I am trying to teach some of my indian friends about investing. Most of my friends do not invest in 401k or any other retirement plan. Why? no answer from them.
So i am thinking of giving some small lesson
discalimer : I am not a financial analyst, just a guy who read some book, talk with people. Dont make any major decision. Talk with your Advisor. The idea is to reduce some risk. Meaning if you go to sleep you might get some nightmare but you wont loose your sleep.
Saving or investing
1. Save some money for rainy day and if you dont have house save some for donw payment - 6 months of your expense
2. Pay your credit card ( high, low, smal or large )
3. Invest in 401k untill your company matches
ex: If you have 90$ split equally between 3
4. Get some CD make a ladder ( i will explain how to make CD ladder )
5. Invest in I-bonds
6. Invest in Roth -IRA
I will say if you have enough 5000 in each go to next step untill you have 15000 dont think about indivitual funds invest in life statergy or freedom funds
7. Donate some money in each step....
8. Invest to max on 401K
9. Invest for kids education
10. Any second mortage pay some
11. Any first mortage pay some
12. Then play with you money.....
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