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Question for the Money Doctors

Question submitted on Oct 28, 2012.

Question

What way can I save money other than having a 401k plan?

Answer

Great question.  Generally, you want to first contribute to your employer sponsored retirement plan, at least enough to qualify for the full employer match.  Next, it makes sense to contribute $5,000 to a Roth or traditional IRA ($6,000 if you are age 50 or older) under the 2012 limits.  Depending on your circumstances, non retirement savings options might include IRC Section 529 plans to save for your children's college tuition, life insurance, Certificates of Deposit, mutual funds or individual stocks and bonds.

You would be well served by contacting a CPA/PFS who will be able to help you analyze your optimal savings strategy.  Please visit www.findacpapfs.com to find a CPA/PFS in your area. 

Sue


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