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That Guy · 02-02-2007, 11:55 PM

seriously:

- first max your 401k matching (ie, if your employeer will give you free money in a ratio to the amount you invest) - its free money

-second max your roth ira (uses post tax dollars, but unlike traditional IRAs, it' not tax deferred, it's TAX FREE).

-third you can invest anything beyond that you wish into IRAs or what have you. tax deferred investments aren't as good as free money or investments that are only taxed on principle and not on interest.

debts grow faster than savings though, so accelerating mortgage payments and paying off those credit cards and loans are generally good ideas.

02-02-2007, 11:55 PM	#14
That Guy Living Legend Join Date: Jun 2004 Location: VA Age: 42 Posts: 17,620	Re: Money Matters seriously: - first max your 401k matching (ie, if your employeer will give you free money in a ratio to the amount you invest) - its free money -second max your roth ira (uses post tax dollars, but unlike traditional IRAs, it' not tax deferred, it's TAX FREE). -third you can invest anything beyond that you wish into IRAs or what have you. tax deferred investments aren't as good as free money or investments that are only taxed on principle and not on interest. debts grow faster than savings though, so accelerating mortgage payments and paying off those credit cards and loans are generally good ideas.