ASK MEG GREEN
Ask financial planner Meg Green
Posted on Sun, Jun. 15, 2008
MEG GREEN
Q:I have about $6,000 that I would like to use for investing and saving for the future. I am very green to this area of finance and don't trust going to someone whom I don't know to handle my hard-earned money. Your advice seems pretty sound. How should I handle this money?
George Vega
Miami-Dade County
A: Well, good for you. Any time is the right time to start saving for the future. First, questions to ask: Do you have a retirement plan at work? If so, I suggest you fund that plan to the maximum, as it's pretax dollars and often your employer will match some of your funds.
If you can't afford to deduct the maximum from your paycheck, then deduct what you can, and use a little of this cash to help support you.
If you're working and have no plan, then open an IRA (Individual Retirement Account), either a traditional or tax-deductible one. If you're not in a high tax bracket, consider a Roth IRA, where you don't deduct your payments, but your money and all it earns is tax-free forever.
You can start withdrawing at age 59 ½ and beyond, but unless you become disabled, you'll have a penalty if you need that money before retirement.
Otherwise, assuming you're covered for emergencies along the way, invest in some mutual funds with global growth and income as your investment goal and add on whenever you can. Mutual funds, whether in a retirement plan or outside of one, make the most sense for beginning investors. Good luck!
Meg Green is a certified financial planner. Mail questions to her c/o Sunday Business, The Miami Herald, 1 Herald Plaza, Miami, FL 33132 or send an e-mail to
askmeg@MiamiHerald.com. Include your full name and city of residence.
Join the discussion
The Miami Herald is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere in the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from personal comments and remarks that are off point. In order to post comments, you must be a registered user of MiamiHerald.com. Your username will show along with the comments you post. Not a registered user? It's Free!
Register here. Thank you for taking the time to offer your thoughts.
