SWR: New Fed Chairman - Changes to be Aware Of

With Greenspan stepping down and a few Chairman of the FED stepping up, there are few things we should be aware of - most especially those looking into buying homes.

1) Interest Rates will be going up - try paying off any balances currently pending or switching to 0% or lower Interest Rate options

2) The current 'Sellers' Market will become a 'Buyers' Market - wait until the new year to invest in real estate, prices will deflate and it will be an environment more in favor of the buyer

3) SAVE money - I know it's hard for us to do so b/c we barely have 'pots to pi$$ in' but cut out those things you don't need b/c guess what, you'll need it, and the chances of getting a loan will be difficult going forward.

Sorta-Related:
Be aware of the new bankruptcy laws, limitations, and obligations.

Thanks for the info!!

thanks for the info

I also heard that b/c of the new bankruptcy laws NOT wiping out Credit Card debt - CC companies are going to raise minim payments and interest rates!

I have to pay mine off- my goal is to have them gone for good by May 06

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Posted by littlelostbride

Christine, What are some good things to invest in? For retirement stuff. My IRA stuff has been sitting in slow money market accounts for ages. I'm wimpy and negligent.

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also- Christine- what kind of return should I be getting on my IRA? what % per year


I have my money in a very safe mutal fund- s/p 500 stuff

I already lost all the money I made earlier this year- but it's coming back now

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Posted by littlelostbride

Christine, What are some good things to invest in? For retirement stuff. My IRA stuff has been sitting in slow money market accounts for ages. I'm wimpy and negligent.

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Switch to a ROTH IRA - it is a little more 'active' than a traditional IRA.

Traditional vs Roth:
1) the max you can contribute is the same - I think it's 4K or your taxable compensation (whichever is less)

2) Both come from pre-tax dollars, so you don't have to worry about paying them to Uncle Same at one time come 4/15

3) When you w/draw from the traditional IRA, you are taxed on the earnings on the nondeductible contributions. ROTH (under circumstances) is not taxed.
a) If you're in a higher tax bracket when you plan to w/draw, the Roth will work better.
b) helps in the long run b/c over the years, leaving money in the account earning intrest (or dividends) the Roth is a lot more beneficial.

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Posted by ChristineAE

Switch to a ROTH IRA - it is a little more 'active' than a traditional IRA.

Traditional vs Roth:
1) the max you can contribute is the same - I think it's 4K or your taxable compensation (whichever is less)

2) Both come from pre-tax dollars, so you don't have to worry about paying them to Uncle Same at one time come 4/15

3) When you w/draw from the traditional IRA, you are taxed on the earnings on the nondeductible contributions. ROTH (under circumstances) is not taxed.
a) If you're in a higher tax bracket when you plan to w/draw, the Roth will work better.
b) helps in the long run b/c over the years, leaving money in the account earning intrest (or dividends) the Roth is a lot more beneficial.

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Thank you, Christine!

With a ROTH, can I choose what kinds of things to invest in? Or is it like a fund manager thing?

I would really like to be able to choose the companies or interests to invest in. Is that possible?

By the way, I currently have a SEP-IRA because I'm self-employed..and I have a rollover-IRA after I left a company.

I owe you a fee, yes?

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Posted by littlelostbride

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Posted by ChristineAE

Switch to a ROTH IRA - it is a little more 'active' than a traditional IRA.

Traditional vs Roth:
1) the max you can contribute is the same - I think it's 4K or your taxable compensation (whichever is less)

2) Both come from pre-tax dollars, so you don't have to worry about paying them to Uncle Same at one time come 4/15

3) When you w/draw from the traditional IRA, you are taxed on the earnings on the nondeductible contributions. ROTH (under circumstances) is not taxed.
a) If you're in a higher tax bracket when you plan to w/draw, the Roth will work better.
b) helps in the long run b/c over the years, leaving money in the account earning intrest (or dividends) the Roth is a lot more beneficial.

---

Thank you, Christine!

With a ROTH, can I choose what kinds of things to invest in? Or is it like a fund manager thing?

I would really like to be able to choose the companies or interests to invest in. Is that possible?

By the way, I currently have a SEP-IRA because I'm self-employed..and I have a rollover-IRA after I left a company.

I owe you a fee, yes?

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No fee - are you nuts! LOL

You always have the option in what you want to invest it. You make the choice whether or not you want to go through an Investment Advisor or Manager.

I suggest going to your bank and speaking to a financial advisor - it's free and they can spend a little more time with you in regards to what your needs are.

Mutual Funds are also great to invest in b/c they offer a 'mix' of funds and products that they invest it - some more volatile than others.

You have to determine If you're okay with numbers going down quickly and then skyrocketing or haivng your money just sit there with little action.

It's all a personal choice.

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Posted by ChristineAE

You always have the option in what you want to invest it. You make the choice whether or not you want to go through an Investment Advisor or Manager.

I suggest going to your bank and speaking to a financial advisor - it's free and they can spend a little more time with you in regards to what your needs are.

Mutual Funds are also great to invest in b/c they offer a 'mix' of funds and products that they invest it - some more volatile than others.

You have to determine If you're okay with numbers going down quickly and then skyrocketing or haivng your money just sit there with little action.

It's all a personal choice.

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Cool. I didn't know I always have the option of what to invest in. I was looking at 'Green' mutual funds because at least I'd like some of those companies. But I didn't want to limit the money-making potential either! Someone else also suggested a ROTH for me.

Thanks!!!! I'll look into it all.