Thank you to all who weighed in regarding where I should invest. I have decided to wait right now. I'm currently already putting 10% into my employer's 401(k). I will eventually put money into their Roth 401(k). Why not now?
Well, I'm hoping to buy here in the DC metro area within the next year (preferably around the time my lease would end). It is pretty expensive around here and I want to put as much as possible away for a down payment and other expenses. My parents said I can also borrow money from them for the down payment (paying them back using the rate of Emigrant, currently 5.05%). This would save me a lot of money if I didn't have to get a second mortgage or pay PMI.
Once I do this and get my finances squared away regarding this, I'll start putting money into the Roth 401(k).
Tuesday, April 10, 2007
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4 comments:
Excellent idea!!!
If more families worked together, family wealth would grow by leaps and bounds.
Thanks D! Pretty much since I went to college, my parents and I have borrowed money back and forth when a need arised. Luckily, neither of us have not paid the other back. We usually try to pay it back as quickly as possible, and the interest we pay is whatever the person would've earned had the money been in their savings account. It works out for all of us.
Very good idea on the whole family borrowing. I have never thought to incorporate interest in the amount you pay back. Very logical tho. I agree with your decision of waiting on the Roth 401(K). Its not like you don't have a retirement plan set up now. Once you buy your next home and get settled in then you can go back and take a look at the whole Roth 401(K) deal again.
http://www.allcutz.com/2008/07/my-rental-income.html you can always buy in miami. Lol . great blog by the way.
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