Advice needed please

**Jaded** · 07-08-2007, 11:30 AM

O.K., I'll be getting an inventory bonus from work within the next month or so. It's usually about $200 dollars or more. This time, I need to put it toward saving to pay back taxes, but in the future, what do you think I should do with it? My options are

a) buy company stock (doing really well right now)
b) 401(k) (I get some matching funds on that one)
c) Home improvement projects (would require saving a few of them for one project)
d) Put it in the emergency fund

I'm leaning toward the 401(k), as my retirement savings were wiped out a few years ago.

What do you think?

**brainyblonde** · 07-08-2007, 11:41 AM

Before I'd put any money in the 401k, I'd make sure my emergency fund was fully funded. It is a lot easier to move $, at a later date, from an emergency fund account to a retirement account than the other way around!

**leezza** · 07-08-2007, 12:14 PM

I would go with the EF also......that way you have a safety blanket for unexpected emergencies.

JMHO,
leezza

**PrairieRose** · 07-08-2007, 12:21 PM

I also agree with the EF first. After that I'd go with the 401k and then the home improvements. Jmho.

**Dancing Lotus** · 07-08-2007, 12:29 PM

I would jus tsave it this time. An EF is truely priceless.

**bluebird728** · 07-08-2007, 12:30 PM

I'm going to disagree with the majority here. The advice I have always gotten (and followed) is to put enough in the 401k so that you get the company match. This is something I do every paycheck, so that I have gotten used to it. To do otherwise is throwing away free money.

Perhaps a good solution would be to put enough in the 401k to get the match, and another portion in the EF.

**annymoll** · 07-08-2007, 12:35 PM

I would fund the emergency account first. If you lose your job, matching funds will be meaningless.After the EF was funded I would look at the other options.

**Amanda W** · 07-08-2007, 01:59 PM

I would also put it in the EF until it was fully funded.

**starsapphire** · 07-08-2007, 02:55 PM

Whatever you do, don't buy company stock right now. One bad stock market day will wipe it out. That's something you do when you've got all the other important financial ducks in a row, like a FFEF, regular retirement contributions happening, etc. Then you can afford to play with it. IMO.

I would go with the EF.

**Telephus44** · 07-08-2007, 08:11 PM

I'm with the put it in a 401K camp with bluebird728 - unless you have no EF. Since you listed the option as "add it to the EF" I figure that you probably have one going already. And if worst comes to worst, you can take the money out of a 401K - but you'll have a lot harder time trying to retire on a EF.