And that concludes your mini financial lesson of the day :)
Friday, February 12, 2010
#63 Change Zac's contribution to this work 401K
Oddly enough, I didn't increase Zac's contribution, I lowered it. Now I am a debt freak, can't stand it, can't stand the thought of it, so it is super important to me that Zac and I always put away money for retirement and our future children. With that being said, this was my reasoning for cutting back on our savings....we have multiple retirement accounts. I was very proud of Zac though. He had been contributing 12% of each paycheck to his work 401K, which is awesome. I bumped it down to 5%, the portion that the company matches, and will start moving 7% of his after tax pay into his Roth IRA. Keep in mind readers, Roth IRA are taxed now, not later when your money has grown, which is the oppostite of a 401K. Hit up your roth.....You can contribute a max of $5000 each year (yeah right) so that's the goal to shoot for!
And that concludes your mini financial lesson of the day :)
And that concludes your mini financial lesson of the day :)
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This is smart sister, but what's smarter is taking that extra money and instead of the Roth - paying off your current debt you pay interest on. Everything I read says pay off debt first, create a safety net savings account second, then save for retirement 3rd - then if you can - save for college.
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