- May 11, 2005
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So I've been getting some flack about saving my money but here is my current situation.
Wife and I both have good jobs, and do the matching company 401K 6% (company matches 100% of the 6%) so we are saving for retirement. We also have whole life policies that are "suppose" to be pseudo savings for retirement.
I'm currently using E-loan for my banking with their 5.25% interest on my savings and I'm saving pretty much my wife's salary every month which is starting to really add up. So I'm wondering how much is too much in a "high" interest savings account. A friend told me I'm doing what is called getting poor slowly but ?? I don't know if I agree. He said I need to be making 8-9% on my money for it to be considered making a profit due to fees, taxes, and inflation.
We are eventually going to have kids so I wanted to stock pile some cash that was liquid for their education. We also want to build a home one day and I thought it would be great to have money to put into a home and not just do all mortgage. We do currently own a home and have good equity in it.
So what do you guys think? I'm currently making a CD rate in my savings so??? Is it ok to save this much in savings and not invest it in stocks or mutual funds? Would I be smarter to do that for the short term and if I needed the cash get hammered by uncle sam?
Wife and I both have good jobs, and do the matching company 401K 6% (company matches 100% of the 6%) so we are saving for retirement. We also have whole life policies that are "suppose" to be pseudo savings for retirement.
I'm currently using E-loan for my banking with their 5.25% interest on my savings and I'm saving pretty much my wife's salary every month which is starting to really add up. So I'm wondering how much is too much in a "high" interest savings account. A friend told me I'm doing what is called getting poor slowly but ?? I don't know if I agree. He said I need to be making 8-9% on my money for it to be considered making a profit due to fees, taxes, and inflation.
We are eventually going to have kids so I wanted to stock pile some cash that was liquid for their education. We also want to build a home one day and I thought it would be great to have money to put into a home and not just do all mortgage. We do currently own a home and have good equity in it.
So what do you guys think? I'm currently making a CD rate in my savings so??? Is it ok to save this much in savings and not invest it in stocks or mutual funds? Would I be smarter to do that for the short term and if I needed the cash get hammered by uncle sam?