Wednesday, September 26, 2007

The Ugly Head of Financial Responsibility

Very rarely do I feel guilty about things; however, my desire to spend my *woot* bonus frivilously on BOOTS! and JEANS! and A SUPERFABULOUS PARTY! has made me feel a slight twinge of ... something.

For the lack of a better word, let's call it "guilt."

Thus, I'm reorganizing my savings plan and opening up a ROTH IRA.

Fortuitously, one of my $500 6-month ING DIRECT CDs matured today. I transferred that to my ING DIRECT savings account. I sent half of the CD (minus interest) to my BOFA checking account. I will use that money to open up my ROTH IRA with PAX WORLD (the balanced fund).

I am liking PAX WORLD because of their socially responsible investment approach (and their 8% annualized return).

Currently, I have $60 automatically deposited from my BOFA account into my ING savings account every 2 weeks.

4.3% interest, kittens! Much better than a regular bank account! You can open your own ING DIRECT Savings Account HERE!

In order to grow my ROTH (Did you know you can put up to $4000 per year into a ROTH IRA? And, that, when you withdraw the money at retirement, it is TAX-FREE?), I am decreasing my automatic deposit to $50 every two weeks. Every 2 months, I will send $50 to my PAX WORLD ROTH. With creative budgeting I should be able to find an extra $5 per month, right?

So, $100/month into savings! $50 every 2 months into the ROTH!
Eventually, I will be the Master of my own financial EMPIRE!

Of course, at the rate I'm going "eventually" means "in about a gabillion years."

5 comments:

  1. Those high-yield savings accounts are nice. I have one with HSBC that I opened a year or two ago, and with all the interest I've been making, I'm like, why didn't I do this sooner?!

    I've been meaning to look into IRAs too. Might as well put my money to work!

    ReplyDelete
  2. What is this thing "money" of which you speak?

    ReplyDelete
  3. BOFA ... PAX ... ROTH? I don't speak financialeze. You sound like a date I once had. I had no idea what he was talking about either.

    Hot jeans I understand, though.

    ReplyDelete
  4. I already have an account with ING. *yay!* Except it's empty. *sigh*

    ReplyDelete
  5. We loveses the ING. We neglectses the Roth and have been thinking more attention should be paid to it. After the wedding is paid for. And the house is bought. But before the house is gutted and redone.

    ReplyDelete