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Here's my situation.


Home. Paid off. Value $140,000
401K $55,000 I contribute 10% and get matched 3%
Car Paid off, but it is 10 years old and becoming unreliable
Stocks I own two. KAR and ALE. Both have done OK in price, but they are dividend producers
E-fund Underfunded. I am working this

Total Value a hair over $205,000

I own everything I have outright. Paying off the house had been my focus for the last three years. I am now done with that, but am quite cash poor.

2006 plan

My biggest goal this year is to get more cash and get into stocks through index funds

I plan to break my paycheck up like this:

E-Fund 13%
New Car fund 8.3%
Vacation fund 8.3%
Gifts 5%
Index fund 20%
Personal fund (Includes food)20%
Wife 23%
Misc(Insurance, appliances, etc) 2.5%

I have chosen to go with a Vanguard Index as my first investment. One drawback to this is that if your account is under $10K with them, they charge a maintenace fee each quarter. With my plan, I will be over that in one year.

DW is getting a larger portion, we owe some money to her family, so I want to pay them back. Later in the year, I should have that finished and can redo my percentages. I also am expecting a pay raise in March. I am not sure where that money will go. DW has a job and saves about 20% of her money too. I'm trying to get her to ratchet that up.

Living overseas, I don't pay income taxes, so, the 401K contributions and IRA contributions aren't as tax beneficial to me. That is why I don't have an IRA and why I am not maxing the 401K to the federal limit. 10%, combined with the 20% for the Index fund seems to be enough investing/savings. If I include the efund money, I will be saving over 40% of my income.

My real goal this year is to build cash and fund ownership.

Suggestions? Improvements?

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