Year Rule Ira
February 11th, 2008
Question: What does your retirement / finances look like compared to mine?
I’ve worked really hard on straightening out my finances over the last two years. I just wanted to see how my approach compares to others. The personal finance sites make it seem like everyone is maxing everything out:
My wife and I contribute about 28,000 into our 401K’s each year and we max out our IRA’s (8,000) each year.
We might have trouble on the IRA in 2007 because of income limits. It that happens, I’m planning on just opening a mutual fund account on the side.
So far, we have @ 45K. We’re both 27.
Besides that, we have a mortgage and car payments. Everything else is paid and I plan on starting a separate mutual fund for the kids college (I don’t like all the rules associated with the college savings plans).
Answer: The only reason that I say that I am better off than you is because I’M ALREADY RETIRED. Just kidding, you are doing it extremely right. Now that I say that, let me give you some thoughts:
1) Buy, read and study the books by James P O’Shaughnessy, What Works on Wall Street, John J Bowen, Creating Equity and Benjamin Grapham, The Intelligent Investor.
2) Buy, read and study Jane Byrant Quinn’s book Making the Most of Your Money. It is a little dated but the information in it is like great foundational information to start your understanding on personal finance.
3) Find a “Financial Peace University” class in your community. You are following this program to a great extent, but this will confirm and add to your knowledge. www.daveramsey.com to find a location.
Then follow what you learn and at age 45 you can come join me in retirement. Oh by the way, retirement is really being more like a tire, it is being retreaded because now you can do exactly what you were born to do. Whether that be volunteer work, owning and managing assets, travel, enjoying life, enjoying family, going on a mission trip, or all of the above.
Roth IRA Conversions – The 5-Year Rule
Posted in 
Tags: