Financial Resolutions for 2011

Someone in another forum I frequent posted this short article. I couldn't agree with it more.

If one of your resolutions is to get your investing act together, it's worth a look, IMHO:

Six Timeless Tips for Successful Investing

- Jeff

Jeff - good stuff

One added point is that if someone has a 401k or a pension plan they can also open a Roth IRA which has the same $5,000/$1,000 contribution rules as an IRA. Since these are individual accounts you can open one for your spouse & thus contribute $10,000/$12,000 per year.

While these contributions are not tax deductable, interest and capital gains accumulate tax free and you do not have to pay income on the withdrawals (which you have to do in a 401k/IRA)

Good point, Hoops, and that's exactly what I do. The generally-accepted method seems to be:

1.) Contribute to your company's 401k (if they have one) as much as you can, only up to the extent of their match (if any).

2.) If you have money to invest beyond that, put it into a Roth IRA (if you qualify) until you max it out.

3.) Still have money? Go back to the 401k, unmatched, until it's maxed out.


Some companies now give you the option of a Roth 401k, which works just like the Roth IRA: You're taxed on the front-end instead of the back-end.

- Jeff