Advice on investing
Hello Ms Savage. I am a 44 year old making 100 thousand a year. I have 2 homes paid for. My live in home and another I plan on selling. I have 300 thousand save in a bank half in a jumbo market account. Any advice toward the crisis in Russia or just any advice in general?
Terry Says
Well, you’re doing ok as you are! But a couple of questions.
1. Do you understand the tax obligations on the sale of a home that is not your principal residence for at least 2 years? Your personal residence gets a $250,000 gains tax exemption. But for sale of an “investment house” you will pay short or long-term capital gains when you sell — so keep track of any investment you made in the property to offset those gains on sale.
2. I don’t see that you have any stock market investments — The best idea would be to open an Individual REtirement Account at Vanguard or Fidelity and put away as much s $6,000 a year — assuming you have that much income. Invest in a diversified fund, such as the S&P 500 stock index fund. Make it an automatic investment every month taken out of your checking account. If you don’t need the tax deduction, make it a ROTH IRA — which will grow tax-free for your retirement. Take along-term view.
3. Be careful about getting married and having children. You’ll never again be able to save this much!
