22/2000 12:08 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
"Max out your 401k unless it is truly a dog (ie only offers company stock or high fee annuities). This will get you started and help with your taxes. You can always borrow against this money (as a last resort)."

You made the very interesting remark, "and help with your taxes." With the exception of a 401(k) being tax-deferred, does it help in any other way with my taxes, or do you simply mean that portion of my income invested in a 401(k) isn't immediately taxed?

"Set up an emergency fund of 3 to 6 mionths of expenses, depending on your risk of losing your job and your ability to reduce expenses on short notice. Plunk this money into a money market fund."

Good advice, and something that has been mentioned to me before. That will be my first action.

"Realy think twice about buying your home right now."

Funny that you should say that. My mother and several friends advocate that I quit "throwing my money away" on rent. However, those that invest say that right now is a bad time, and that because my rent is so low it's best to just wait.

In fact, from some estimates, what I pay in rent will actually be consumed every month by the new house for a year or so as I improve it. While that may be an "investment" per se into the value of my home, it does make a good case for just maintaining the status quo until I see an absolute steal of a deal.

In addition, interest rates are a bit high right now.. and if I buy a house my girlfriend might get the wrong idea! ;-)

For anyone still interested in this thread, here is my current plan in the order to be executed:

1. create a money market account that contains 4 months of no-job money--DO NOT TOUCH
2. invest the max rate into my 401(k) that will be matched by my employer
3. invest all other "savings" into a Roth

Anyway, I have at least one more month until I will actually execute this plan, so I will read more about Roth and other vehicles for investing money.

Thanks for the help everyone!
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
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