Investor Homepage

Question: Question for real investors?

(Posted by: on 2010-08-26 08:08:58)

I would like you to give me your opinion on my financial plan. I know it is very simple and that it´s not a big dream but, just want your view on it. I am planning to save FIRST for emergencies, a specific amount (6 months of salary). SECOND, I want to get rid of debts, they´re reasonably little. THIRD, start investing in mutual funds. It is going to take me a bit. (time), I estimate 2 years. Is it okay my plan? Is there something missing here? and is the order convenient? any suggestion will be appreciated. thanks I am single, 27, no kids.

Posted by: Wayne Z on 2010-08-26, 08:13:37

I would think about reversing FIRST and SECOND. Interest works the same way on debt and savings. Unless your debt is 0% interest, the rate is usually much higher than any rate made on savings. Saving money at 1% and paying 20%+ on debt doesn't make sense. Just a thought.

Posted by: MVD34 on 2010-08-26, 08:19:53

Your plan is a sound variation on a standard financial plan for beginners. However, I agree that your first and second steps are a bit out of context given the costs associated with credit card debts in particular. I think most sound advisors would recommend saving a small amount ($1000) first for the emergency fund and then hit the debt hard...returning to the emergency fund once the debts are gone.

Posted by: Raysor on 2010-08-26, 08:22:06

FLAW: Will you get to stage 3 without something else cropping up? Are you married, own your own house, kids gone to college/ left home, got a pension, sorted your career out etc. etc. etc. Otherwise, yeah, it's a fine dream.

Posted by: Movie Fan on 2010-08-26, 08:34:18

Life is very unpredictable my friend,and something may come up that you may need to get your savings out over,like loss of a job,or an emergency.Your plan sounds good,but you never know.

Posted by: zuma on 2010-08-26, 09:39:50

Outstanding .....Anthony... ....Mutual Funds .. Consider "Growth " and "Growth and Income " Lo-Load and No-Load Mutual Funds with a Top Twenty record for Total Return in 3 and 5 years. Found in a Mutual Fund Almanac from sources like Morningstar and AAII, aaii.com

Posted by: Vincent Kennedy on 2010-08-27, 02:22:58

Hi friend Unfortunately most of the websites online that offer debt relief are scams.I can suggest you one of them that really works... no doubt. They helped me to save more than 30% ... If you are serious about that, Enter DebtHelper.info Really hope it was helpful for you