What are some short, intermediate and long term finanicla plans for a 34 YO with a good job? What should I be?
Question:
I'm thinking of getting disability insurance and making sure I 'm covered for long term care if I need it when I'm elderly. I have good health insurance and a 401K. Am I forgetting anything?
Answer:
Depending on how much money you make annually a Roth IRA would be a good investment. You make contributions with money you already got taxed on so you don't get taxed on the withdrawl as in a traditional IRA. Contributions to a Roth is not tax deductible but rather pay the tax upfront than have to worry about it later on.
It never hurts to invest some money at your bank in an IRA or one of the bonds that accumulate interest over 10 yrs. It never hurts to be prepared.
Sounds like you've got it right to me. Where is your 401k money going? Is it a Roth? It should be. Is it in stocks? Should be. Are you contributing at least 10% of your income? You should be. You don't have to do everything perfectly. Just good enough. You're doing fine.
I am 36. My short term goal is to pay off everything but the house. My intermediate goal is to max out my 401(k). My long term goal is to retire with my home paid off.
Save $1,000 now, pay off all debt but the house, then save 3 to 6 months cash in a savings account before anything else.
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