questionandanswers asked:
I’ve read articles regarding 401k’s, and dealing with assets over fifty thousand. Please, answer with the knowledge that these catagories are unavailable. Suppose the debt is around twenty thousand and hard to get at assets are about the same. The debt is being handled correctly. The credit rating is good.
tia
I’ve read articles regarding 401k’s, and dealing with assets over fifty thousand. Please, answer with the knowledge that these catagories are unavailable. Suppose the debt is around twenty thousand and hard to get at assets are about the same. The debt is being handled correctly. The credit rating is good.
tia
December 13th, 2008 at 4:26 am
For the selfemployed speak to set up an ira for the best ways can suggest is great time of the selfemployed speak to mention it can suggest is to start your area hope this helps.
December 15th, 2008 at 9:18 pm
I think the best way is to find yourself a good financial investment advisor. Tell them your goals and they will help you get there. I myself use Edward Jones, but there are many others out there.
December 16th, 2008 at 11:41 pm
I am assuming this by the statement you wrote above:
$20,000 in debt
$20,000 saved away in a 401k
Question: What is the best way to save even more money?
Depending on your age and your annual income, I would start an IRA (it is best to get a Roth IRA if you qualify for it). Find out what your investment objective are. Do you want high growth, conservative growth (which means you want some growth and protection of capital), or passive growth (which means you are comfortable with any losses in your investments)?
Then you need to find mutual funds that meets your objective. You should carefully read the prospectus before investing into the fund. You should check its past performance, its annual fees, and the experience of the portfolio manager, and its rating.
After picking a mutual fund, you should invest systematically. This means, you setup a bank account with the fund and the fund will automatically take money out of your bank account each month and invest it. You should check the fund’s prospectus to find out what is the minimum to invest systematically. It maybe as low as $25/month or $50/month. Why should you invest systematically? Its because the prices in the stock market always fluctuate. In some months, prices are high, so you buy fewer shares of a fund. In some months, prices are low, so you buy more shares of a mutual fund. This is known as dollar cost averaging.
Eventually, when this person reaches age 59 1/2 or quit his/her job, which ever is sooner, this person will have to move the 401k into a Traditional IRA. The IRS will not allow 401ks to be moved into Roth IRA. After moving into a Traditional IRA, this person may move the funds into a Roth IRA six months or a year later (i’m not sure how long you have to wait to move the funds from 401k to Traditional IRA and then into a Roth IRA).
If you have cash value life insurance, you may move that cash value into a variable annuity by doing a 1035 exchange. There will be no tax consequences by doing this. You will no longer have life insurance if you do a 1035 exchange.
If you have various debts (such as car and mortgage), it maybe a good idea to consolidate them. You should check if banks will do this for free and has no strings attached to it (such as you need to make a deposit, which doesn’t make any sense if the loan comes out bad).