Savings Story

Saving $48,000 This Year: First Roth Contributions Made

I deposited my paycheck today and I just sent my first Roth IRA contributions. For more information about my goal of saving $48,000 this year, read this post. My total IRA contributions for 2006/2007 (for two accounts) will be $8000. I sent $400 to each account, for a total contribution of $800. (Normally I would save the entire amount in my ING Direct account and THEN transfer it to the two Roth IRA accounts, but I want to test out the new accounts to be sure that depositing the contributions goes off without a hitch.) I love saving money. It actually gets to be a little “addictive”. I’ve been reading several investing books (and visiting many of the investing sites listed at pfblogs.org!) trying to learn as much as I can about investing. I’ve never really liked buying individual stocks. My 403b account is rather aggressively distributed, so I’ll probably pursue a rather “tame” investment strategy inside of the two Roth IRAs. In fact, I’ll probably just buy more shares of RSP, an S&P500 ETF that I’ve purchased in the past. As always, whenever I make up my mind, I’ll let you know.

3 thoughts on “Saving $48,000 This Year: First Roth Contributions Made

  1. I notice in a previous post, you have plans for about 16K in taxable investments. With this in mind, I’d say go for low-turnover, low-yield index funds/ETFs in the taxable accounts and look for the opposite in your Roth IRAs. Use the tax-advantage accounts to their fullest.

  2. Yep, I was going to say just what Mossy said…if you are going to do some of the more risky and hopefully more lucrative investments, do it in your Roth so that you can maximize the tax benes.

    Exciting times at NCN! Congratulations!

    Peg

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