Comments on: Friday Q & A: What should I do with my raise? http://totalcandor.com/blog/2008/09/friday-q-a-what-do-i-do-with-my-raise/ A Conversation About Income, Wealth, and the Steps in Between Sun, 25 Dec 2011 17:20:47 -0800 http://wordpress.org/?v=2.8.5 hourly 1 By: Michael http://totalcandor.com/blog/2008/09/friday-q-a-what-do-i-do-with-my-raise/comment-page-1/#comment-35749 Michael Sat, 27 Sep 2008 13:36:04 +0000 http://totalcandor.com/blog/?p=245#comment-35749 M., Remember neither this blog (nor virtually any other blog) doesn't give specific advice, but rather a generic education. Certainly, I try to answer specific questions, and do so primarily through the Friday Q & A link you can see at the top of the page. Ultimately, you're going to need to save for retirement <em>and</em> get a house. I'm not surprised you find this challenging, especially with student loans. Join the club. Remember, it doesn't have to be all or none. Split the money if that feels better in your gut. I don't recommend saving for your house inside your IRA however, since you may need the money much sooner than any of the exceptions to penalties allow. There are plenty of other postings on ways to save. While being self-employed removes the possibility of getting "free money" from matching, there are plenty of other retirement plan options in addition to the IRAs you mention. M., Remember neither this blog (nor virtually any other blog) doesn’t give specific advice, but rather a generic education. Certainly, I try to answer specific questions, and do so primarily through the Friday Q & A link you can see at the top of the page.

Ultimately, you’re going to need to save for retirement and get a house. I’m not surprised you find this challenging, especially with student loans. Join the club. Remember, it doesn’t have to be all or none. Split the money if that feels better in your gut. I don’t recommend saving for your house inside your IRA however, since you may need the money much sooner than any of the exceptions to penalties allow. There are plenty of other postings on ways to save. While being self-employed removes the possibility of getting “free money” from matching, there are plenty of other retirement plan options in addition to the IRAs you mention.

]]> By: M. Contreras http://totalcandor.com/blog/2008/09/friday-q-a-what-do-i-do-with-my-raise/comment-page-1/#comment-35473 M. Contreras Fri, 26 Sep 2008 20:04:27 +0000 http://totalcandor.com/blog/?p=245#comment-35473 Here\'s why I find myself often having a hard time relating your wonderful advice to my personal situation....I\'m self employed and will be for the rest of my life it seems...although I am a union member with a pension that won\'t kick in for another 10 years or so. With that in mind, it\'s my gut feeling to open in IRA pronto. The only debt I have are student loans.....(and having gone to the George Washington University I have plenty of those!) Yes, I am concerned about a down payment for a house. For that it seems an CD is best...and IRA CD? But what I put the most money towards I do not know... Here\’s why I find myself often having a hard time relating your wonderful advice to my personal situation….I\’m self employed and will be for the rest of my life it seems…although I am a union member with a pension that won\’t kick in for another 10 years or so. With that in mind, it\’s my gut feeling to open in IRA pronto. The only debt I have are student loans…..(and having gone to the George Washington University I have plenty of those!) Yes, I am concerned about a down payment for a house. For that it seems an CD is best…and IRA CD? But what I put the most money towards I do not know…

]]> By: Michael http://totalcandor.com/blog/2008/09/friday-q-a-what-do-i-do-with-my-raise/comment-page-1/#comment-32666 Michael Mon, 22 Sep 2008 19:18:07 +0000 http://totalcandor.com/blog/?p=245#comment-32666 Absolutely maybe, M. For example, if your employer offers you a match - you have to take that first. Otherwise, you're turning down free money and that's never a good idea. Never. On the other hand, say there's no match but you owe a few grand on a high interest credit card. Now, paying your debt is your highest priority. Or, finally, let's suppose that you've got the most out of your match and don't have enough saved up for a housing downpayment (ideally 20% of your home purchase price), then you bet - go save for that. Absolutely maybe, M.

For example, if your employer offers you a match – you have to take that first. Otherwise, you’re turning down free money and that’s never a good idea. Never.

On the other hand, say there’s no match but you owe a few grand on a high interest credit card. Now, paying your debt is your highest priority.

Or, finally, let’s suppose that you’ve got the most out of your match and don’t have enough saved up for a housing downpayment (ideally 20% of your home purchase price), then you bet – go save for that.

]]> By: M. Contreras http://totalcandor.com/blog/2008/09/friday-q-a-what-do-i-do-with-my-raise/comment-page-1/#comment-32629 M. Contreras Mon, 22 Sep 2008 17:35:41 +0000 http://totalcandor.com/blog/?p=245#comment-32629 So, Michael My Money Guru, Are you suggesting that a young 20-something put money towards a housing downpayment before creating a retirement fund? Thanks for the continued advice! So, Michael My Money Guru,

Are you suggesting that a young 20-something put money towards a housing downpayment before creating a retirement fund?

Thanks for the continued advice!

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