1 Million Dollars

Friday, January 4, 2013

Millionaire Update- Starting the New Year

We continue to grow our retirement savings and are now at $13,867.  Though we will be not be investing any money into retirement until at least September, I am pretty pleased.  Over this last year we have done very well, both because of our investing and because of the market.

We are, though, considering pulling a small amount our of my Roth IRA.  Last year I opened a Roth IRA with ING Direct and received $50 for leaving $200 in there for three months.  At that point we were only investing my husband's Roth, therefore my Roth has just sat in ING, earning very little.  I was planning on moving it to Fidelity and starting my own Roth IRA there (I have a traditional IRA only), however once I got into graduate school plans changed.

We will need about $8000 more to pay for classes than we have from cash flow.  We have the options of either using my husband's subsidized student loans from last year (we have a max available of $8500) or pulling a bit from retirement.  Part of me wants to remove the ING savings because we will have to start paying back the loan before I am done with school at it will be earning an interest rate of 6.55%.  Also, because I am not earning much in ING, I am less concerned about keeping the money in the Roth IRA. 

We also have moved my 401k from my old employer to Vanguard to lower the fees associated with it, so hopefully we will make some decent gains from that.  Even if you are a student and are going into debt, there is always something you can do, to improve your future.  I need to work on remembering that, and I bet others do too.  I read on blogs about people saying huge amounts, or paying down debt and I want to do so, but the money is just not there.  But every cent I save, is less that I will have to pay back in the future.  That counts too. 

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