Thank you, all the fools! My "extreme" plan really sucks after reading and thinking. I am trying to improve it, andhere comes a better one.With 65K job for me (take home about 2000 bi-weekly) and 40K job for my wife 9take home 1200 bi-weekly), We have more than6400 per month. And we will:Save 1000 for saving account.1200 in renting1000 for all expenses.300 for our car loanNow there are still 2900 we can invest.We will max the Roth IRA for 4000 in 2005. Let us deduct 400for each month.We will max the VUL account we have for 1400 per month. Do not laugh at me, I was cheated into buying this by a agent, whoWAS my friend at that time. I was a student, I was not readingfool.com at that time. I do not know this kind of account shouldonly be open after you max all 401K, IRA thing. I was reallyangry about those companies and salesman who care only commissions.But Since I have opened it, the best way to use it is to fund itas much as you can.Now, there will be about 1100 left to go to my 401K plan, sincethere is no matching dollars from my company, maybe that is enough.1100 after-tax dollars will be count as 1400 pre-tax dollars.I will be able to max my account, and a little bit left for my wife's account.(or just put it in savings)In any case one of us lose the job, I will stop paying the IRA and401K, min the VUL, I do have a way to cut the rent to 600, so even it is me who lost the job, we can still survice on my wife'ssmall salary.In 5 years, our saving will become 1000*12*5=60KAfter 3 years, the VUL is full and I must stop paying it, this will give me another 1400812*2=33.6K cash.I can withdraw from my IRA for 10K cash.So I will held almost 100K cash for the downpay of housing. We are planning for a 500K townhouse in the bayarea. So if there isa mild correction on the housing price, the price keep the sameas today, we got 20% downpay which will give us a deal. however,if the correction did not come, the price doubled in 5 years asit did in the last 5 years, we still held 10% downpay, comparingto the customers nowadays, still not too bad a situation.besides the downpay, we will max one of the 401k plan of us. Saveon Roth IRA accounts, paying VUL, I forget to say my wife actuallyheld an annuity plan because she work for government. 4 retireplans in the basket, Seems not too bad.Any suggestions? :-)
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra