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Author: kahunacfa 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 308365  
Subject: Re: Balancing debt vs Investing Date: 1/9/2013 10:23 PM
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Start investing slowly as your excess cash-flow allows it.

If you do not want to start-out investing in individual stocks <the ONLY investing I have EVER done since 1969, then consider investing slowly in a low-cost Index Fund such as those offered by Vanguard - http://www.Vanguard.com, or some others.

Start investing first inside a tax-sheltered Traditional or Roth IRA. In a traditional IRA you payments or investments up to a certain dollar amount, and subject to income limitations, are tax-deductible in 2012 if the deposit/investment is made on or before 15 April 2013.

The withdrawals from a traditional IRA are then later taxed at ordinary income-tax rates when you make withdrawals after age 65 or 66. For a ROTH IRA, the withdrawals receive a different tax treatment since you make deposits to the ROTH IRA with After-tax, rather than Pre-Tax dollars.

Kahuna, CFA
Investment Professional
1974 - Present
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