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chicago_bull · 10-31-2007, 02:25 PM

Currently, I'm contributing 10% of my pay cheque into my 401K plan (matched up to 8% by employer), saving the max. limit allowed into a ROTH IRA account and saving about 15.3% of my cheque towards a house downpayment in a CD earning 5.25% interest (I'm planning to buy one in 2 years). I still have about 8% of my cheque which I would like to save/ invest some where but I'm not sure how to. Right now, I'm thinking of saving up a little and buying some stocks but I've also heard that it was a good idea to contribute up to the maximum limit of the 401K account (20%) to get the tax benefit. I'm a little uncomfortable with the thought of locking up so much money in a retirement fund which I can only withdraw at 59.5 years old. I'm 28 years old and would like to get a good start on a retirement savings but would like to have some balance as well. Any advice on this matter is greatly appreciated. Thanks!<br />

Minsk · 10-31-2007, 02:25 PM

I would say go ahead and put as much as you can into the retirement plans. You aren't really "locking it up." If you need it, you can always withdraw it, but you will have to pay a 10% penalty if you withdraw before age 59 1/2. For the non-Roth investments, you will also have to pay taxes, whether you withdraw it now or at age 70.

alien · 10-31-2007, 02:25 PM

if you saving a for a house you can still withdrawal money from your ROTH IRA without having any penalties but you can only withdraw the amount you contribute, not the gains that where made in that account. but these withdraws are only for first time home buyers and stuff.

if you don't know much about stock you shouldn't really invest in something or you in for a crazy ride up and down.

if you really want to get in to the stock market you may want to invest some money in a stock index fund so you can possible get a better return from the market.

or you can just save that 8% over some time and start a part-time business :-)

or maybe just save the 8% in a rain day fund for emergencies

good luck had fun with the extra cash

10-31-2007, 02:25 PM	#1
chicago_bull Piggy Bank Join Date: Jul 2006 Posts: 60 Rep Power: 6	Question on saving and investing pay cheque? Currently, I'm contributing 10% of my pay cheque into my 401K plan (matched up to 8% by employer), saving the max. limit allowed into a ROTH IRA account and saving about 15.3% of my cheque towards a house downpayment in a CD earning 5.25% interest (I'm planning to buy one in 2 years). I still have about 8% of my cheque which I would like to save/ invest some where but I'm not sure how to. Right now, I'm thinking of saving up a little and buying some stocks but I've also heard that it was a good idea to contribute up to the maximum limit of the 401K account (20%) to get the tax benefit. I'm a little uncomfortable with the thought of locking up so much money in a retirement fund which I can only withdraw at 59.5 years old. I'm 28 years old and would like to get a good start on a retirement savings but would like to have some balance as well. Any advice on this matter is greatly appreciated. Thanks!<br />

10-31-2007, 02:25 PM	#2
Minsk Greenhorn Join Date: Jul 2006 Posts: 16 Rep Power: 0	Question on saving and investing pay cheque? I would say go ahead and put as much as you can into the retirement plans. You aren't really "locking it up." If you need it, you can always withdraw it, but you will have to pay a 10% penalty if you withdraw before age 59 1/2. For the non-Roth investments, you will also have to pay taxes, whether you withdraw it now or at age 70.

10-31-2007, 02:25 PM	#3
alien Piggy Bank Join Date: Jul 2006 Posts: 63 Rep Power: 6	Question on saving and investing pay cheque? if you saving a for a house you can still withdrawal money from your ROTH IRA without having any penalties but you can only withdraw the amount you contribute, not the gains that where made in that account. but these withdraws are only for first time home buyers and stuff. if you don't know much about stock you shouldn't really invest in something or you in for a crazy ride up and down. if you really want to get in to the stock market you may want to invest some money in a stock index fund so you can possible get a better return from the market. or you can just save that 8% over some time and start a part-time business :-) or maybe just save the 8% in a rain day fund for emergencies good luck had fun with the extra cash

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