UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next
Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75335  
Subject: Re: What investment vehicle do I use next? Date: 3/2/2000 8:57 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
<<<I have maxed out my 401(k) and don't know where to invest next. I make about $95 - 96k a year. I have 2 mutual funds outside my 401(k), but that's it (except for an IRA my wife has from a 401(k) rollover).>>>

I would invest in Roth IRAs for yourself and spouse first. Max out 401(k) to company match. Pay off outstanding debt. Establish emergency money fund in cash. Avoid having margin "loans" for such. You can dig yourself a hole that charges you interest. Consider paying off mortgage. Some will argue that the interest is a tax write off, but interest paid is money lost. Even if you write off the interest, the tax deduction is only what your tax bracket is, i.e., if you're in the 28% bracket, every $100 dollars in interest give a $28 write off. You still loose $72!!! After that, taxable equity accounts.

<<<Also, how much cash (money market) should I have on hand at any one time?>>>

If you have a stable job or have skills that allow you to find quick employement, about 3 months living expenses. Otherwise, about 6 months.

JLC

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement