Quote:
Originally Posted by UteChief
Sure, but I’d want to confirm if he has a retirement account. 401k, pension, etc… Does he have access to a workplace retirement? Are they forgoing a workplace match to save the $3,000.
Does he have an emergency fund? Is the money saved for anything upcoming?
In my experience novel investors need an in depth conversation before general advice.
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Well sure. But he threw it on a football message board.
But let’s walk through it.
He said he had nothing invested. That rules out a 401K. Doesn’t necessarily rule out a pension but if all he has is a pension he still needs a Roth.
He wouldn’t forego a workplace match. He said he HAS 3000 (not could forego contributions to a qualified plan to get 3000). And the contributions to an IRA wouldn’t count against his contributions to a qualified plan, which from what he said he doesn’t have anyway.
An emergency fund shouldn’t be “invested”.
If the money is saved for something upcoming it shouldn’t be “invested”.
He didn’t ask for a financial plan, he asked what we would do for a first investment so I told him.
Sorry if you’re offended. If he wanted an in-depth discussion we’ve been through it all. In 4 lines he asked what investment we’d put the first dollar in.