What to do other than 401k and Roth IRA?

[TinyFish]

Re: What to do other than 401k and Roth IRA?

Jaynen,

What do you mean "I would say first off see if it's going to be possible to go ROTH with that 401(k) (new for this year, check with your employer)"? What is new this year about the rules with the Roth and 401K and what does this have to do with one's employer?

-TinyFish

[yellow heel]

Re: What to do other than 401k and Roth IRA?

Hypersion - What is the return on the 6 month e-fund? If you have 1000 to save, why don't put it in a online savings account to earn interest?

Yes, I hear you on the mortgage! I am in the same situation.

TinyFish - My wife does not work to I am the only one that has 401k and IRA. Currently I am putting 2k into savings but I don't know if this was the best way of saving. My saving account automatically withdraws 500 from my check each week leaving me limited cash for me to waste!

I have no idea how much I need to save up for a house. I know more is better but how much is enough? I currently have no debt so all the money left over is for the house or any emergency.

Jaynen - I am with tiny, can you clarify?

I appreciate everyone's comment.

[Hypersion]

Re: What to do other than 401k and Roth IRA?

Yellow - I keep about ~1.5 months worth of expeneses in my bank's money market (which pay 3.52%) my pay check get deposit in this accout and I can instantly transfer the funds I need to my bank checking accout and write check agaist it or use online bill pay. The other ~4.5 months are in bond mutual funds.

[yellow heel]

Re: What to do other than 401k and Roth IRA?

I see. Whats the return on the bond mutual fund? Is it better than 5%? Bonds are something I am interested in. I don't want to gamble with stocks. I want a stable return.

[Ima saver]

Re: What to do other than 401k and Roth IRA?

I would go directly with a stock mutual fund run by vanguard mutual funds. There is no brokerage fees,loads and it is very low cost. I am with vanguard index 500, it has averaged about 10% the past 20 years!(I don't work there, just have my roth ira's there.Plus, even tho your wife does not work, she can have a roth ira based on your income.

[yellow heel]

Re: What to do other than 401k and Roth IRA?

Thanks Ima saver. I will look into vanguard. Which brokerage company do you have to buy the vanguard mutual fund?

[autoxer]

Re: What to do other than 401k and Roth IRA?

Jaynen was explaining that some employers now offer a Roth 401k, instead of a regular 401k. With a Roth 401k, you contribute with aftertax dollars, but don't pay tax when withdrawing in retirement. I think it is a good idea to pay the tax now, because the tax rates will more than likely go up.