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Old 07-11-2006, 02:19 PM
Broken Arrow Broken Arrow is offline
Foot in mouth diseased
 
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Default Re: Help with financial planning

Hey jamreed.

That's right. When it comes to saving our finances, there is no such thing as a dumb question! In fact, I find that the wiser tend to ask more questions than those whom I find to be ignorant, but I digress....

Life insurance: Since you have 3 kids, I believe it should be immediate.

Online banking: It's good, but it's not as good as actually having money in the bank. Any bank. Personally, I don't have one yet either, but when my savings become sizeable enough for it to matter, then I'll go online. In other words, I wouldn't worry about it right now.

Emergency fund: Say no to CDs! Emergencies are inherently unpredictable, and therefore, your emergency fund should behave like the EMS in that it should ready to roll at a moment's notice. The purpose of CDs run contrary to that philosophy, although once you get to a certain point, laddering them is a worthwhile option. For now, I also wouldn't worry about CDs.

Retirement funds: If you company has 401k with employer matching, I would look into that first. Otherwise, yes, I recommend saving up some funds and opening up an IRA with Vanguard for example. Here's a LINK to help you get started.

I will say this about IRAs: Yes, it does matter. IRAs are nothing more than a tax umbrella. That's it. However, just about any kind of investments can be found within that umbrella. Others such as Sweeps can probably articulate all this better than I can anyway.
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