So I already accomplished one of my April goals! I already have an ING account that I’ve been contributing to sporadically, and last night I looking into setting up an automatic savings plan and found it was so easy I just did it right then and there! My autodrafts are beginning on May 28th and will occur monthly, at an amount of $250 per month. Not too shabby for a semi-broke new teacher!
Which brings me to my next point: I’m going to designate my ING account as my house downpayment fund account. At $250 per month, I should have enough for a decent downpayment in the next 4-5 years, which will make me a homeowner before I’m 30 (one of my long-term goals). I also plan on putting my two “extra” paychecks that I get every year into this account, for a total savings of $5000 per year. Again, I think this is decent given the extremely high rent I pay and the pretty modest salary I make.
Now what to do about retirement? I’m going to start a Roth IRA with T. Rowe Price, with an auto-draft plan of $100 per month. I want to have this up and running by the end of May, but I need help: I’m not sure which funds to choose. I’m looking for no-load, moderate risk. Can anyone make a specific recommendation?
I’m also planning on teaching summer school and tutoring for the next few years, until my salary gets higher. In addition to my monthly auto-drafts, all of this additional income will be thrown into my Roth. My goal is to max it out every year, except for 2009, because….
…the money that I make from teaching summer school this year is going to go into an emergency fund savings account with the bank at which I have my checking account. This way, the money is easily accessible (you know, in case of….emergency!) and I can link it to my checking account for overdraft protection. I’m not a chronic overdrafter, but sticky situations have come up in the past, so this would be a nice feature to have.
Comments on this plan? And please, if you have a Roth with T.Rowe Price, I’d love a fund recommendation! I’m a total investing novice, so any advice at all would be really helpful, and I won’t leave you angry posts if it does poorly 🙂