Investing

[Zowie]

Any Advice would be appreciated. I am 45 years old, I have approx. $ 12,000.00 in a money market account at BOA (extremely low interest). I have a full-time job with no 401, but i have a partime job and basically put all of that money in my MM account. When i first started my part time job i paid off all credit cards and now PIF each month when i charge something (basically to keep cards open and reporting and for rewards thru AE). The only ongoing monthly payment, other than rent, electric, phone, etc. all that i have is a car payment of $ 233.00 each month with a balance of approx $ 2,900.00.

 

My husband has been on my butt to start some type of investing/retirement account and i am ready to, i just get so much different info on what to do, i thought i would ask my fellow CB'ers their opinion since ya'll have helped so much regarding the credit stuff.

 

Go CB

[Lainee]

Good for you for taking a step in the right direction!!

 

I would suggest reading some books - that should help you find out what is right for YOU. For your situation, it might be nice to start an IRA since you don't get the pre-tax benefits of a 401k - could allow you to save a bit more now.

 

The good (and bad) thing about investing is that there are a zillion options and no one option is right for anyone. Everyone has different wants, needs, tolerance for risk, etc.

 

Good luck!

[54regcab]

I'd start by paying the car off, you are in essence "borrowing your own money" by having it in savings account drawing a low interest rate. Take at least $1,000 and leav in in the money market for when life happens. Fund your 2005 (until April 17) and 2006 IRA's.

For a begining investor check out TRowe Price's PRWCX moderate allocation fund. It's a conservative fund that has averaged 12% over the past 20 years, and hasn't lost money for a calander year since 1990. As you learn more about investing look into riskier funds that offer higher return potential.

 

1: Pay the car off

2: Take $8,000 ($4,000 each) and invest it with a mutual fund company in 2005 IRA's for you and DH (you have till April 17)

3: Leave the rest in the MM account

4: Build your MM account to 3-6 months expenses while funding you 2006 IRA's

 

IMHO 401k's are overrated unless you get a match or earn enough to max out your IRA's every year.

[Zowie]

DH has a 401 through work, but that is all the savings he has. Thanks for any help!

[54regcab]

If he gets an employer match he needs to contribute at least enough to get all of it.

[HawaiiArmyDude]

Like Reg said, unless you're getting a match from your employer, you're better off putting that money in IRA's.

[Zowie]

he's vested 100% and his employer matches him i think. i don't keep up with his stuff cause we have everything financially separate. I know i am entitled to half of his but we have no kids together and i don't want anything to do with it. i'm not even sure we will be together next week much less 20 years from now. i still want to have my own retirement/investments either way.

[Clarkfan2]

Invest in the 401k up to match, then a Roth 4k per individual, then back to the 401k with anything left.

 

Vanguard, Fidelity, Scottrade are a few good companies to start a Roth account. TrowePrice and Charles Schwab are 2 that offer discounted advice help if needed.

 

Clark

[mcourt83]

It's good that you're trying to get your ducks in a row, but don't let any more time slip away. Having virtually no retirement savings at 45 years old is not an enviable situation to be in. Make a plan and attack it with a vengeance. You have A LOT of catching up to do.

[Squeek]

I pretty much agree with 54regcab. Pay off car, fund IRAs, then emergency fund for 3-6 months worth of income. I like Fidelity and Smith Barney funds. Fidelity is available through several brokers, and Smith Barney through Legg-Mason or Primerica Financial Services.

[Clarkfan2]

I would stay away from "Smith Barney through Legg-Mason or Primerica Financial Services" and any other full service brokerage that are paid full comissions and sell loaded funds. Just a thought.