Well, do you have a particular investing plan you wish to pursue? Do you want to overweight or a particular sector (large cap vs small cap, intl vs domestic) ?
I would use the 9 style box method and use the morningstar x-ray tools to see where your current holding is really at compared to...
Considering historic return of the stock market exceed savings significantly, someone who have been keeping their emergency funds in term of investments for awhile, should have at least comparable amount. So I guess this would only affect those who has just recently starting out?
That's where you borrow more from other 0% CC and start praying :evil:
Seriously though, that's a lot of IF scenario. Even with drop in the IRA, you should still be able to cover significant portion of the emergency cash.
I agree for the average investor, the advice is hazardous. But for someone with enough financial savvy, it does make sense. Historically, the stock market return more than your typical interest bearing account. And in the event of getting caught in a bear market, there're other means to meet the...
That's a disaster waiting to happen if that fund in the 401K plan is a mediocre one. There're plenty of 401K plan with terrible choices. One of the advantage of IRA is complete control of the investment.
I have a distinct feeling that ROTH IRA/401K will be subject to tax one way or the other. There's already attempt by the donkey to do so in the past (Dick Gephardt).
For folks that lived in some states, traditional IRA might be more suitable than ROTH (Michigan for example).
Illegals in many states can get free healthcare and tuition, while refugee trying to reach Aussie got shipped to a 4th world piss poor island called Nauru.
Great socialist principle indeed.
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