"Mark0Young" <mark0young[at]aol.com> wrote in message
- quote -

The importance of this emergency fund is so often overlooked. I think many
people just find the idea of accumulating that much cash too overwhelming.
While the OP has the cash, others may be wondering how it is really
possible. If you're starting from scratch, set yourself some small goals.
Instead of thinking about 3-6 months of living expenses, put away a little
each month towards having the deductible on your car insurance. When you
have reached that goal, set another one - how much does a new set of tires
cost? Once you are in the habit of saving a small amount each month you'll
find it gets a little easier. So what if it takes a long time to reach the
3-6 months amount. The big thing is that you're no longer just treading
water.

Elizabeth Richardson

In article <20031230172558.01726.00001854[at]mb-m18.aol.com> ,
ksu93dlv[at]aol.comAntiSpam (Ksu93dlv) writes:

- quote -

Actually, for a Roth IRA, you have until the deadline for filing that year's
tax returns, minus extensions. So, for most years, the deadline is April 15 the
following year.

The actual filing of one's tax return has absolutely nothing to do with the
deadline and there is nothing one puts on one's tax returns if one does
contribute to a Roth IRA.

So, the deadline for contributing to a Year 2003 Roth IRA is April 15, 2004, no
matter when you file your tax returns. Be sure the paperwork identifies clearly
which tax year the contribution is for, especially if it isn't for the current
calendar year.

See IRS Publication 590 for more information, available on the IRS web site
http://www.irs.gov

By the way, I would be inclined to not be so quick to tie up cash in
investments, other than Year 2003 & Year 2004 Roth IRAs, because a new
residence often have some expensive quirks that one had overlooked. Then, after
having lived there for a couple of months would I seriously consider
investments, be it in retirement accounts (401(k), 403(b) if the expenses
aren't too high and the investments offered in them are reasonable) or in a
personal (taxable) account, preferably in something reasonably tax efficient.

The reason why I would still do the Roth IRAs is because, of the $30K, full
Roth IRA contributions for two years for two people would be $12K
($3K/person/year if under 50, $3,500/person/year if the person will be 50 or
older by December 31 for the tax year the contribution is for, and these
numbers are good for 2002-2004), so, even after full Roth IRA contributions,
that would leave $18K, which is probably more than enough for unexpected
problems. If need be, the Roth IRA contributions can be drawn back out at any
time for any purpose, no tax, no penalty (no 5-year waiting period), but the
same is not true of most other retirement accounts.

I would also recommend an "emergency fund" with the equivalent of 3 to 6 months
of living expenses in it (I favor 6 months) in something reasonably safe and
reasonably liquid, such as a money market account--one never knows when a major
appliance or the car will break down, an emergency trip have to be made, or a
prolonged interruption to income may occur.

Mark A. Young

Actually, my fiance sold his condo and I am in the process of selling mine,
so we're both putting down cash in the new home. He had a profit of $100K
on his sale and putting down 80K and I'm putting down 80K also. I'll also
have an extra $30K and he's paid off all his debts. He was planning to open
up a Roth IRA and maybe put some money into a mutual fund of some sort.

I agree with your #1 opinion. We will open up a mutual fund account, but
I'll keep my old one even though it only has about $4K.

As for my 401K, I have about $50K in my account and am putting in the
maximum I can put down. Even if I leave my job, since it's a credit union,
I can leave the money where it is.

"Ignoramus6533" <ignoramus6533[at]NOSPAM.6533.invalid> wrote in message
news:bt3vf5$169$3[at]pita.alt.net...
- quote -

Make sure that your fiance is not taking you for a ride. He or she has
no savings and you do, and you are already buying some mutual
property, possibly at the insistence of said fiance.

So.

Make sure that the monies that you owned before you married, will stay
"separate property" and will not be mixed in with money that you or
your fiance earn or receive after marriage.

That means.

1. Do not add a single cent to that "mutual fund". Open a new "mutual
fund" account for post-marital money.

2. Make sure that the title to the property is in your name only, if
it is in fact paid for with your money. Since you will pay the
mortgage with your marital money, you will not be able to claim is
wholly as separate property, but you may be able to claim your initial
equity as premarital.

3. Depending on the size of the work 401k, and your job outlook, you
may be better off not making further contributions to it and closing
it (to transfer money to your nonmarital IRA), if you have a lot of
money there and expect to switch jobs soon.

Be smart, do the right thing. Doing what I suggested does not mean
that you trust your fiance, it just means that you are an organized
person.

What to do with $30k? This depends on how much money you have in your
"mutual fund". Basically, it is a good idea to have enough money to
live on for a year, if you value cash at 100% and your stockmarket
money at, say, 30% on the dollar. The reason for this is that bad job
situations usually coincide with stockmarket being down some.

i

In article <3ff1e461$0$4753$61fed72c[at]news.rcn.com> , DCres wrote:
- quote -

In article <3ff1e461$0$4753$61fed72c[at]news.rcn.com> , DCres
<arunner[at]starpower.net> wrote:

- quote -

I'd caution you about counting your chickens before they hatch. New
homes eat money like crazy. If it is a new used home, you will find
things that need repairs. If it is a new new home, you will add new
stuff to the house like window treatments, water filter, softener,
etc. In either case, there is decorating, land scaping, and you will
find that none of your furniture works in the new place, so you will
be tempted to buy a bunch of new furniture.

I would suggest that you would be lucky to have enough left over to
fund Roth IRA's for each of you. Maybe you should put this money
away first just to make sure it doesn't evaporate.

-john-

--
================================================== ==================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ==================

Personally I'd max out my Roth IRA for 2003 and 2004. You can each contribute
$3000 per year right now, so that would consume $12,000 of your extra money.
Don't forget that you can still contribute to your 2003 Roth IRA in 2004 as
long as you do so before filing your 2003 tax return.

My fiance and I are in the process of purchasing a new home. We are putting
down approx. 40%, but will have about $30K left over. I already have a 401K
through work, plus a mutual fund. My fiance has no savings but will be
opening up a ROTH IRA. We are in our mid-30's and will have no debt except
for the mortgage.

Would like to get opinions on how to invest the rest of the cash? CD's?
More mutual funds?