20 years til retirement, how should I review our finances?
short of talking to a pro, what should I look at in broad terms. we have a mortgage and no other debt. refi'd the house @ 5.125%, will have it paid off in twenty years. saved only $200K so far, but I will reenter the crappy work scene very soon, and that will increase income, if there's a job for me out ......what else? we each have a Roth IRA and a 401K
Public Comments
- Right now you should be looking at building a retirement fund of some sort. THat may take a pro to help you, as the economy is in such a bizarre state right now. THe usual way would be to use a 401K or Roth IRA, or something that would shelter your income, invest conservatively, and defer taxes. Twenty years goes by in a flash. Hang onto that $200K and see if you can grow it.
- the most important thing pay off your house early, make as many extra payments as you can towards the house, if you already have a retirement account with your employer then only put as much as your employer is matching, so if they match 5% then only contribute 5%, then put 10% of your take home pay towards a Roth IRA. After this start paying off your house, and save save save. Do not get into any debt if you want a new car save for it. Good Luck!!!! If you want some good reading check out the book by a financial advisor called the total money makeover by dave ramsey.
