One of my goals for 2008 is to rebuild my non-retirement savings.
As of February 18, the balance in my non-retirement savings is $4,500.
My goal for 2008 is $16,000. With the new baby on the way, I feel that it is important to have some extra cash ‘on hand’. With that in mind, I will rebuild my non-retirement savings, and then I will focus on funding my wife’s Roth IRA for 2008.
Click here to view my No Credit Needed Network Chart – NCNSavings2008.
My curiosity is peaked, what is your reasoning for building the non-retirement savings before the Roth IRA? With a Roth IRA you can always withdraw the initial investment with no penalty and the interest grows tax differed.
Is there a better advantage to growing the non-retirement first?
@Future Millionaire -
I have already fully-funded my roth ira for 2008… and I will work on fully-funding my wife’s before the end of the year (hopefully before fall)…
This savings is in ADDITION to our retirement savings… not in-place of…
To further clarify -
My wife will be out of work for a few months, once the baby is born, so her paychecks will decrease. As a stop-gap measure, I am building up non-retirement savings, so that we will have funds on hand, to supplement her decreased income. After the baby is born, she’ll go back to work, and we’ll then be able to fund her roth.
Wow, that’s an ambitious goal! I’m pulling hard for you; I wish I could save that much (in non-retirement savings) in a year!
Ah I see. I was just curious why not funding your wife’s Roth IRA first, but since its going to be funded by the end of the year anyway it really doest matter.
Kudos to the comment above me for the “most obvious comment with a reference to their site below” award.
Is that savings including an emergency fund? Or is that considered separate?