Where can I put some extra $$ to invesT? I hear a roth IRA is good? Anyone have some good info?

I currently have a 401k where I invest almost 10% each month into stocks, diffeent savings plans and my company matches close to the full amount. even with the 10% out of my check I'm ending up with a nice amount of $$ in my checking just piling up every pay period after bills and alcohol and mods lol. I don't want to keep all that amount in there. I'd rather invest it, tips????

 

I like this guy's recommendations:

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I like spiders too: http://www.investopedia.com/terms/s/spiders.asp

 

there are a bunch of people on this board who make pretty good $.... I have no idea of your situation but....

Roth IRA Income Limits - Max contributions for a single tax payer is phased out witha modified AGI between 95k-110k. Joint filers it is $150k-$160k (that is on of those marriage penalty's)

I am not sure what happens if you try to put $ into a roth even though your income is too high. I would have to guess nothing happens, but that is a risk that may come back to haunt you down the road. Not sure how they would know. A Roth contribution is not reported on your tax return. The place where you make your roth investment doesn't ask for a copy of your tax return.

 

do you own a house?? if not, then putting your extra cash into a house is not a bad investment.

 

the advantage into putting a Roth IRA, if eligible (see someone's post about income limits above) is that when you retire, you don't pay any taxes on any capital gains you might have

theres also a limit this year of putting $4k into a Roth IRA, not sure what it is next year. looking at s&p 500 funds in a Roth might not be a bad idea, depending on how long you have until retirement

 

at today's prices I am inclined to disagree. I don't think there is room for much growth in the near-medium term anymore.

If he's in middle-america it may be a good investement, but FL/NY/CA I would say no.

I think you can do $3K a year into a Roth. I also do 10%, but with matches and bonus it is effectively 21%.

 

he may have meant pay down the current mortgage. that is a guaranteed 6% (or whatever the % is) vs gambling with the stock market.

I may be wrong in interpretting what VTEC_Junkie posted.?

I have been paying off all of my rental houses instead of investing in the market. Possibly less reward, but definately less risky for me.

 

I'm pretty sure this year its $4k.. 3k was the limit a little while ago.

are you sure you're talking about the same percentages? with a 401k, you can usually put pre-tax money into it, and designate a certain percentage of your paycheck to go into a 401k.. there are a few benefits to this, one of which lowers your gross income (less taxes).. and usually if you work for a decent company, they will match up to a certain percentage

with a Roth, its all after tax (as far as I know)..

 

I would recommend you increase your 401k contribution percentage, if possible. The 401k limit for 2005 is $14,000. This limit is the amount YOU contribute. It does not include your company's matching amount. 401K, IMO, is always a good idea even if there's no matching above a certain percentage. You save your own money BEFORE uncle sam gets to take a bit out of it, that's always a good bet.

If you still have money after that, and your annual income allows, yes, Roth IRA is the way to go. Just pick a good index mutual fund and sock it away every month. You will be surprise how quickly it grows.

Good luck and happy investing.

 

hey thanks guys, i might up my 401 k