Emergency fund pirate. Arrrrrr!
March 22nd, 2008I just raided $2,000 from my emergency fund for Roth contributions.
The raid increased my federal tax return by $400. A quick, easy and guaranteed 20% return on the investment!
Unfortunately, this is a one time deal.
Some unique circumstances made this situation possible. Based on my 2007 income, I qualify for the saver’s credit, I have a sizable emergency fund, my job is secure, and I plan on maxing out my 2008 IRA contributions. I will still contribute $5,000 to the IRA, the contributions will be split between the 2007 and 2008 tax years.
Despite the possible ‘recession’, my recent car troubles, and not having a full six months in the emergency fund, there was no way I could pass on this opportunity.
A guaranteed 20% return is unreal and I doubt I’ll ever have this opportunity again.
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March 25th, 2008 at 11:11 pm
Will you celebrate Talk Like a Pirate Day in September?
March 26th, 2008 at 6:39 pm
Of course, we had a wicked time on Pi day.