Quote:
Originally Posted by CrimsonTide4
I get my year end bonus in a few weeks and instead of using it to only pay off bills, I want to invest at least a third of it wisely. I definitely plan to increase my 401K deduction this year as well since our company does a great matching program.
What are some short and long term wise investment strategies?
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I am no investment advisor, so you get what you pay for
but here are my suggestions:
Depending on your debt and the interest rate of that debt, I would pay that off first. If you have a credit card with a 15% interest rate paying it off will save you quite a bit in the long run. This also depends on you staying out of debt. If all of your debt is paid off how much extra money would you have to invest?
Number two would be to have a nice size emergency fund (not your regular savings account). Do you normal put large purchases on a credit card? I mean stuff like major car repairs, unexpected trips home, etc. Most people suggest that you put 3 - 6 months worth of income in your emergency fund. .
Then, if your 401(k) is maxed out, I would invest. Look for mutual funds or a Roth IRA is my only suggestion.
I've been listening to Dave Ramsey a lot lately on the radio (
www.daveramsey.com) and although he proposing a some stuff I don't necessarily agree with (like never ever using a credit card) he has great ideas and is a real advocate of being 100% debt free
(BTW, I am not expecting you to answer these questions here, just something for you to think about)