What next?

[jIM_Ohio]

Thanks guys.

Disney, huh? I guess all work and no play is never a good thing. I think that whatever tax refund we get plus Mr. Bush's economic stimulus package will be sending us to Nova Scotia this summer.

The 430bs and Roths are pretty diverse... I do tend towards the more conservative even though I know my timeline is long. I think that the Roth we just opened for DH is an "aged based" portfolio that becomes less risky as the investor gets ages. We have a similar thing for the kids' 529 plans.

We have eight years left on the mortgage.



EXACTLY! I want to make myself rich in 30+ years. We've got the CD, a money market and a regular savings account. All of which are pretty liquid. the savings account would hold us for 6 months if one of us lost our job. The money market would probably allow us to manage 6-8 months if both of us lost our jobs. I think that there is too much in the money market, but I'm not sure what to do with it.

As far as long term investments, we both have Roths and 403bs. What else is there to think about? I guess the first think that we should do is work on maxing out the 403b accounts. The problem is that our cash flow is such that sometimes we end up with big lumps certain times of the year, rather than having "extra" each month to contribute to the retirement accounts each pay period.

Get in habit of setting aside a given percentage to savings every check.

So maybe 15% every paycheck, then 15% again when those bonuses or commissions come in.

15%- send to Roth, send to 403b (is there a match, and how good are the choices?) and then the rest to a taxable account.

Make sure you have an asset allocation, and put the 15% contributions into investments within the asset allocation you define.

[disneysteve]

Get in habit of setting aside a given percentage to savings every check.

So maybe 15% every paycheck, then 15% again when those bonuses or commissions come in.

This is exactly what I do. Way back when, it was 6% of take-home. Little by little, I bumped it up and it is now 18% of gross going to savings from each check. That is split with part going to fund our Roths, part going to DD's 529 and part going to a taxable account. When the Roths are maxed for the year, that portion gets redirected as extra payments on our HEL. Once the HEL is repaid, that will get redirected again (not sure where yet - we've got about 2 years left to decide).

[zetta]

The problem is that our cash flow is such that sometimes we end up with big lumps certain times of the year, rather than having "extra" each month to contribute to the retirement accounts each pay period.

In this case, you might consider starting to invest in index mutual funds in a taxable account (after you max your ROTHs, of course). Think of it as savings that you don't plan to touch for 10 or 15 years -- you may not have a specific purpose for it, but the money is liquid and growing. Later it could serve to pay off the house, to help your kids with their weddings or first house, or buy a luxury for yourself you might not have otherwise purchased.

[M-squared]

15%- send to Roth, send to 403b (is there a match, and how good are the choices?) and then the rest to a taxable account.

There is a match. DH's is something like 3%, which he does and then supplements with 10%. My work automatically gives me 10% even if I don't match. (Great, I know!) I do match it, though.

I'd love to have a lake/vacation house/investment property one day.

[zetta]

I'd love to have a lake/vacation house/investment property one day.

There's your new goal!

To recap:

1. 10% + 10% employer contribution to wife's 403b
2. 10% + 3% match to husband's 403b
3. max wife's ROTH
4. max husband's ROTH
5. consider increasing 403b contributions to 15%
6. children's 529
7. Vacation house fund

[veronak]

I think it is wonderful to ask what now? I can't wait until I reach that point...way to go