Okay so from today, there is 100 days left on my countdown clock for me to reach debt-zero. For those of you that missed my original countdown post, I made a goal to myself that I would get my credit card debt completely paid off by Feburary 26th, which is what you see on my right sidebar. I am still currently at -$5529.61, mainly because I wasn’t able to put any money towards my cards this week due to Christmas shopping.
Okay so when I get my credit cards paid off I plan on opening up three types of investment accounts, which I am really excited about.
- Roth IRA
- General Investment account
- Money Market
1.) For the Roth IRA, this is simple concept: the sooner you start, the better you’re off. I know that saving up for a retirement account is a good idea and I’m sure that when I’m 59 1/2 I’ll be happy that I made that investment. And I choose the Roth IRA oppose to the traditional IRA simply because I think it would benefit me more now while I’m not in the high tax bracket. From what I understand, in the tradational IRA, although it is tax deductable, I would end up paying more for my tax cuts when it’s time to take it out because I would be in a higher tax bracket.
2.) The general investment account is where I do my experiments. I’ve been doing some reasearch and I’m still not sure what I want to invest in here but I know that the S&P500 is always doing good so I might go with that. Though this account, I want to save up for my down payment on my first home. My goal is to have a house in about 5 years so I’m hoping that I can get this account somewhere around 40 thousand by then. In my last year before I buy that house, I’m probably going to take my money out of this account and put it into a more “safer” account. Probably another money market account.
3.) Money Market. this account is where my emergency fund would go into. You never know what life is going to throw at you so I think it’s very important to have an account for those emergency times. Especially since I want to invest, it’s really important to have an emergency account because the worse thing that could happen is, I end up in some kind of accident and have to take out money from my IRA or another investment account because I don’t have anything else to resort to. Not a great deal here.
Well in the meantime, I will be doing more research on investing and I’ll keep you updated. Til next time