In article <1gut60tkj0bhhs1co1n9q2579vaorhrue5[at]4ax.com> , pazpower
<mkulakowski[at]nyc.rr.com> wrote:

- quote -

At your age, you should be maxing out your 401K options, match or
not match, and putting away money in IRA/Roth as allowed by law.

- quote -

By "saved money", I assume you mean money saved outside of your
401K and IRA options? If not, I would not consider using 401K or
other retirement money for anything other than retirement. Those
funds should be invested rather aggressively given your tender age.

For money outside of your retirement account, the type of investing
is based on your risk tollerance and your time frame. The stock
market is a good place for the long term. This past year, we saw
gains in the 50% range.

- quote -

Three years is most likely not a long enough time frame for using
higher rate investment instruments. If you put money in the market,
the market could be down in 3 years, and you end up taking a bath,
and might not have enough left to buy a house. For a 3 year time
frame, you should be looking at bonds, CD's, or other similar fixed
rate investments.

-john-

--
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John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
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I'm 25 years old with decent job in the financial industry. I started
my 401K a year ago and contributing 7% since with the company's
matching. I also have a car loan (financing) that I'm going to pay off
this coming September. After that I'm going to increase my 401K to 8%
and obviously I'll be able to save more money.

To plan this, what's the best way to invest your saved money to
generate little more income instead of just putting it into the
regular CD/savings account?

I also plan to buy a house in 3 years from that extra saved money that
I would like to put it in some fairly fast generating income type of
investment.

I'm looking to buy some mutual funds with every $25-$100 withdraw from
my paycheck - is that a good idea?

Thanks in advance.