Want to be a millionaire? Finance advice inside..

[FitzIngarage]

Originally Posted by roc_my_tims

... so i never really used my company 401k ( what i shame i work for a huge company ) i'm going to start it up very soon. ...

Good move. Many firms offer some sort of matching contribution -- it's hard to beat getting free money. Tho, as holders of Enron discovered too late, it's often prudent to not overweight holdings in one's employer! <g>

[BRUTAL]

And Lets Not Forget That In Your 401k, That Money Comes Off Before Uncle Sam Takes His Share, So Depending On Your Tax Bracket, That Could Equate To $only .70 Coming Out Of Your Check For Every $1.00 You Contribute

[agtitan06]

Originally Posted by BRUTAL

And Lets Not Forget That In Your 401k, That Money Comes Off Before Uncle Sam Takes His Share, So Depending On Your Tax Bracket, That Could Equate To $only .70 Coming Out Of Your Check For Every $1.00 You Contribute

That's on a traditional 401k. Many companies offer roth-401k's...The money you contribute to a roth-401k (or roth-IRA) are after-tax dollars....so you pay the tax on the money now...BUT...and here's the best part...you NEVER pay taxes on the earnings even when you withdraw the money at retirement!

[BRUTAL]

Originally Posted by agtitan06

That's on a traditional 401k. Many companies offer roth-401k's...The money you contribute to a roth-401k (or roth-IRA) are after-tax dollars....so you pay the tax on the money now...BUT...and here's the best part...you NEVER pay taxes on the earnings even when you withdraw the money at retirement!

Thats why I have a Roth ira, since I only have a traditional 401k at work. And try to max out both yearly, I meen I dont want to turn wrenches forever

[beerbrewer737]

BRAVO well done, agtitan!

To Brutal: May I suggest you add to your 401k until the company match (free money) is fully utilized, then max out your and your wife's Roth IRA and if you can go back max out the 401k. IIRC the max 401k amount is 16,500 (or is it 15.5?).

Just an idea.

[agtitan06]

Originally Posted by beerbrewer737

BRAVO well done, agtitan!

To Brutal: May I suggest you add to your 401k until the company match (free money) is fully utilized, then max out your and your wife's Roth IRA and if you can go back max out the 401k. IIRC the max 401k amount is 16,500 (or is it 15.5?).

Just an idea.

It's $15,500 for 2008, but if you're over 50, you get an extra $5000 limit.

[TxFront]

WOW This is alot of great information thanks for sharing.

[beerbrewer737]

Thanks for the info Agtitan! Ever listen to Dave Ramsey?

[djkest]

I've been reading ramsey, and it seems to me he's got some good ideas, Although I dont' agree w/ everything.

What do you think is more important, starting investing or becoming debt free? We have about 20k in student loans. Do you think we should pay those off first, or start investing and pay the minimum on the loans? I'd like to get rid of as much debt as possible.

I think one thing we are going to do too is pay off my wifes car quickly. We owe about 10k on it, and going back down to 1 car payment would be great. Plus, her interest rate sucks.