[Asiann]

There are so many different ways to invest and you should probably pick up some books like Susan Orman "The Laws of Money, The Lessons of Life" really good book with helpful information. There are money mags that you can get as well. We put 10% of my wife's paycheck into a 401K. I will plan on maxing out the IRA's starting this year once I finish paying off my $5k CC debt. We have money set aside in a Capital One Savings currently at 4.55% for emergencies (6 months of living expenses). Emigrant Direct is another good one that is slightly higher in returns. We rent out our home in SC and rent here is Hawaii. We have no other bills other than the Bimmer and my SUV. It is important that you pay all of your debts off first and then work on paying off your home next. The interest you pay on your home will normally double what you paid for the house so there is your incentive. Invest smart and diversify. High risk is ok for the young but you have to chage when you get older into safe mode so that you will have something to retire with. Dn't plan on social security. 76 million baby boomers are coming of age here in a couple of years and it might not be there. Pay off your bills. Start saving on a Roth IRA. Pay off your home to have more for retirement later. Investing in Real estate is one of the best investments you ever make especially if you are looking for a primary residence. Stocks can go up or down andyou could lose money. You house is where you live and you cannot live in a stock certificate. You already have a home? Refiance your home mortgage loan from a 30 year to a 15 year to get a lower rate. You live in a high cost of living and the real estate boom for CA is pretty much flat now and over-priced. Time will fix that and many will suffer with large over inflated homes and mortgage payments. If I had more money I would put some into here in Hawaii. The median cost for a single family home is around $630,000 and condos are about $400,000. People have experienced double digit gains for appreciation for the past 4 years and it is not stopping. I almost bought a home but it was too much for me ($4k a month). Plenty of houses and condos for sale and beachfront property for many Californians used as a second residence. Just a thought! Good luck and do plenty of research before you drop tons of money. Read the book and go from there.