1. Almi

    Great primo, once again. Great tips. Never knew about the 15% rule. Also to ask, we had a 401k and IRA with my husband last job. We transfered to our new bank because he no longer works there. The problem is that neither of us is offer either benefits on our currents jobs, how can we do to invest we already have and to continue to save up in those accts?? Thanks primo

    • Aldo

      Almi, you can roll over the 401k into an IRA of your choosing. You will have to make a few phone calls or you can check online. Vanguard and Fidelity have pretty good funds with low expense ratios and a lot more options to choose from than your old 401k. See who’s handling your accounts and see if you can roll over your 401k into an IRA or Roth-IRA with them. If you roll over to a Roth-IRA you will have to pay taxes though but it might be a better option depending on how much money you have in the account. Research “rollover a 401k” and you will find a lot of information. Just make sure you pick funds with low expense ratios, under 0.5% if possible. Expense ratio is the amount they charge you for managing your fund, the lower it is the less you pay. I can show you what to look for if you want when you are ready. Just find out where you have your 401k and look into rollover first.

  2. Francis

    We’re pretty much insync about the steps you have taken for your retirement plan. I’m taking advantage of my employer constribution so I’m contributing about that much in my 401k. I have also my pension plan thru my union. I’m also contemplating investing on a ROTH-IRA, but have not make a decision yet. Great article.

    Ps. About credit cards, I always paid them in full at the end of the months. I refuse to pay interest, not to say that I haven’t, but in a very few occasions.

    • Aldo

      Francis, you should really look into Roth-IRA. You invest your after-taxes money but it grows tax free! You don’t have to pay taxes when you withdraw your money and there is no penalty in withdrawing the money you invest. You just can’t withdraw the growth until you are 59 1/2. Think about it, it’s a good plan.

  3. Kate

    I second the Roth-IRA. The only “limitations” to the Roth-IRA are that (1) you have to file taxes jointly instead of separately if you are married, and (2) you can only contribute up to $5,500 (check the IRS guidelines), but having tax-free growth is awesome. I am maxing out my Roth-IRA (and only contributing the minimum necessary to the 401k to get the company match) because I would rather contribute after-tax money now to withdraw tax-free later on, and also because I want to be able to withdraw the money I invested before I’m 59 1/2, without any penalty, unlike the 401k.

    • Elena Weinstein

      Ah, I ‘m still confused about it. I’ll need a private consultation – you or Aldo…

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