Where would you invest an extra $100 per month?

[JanetRose]

Towards a Roth IRA? Have a $100 going monthly now.

Towards the mortgage? Am paying an extra $100 monthly now.

Towards your job's retirement plan? Am paying the minimum matching of $200 monthly now.

Thank you.....

 

[EthansMom]

I'd invest it toward the Roth IRA or the retirement plan at work. Both have tax advantages and, if invested in stocks, should return a higher rate of return than the interest rate on your mortgage.

 

[pearlieq]

Go with the Roth! Nothing like that tax-free growth!

 

[Cinderellie]

Hi JanetRose,
I'd suggest you ask a qualified financial adviser to give you advice, rather than strangers on DISBoard (or at least in addition to this advice). It depends on so many factors (eg. how much do you already have saved for your retirement, how old are you, how much do you still owe on your mortgage & what's the amortization period, etc.) I'm not suggesting you should tell us this personal info, just making a point that it's good to find someone at the bank, or who does this for a living to give advice (of course they may have their interests ahead of yours so be sure to listen to why they say you should buy something or invest in a certain place. Perhaps get several opinions & then do what you feel makes the most sense for you. I'm not going to pick option a, b, or c since I'm not a Financial Planner & things may be different for Americans & Canadians. However, one thing remains true for both, it is good to pay yourself first, and it looks like you are doing just that.

 

[luvwinnie]

Towards my Starbucks addiction, sadly.

Seriously, I think I'd go with the IRA.

 

[DVC Sadie]

Janet Rose, As the above poster stated your best option would be seeking a Certified Financial Plannner that can help you reach whatever goals both short term and long term. A CFP is not associated with a brockerage house which is very important.

 

[bananiem]

Towards my Starbucks addiction, sadly.

I was going to add that our Disney trip account could use some help, as well as our dd's skating fund.
Seriously, I'm glad to hear people are actually saving. My dh and I know too many people that are going to be in bad shape when retirement comes, if they can afford to retire at all.

 

[CarolG]

...Towards your job's retirement plan? Am paying the minimum matching of $200 monthly now....

If you increase the amount you're contributing to your job's retirement plan, will your employer provide any additional matching funds? If they will, that's free money. And if this is a pre-tax contribution, you'll pay a little less in withholding taxes.

 

[mickeyfan2]

I would do the Roth.