Planning for..... ? allocating the extra bits

household9 · 06-16-2008, 01:25 PM

While I have very limited means, I am doing fairly well right now. How long this breeze will last is unknown. I'm not sure how best to allocate the little extra I have each month.... savings/CDs, IRA. Is it strange to plan for retirement when I am on disability, and should I just focus on savings? Thanks, Sami

Megan · 06-16-2008, 02:37 PM

I would say that you should have an emergency fund first right now. Put any little extra bits into a high yield savings account. I like ING Direct, but choose your own.

Planning for retirement is never a bad idea, and if you are eligible to contribute to a Roth IRA, it doesn't hurt to consider it. However, since you don't know how long you will be doing as well as you are, if I were you, I would try to sock away a sizeable emergency fund. Maybe 6 to 8 months, if you can do it. You can put some of that into CDs as well, to try to get additional interest, but just be sure you know the penalties for early withdrawal, on the off chance you need to get it.

DistilledRose · 06-16-2008, 04:05 PM

I echo Megan's post entirely. Now is the best time to build up your Networth. Do you have a mortgage to pay down? Do you have a car you could pay off early? Definitely try and erase any and all debt while you are comfortable! You never know what is around the corner.
Good luck!

06-16-2008, 01:25 PM	#1
household9 Junior Member Join Date: Jun 2008 Posts: 13 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (10)	Planning for..... ? allocating the extra bits While I have very limited means, I am doing fairly well right now. How long this breeze will last is unknown. I'm not sure how best to allocate the little extra I have each month.... savings/CDs, IRA. Is it strange to plan for retirement when I am on disability, and should I just focus on savings? Thanks, Sami

06-16-2008, 02:37 PM	#2
Megan Senior Member Join Date: Dec 2007 Posts: 320 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (63)	I would say that you should have an emergency fund first right now. Put any little extra bits into a high yield savings account. I like ING Direct, but choose your own. Planning for retirement is never a bad idea, and if you are eligible to contribute to a Roth IRA, it doesn't hurt to consider it. However, since you don't know how long you will be doing as well as you are, if I were you, I would try to sock away a sizeable emergency fund. Maybe 6 to 8 months, if you can do it. You can put some of that into CDs as well, to try to get additional interest, but just be sure you know the penalties for early withdrawal, on the off chance you need to get it. __________________ Counting My Pennies

06-16-2008, 04:05 PM	#3
DistilledRose Member Join Date: Jun 2008 Posts: 81 Thanks: 0 Thanked 1 Time in 1 Post Reputation: (11)	I echo Megan's post entirely. Now is the best time to build up your Networth. Do you have a mortgage to pay down? Do you have a car you could pay off early? Definitely try and erase any and all debt while you are comfortable! You never know what is around the corner. Good luck! __________________ Distilled Rose Personal Finance Blog Make Money Online with Cash Crate

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