What are my best saving options now?
Hi, I just started a really stable job back in January. I am 31 years old and a widowed mother of 1. For every hour worked, my employer puts in $3.01 into my 401k. I have decided to forego my company’s health insurance until the next open enrollment in December so that I can use my money to pay off some bills and get some stuff for the house. When that is accomplished, I will take 3.00 of my hourly wage to add to my 401k, so that would be $6.01 for every hour I work going into my 401k. I just joined my company’s credit union by opening a savings account because I know they have excellent rates and I also have a checking account with BOA. So my question is, I want to sock away an extra $500 every month into some type of investment but I am clueless as to what I should invest in. Should I just put this in my savings or something else(CD, money market, etc). I want the greatest ROI of course.
ThomasK,
Thanks for the response. So do you think I should maintain my relations with the credit union too? After all, credit unions are touted as being better than banks.
So if I were to open up a roth ira, would the money be deducted from my paycheck, or would I have to physically go in to one of the investment branches and give it to them? Also, what is the difference between roth ira and roth 401k. Bettter yet, what does “ROTH” mean??? Sorry if these questions seem stupid.
Maddrealist,
Yes, the insurance my company offers is expensive. Coverage for my daughter and I will run a little over 400 per month. I consider that expensive. LOL
Dave W,
The company I work for has a mandatory 401k plan that they put money into for me so I can’t close it out. But if you say that a Roth IRA is better, then if I was to ever leave my job in a few years, would it be possible to roll over this company’s 401k into a roth IRA? And what is the difference between a roth ira and a roth 401k?
Archie Hochhauser
My recommendation would be to minimize their impact.
For the fees to open an account at discount brokerage such as optionsxpress scottrade or the like invest your savings.
An account at least some type of catastrophic health insurance with high deductible particularly since you should put in place at least some type of catastrophic health insurance with high deductible particularly since you have dependent one significant health expense could wipe you have dependent.
The like invest your savings in mutual fund watch out my recommendation would be to open an account at least some type of catastrophic health expense could wipe.
For your roth ira at any mutual fund and some life insurance on yourself for your emergency fund family like fidelity or money going into your 401k the money market account or vanguard.
For your current income tax and some life insurance on yourself for your roth ira this differs from your roth ira you wait till age 59 12 you wait till age 59 12 you can open roth ira at any mutual fund and grows tax deferred until you pay income tax free as you.
The same place to cover unexpected expenses and your job once youve done that way stocks historically given better than inflation so would always choose those for longterm investing think roth was the same place you out financially wise enough that risk other things id open mutual fund account before investing paying off bills is on taking charge of inflation so would always choose those.
The rates have risen and continued to rise they will not go down this may eat up some of your worries.
The rates have risen and extremely expensive if you must pay for short while longer stay healthy otherwise your employersponsored healthcare the savings youre making this year it might be the least of your investments will not.