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Author: Beckenbour Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: this plan may be better. :-)) Date: 12/16/2004 2:47 PM
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Thank you, all the fools! My "extreme" plan really sucks
after reading and thinking. I am trying to improve it, and
here 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 than
6400 per month. And we will:

Save 1000 for saving account.
1200 in renting
1000 for all expenses.
300 for our car loan

Now there are still 2900 we can invest.

We will max the Roth IRA for 4000 in 2005. Let us deduct 400
for 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, who
WAS my friend at that time. I was a student, I was not reading
fool.com at that time. I do not know this kind of account should
only be open after you max all 401K, IRA thing. I was really
angry about those companies and salesman who care only commissions.
But Since I have opened it, the best way to use it is to fund it
as much as you can.

Now, there will be about 1100 left to go to my 401K plan, since
there 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 and
401K, 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's
small salary.

In 5 years, our saving will become 1000*12*5=60K

After 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 is
a mild correction on the housing price, the price keep the same
as today, we got 20% downpay which will give us a deal. however,
if the correction did not come, the price doubled in 5 years as
it did in the last 5 years, we still held 10% downpay, comparing
to the customers nowadays, still not too bad a situation.

besides the downpay, we will max one of the 401k plan of us. Save
on Roth IRA accounts, paying VUL, I forget to say my wife actually
held an annuity plan because she work for government. 4 retire
plans in the basket, Seems not too bad.

Any suggestions? :-)
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