Answer: flexibility
retirement account
emergency fund
debt pay off
max out individual retirement account
Explanation:
This question is answered based on one's own choice but certainly investment or savings has its own merits and demerits but when to invest instead of putting it in a savings account is based on factors below
- factor in one time objectives
- Flexibility : If you are considering to be a little flexible about achieving your objectives then you are better off investing than saving you, higher returns are made in that year except markets are bad thus objectives are delayed.
- work towards having a retirement account thus matching your 401 k's benefit or other workplace retirement benefit
- Develop a small emergency fund in the range of $400 to $1600 to ensure been above debt level.
- ensure debt pay-offs that is debt with high interest rates are paid off this can be set by you.
- your individual retirement account should be max out depends on how much you want to invest.
