fbpx
U

Prioritize Retirement Savings and Where to Invest Cash

March 31, 2008

New York City's We’re currently in the final weeks of tax preparation season. As many of you know, I do just enough tax return preparation every year to make me wonder why I do taxes! Joking aside, I believe I’m a better adviser for my clients if I know how the tax code works. Still, it gets a little stressful trying to keep up with all of the work flow. I’m not complaining … I could have the opposite problem with nothing to do, so please know that I’m very happy to be busy!

In today’s show, I try to help you recognize that retirement savings should be a priority in your life, and that you have to take advantage of all the opportunities that are available to you.

  1. Take Advantage of Employer Matching… it’s Free Money!
    *
    Contribute the minimum required to receive the maximum employer matching (usually 3 percent)
    * I am primarily talking about 401ks, 403bs, and Simple IRAs
  2. Fully Fund your ROTH IRA
    * There’s a reason that these accounts are only available to average investors: the government knows that they are leaving us with a bad deal, so they are trying to help you out with TAX-FREE Growth
    * It’s worth repeating: TAX FREE GROWTH!
    *
    2007 contribution limit of $4,000 and 2008 contribution limit of $5,000
    * You have until April to still make a 2007 contribution

With the Federal Reserve Bank dropping interest rates, where do you invest your cash reserves and savings accounts?

One day while I was researching an article on SmartMoney.com I noticed a banner ad for FNBOdirect.com. The interest rate advertised was a good bit higher than INGdirect.com and EmigrantDirect.com. I decided to do a little research and I found out that the company is indeed legit. I first went to the FDIC.gov website to make sure that there was a First National Bank of Omaha. I then called the 800 number for the bank to make sure that the FNBOdirect.com was part of the Omaha bank that has been around since 1857.

I asked why I did’nt see an FNBOdirect.com link on their parent website, FirstNational.com, and was told they didn’t want their retail customers to switch for the higher rates. I also asked if their rates were teaser rates that would disappear shortly, and the spokesperson I talked with said no. They were committed to building market share in the online banking industry and knew this would mean higher interest rates.

I have no affiliation with this bank and get nothing for the referral … I just like that their rate was better than what I could find anywhere else. As of today, they’re paying 3.25 percent (compared with 2.75 percent from Emigrant Direct and 3.00 percent from ING direct).

FDIC website for First National Bank of Omaha … in case you want to do your own verification. I don’t blame you — I would 😉

Thanks for your great iTunes comments! We only need 4 more submissions to reach 100 comments — a great milestone for a fan-supported podcast like this one. And thanks as well for supporting the Money Guy show by signing up for the “Wealth Report”. The funds help offset some of my out-of-pocket expenses.

I couldn’t do the show without your enthusiastic emails, comments, and support. Feel free to drop me a note at Brian@MoneyGuy.net … although I might not respond until after tax season 😀

Most Recent Episodes

Dave Ramsey vs. The Money Guy: Which Strategy is The Best?

Dave Ramsey has an incredible legacy of helping folks get out of debt and take control of their financial lives. We agree on a lot of things, but there are a few points of contrast. In this episode, we’ll discuss differences between The Money Guy Show and Dave Ramsey...

Top 4 Financial Mistakes We Saw This Year! (2022)

We saw some wild financial mistakes this year during the bear market. From making extreme changes to portfolio allocation, chasing the hot dot, and using too much leverage, we’ll talk about some of the biggest financial mistakes we saw in 2022 in this episode.   In...

How Millionaires Build Wealth! (With Dave Ramsey)

Join us for a very special episode as we welcome personal finance radio host and influencer Dave Ramsey to The Money Guy Show! There’s so much misinformation out there about building wealth. We had the pleasure of having a great conversation about how millionaires...

Do These 4 Things with Your Finances BEFORE 2023!

There are unique financial opportunities available at the end of the year - especially this year with the market down. In this episode, we’ll talk about what you need to do with your money BEFORE 2023! In this episode, you'll learn: What you need to do with your money...

How to Win When the Financial World is Burning!

Lately it’s felt like the financial world is in chaos, with rising interest rates, a falling stock market, and high inflation. Let’s talk about how to focus on what you can control and how to minimize the time spent worrying about what you can’t control. In this...

Financial Advisors React to RIDICULOUS Money Advice on TikTok!

The most powerful time to get serious about building wealth is when you’re young. So, what is the younger generation learning? Financial Advice (good and bad) is being produced in massive rates across online platforms and TikTok is the new frontier. Is there good...

Loss Harvesting: Why Wealthy People Love It (And You Should Too!)

Tax-loss harvesting: what is it and should you be doing it? In this episode, we’ll cover everything you need to know about tax-loss harvesting, including whether it makes sense for you, how much it could save you in taxes, and how to eliminate the downside of loss...

The Market is Crashing! (Where Should You Put Your Money?)

The stock market has not had a great year so far. You might be asking yourself, “Since the market is crashing, where should I put my money now?” In this episode, we’ll discuss how to invest when the market is dropping and how to make the most of your money. In this...

Will Rising Interest Rates Tank the Economy?!

The Federal Reserve is raising interest rates to combat inflation, and many are concerned about how it will affect the economy. In this episode, we’ll discuss what rising interest rates means for your wallet and how to make the best of it. In this episode, you'll...

How to Be Wealthy By Age! (Can You Catch Up?)

How much does it take for you to meet your retirement goals by age, and what are some common traps your peers fall into? Learn more about how to be wealthy, mistakes to avoid, and exactly what a little extra saving can do for your retirement income. In this episode,...