First Financial Goals

cwest on 2002-05-06T21:09:21

So I finally have financial goals. Short, intermediate and long term goals.

Short term goals, 3 years to pay off credit card, student loan and car debt.

Intermediate goals, 3 more years to pay off house.

Long term goals, have IRA/mutual funds/Chapter 529 funds working for the family by about 10 years.

With this, sorta frugal plan (looking at the realistic numbers) I should be able to free about 75% of my current pay for savings, fun and investment.

Not too bad, just have to plan for the long haul.

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Debt vs. Savings

pudge on 2002-05-06T22:35:06

IMO it's good to start saving now. Don't wait 10 years, certainly. Maybe not even three. You can have many times more retirement money with those extra 10 years of savings in your 20s. I'd recommend paying off debt at the same time you are saving, personally.

Re:Debt vs. Savings

Herkemer on 2002-05-06T23:08:26

I agree, mortgage debt is good debt, so save the house for later and save for retirement now, you'll thank yourself down the road.

Re:Debt vs. Savings

cwest on 2002-05-07T00:07:47

I agree.. What I meant was that by 10 years, I'd have those plans already in action and maturing for me. The first three years of car, loan and credit card debt removal will be the tightest but I can still start pitching into the savings.

I know compound interest is my friend, 8000 today could mean 650000 at age 65. In fact, my wife and I are starting an IRA next week sometime. My question is, is one bank as good as the next for IRAs and the like? Will my local bank be better or worse than a national bank? What do I look for?

I know I'm the right person for a Roth type IRA. At least I know that much.

Re:Debt vs. Savings

ask on 2002-05-07T05:15:51

Find a good accountant. I know my accountant have saved me / made me / whatever more money than I've paid him. And saved a bunch of time.

Of course, be sure to sanity check stuff if he tries to sell you specific banks and such.