Comments on: Cash Savings vs. Retirement Savings http://cashmoneylife.com/cash-savings-vs-retirement-savings/ Money Management, Small Business, Career Thu, 09 Feb 2012 19:08:34 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Dan http://cashmoneylife.com/cash-savings-vs-retirement-savings/#comment-19225 Dan Wed, 05 Aug 2009 15:17:21 +0000 http://cashmoneylife.com/?p=1752#comment-19225 With the market currently down, now would be a great time for a $3000 one-time investment to open an IRA. Stocks are cheap! With the market currently down, now would be a great time for a $3000 one-time investment to open an IRA. Stocks are cheap!

]]> By: Curious Cat Investing Blog http://cashmoneylife.com/cash-savings-vs-retirement-savings/#comment-19223 Curious Cat Investing Blog Wed, 05 Aug 2009 11:32:41 +0000 http://cashmoneylife.com/?p=1752#comment-19223 Adding to the Roth is a good idea, it would be my first priority. Adding to cash saving would also be good, it would be my second priority. Cutting back the 401(k) to 5% would be acceptable, but if you can keep it at the current level I would do that too. I agree with taking the money for the IRA from the current saving and then paying it back with regular monthly payments. I would not be worried about investing $6000 at once. But if you were you could put in $3,000 now. Save up that much again (repay your monthly account and then buy the second $3,000). Then add to each account each month. Adding a large investment to the market is a danger but not so much for a 1 year Roth contribution, more like if you get a windfall of $100,000 to invest... Adding to the Roth is a good idea, it would be my first priority. Adding to cash saving would also be good, it would be my second priority. Cutting back the 401(k) to 5% would be acceptable, but if you can keep it at the current level I would do that too.

I agree with taking the money for the IRA from the current saving and then paying it back with regular monthly payments. I would not be worried about investing $6000 at once. But if you were you could put in $3,000 now. Save up that much again (repay your monthly account and then buy the second $3,000). Then add to each account each month.

Adding a large investment to the market is a danger but not so much for a 1 year Roth contribution, more like if you get a windfall of $100,000 to invest…

]]> By: Ryan http://cashmoneylife.com/cash-savings-vs-retirement-savings/#comment-19189 Ryan Mon, 03 Aug 2009 16:41:52 +0000 http://cashmoneylife.com/?p=1752#comment-19189 fredct, Thanks for catching that! I got my numbers mixed up when thinking about 401k limits (they were $15,500 last year, and are $16,500 this year). The error has been corrected. :) fredct, Thanks for catching that! I got my numbers mixed up when thinking about 401k limits (they were $15,500 last year, and are $16,500 this year). The error has been corrected. :)

]]> By: fredct http://cashmoneylife.com/cash-savings-vs-retirement-savings/#comment-19188 fredct Mon, 03 Aug 2009 16:35:29 +0000 http://cashmoneylife.com/?p=1752#comment-19188 One correction! According to what I can find, the 2009 IRA limit is $5000, not $5500! Starting in 2009, the limits were adjusted for inflation, but, if anything there was *deflation* last year, so the limits remained unchanged. I do generally concur with the rest of the advice (a Roth is a good idea, the upfront requirement should not stop you, and they are in a good position to split funds between their retirement and shorter-term goals). One correction!

According to what I can find, the 2009 IRA limit is $5000, not $5500! Starting in 2009, the limits were adjusted for inflation, but, if anything there was *deflation* last year, so the limits remained unchanged.

I do generally concur with the rest of the advice (a Roth is a good idea, the upfront requirement should not stop you, and they are in a good position to split funds between their retirement and shorter-term goals).

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