AboutJaynee Sasso Expertise I can answer questions about how to develop an effective budgeting strategy, rebuild & repair your credit, getting out of debt, developing a financial plan beyond paying bills, money & relationships and positioning yourself to experience a lifetime of financial success.
Experience Jaynee Sasso is founder and president of Faithful Assistants Inc, which is an online financial empowerment center. Sasso has been a licensed real estate agent for ten years and a broker for five years. As a foreclosure specialist, she helped families understand their options and helps them survive foreclosure and financial ruin.
Prior to founding Faithful Assistants Inc. Sasso worked as a licensed registered representative (Series 6 & 63 securities license) and life insurance representative for three years. It was during this time, as well as, her continuation in real estate that lead to the creation of her company. With all the financial difficulties facing Americans today she feels compelled to help them uncover the root of their financial problems and teach them the financial principles that would change their mindset first and ultimately their behavior.
Publications I currently have a financial column in the Urban Views Weekly newspaper. Please visit www.urbanviewsweekly.com You can also get more financial tips by visiting my blog at www.commonsensewaytowealth.blogspot.com
Education/Credentials Sasso recently accepted the position of Chief Financial Officer of Mt Gilead Baptist Church in Newport News, VA. She attended Clark University in Worcester, MA and is an alumnus of the Congressional Youth Leadership Council & A Better Chance Inc., 1995. She also served as a member of the Short Hills BNI chapter and speaker for the Somerset County Coalition On Affordable Housing SCCOAH - Step by Step 1st time homebuyers program. She is the former host of the "Protect Your American Dream" radio broadcast featured on the WMCA 970 AM.
Question Hi, we recently finished our taxes and will be getting back a 13K refund (part of it is the first time home buyer's credit which I realize is more like an interest free loan). We want to know what the smartest thing to do with the money is in these tough economic times.
My husband and I are in our early thirties. We have a mortgage, student loan debt, and credit card debt. The credit card debt is about 8K but there is no interest accruing on that card until Nov 2009. We have paid down the card a lot by putting 4K towards the card every month for the past 3-4 months.
We have a take home pay (after taxes) of about 8500 a month. Our monthly expenses total about 4K a month.
We have not contributed any money into our Roth IRA for 2008 and want to know whether we should both contribute before the April deadline. We could use the tax refund to put about 4K each into our Roths.
Our main concern is that we do not have an emergency fund at all. My husband's company has recently had a round of layoffs, but he was spared.
The bottom line is: should we contribute to our Roths with our tax refund or put it away in an emergency savings fund? I'm pretty sure that if my husband were to get laid off, the firm he works for would offer a 3-4 month severance package. This may be one of the last years we can contribute to the Roth since our income may be beyond the limit in 2009. We have contributed the maximum to our Roths for the past two years.
Any advice would be greatly appreciated.
Answer Hi Samantha,
This question is a little beyond the scope of what I can answer. Based on the information given you should consult with your investment or tax advisor about the tax implications on saving this money verses putting it into a Roth. Your tax advisor may find that it makes more sense for you to fund your retirement accounts versus putting the money into a savings account. This is really about your overall retirement and investment goals versus your "ability" to save.
However, my concern is that you do not have enough liquid cash on hand to sustain your lifestyle if something does go wrong (job loss, disability, death etc). If you were in a financial bind that may force you to get further into debt and/or start tapping into your retirement accounts. Another concern is the underlying reasons for why you were carrying a balance on your credit cards even if you are paying them off now. I believe that you should only use credit cards for convenience and not to supplement your income. As a result, there really shouldn't be a need to accumalate debt (except maybe extreme circumstances).
Based on your monthly income and expenses I see no reason why you can't start putting money away for emergencies, pay your bills on time, and stay out of debt. I encourage you to develop a vision for your life by clearly defining what financial success means to you. I would hope that your definition of success is more than your ability to fund your retirement accounts. After all, there is a lot of living that has to be done before you get to retire. The answer to your question is not simply about making a right or wrong choice but its about making a decision that positions you to achieve your goals.
For more info please visit www.commonsensewaytowealth.com and be sure to join our mailing list.
