retirement savings?
Sunday, February 28th, 2010 at
10:50 pm
i have recently opened an ira through wachovia it is set up where i put 400 a month and another 200 a month in stocks and bonds,for a total of 600 a month.i am 26 years old with an income of around 95k a year does this sound like the way to go or is there something more i could be doing?
the ira is trans america asset allocation gr c,iaalx,which the 400 a month goes into.
also tell me more about annuities.
Common Sense has me worried now with his "last word" could you elaborate.
thanks
Filed under: Retirement Planning
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good for u
if you can afford it i would also open up a roth ira!!!!
You could max out you contributions. Isn’t the max for you up to age 50, $15,500 a year? And then consider employer matching if it were to be available. Employer matched funds is a guaranteed growth and free money.
This sounds like a great start. If you’re that young and making that kind of money already, it seems like you’re well on your way to assuring your financial future.
It might be worth your while to spend a little of that money for a session with a legitimate financial advisor. Your bank ought to be able to recommend one to you, if they don’t have one on staff.
I wish I’d had the sense to start investing when I was your age. I wish my kids had the sense to do it now!
Sounds like a good amount to start investing with. Make sure you diversify. Which funds is the 400/month going into? Even in an IRA, you can choose which mutual funds you want to invest in. Try to mix them up a little, put some in international mutual funds as well as domestic funds. The 200/month in stocks and bonds sounds good. nice job
Good. Just remember than the maximum annual IRA contribution is $5000 per year. There is a penalty if you exceed that.
You are young, take a lot of risk in your twenties and move to less risk as you age.
Further, pay off all of your debts as fast as possible.
Next, make sure you have a fat savings account balance that you are continually adding to. And, after getting to that point, look for other ways to invest outside of your IRA and in yourself (more education, becoming a part-time entrepenuer). You seem set.
Sounds great. You have picked one of the most expensive ways to invest (that’s OK…. it’s better than not investing).
Over the next couple of years read books on Mutual Funds, Retirement Investing & general Investing. This will save you 10′s of thusands of dollars over your lifetime.
One word of caution. If the word "annuity" comes out of the mouth of your broker…….. run away as fast as you can….. they’re either dumb…. or interested only in their own income.
Also….. If your broker hasn’t set up an "asset allocation" model with you……… start running for that exit door.
Last word;
stay away from banks and insurance companies for investment advice.