| Need advise on savings PLEASE HELP! |
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jgon01
New Poster
Cash: $ 0.50
Posts: 2
Joined: 23 Aug 2007
Location: CT
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| Need advise on savings PLEASE HELP! |
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Hi everyone, I am new here, and 1st I just wanted to say I think this site is awesome, I am very happy to see there is a place to come to with such great advise, and help.
I want to start by giving you a little feedback about myself/finances, and if there is any additional info I can provide please let me know.
I am 29 years old, and happily married  We both have 401k plans through our jobs. My husbands company matches up to 8% so that is
what he invests. As for me, my company does NOT match anything.
we have NO credit card debt. We have one car loan for $15,000 @7%
and the typical monthly billls/expenses: Mortgage, light,oil,groceries ect...
we get free cable, internet, and phone from my hubby's job. after all bills
are paid we have $2.500.00 that we save every month at our savings acct with a 4.55% apy. We have a 6 month emergency fund. we have $50,000
that we think should be doing more than just sitting at a savings acct.
I should mention that my parents have financial problems, and currently owe us $20,000, and my older brother owe us $1,000.
(We dont count on that money until we receive it)
Questions:
1. Should I opt for a Roth Ira, and just drop the 401k since my company does not match anything?
2. We have $50,000 that we wanted to get ideas on what to do with to generate more from. (we have a separate acct for our emergency fund)
What/where should we iinvest. We were thinking of stocks, but we know
NOTHING about this, and it looks overwhelming. Please help!
Thanks, and any help you can me would be very helpful!
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Thu Aug 23, 2007 3:41 pm |
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austin
Contributing Member
Cash: $ 7.20
Posts: 36
Joined: 29 Jun 2007
Location: Austin
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| financial advice |
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Congrats on having a savings plan it looks like in contrast to the rest of the family.
First off I would probably pay off the car with the 7 percent interest rate.
Then you can either invest or pay down your mortgage.
If you invest I would not invest in individual stocks. I would either get mutual funds or if you know someone that invests full time you could invest with them. Its also not a bad idea to break up your money. Instead of taking all the money to one person you could go to 2 money managers and give each of them a half.
Instead of investing you could just pay down your mortgage. It would depend on the interest rate on your mortgage through. If its 5 percent I would probably invest the money. If your mortgage is 7 percent I would consider paying down your mortage.
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Sun Aug 26, 2007 3:16 am |
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Fern1
New Member
Cash: $ 1.20
Posts: 6
Joined: 29 Aug 2007
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Get the toll free # to call Vanguard or T. Rowe Price, both fairly conservative and highly reputable mutua fund houses.
Invest your money in a Roth IRA Retirement Fund geared for your general age and year of retirement. 2025 Retirement Fund, 2050 Retirement Fund, etc. I forget the exact dates T, Rowe offers. Anyway, the point is, if you don't know much about the stock market, this is a prudent way to go and it provides instant diversification within a single mutual fund. Make sure you earmark it as a Roth IRA so you get the tax deferral benefits.
Once you max out on the Roth IRA, i would definitely also invest in the 401k. Even without the match, a 401k plan will beat any other taxable investment due to its tax deferral advantages. This really adds up over time. Don't discount this. It makes a huge difference.
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Wed Aug 29, 2007 3:06 pm |
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