Jan 31

I’m 27, husband is 34. We’re both going to start IRAs. I don’t know if it’s better to save more now and put less into IRAS. We are halfway to reaching the goal amount for our emergency savings. We intend on going to grad school also. But, we are behind with retirement, so I wasn’t sure if I should beef that up now and be okay with saving less each month.

3 comments so far...

  • betho14 Said on January 31st, 2010 at 3:53 pm:

    you need to talk to a financial advisor. when you set up your ira with your bank, i’m assuming, they will have one on staff. he can tell you all your options up to this point. iras and 401ks are for retirement, way down the road. savings is for emergencies and things you would like to buy a few years down the road. your ira/401k money grows way way faster than your savings does. and since you guys are starting your retirement funds later, especially your husband, your going to have to play catch up if you want to be able to have a nice retirement. look into a 401k with the companies you work for. some places will match what you put in which equals free money. and a 401k is taken out before taxes, so you dont notice it as much. rather than putting money into a savings account after you’ve received your check.

  • Repairmanjack Said on January 31st, 2010 at 4:33 pm:

    The rule of thumb is to have the emergency saving in place first, then invest. How much do you really need in an emergency account? If you are halfway there and both of you have a secure job you might want to think about putting away up to the employer matching amount if either of you have a 401k that offers an employee match. Then add more slowly to your savings.

    Do you have/need insurance?

    Do you own a house?

    You are behind on retirement so if there are ways you can cut back spending and invest more, that would be good.

    Before you invest, learn HOW to invest:


    Best wishes for your financial future!!

  • MR MONEY Said on January 31st, 2010 at 4:53 pm:

    I recommend doing both. Build up your emergency money at the same time as building up your retirement accounts. It sounds like you are doing a good job attempting to determine where you are and where you want to be. Try to find a financial planner that will conduct a ‘complimentary’ review and plan for you. This will help you manage your debt (present and future) as well as your spending and saving.
    I am a little concerned that you don’t have IRAs at your ages. You should really have at least $100,000 by the time you are 40 (only 6 years). Try to buckly down. Good Luck!

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