Roth Ira

So, I cashed in 24 series EE savings bonds and the money is now in my checking account with bank of america. it's $1100 dollars... [i only cashed in the ones that wouldn't give me a penalty and saved my newer ones since they were earning a decent interest rate already]



While i really want to use this money to pay off my car and free up that auto loan so i can start saving for my dental work, reason has told me no... over time, the money will be able to do so much more in my Roth IRA then in wiping out $50.00 max in interest.



So, the money is on its way over to ING Direct. Once the money is at ING and settled into my account, it goes to my IRA. I need to decide if i want to open a new fund, or just split the money into the 2 i have already... or put more into one, and less into the other... i'll ponder this as the money slowly moves from one account to the other. After all, I have until the 21st to pick funds since the money won't be avilable for withdrawal until then.

I know that even when i'm debt free, I won't be able to max out my IRA for this year [i ran the sad little numbers]... But i will be able to for 2008 if i get in the habit of doing so now, and here's how! in 2008, you can stick in 5,000 a year into a Roth IRA. For me, i only have to put $280.00 a month into my IRA if I use "my 2 extra paychecks" for my Roth as well!!!! which is less then my car payment!!

But how will i pay for my braces??? After i'm debt free i'll start putting aside my "unbudgeted money" [around 200 a month] until i have enough... and i'll slowly resume that 6 month emergency fund with 50 a month and my overtime.

I like my game plan... start yours... make it a goal for next year to max out that Roth IRA!!!