Date: Sun, 14 Nov 2004 06:22:45 CST
From: Rodney Lim 
Newsgroups: misc.invest.financial-plan
Subject: Re: financial planner's recommendation
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John A. Weeks III wrote:
> In article , Jenny
>  wrote:
> 
> 
>>Is this common practice investing in life insurance??
> 
> 
> No.  Insurance is not an investment.  It is insurance.  And the
> type of insurance that this guy is selling is both expensive and
> a very, very poor investment.
> 
> Most pundits agree that you should invest in the 401K to the
> point where you max out any match you might have.  Then do the
> Roth.  Then max out the rest of your 401K.  Then look at the
> traditional IRA.

     This is a prime example of the potential danger in asking for free 
advice on financial planning in a forum like this.  You get what you pay 
for.  Most pundits let alone actual experts would NOT agree with this 
advice.  If you have maxxed a Roth IRA, you cannot then max out a 
traditional IRA because once you have maxed out any IRA with respect to 
annual contribution, you cannot contribute any more money into ANY IRA's 
for that tax year (rollovers and transfers of qualified money into 
existing IRA's of course do not count against the annual limit).


   Few people max out all of these options.  Once
> you do max them out, then muni's and tax efficient funds start
> to make a lot of sense.
> 
> -john-
>