Comments on: Is it more important to have 3 different retirement savings accounts? http://www.talkaboutretirement.net/personal-finance/is-it-more-important-to-have-3-different-retirement-savings-accounts/ Issues concerns retirement and retired living Mon, 21 May 2012 11:38:14 +0000 http://wordpress.org/?v=2.6.3 By: sfuller94 http://www.talkaboutretirement.net/personal-finance/is-it-more-important-to-have-3-different-retirement-savings-accounts/#comment-48 sfuller94 Wed, 29 Oct 2008 00:34:49 +0000 http://www.talkaboutretirement.net/personal-finance/is-it-more-important-to-have-3-different-retirement-savings-accounts/#comment-48 Well, your question said one thing and your details said another. What I recommend to all those saving for retirement is that if you have a company sponsored 401k then you should at least put the maximum in that the company will match. This is a return of 100% on your investment. Above the company match it depends. If you and your husband have any credit card debt at a high interest rate, say 26%, then it does not make sense to save money that is making only 10% - 12% and paying 26% on your credit card debt. That means that after each month, your net worth would decline at a rate of around 16%-14%. Basicallly the difference between what you are earning on the investments to the credit cards. Now, you do need a cash savings in order to weather the storms. Most investors recommend 2 to 3 months of salary in cash in case you get sick or have a car wreck and can't work. You don't want to dip into your retirement savings if you are on a short term sick leave. Now comes the last recommendation. It's difficult to have 2 to 3 months cash savings if you have any credit card debt. So, budget, work your credit cards to zero and then it will make sense to invest as much as you like in your retirement accounts. Well, your question said one thing and your details said another. What I recommend to all those saving for retirement is that if you have a company sponsored 401k then you should at least put the maximum in that the company will match. This is a return of 100% on your investment.

Above the company match it depends. If you and your husband have any credit card debt at a high interest rate, say 26%, then it does not make sense to save money that is making only 10% - 12% and paying 26% on your credit card debt. That means that after each month, your net worth would decline at a rate of around 16%-14%. Basicallly the difference between what you are earning on the investments to the credit cards.

Now, you do need a cash savings in order to weather the storms. Most investors recommend 2 to 3 months of salary in cash in case you get sick or have a car wreck and can’t work. You don’t want to dip into your retirement savings if you are on a short term sick leave.

Now comes the last recommendation. It’s difficult to have 2 to 3 months cash savings if you have any credit card debt.

So, budget, work your credit cards to zero and then it will make sense to invest as much as you like in your retirement accounts.

]]> By: install3579 http://www.talkaboutretirement.net/personal-finance/is-it-more-important-to-have-3-different-retirement-savings-accounts/#comment-47 install3579 Sat, 25 Oct 2008 13:48:06 +0000 http://www.talkaboutretirement.net/personal-finance/is-it-more-important-to-have-3-different-retirement-savings-accounts/#comment-47 Cancel 2 of the accounts, use that money (all of it) to pay off the debt, once the debt is paid off you can go back to saving not only what you were saving but also the amount that you were paying on the debt service. It is very important to save for retirement, but you also need some savings that are available in case of an emergency. Good Luck Cancel 2 of the accounts, use that money (all of it) to pay off the debt, once the debt is paid off you can go back to saving not only what you were saving but also the amount that you were paying on the debt service. It is very important to save for retirement, but you also need some savings that are available in case of an emergency. Good Luck

]]> By: me2 http://www.talkaboutretirement.net/personal-finance/is-it-more-important-to-have-3-different-retirement-savings-accounts/#comment-46 me2 Fri, 24 Oct 2008 15:17:12 +0000 http://www.talkaboutretirement.net/personal-finance/is-it-more-important-to-have-3-different-retirement-savings-accounts/#comment-46 It's always good to pay yourself first, it's bad that your husband hides his assets from you. You need to have a sit down with your husband and discuss the important of being honest with each other. Sounds like your husband is planning a future without you. Sorry I do not mean to sound hard, but you have a right to in know what he is doing with his assets It’s always good to pay yourself first, it’s bad that your husband hides his assets from you. You need to have a sit down with your husband and discuss the important of being honest with each other. Sounds like your husband is planning a future without you. Sorry I do not mean to sound hard, but you have a right to in know what he is doing with his assets

]]> By: justagrandma http://www.talkaboutretirement.net/personal-finance/is-it-more-important-to-have-3-different-retirement-savings-accounts/#comment-45 justagrandma Wed, 22 Oct 2008 08:18:54 +0000 http://www.talkaboutretirement.net/personal-finance/is-it-more-important-to-have-3-different-retirement-savings-accounts/#comment-45 Since the rate of a passbook savings account is so small, and the rate on credit cards is so high, it makes sense to pay off the credit cards. Then cut up the cards so you don't owe on them again, just paying them off isn't enough. Does he have a different types of accounts like an IRA and a straight passbook and some other type? That would make a slight difference. But it maybe he has some unpleasant memories of his parents retirement and that's affected his attitude on savings. People are very emotional about money. Since the rate of a passbook savings account is so small, and the rate on credit cards is so high, it makes sense to pay off the credit cards. Then cut up the cards so you don’t owe on them again, just paying them off isn’t enough.
Does he have a different types of accounts like an IRA and a straight passbook and some other type?
That would make a slight difference. But it maybe he has some unpleasant memories of his parents retirement and that’s affected his attitude on savings. People are very emotional about money.

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