BJ,
Well said..
True before people can invest ,they need to clear all consumer debt..Such a simple way to make money...STOP spending what you don't have and then charging it at 18 to 28% interest.. Car loans ?? 6 to 9%. Madness..
Paying those off gives you 6% to 28% gains....
Then you talk of 401K..For sure if you have a Company that matches, and you don't participate to the maximum , you need to read this thread over, and do some additional research..If they match up to 10%..Match them..But not company stocks unless it is a stellar company, and even then, diversify. i did 15% for years, and they matched 10%....free money..i like FREE money.
Then you have the ROTH, That would be the next step.. I don't have one, but i too don't really need it, But i should have put money into it. others should put into one..then they have the diversification of the ROTH, and the 401K.
Then finally you get to the good stuff, A Schwab type taxable account..
What some of you say ??? I thought that is where we are at now...
You might be, but i have some questions before we continue....
Hmmm...Only again if you have ZERO consumer debt ? and you are matching a 401K plan at work ? and you have a cushion of emergency devalued dead presidents ? .How much ? 3 months, six months, 1 year ??
What you can afford and makes you comfortable..Even if it is 500 or 1000 dollars. If you have credit card debt and no emergency fund, you are double screwed....Back off the investing and clear these problems up..
Then the real money making begins...
