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After maxing out a 401k and a roth with approximately 10k a year left to invest in stocks, what type account would be next on the list ? (Probably need more info. , but don't know what to add.)
Emergency fund
Account for large, infrequent bills like insurance and taxes
Pay down non-mortgage debt
Reserve for repairs, maintenance, replace car someday, etc.
Education for children
Savings for whatever else you'll need within a few years
If and when all of that is fully funded and you have no non-mortgage debt, open a Vanguard index fund account.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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age?
HSA available?
What are your other investment strategies? (besides equities / stocks) You want to be diversified in ASSETS / income stream. Markets can go south. Your fully funded 401k and IRA's may give you too much market exposure already.
if no need for further savings, get it in an Index fund (as per above), but ALWAYS be looking for investment options.
HSA available?
What are your other investment strategies? (besides equities / stocks) You want to be diversified in ASSETS / income stream. Markets can go south. Your fully funded 401k and IRA's may give you too much market exposure already.
if no need for further savings, get it in an Index fund (as per above), but ALWAYS be looking for investment options.
Respectfully, assets can decrease in value, too, and income streams can dry up. Putting a large sum of money in one asset can be a lot riskier than an index fund, where there's little risk of permanent loss of capital--as long as a person doesn't sell, but rather buys, during a downturn.
It also worked very well for me to set my kids up with ROTH's as soon as they had earned income (age 12). I matched 100% of their wages till age 18, when they were 'set-free' to pay their own way for everything. Fafsa did not require ANY assets from my kids, no ROTH money, and no home equity. (They built and owned their own homes by age 18, good homeschool project, and kept them off the street / TV (we don't have) / video games (not allowed)).
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
34,712 posts, read 58,054,000 times
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Quote:
Originally Posted by StealthRabbit
... What are your other investment strategies? (besides equities / stocks)You want to be diversified in ASSETS / income stream. Markets can go south. Your fully funded 401k and IRA's may give you too much market exposure already.
if no need for further savings, get it in an Index fund (as per above), but ALWAYS be looking for investment options.
Quote:
Originally Posted by sheerbliss
Respectfully, assets can decrease in value, too, and income streams can dry up. Putting a large sum of money in one asset can be a lot riskier than an index fund, where there's little risk of permanent loss of capital--as long as a person doesn't sell, but rather buys, during a downturn.
Of course... Rule #1) No more than 10% of NW in any one asset... RE, Company stock...
Some people even consider their personal residence as an ASSET! not me.
Houses are BIG liabilities and can tie up lots of unnecessary capital.
that is ONE expenditure that can go south REALLY quick, and you will be stuck, like the frog in boiling water... "What Happened?"
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not me. 
