Investing outside of 401k or Roth IRA

[disneysteve]

Beyond that, I think you are in a period of emotional flux, and so you probably don't want to be making any drastic decisions. You don't know how long you'll stay with your parents. You don't know if you'll be buying a house or condo when/if you move out. Lots of unknowns. My recommendation is that you just put the extra in a savings account (don't settle for less than 1%) and revisit this question in 3 months or 6 months or 1 year ... however long it takes you to regain your equilibrium.

I agree completely. I wouldn't be investing this money unless I was sure I wouldn't be touching it for at least 5-10 years and from what you've said so far, I don't know that that's the case here.

[DaveInPgh]

I know from experience that posting a vague thread never turns out well. The more you put in your original post, the better.

I am sorry to you hear about your pending divorce.

That being said, it really doesn't sound like the situation is desperate enough for a 32 old man/woman moving in with his/her parents. Based on your posts, you are not walking away post divorce with a large sum of debt putting your finances into disarray. You even stated you might end up with $30 to $40k.

Not sure if you live in a LCOL or HCOL area, but why can't you just start over living alone? What makes more sense to me is for your parents to help you with a down payment (if needed) for a new place.

[disneysteve]

I'm curious about something that might be missing from this story.

Is you moving in with your parents of any benefit to them? If you are 32, your parents are probably 60-ish. Would you be moving in to help them in some way, perhaps handling household tasks that they're not up to doing themselves anymore?

If there is a non-financial piece to this situation, it would make a lot more sense.

[Fishindude77]

I'm with Husker.
You are a 32 year old adult. Don't move in with your parents, get your own place, pay your own freight, and do your own thing.

When the divorce blows over, assume you will want to start dating again. How's that going to look, living with the parents?

Moving back home should not even be a consideration.

[TexasHusker]

Yes, by all means max out the 401(k) contributions - assuming that you like your investment options - and max out the Roth.

Beyond that, I think you are in a period of emotional flux, and so you probably don't want to be making any drastic decisions. You don't know how long you'll stay with your parents. You don't know if you'll be buying a house or condo when/if you move out. Lots of unknowns. My recommendation is that you just put the extra in a savings account (don't settle for less than 1%) and revisit this question in 3 months or 6 months or 1 year ... however long it takes you to regain your equilibrium.

And as far as the negative comments on this thread - wow! Do people not realize that there is more than "my way" of doing things? In some cultures it is the norm for multi generations to live together under one roof. In fact, there are places in the world where the urge to move out and live independently might be seen as a character flaw. Yeah, I'm one of the "I moved out at 18 and supported myself" boasters but I'd never malign another family that chose to live differently if that was what everyone wanted.

Number one, I don't see any particularly negative comments in this thread.

Number two, the poster is asking for advice. No one is saying it has to be "my way."

Number three, it isn't exactly a part of the American culture to move back in with mom and dad at age 32.

Number four, no one has maligned the OP for his/her ideas. If there has been anything close to maligning, it has come from the original poster (i.e. "You sir are really a trip", etc.)


I think everyone who joins and posts on an internet message forum - whether it is about savings, cars, or sex life, needs to understand that it is unusual to ask a question and all of the subsequent posters wholeheartedly agree with your take. That is because each poster represents a different vantage point, deriving from his/her own respective life experiences.

I don't understand folks that toss out a line of thinking, as what everyone thinks about it, then run away crying because the answers didn't quite fit their narrative. That makes their original post disingenuous in my book.

[Jbone]

Actually I created this thread to ask advice about investing in taxable accounts. I didn't feel the need to tell my entire life story because well it's no ones business. I left some information out on purpose. I suppose I should have just lied and avoided this argument all together.

Like I said everyone is entitled to their own opinion but I didn't ask for your opinion on if I should stay with my parents or not. If you don't agree with it then that's your opinion. I don't care or don't need to hear about it.

I made it clear that I wasn't thrilled about moving in with my parents. Even if it was short term. And it will be. I stated in the original post it would be only for a year or so. I planned on purchasing another home. Staying with my parents would give me a chance to save extra money and I wouldn't be rushed into looking for a new home. Sure I could rent an apartment. But living in the Chicago area renting isn't exactly cheap and I wouldn't be getting anything out of renting other than being "on my own" There's many reasons why I'm considering moving in with them but that's not what this thread was supposed to be about.

If that's the path everyone wants to take this thread then I have nothing more to say. The few helpful posts that were posted made me realize I shouldn't invest the extra spare cash. And I do appreciate the few that took the time to post a meaningful response and not a personal attack towards me or my parents views.

Lock and delete this thread. Everyone is ignoring the reason why I posted this thread. And that's stated in the the title of the thread.

[scfr]

I don't know if you have any interest in blogging about your finances during this time of transition, but the blog section of this web site tends to be very supportive and helpful, and blog posts don't get "hijacked" the way forum threads seem to.

[disneysteve]

I left some information out on purpose.

I planned on purchasing another home.

It's unfortunate that numerous people jumped on your decision to move back home temporarily but when you leave out vital facts to the story, people tend to jump to conclusions and assume things that may or may not be true.

Had you stated upfront that you were getting divorced and would be moving in with your parents temporarily while you saved up to buy a new house, I think the thread would have gone in a totally different direction.

All of that said, now that you've told us you plan to buy another house, I would emphasize my previous answer to not invest the money since you'll be needing it in the near future. This isn't money that you want to take a bunch of market risks with or else you might not have it when you are ready to spend it. Good luck. Keep us posted.

[snafu]

Divorce adds a layer of emotional transition that complicates the decision making process. I suggest seeking the best savings rate from any financial institution, electronic or brick & mortar to dump every dollar, whatever the source [house sale, utilities, food, insurance, laundry, transportation etc] with no decisions until you've regained your equilibrium.

One caveat is employer's contribution to retirement program. Take whatever action is appropriate to collect every dollar of contribution, it's free money.

For parents sake, I hope you'll take responsibility for specific tasks like landscaping, one meal each week and possibly laundry to be a help. It demonstrates appreciation for historical help given, in a tangible way.

[Fishindude77]

I'll stand by my original statements.
Unless your parents need you, or you are in some dire state of emergency (which you are not), you should not move back under your parents roof. If that means renting for a while, so be it. Setting up a new place will give you something to stay occupied with and get your new single life headed in the right direction.

[bennkar]

I don't see a problem with moving back in with your parents if everyone is ok with it and you understand the possible downside to it. Would I have moved back in with my parents? Never ever ever, but that had to do with my relationship with them, not about what other people think of living with family.

Now I *would* have moved in with my grandmother after college, and lived there for a while if it had been practical, but that was because we understood and appreciated each other (and the offer was on the table). Unfortunately there was no work of the type I would have been offered in the area, so I had to move out on my own right away. It was a good learning experience living by myself early on, but financially it was a drag.

I will admit, by my 30s if I had returned to live with a relative, I would have been working hard to move back out ASAP. I like being in charge and that living arrangement wouldn't have done well for me.

[disneysteve]

I'll stand by my original statements.
Unless your parents need you, or you are in some dire state of emergency (which you are not), you should not move back under your parents roof. If that means renting for a while, so be it. Setting up a new place will give you something to stay occupied with and get your new single life headed in the right direction.

Folks, can we stop judging OP here. He's getting divorced. He's being forced to sell his home and move out. He's going through the emotional and financial trauma brought on by divorce even under the best of circumstances. Is it really so horrible to move in with his parents temporarily until he gets his head together and socks away some savings to buy a new house on his own? Is signing a 1-year-lease on an apartment truly a better option financially speaking?

Let's stick to the financial part of the question.

[TexasHusker]

For parents sake, I hope you'll take responsibility for specific tasks like landscaping, one meal each week and possibly laundry to be a help. It demonstrates appreciation for historical help given, in a tangible way.

What would the monetary value be of massaging your mom's corns?

[scfr]

He's
He's
He's

Well . . . he OR she . . . I don't think we know.
Not that it matters. Yes indeed, the question was about finances!

[LivingAlmostLarge]

I'd stick the money into a savings account. It hurts yes but when you don't know which way the world is going for you suck it up. I've done it. Right now our house DP is sitting in cash and has been since a year we sold. And we still haven't bought anything. But we are sucking it up because we don't want to lose our investment. And it's too much risk.