As long as I am at work without much work to do, I am going to jot down some new financial goals as you all should do for the New Year. Currently, my financial thoughts are on retirement.
Why just retirement?
Well, I have a pretty good job right now and hope that things stay that way. Thus, I make enough money now to support my living habits. I am concerned with down the road, when I am older and not working. What will I do then when I do not have an income which I will live off every month?
So, the experts say that you should set aside about 6 months living expenses in case the worst happens. In my case, that would be losing my job. Ok, I will do that.
Next, 401k. Ok, I am good with that as I max it out as much as possible. This will set me up pretty well for the older years. But, as I was reading what is a Roth IRA, I realized that there is one more step I can take this year. Open up a Roth IRA account.
Apparently, this is just like a 401k in that I get to realize the value of compounding money. However, I pay tax on the money going in but do not pay tax on the money coming out. Thus, when I am older, I will not have to worry about paying taxes on this money.
And that my friends sounds great!
I'll be a rich old broad...now I got to get healthy so I will actually be alive when the time comes to spend that money!
Why just retirement?
Well, I have a pretty good job right now and hope that things stay that way. Thus, I make enough money now to support my living habits. I am concerned with down the road, when I am older and not working. What will I do then when I do not have an income which I will live off every month?
So, the experts say that you should set aside about 6 months living expenses in case the worst happens. In my case, that would be losing my job. Ok, I will do that.
Next, 401k. Ok, I am good with that as I max it out as much as possible. This will set me up pretty well for the older years. But, as I was reading what is a Roth IRA, I realized that there is one more step I can take this year. Open up a Roth IRA account.
Apparently, this is just like a 401k in that I get to realize the value of compounding money. However, I pay tax on the money going in but do not pay tax on the money coming out. Thus, when I am older, I will not have to worry about paying taxes on this money.
And that my friends sounds great!
I'll be a rich old broad...now I got to get healthy so I will actually be alive when the time comes to spend that money!
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