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Author: monica3674 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5069  
Subject: What to do with $2000/mo Date: 8/12/2003 7:25 PM
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Starting at the beginning of September when I go back to work, I am projecting that my husband and I will have about $2000/mo to invest. This is in addition to funding our Roths and maxing out DH's 401k. (My 403b choices are really poor, so we choose not to fund that. I am in the process of buying 5 years credit towards retirement.)

We have decided to split the $2000 so we each have $1000 to invest. What should I do with my thousand? Currently, I have a Vanguard taxable account (VTSMX) that I put 250/mo in and we put 100/mo in each of two 529 accounts for the future kids. These will continue to be funded.

I think DH wants to buy individual stocks with his. Should I just put mine in the Vanguard account? It's fun buying individual stocks, although I have had my share of losers in the last few years.

This is money that we aren't planning on needing anytime soon.

Thanks!

Monica
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Author: dsemmler Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 333 of 5069
Subject: Re: What to do with $2000/mo Date: 8/12/2003 7:41 PM
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Monica wrote,

We have decided to split the $2000 so we each have $1000 to invest. What should I do with my thousand? Currently, I have a Vanguard taxable account (VTSMX) that I put 250/mo in and we put 100/mo in each of two 529 accounts for the future kids. These will continue to be funded.

I think DH wants to buy individual stocks with his. Should I just put mine in the Vanguard account? It's fun buying individual stocks, although I have had my share of losers in the last few years.

This is money that we aren't planning on needing anytime soon.


Maybe you could consider a split of some sort where a percentage of your $1000 goes into your Vanguard account and the rest you use to dabble in individual stocks. On these boards I have come across many people that follow the "index plus a few" strategy.

This would allow you to satsify the "fun-factor" but not risk losing all of this additional money.

I am curious to know if these additional funds are available because you have opted not to invest in your 403b or if you have reduced expenses (or increased income) in some other manner. I apologize if that is too personal but given my recent thread regarding slow and steady progress, I am interested to know.

Thanks...

dt

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Author: JBtheJunkist Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 334 of 5069
Subject: Re: What to do with $2000/mo Date: 8/12/2003 8:59 PM
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Monica,

If you have a mortgage, you should consider paying it off early. If you do this, you can put even more into your investments afterwards.

The way DW and I looked at it was we were earning 8% by paying off the mortgage PLUS we now don't have to worry about one of us losing our job then losing the house as well.

As Dave Ramsey says, "The grass feels different when you own it."

JB

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Author: monica3674 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 335 of 5069
Subject: Re: What to do with $2000/mo Date: 8/12/2003 9:07 PM
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I just finished my master's degree, so some of the funds will be coming from both not having to pay for school anymore and the raise I will be getting. We also paid off a HELOC that we used to buy a rental property last August. (BTW - we hate being landlords and are planning to sell next spring. We thought we'd like it, but don't. I'm glad we tried it, b/c I think we would have regretted not doing it.) My DH and I really try hard to keep expenses down. I have this feeling though, that too much money might be falling through the cracks.

When we got married, we made a goal of having a $250,000 net worth after 5 years. It was 3 years in July, and when I did our net worth, we were already up to $232,000. We're going to try to get to $250k by the end of the year.

Regarding your slow and steady thread, maybe you could track your net worth for the next few months. I was thinking about trying this. Money seems to flow in then get directed out quickly and sometimes it is difficult to realize how much worth you're actually building. My DH and I just bought a white board that we're going to put up to track the individual stocks and mutual funds we've invested in. This will hopefully help us see how our money is accumulating and working for us!

Monica

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Author: FoolNBlue Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 336 of 5069
Subject: Re: What to do with $2000/mo Date: 8/12/2003 9:08 PM
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We have decided to split the $2000 so we each have $1000 to invest. What should I do with my thousand? Currently, I have a Vanguard taxable account (VTSMX) that I put 250/mo in and we put 100/mo in each of two 529 accounts for the future kids. These will continue to be funded.

I would be hesitant to each pick separately. While management should be 50/50, I don't think it is a good idea to look at the halves as separate. Working together on a plan and implementing it together may be better. By splitting it, your total portfolio may be end up "out of balance." If DH want's to invest in individual equities, why not work together to figure the % and let him do the research if that's what he enjoys.

Then again, I control 100% of my portfolio so what do I know.....

FoolNBlue (Investing and cooking for one)

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Author: monica3674 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 337 of 5069
Subject: Re: What to do with $2000/mo Date: 8/12/2003 9:20 PM
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JB wrote:

If you have a mortgage, you should consider paying it off early. If you do this, you can put even more into your investments afterwards.

We do have a mortgage, but we just refinanced in May to a 10 year fixed at 5.375%. Our original intent when getting married, was to pay off the mortgage ASAP. Our original balance was $135,200 on a 15-yr fixed at 8.25%. We've refinanced several times. The current balance is about $99,800.

I've kind of let go of the need to pay it off right away. The payments are about $1100/mo and this is very manageable for us. I will be quitting work after 2 more years of teaching to stay home and have kids. Now is our best time to invest b/c we won't be making this much money again for awhile!

I just finished Dave Ramsey's Financial Peace (the updated version) and enjoyed it! I really like the grass quote!

Thanks!
Monica

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Author: dsemmler Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 338 of 5069
Subject: Re: What to do with $2000/mo Date: 8/13/2003 12:46 AM
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Monica wrote,

Regarding your slow and steady thread, maybe you could track your net worth for the next few months.

This is a great idea and something I started a little over a month ago. In the past month, our net worth went up by roughly $5000. I had not actually set a goal with a timeline but I like that approach. I think I will sit down with my wife and we can discuss the timeline and the goal that we want to strive for.

dt

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