My uncle is recommending a Roth IRA, whatever that is.
It is, apparantly, the bomb. You pay taxes on the money you put in it, and you don't pay any taxes on the money when you take it out! Since the point is that your money will grow in the IRA over time, by the time you retire, you'll have only paid taxes on a small percentage of the money - just what was put in, none of the interest/earnings.
I want to open one up but we're not in a place for that. And I could only rollover into a regular IRA.
(when I say pay tax now, I just mean that you pay tax on your regular income as normal. There's no special tax.)
That certainly does help, but it is just so easy to get into credit card trouble when you're young.
I think it helped that I was only using a check card until a few months ago. So I only ever "charged" what I could pay for.
My dad got me a credit card "for emergencies" in college, but the bill went to him, so I never used it. But apparently, keeping that card open gives me years of good credit, even though I don't use it. I have an Amazon.com Visa that gives me rewards, whereas the other one doesn't do anything.
(when I say pay tax now, I just mean that you pay tax on your regular income as normal. There's no special tax.)
Oh, okay, thanks! Yeah, I was getting a little confused.
I have an Amazon.com Visa that gives me rewards, whereas the other one doesn't do anything.
Ah, rewards cards. Also known as "How Nora and Tom get all their kitchen equipment."
P-C, before you do *anything*, I strongly suggest buying and reading Personal Finance for Dummies. It explains all of these terms clearly and gives good advice. I don't think you should invest anything until you either understand what you're doing on some level yourself or have hired someone to help you make those decisions.
ETA: Also, use your credit card and pay it off each month. It will really help your credit score when you get to the point when you want to buy something. Just my two cents.
I just wrote this email to Tom:
There's a discussion of naan in Natter that makes me want Indian food tonight, but another discussion of fiscal responsibility that makes me think we shouldn't go out! Aieee!
Is 4.4% considered good these days?
For a bank savings account, it's awesome. And, while the $25 bonus is nice, it's more like a cherry on top of a sundae like moving your interest up from 0.5% (or in my case, 0.2%).
Huh, does anyone know about Emigrant Direct?
P-C, before you do *anything*, I strongly suggest buying and reading Personal Finance for Dummies. It explains all of these terms clearly and gives good advice. I don't think you should invest anything until you either understand what you're doing on some level yourself or have hired someone to help you make those decisions.
No, that's a good idea. I think I can at least change my savings account to the ING now, though. That, I understand!
Ah, rewards cards. Also known as "How Nora and Tom get all their kitchen equipment."
It's annoying because I keep seeing all these other cards that are probably better, but I shouldn't be opening up a new card so soon after this one, right?
