best investment practice?

[mrose1120]

hey all...
I wanted to get some opinions on what is the best possible use of my money currently, i'm somewhat not sure what to do with my money in this market...

some background:

i have a 401k that has approximately 55k in it(obviously would be more if it didn't dip so much last year) and its already fully funded for 2009 because of my bonus and i'm in a "aggressive" plan on that 401k
EDIT: I'm in my late 20's if that helps..


I have a whole life insurance policy (I know that these aren't popular with all, but i have it, so thats that)

I save approximately 20-25% a month and have a nice chunk of change in there for a rainy day

no revolving credit card debt, i'm able to pay off monthly

student loans as follows:

about 16k left on an "alternative loan" at 4.5%
about 5k left on a alternative loan at 4.5% (in deferrment since i'm finishing my masters this summer)
about 23k left on a stafford loan at 2.875% (also in deferrment)

With the loans, being the two alternative loans, does anyone know anyone who will consolidate those for me? Should I just double payment the largest alternative for now?


currently rent, but will be moving to Florida with my soon to be wife at the end of the year. At that point were looking at purchasing a house in the 150-200k range (downpayment of probably 20% to come from my savings)

I realize my online savings accounts continue to get less and less money, and even with the 20-25% savings I still have at least a few hundred to pay for. Is there a good investment vehicle i'm missing out on I should try?

oh and I also have invested some money in the stock market although its more just a few hundred here and there

[creditcardfree]

If it were me, I'd pay off those student loans before purchasing a home. I know they are low rates, but you probably aren't making more in interest right now. Paying off a 4.5% loan is a 4.5% return on your money...at least that is how I look at it.

[mrose1120]

Originally Posted by creditcardfree

If it were me, I'd pay off those student loans before purchasing a home. I know they are low rates, but you probably aren't making more in interest right now. Paying off a 4.5% loan is a 4.5% return on your money...at least that is how I look at it.

thats kind of what I was already thinking, at least the one that is not in deferrment right now to start with...i already make payments on it, but i can do double payments or what not.

[atomicrc11]

Also, just becuase a loan is in deferment doesn't preculde you from making payments. You can make them at any time.

[mikefullerton]

I am sure because you had invested in whole life insurance you eligible to get loan from the insurance company this will help you to buy home and with your cash in hand invest half of them to mutual funds and Government bonds.
What else could be better then this.

Regards,
Mike Fullerton
fullertonsecurities India

[snafu]

If you plan to use your money in the next 5 yrs., your risk ratio keeps you in savings, T-bill, Money Market.
Investing implies you are willing to keep the sum in the market for 5+ yrs. N o one has a crystal ball with acurate, clear vision through this political term. Right now the rules are bent out of shape. Interest rates are down but the market isn't consistently moving up. Inflation signals are screaming at us. Unemployment is higher than all that gov't spending was supposed to control. No one know what the Xmas market will look like. Buyers are cutting back inventory...it's all going wrong!