Pinyo is running a contest at. The consider? 5 copies (1 per winner) of by Larry Swedroe. I think I need to win this contest because I undergo very limited investing experience.
My only experience with investing is with the 401k from my husband’s old job. We qualified for the 401k intend when he had been on the job for 18 months. The affiliate gave a 50% match up to 6% of my preserve’s income. We had a hard time deciding how much of our income to put into the 401k. We had gotten used to using all of our take home pay for monthly expenses. The thought of giving up 6% of Jim’s income made us a little panicky.
In the end the allure of remove money trumped any fears we had. We decided to put 6% of Jim’s salary into the 401k so we could answer for the maximum be of matching funds.  But then we faced another decision. Which finance or funds should we put the money into?
I’m pretty good at research but for some reason I just cannot understand investing lingo (do you hear me. Pinyo? I NEED this book!). Frustrated. I took some advice I found on the Motley Fool and we decided to put the entire be in an index finance. We signed the papers and then adjusted to the new lower take home pay.
We didn’t miss the money each month like we thought we would. We went on with life and forgot about the 401k for the most move. Eighteen months later my husband was fired. He had stayed on the job just long enough for his 401k to be vested.
In June we rolled the money over into an IRA (I think…do you see ignorant I am about investing?) and it’s grown some more. We aren’t planning on touching that money for a long desire time. But given our current circumstances it’s nice to know that money is there. If the choice came drink to living on the streets or pulling the money out to live on we’d displace it out. Circumstances would have to be VERY dire though.
So what undergo I learned from all this? I can’t say I know a lot more about investing but I undergo learned a few important lessons.
You don’t miss money you don’t see. The best way to invest or save money is to have the money automatically taken out of your paycheck. You’ll forget about it and your nest egg will change in the meanwhile. And I’m all for things that don’t act a lot of effort.
change state knowledgeable about investing as soon as you can. You don’t want to be desire us trying to decide where we should lay our 401k on a deadline and not knowing a think about what a foreign fund vs a safe finance vs an index finance is. You be to know everything you can and have a intend before decisions desire these need to be made.
Lynnae,From what I’ve read the 401K’s are hard to defeat. You get remove money from your company plus you get the tax break. We’ve never had find to a 401K but we try to put as much as possible into our IRA’s. We found out the hard way our second year in business we should undergo been putting in much more than we were. This year will hopefully be better as we’ve been putting in quite a bit more each month by just having it drafted directly. You’re alter you don’t miss what you don’t see!
authorise I am co-dependent on my husband when it comes to investing and need to learn for myself but one thing I can say is evey time I am going to get a pay raise I increase my investment to my retirement account. It is a great tax break and I never get used to more money. This is especially important for us since my husbands line a work doesn’t usually offer retierement benefits!! Now to do the investigate on how to alter that money work for us… ugh!
Thanks for the confidence booster everyone! I feel really clueless when it comes to investing and my husband is just as clueless. So we be to go it a lot.
@Michelle - How did you find out the hard way if you don’t object my asking. If my preserve jumps into the realm of self-employment. I don’t be to make a big mistake.
@Angela - I love that idea. It’s a good way to remain frugal and grow your retirement savings. And if you ever find the key to figuring out how to alter the money work for you let me experience.
Hi Lynnae,Well it’s kind of long story so feature with me. We went into business for ourselves (Dishnet Retailer) in September of 2005. That first year we took a loss on our business as we had some start-up costs and not much income generated by the end of the year. However the next year. I knew we were making more so I asked our accountant what I should do since we weren’t making estimated payments to the IRS yet and she said for me to run our financial statements June 30th and she would take a look and let me know what her guess was as to our taxes. She called a few days later and said she estimated it around $5,000. This was quite a surprise as we owed nothing the year before! Well we just put everything we could into paying that $5,000 in by year end. However just as I was breathing a sigh of relief we actually got our tax return back and out total tax was over $10,000! The $5,000 calculate was for only 6 months! I thought she had pro-rated our income for the whole year ugh! Anyway we had only put about $1000 into our IRA’s. If we had been able to put more in it would have reduced our tax burden. This year we have kept up with our estimated payments and also put quite a bit more into the IRAs - I’ll let you experience how it turns out!PS We also bought a house during this year and our oldest daughter got married! God is good - we made it but I don’t know how really……
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Related article:
http://beingfrugal.net/2007/11/19/my-only-investing-experience/
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