Quote:
Originally Posted by M-squared
Lately I feel as if I've come to a bit of an impasse in my financial life.
Here is a snapshot:
DH and I are both mid-30's with full time jobs. We have a mortgage, but no other debt. The cars are paid for and we use our CC for convenience, paying them in full each month. We do not get paid a lot, but we live comfortably with our salaries. Our biggest expense being full time private day care, which will suddenly be reduced by half this summer. (I have an annual summer leave, so we drop day care to half time during the summer months.) Our day care costs will not go back up, as one of our children will be starting full day school in the fall at a considerably lower cost than a private child minder.
We both participate in our 403(b) accounts. (DH puts in his company match, plus 10% of his salary.) My work gives me an automatic 10% of my salary, and I match that with almost 10% of my own.
We've been fully funding my Roth for a few years, and just this year we've opened one (fully funded for 2008 DH.) I suppose we should have funded it for 2007, but it didn't occur to me before I sent the paperwork in.
We have two small children and we contribute to their 529 plans monthly.
We have a modest 2 year CD that we automatically roll over each time. (matures every other June).
We have a decent emergency fund, and a more sizeable money market fund that we tend to "park" money in until we decide what to do with it.
Up until now, we've always had a savings goal. Either pay off student loans, or save for the house down payment, or save for a new car, etc. We don't have a big goal like that now, so what is the next step?
Thanks for your advice.
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You are doing well.
One thing which you may want to think deeply about is you appear to be "cash rich", but overall, you can do better to make your money work harder for you than you do to earn the money.
Mid 30's- there is a good chance you have 30+ years to retirement. There will be a big bull market sometime in next 30 years. Your goal should be to have as much invested before that Bull as possible. Every 30 year period has had at least one bull, if not two or three. 1998-2000, mid 80's, early 60's, late 1940's.
CDs- good to have
EF- good to have
Paid for house (working on it)- good to have
but all these investments make you cash rich (either by being cash, or in case of house, freeing up cash).
You did not list what investments you have (relative to income, cash on hand or other), and I think this deserves some attention.