I’ll save you the disappointment and before you read on and let you know that I have no advice to give in this post. In fact, it’s the very opposite. I’ve got the expertise in food and am pretty knowledgeable with fitness though I’m no personal trainer… but finances…I enjoy learning and sharing what I learn, but I’ll admit I know the least in this area. It frustrates me when I don’t understand something and I turn into a four year old that just wants to play instead of confronting the problem. Unfortunately, this problem has to do with our retirement, so I actually have to learn something and make an informed decision.
Dave and I met with one of Dave Ramsey’s Endorsed Local Providers (ELP) a few weeks ago to discuss opening a Roth IRA. I was hoping to hear “This is easy; just pick A, B, or C.” While our ELP was very helpful and patient, he posed a lot of questions for us to think about that left me more lost than before we started.
When do you plan to get a house?
How do you plan to pay for your house?
When do you plan to have kids?
Will you be opening a 529 plan for your kids?
Will you be bumped to the next tax bracket tier if you max out your Roth IRAs?
What type of funds would you like to invest in?
How aggressive do you want to be with investing?
With all that said, how much do you plan to invest each month/year?
Ahhh I knew the answer to NONE of the questions! We’d like to max out 2 Roth IRAs but we also want to get out of our apartment sometime soon and would need to save up for a home. This is like a sudoku puzzle with all the factors involved. Do you ever wish that someone would just give you the answers? I’d like to get started on investing since we finished off our 6-month emergency fund in May. I’m hoping we’ll have things figured out by the end of the month. In the meantime, I’d love to hear tips!
Do you have a Roth IRA? What factors did you consider when deciding how much to invest?