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Originally posted by bobmsmythe
When you say you plan to "pay off" your credit card, do you mean you're paying down an outstanding balance, or you're just not carrying a balance from month to month? If it's the former, I'd definitely finish paying down the cc before worrying about investing in the stock market.
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Definitely the latter. My bad wording, sorry: I'm paying it off completely each month.
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It might be a good idea, if possible, to invest in a number of index funds, including some non-U.S. markets, if you have some extra cash.
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That's an interesting idea.
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Are you keeping the money taxable for liquidity purposes?
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Yes.
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If you plan to put the money toward retirement, though, you should definitely think about putting it in the IRA.
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Okay, serious question: Is it okay to contribute to both a 401(k) and an IRA in the same year? Mine is a roll-over IRA. So, I can contribute other amounts to it other than at RO times?
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Overall, it sounds like you've got a generally sound plan-- you're trying to keep diverse via the index fund, while leaving a little bit of money to "play" with. You might want to diversify away from stocks, you could put some of the money in bonds. Municipal and U.S. bonds are often tax-free under certain circumstances, too.
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Liquidity, yes?
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If you start thinking, "boy, I picked AAPL at the right time, I bet I can make ten percent a month," you'll probably regret it.
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Not with my assets, agreed. I figure to hold it a while and see what happens. I don't aspire to be Mr. Buffet. I'm simply investing in companies I feel are well positioned or of which I have an understanding.