Comments on: Should We Dip Into Savings to Jump Start an IRA? http://www.nodebtplan.net/2008/08/24/should-we-dip-into-savings-to-jump-start-an-ira/#utm_source=rss&utm_medium=rss&utm_campaign=should-we-dip-into-savings-to-jump-start-an-ira A personal finance blog teaching you how to live debt free and use credit wisely. Fri, 10 Sep 2010 14:46:26 +0000 hourly 1 http://wordpress.org/?v=abc By: MITBeta @ Don't Feed The Alligatorshttp://www.nodebtplan.net/2008/08/24/should-we-dip-into-savings-to-jump-start-an-ira/comment-page-1/#comment-3579 MITBeta @ Don't Feed The Alligators Sun, 31 Aug 2008 02:05:34 +0000 http://www.nodebtplan.net/?p=610#comment-3579 You could also invest in the Vanguard STAR fund, which only requires a $1000 initial deposit. Then when you build it up to $3000 you can transfer over to almost any other fund. You could also invest in the Vanguard STAR fund, which only requires a $1000 initial deposit. Then when you build it up to $3000 you can transfer over to almost any other fund.

]]> By: LivingAlmostLargehttp://www.nodebtplan.net/2008/08/24/should-we-dip-into-savings-to-jump-start-an-ira/comment-page-1/#comment-3467 LivingAlmostLarge Wed, 27 Aug 2008 22:53:57 +0000 http://www.nodebtplan.net/?p=610#comment-3467 Not a huge deal either way. Depends on if you want to be invested or not. Not a huge deal either way. Depends on if you want to be invested or not.

]]> By: No More Nanny: Teach Me How to Cook!http://www.nodebtplan.net/2008/08/24/should-we-dip-into-savings-to-jump-start-an-ira/comment-page-1/#comment-3454 No More Nanny: Teach Me How to Cook! Wed, 27 Aug 2008 13:28:20 +0000 http://www.nodebtplan.net/?p=610#comment-3454 [...] Should We Dip Into Savings to Jump Start an IRA? at No Debt Plan [...] [...] Should We Dip Into Savings to Jump Start an IRA? at No Debt Plan [...]

]]> By: Get Rich Or Die Trying » Blog Archive » Posts Of Interesthttp://www.nodebtplan.net/2008/08/24/should-we-dip-into-savings-to-jump-start-an-ira/comment-page-1/#comment-3398 Get Rich Or Die Trying » Blog Archive » Posts Of Interest Tue, 26 Aug 2008 12:35:54 +0000 http://www.nodebtplan.net/?p=610#comment-3398 [...] Should We Dip Into Savings TO Jump Start an IRA? @ No Debt Plan - I’m in no position to give advice, but why not start with the Vanguard STAR fund that only takes $1000 to start instead of the normal $3000? [...] [...] Should We Dip Into Savings TO Jump Start an IRA? @ No Debt Plan – I’m in no position to give advice, but why not start with the Vanguard STAR fund that only takes $1000 to start instead of the normal $3000? [...]

]]> By: Marcushttp://www.nodebtplan.net/2008/08/24/should-we-dip-into-savings-to-jump-start-an-ira/comment-page-1/#comment-3383 Marcus Mon, 25 Aug 2008 22:58:55 +0000 http://www.nodebtplan.net/?p=610#comment-3383 I agree with he two other comments. I do not see any MAJOR issues with proceeding as suggested. However, another avenue could be to offset some of the risk (of depleting your trip fund) by going 50/50. Pull 1500 from the trip fund to fund your spouses Roth. Then, worse case scenario you go on a local vacation vs. New York City. This is based of course on what little info provided. Like Matt stated....... it is up to you. I guess it might depend on how dead set you are on NYC. I agree with he two other comments. I do not see any MAJOR issues with proceeding as suggested. However, another avenue could be to offset some of the risk (of depleting your trip fund) by going 50/50. Pull 1500 from the trip fund to fund your spouses Roth. Then, worse case scenario you go on a local vacation vs. New York City. This is based of course on what little info provided. Like Matt stated……. it is up to you. I guess it might depend on how dead set you are on NYC.

]]> By: Matthttp://www.nodebtplan.net/2008/08/24/should-we-dip-into-savings-to-jump-start-an-ira/comment-page-1/#comment-3380 Matt Mon, 25 Aug 2008 20:30:36 +0000 http://www.nodebtplan.net/?p=610#comment-3380 I think the call is really up to you: do you want to time the market or not?Since your NYC trip is almost a year away, and your emergency fund is in place, my vote would be YES - go ahead and fund the new Roth IRA.As of today, the S&P 500 is looking fairly cheap if you are looking to make an index fund purchase. It's very difficult to time the market, but since you are also dollar cost averaging yourself in each month, in 40+ years it will make little difference when you made your first big purchase. I think the call is really up to you: do you want to time the market or not?

Since your NYC trip is almost a year away, and your emergency fund is in place, my vote would be YES – go ahead and fund the new Roth IRA.

As of today, the S&P 500 is looking fairly cheap if you are looking to make an index fund purchase. It’s very difficult to time the market, but since you are also dollar cost averaging yourself in each month, in 40+ years it will make little difference when you made your first big purchase.

]]> By: Rickyhttp://www.nodebtplan.net/2008/08/24/should-we-dip-into-savings-to-jump-start-an-ira/comment-page-1/#comment-3379 Ricky Mon, 25 Aug 2008 19:57:34 +0000 http://www.nodebtplan.net/?p=610#comment-3379 Well I do not see any major red flags in you plan, but I have to ask why? If you stick with your plan right now you have a wonderful paid in full trip to New York, and you have your wife's Roth account well on its way by year end. If you dip into the trip money and all goes well with your new plan, the net result is essentially the same. The only difference is your wife's Roth account has chalked up a couple months of growth. What if something goes wrong though? You have virtually eliminated all potential risk, but it is impossible to completely eliminate risk. If you change your plans, there is a chance, albeit a tiny one, that you will be left holding the bag on a partially paid for trip to New York. I doubt anything would go wrong, but I am not sure would take the risk when there seems to be so little return. Maybe I am off base. What does 3 or 4 months of extra growth time equate to over the life of a Roth IRA? It's your money, and you have illustrated your competence in the world of personal finance, but I can't say I would do it. Well I do not see any major red flags in you plan, but I have to ask why? If you stick with your plan right now you have a wonderful paid in full trip to New York, and you have your wife’s Roth account well on its way by year end. If you dip into the trip money and all goes well with your new plan, the net result is essentially the same. The only difference is your wife’s Roth account has chalked up a couple months of growth. What if something goes wrong though? You have virtually eliminated all potential risk, but it is impossible to completely eliminate risk. If you change your plans, there is a chance, albeit a tiny one, that you will be left holding the bag on a partially paid for trip to New York. I doubt anything would go wrong, but I am not sure would take the risk when there seems to be so little return. Maybe I am off base. What does 3 or 4 months of extra growth time equate to over the life of a Roth IRA? It’s your money, and you have illustrated your competence in the world of personal finance, but I can’t say I would do it.

]]>