No. of Recommendations: 1
My wife and I are 29 and 30 years old, and are putting our plans for retirement, a house, kids, coffee makers, and soccer game snacks, together now. If anyone has the time and interest to help a fellow fool, I will reveal the opportunity that as a couple we face over the next few years. I need help to understand if I am Foolish, or a fool.

Between us both, our pretax income is $174,000. We have minimal debt, and want a house in two years. Sounds like a trip down Pleasantville Road, huh? Not quite yet.... The only savings we have to speak of is 30,000 in a discount broker account from a 401K rollover from my last employer(which I am proud of doing before I ever found this website).

Here is what I am proposing to my wife for the short term investing "game" (She thinks I am a rookie and have no financial savy) that's making our financial discussions edgy.

Our Income 174,000
401K (maxed) + 2 Roths 14,000
Taxable Income 160,000
Taxes (State & Federal) 55,200
Other Expenses (rent/bills/debt 58,800
Net Investible Income 46,000

This is us in a nutshell. Except that second year Net investible income goes up due to the elimination of (credit card/ school loan/car) debt to $55,000.

My problem is I need to decide how to invest about 50K after-tax money per year to ensure a healthy start on our retirement and get a house in a couple years. My wife wants to put our money into the freezer to ensure I don't lose it! I really do resent that, because it would leave almost no room for the Ben and Jerry's.

I figured long-term stocks and the Vanguard fund for our retirement, and to save some money in cash towards a house.

Here's how I broke it down:

1. I have 50% slated for an ameritrade stock account (which will contain 6-8 rulebreaker stocks and the foolish four)

2. I have 10% allocated for an index fund (Vangaurd)

3. I have 40% slated for cash that can be applied to the purchase of a home (Cds/Bonds)in two-three years.

Tell me the truth, SHOULD I BE HAPPY WITH THIS SOLUTION???? I have spent many, many hours reviewing our situation (and plugging the problem into a countless sea of useless, mind-warping, spreadsheets) but would love to hear criticisms.

Thanks to any fool who made it this far in the post, massive kudos to anyone with advice for a nervous fool.


Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.