I am a married male, who's wife does not work. I fund my retirement at work through a 401K plan (by a matched 6% annually). I also have a Roth IRA which I contribute approxiatemately $2000 per year to. I am in the 15% tax bracket.
My mortage is now at $65,000 with at a rate 0f 8%, and have approximate equity of $165,000
I have no credit card or auto loans.
2007-09-04 06:33:13 · 7 answers · asked by j g 1 in Business & Finance ➔ Personal Finance
you do realize you are in better financial shape than 99.99% percent of the work force--- i would put 2k more in your roth ira == max you can put is 4k a year= i am assuming you put 2k each year in the roth fund -- if that is the case i would ladder 6K in cds so over the next three years i could put the max in my roth ira and i would put the balance in a growth mutual funds === if you do not have a broker there are a lot of good ones out there -- i use edward jones since they have a lot of small offices through out the usa -- keep up this pace and you will be retireing to debt free life style!!!
2007-09-08 02:00:27 · answer #1 · answered by Anonymous · 0⤊ 0⤋
A few things to note. Max out your Roth IRA by adding $2k. Then open a Roth IRA for your non-working spouse, and fully fund it with $4k (why didn't anyone who answered pick up on this?!). Put the rest in a 6 month CD, and next year do the same thing until it's all invested.
I am a bit surprised that you would be asking the general population this question; you appear to have knowledge of finances and investing. But that's what we're here for.
2007-09-08 15:41:00 · answer #2 · answered by jirocpa 3 · 0⤊ 0⤋
Invest in this order....
1. Max out you 401K since the company matches.. thats an immediate 6% ROI
2. Max out your ROTH IRA
3. Max Out your Traditional IRA.
4. Pay down your mortgage as much as you can stand. Just making 1 extra payment/year cuts off 3.6 years of a 30 yr mortgage. Think about it....you are at a point in your mortgage where big payments are paying predominantly PRINCIPAL...
5. Open a brokerage account and invest in a index fund, which over the past 40 years has averaged 175+ ROI annually.......
2007-09-08 09:09:12 · answer #3 · answered by I Can Count To Potato 7 · 0⤊ 0⤋
I'd put another $2K into the Roth, that will max your '07. Then put the rest in a money market account. Somthing online like HSBC or one of those paying a decent percent. Then when 01/08 rolls around, put another $5k into your roth. (Limits increase next year, and if your over 50 this can be increased by $1K)
On a side note, I'd be tempted to refi your mortgage. If you have good credit, you should be able to get a no-doc loan for around 6.25%. JMO
AJ
2007-09-04 07:01:47 · answer #4 · answered by Average Joe 2 · 0⤊ 0⤋
Since you are married you should max out your Roth IRA. I'm not sure what the limit is for a married couple, but this is a great tool. You should take advantage of it.
2007-09-04 09:06:13 · answer #5 · answered by Jay P 7 · 0⤊ 0⤋
Since you won't miss the money, stick in your Roth Ira,
or Try an Orange Savings Account with ING Direct, over
4% interest.
2007-09-04 06:51:47 · answer #6 · answered by Anonymous · 0⤊ 0⤋
look into the stocks or invest in a bank not put into a bank because your money just stays there invest into a bank so your money grows
2007-09-04 06:42:37 · answer #7 · answered by Anonymous · 0⤊ 0⤋