Wow, this was the quickest bonus money I have ever received. In the last post I spoke about using my EF money to deposit in a Roth IRA from ING to get $50. I was expecting the bonus to take two or three month to deposit (normal time line for bonuses) but I was pleasantly surprised. The $50 was deposited on the 25th of this month.
My DF and I have been talking about what track we will take now, for investing. We know we want to move his money away from T Rowe Price so we won't have an annual fee and eventually we want to move most of our money to Vanguard. However, we also want to buy at least one property here in western New York, we hope to buy three.
We do have our eye on one property right now and may need to put off increasing our Roth deposits and the move to Fidelity until we decide if we want the house or hopefully buy the house.
1 Million Dollars
Saturday, February 26, 2011
Thursday, February 3, 2011
A Roth and an opportunity
I got a wonderful deal from ING offering a $50 bonus if I opened a IRA with a minimum contributions of $200. The deposit could be considered either a contribution for 2010 or 2011 but the $50 had to be a 2011 contribution.
The problem with this deal was the contribution had to be deposited by February 7th, 2011 and I had only $11 this month to invest, excluding the $50 required to be invested in T Rowe Price. I wanted to take advantage of this deal, obviously, it had a 25% return but how could I?
Starting in March we were planning to up our retirement contribution from $50 to $200. But where to get the money by February 7th? Thankfully I had money in my EF. In my mind my EF is not just for emergencies but also for opportunities such as this.
I opened the Roth today in a Roth IRA savings account and to repay my EF I will up my contributions in April not March.
People may wonder why I do not just roll over the $200 once the $50 is deposited. The reason is the Roth at T Rowe Price is in my fiancee's name and my only Roth is at my credit union earning less than the Roth at ING.
In April my fiancee and I will roll over his Roth from T Rowe Price to Fidelity and start depositing $200 per month until there is over $2000 in the account, then we will roll the account in ING over to Fidelity as well and begin depositing the $200 per month in my Roth.
The problem with this deal was the contribution had to be deposited by February 7th, 2011 and I had only $11 this month to invest, excluding the $50 required to be invested in T Rowe Price. I wanted to take advantage of this deal, obviously, it had a 25% return but how could I?
Starting in March we were planning to up our retirement contribution from $50 to $200. But where to get the money by February 7th? Thankfully I had money in my EF. In my mind my EF is not just for emergencies but also for opportunities such as this.
I opened the Roth today in a Roth IRA savings account and to repay my EF I will up my contributions in April not March.
People may wonder why I do not just roll over the $200 once the $50 is deposited. The reason is the Roth at T Rowe Price is in my fiancee's name and my only Roth is at my credit union earning less than the Roth at ING.
In April my fiancee and I will roll over his Roth from T Rowe Price to Fidelity and start depositing $200 per month until there is over $2000 in the account, then we will roll the account in ING over to Fidelity as well and begin depositing the $200 per month in my Roth.
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