And now for some unsolicited financial advice, from someone who is definitely not a financial advice professional-
If you have a bit of money in the bank, and if you haven’t already, this is the time of year to consider putting some money into a Roth IRA. There are some exceptions, but in general, this is money that you’d be putting away for retirement. I’m trying to retire in 2015*, so I knew I had to get started early.
Retirement saving, like disability and life insurance, regularly scheduled car maintenance, dental check-ups, and laundry, was something that gave me a vague sense of unease, so I largely ignored it. But I eventually learned that you can only buy so many socks, and that putting money into a Roth is pretty damn simple. It’s also a good idea for most people who qualify.
Unless you are making over six figures, you qualify to contribute $5000. Your spouse also qualifies for the same amount. (Total eligibility and contribution limits from Schwab.com) This is money you have already paid income taxes on. All you need to do is create an account with a broker (I use Vanguard, but there are many out there) before this year’s tax deadline. You will be contributing to your 2010 Roth IRA, which is effectively a type of container that you put money in, and then choose where you actually want to invest it (again, I use the Vanguard Target Retirement Date funds, but the options are limitless). The neat trick is that when you reach retirement age and take this money out, anything you’ve earned is tax-free. Almost all of your other investments will be taxed at that time.
I may be able to answer basic questions you have on this if any of you would like to look into it further.
* – Don’t tell Surabhi