Where to invest extra money....help!

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
whitecliff
Posts: 64
Joined: Sun Jun 02, 2013 6:30 pm

Where to invest extra money....help!

Post by whitecliff » Sun Aug 17, 2014 8:44 pm

Me and my wife are both 31 years old. No debt and we are renting a condo for 975 a month.

$250k in ally online savings account at 0.85%
$100k in my i401k
$6k in my Roth IRA ( backdoor roth only done once)
$8k in wife Roth IRA
$15k in business account which business in not active now
$15k in HSA
$15k in checking account

I am currently an emloyee at a job where I have no retirement plans available to me. In less than a year I will be purchasing a practice which should more than double my income from around 185 to approximately 400k (before debt, aprox 240 after debt and taxes). I had a SEP-IRA which I just consolidated into my i401k so I could start doing backdoor roth conversions every year. I have the i401k from an old job where I was an independent contractor but am no longer getting income from that business. I have already maxed out my HSA and Roth this year, are there any other tax advantaged investments I can take advantage of this year. I dont want to do any IRA due to wanting to continue to do backdoor roth conversions for rest of working career. Would it be advantages to put money in a taxable account versus sitting in an ally account? Do most people put munis in their taxable account and then Adv or disadv to muni index funds versus individual munis. Alot of questions, thanks in advance!

livesoft
Posts: 56547
Joined: Thu Mar 01, 2007 8:00 pm

Re: Where to invest extra money....help!

Post by livesoft » Sun Aug 17, 2014 8:47 pm

A question back at you:

What books on investing and personal finance have you read?

Most people do not invest in munis.

Yes, investing for the long-term would be better than putting money in a savings account for the long-term.
This signature message sponsored by sscritic: Learn to fish.

whitecliff
Posts: 64
Joined: Sun Jun 02, 2013 6:30 pm

Re: Where to invest extra money....help!

Post by whitecliff » Sun Aug 17, 2014 8:53 pm

havent read alot of books just alot on the forums. I have read the bogleheads book.

User avatar
Toons
Posts: 12015
Joined: Fri Nov 21, 2008 10:20 am
Location: Hills of Tennessee

Re: Where to invest extra money....help!

Post by Toons » Sun Aug 17, 2014 8:54 pm

Let Vanguard get you started,a couple of educational links :happy
Check out the links on the right side of pages also

'Four timeless principles to help you reach your investment objectives"
https://personal.vanguard.com/us/insigh ... principles

"Become a tax-savvy investor"
https://personal.vanguard.com/us/insigh ... y-investor
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

whitecliff
Posts: 64
Joined: Sun Jun 02, 2013 6:30 pm

Re: Where to invest extra money....help!

Post by whitecliff » Sun Aug 17, 2014 8:55 pm

the 250k includes my six month emergency fund and my down payment on a home. Its not a long term investment just liquid cash.

whitecliff
Posts: 64
Joined: Sun Jun 02, 2013 6:30 pm

Re: Where to invest extra money....help!

Post by whitecliff » Sun Aug 17, 2014 8:58 pm

Thank you for the link I will definitely read them, but articles are not specific peoples situation. I was looking for advice and then I will research the advice.

Are not some munis in taxable accounts decent because of some being free of state taxes?

Again if I am missing an opportunity to put money in a tax advantaged account someone please show me. I am still learning. Thanks

User avatar
Toons
Posts: 12015
Joined: Fri Nov 21, 2008 10:20 am
Location: Hills of Tennessee

Re: Where to invest extra money....help!

Post by Toons » Sun Aug 17, 2014 8:58 pm

By the way ,you can access a lot of "free" book information at google books.You may not get the whole book but you can gain valuable insight to selected authors.Type in Bogle,,,see what happens. :happy

http://books.google.com/
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

whitecliff
Posts: 64
Joined: Sun Jun 02, 2013 6:30 pm

Re: Where to invest extra money....help!

Post by whitecliff » Sun Aug 17, 2014 9:00 pm

also all the money in retirement accounts are in a vanguard target retirement fund, just FYI

User avatar
Toons
Posts: 12015
Joined: Fri Nov 21, 2008 10:20 am
Location: Hills of Tennessee

Re: Where to invest extra money....help!

Post by Toons » Sun Aug 17, 2014 9:01 pm

"Are not some munis in taxable accounts decent because of some being free of state taxes?"

https://www.fidelity.com/mutual-funds/b ... bond-funds

That was easy :sharebeer
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

Post Reply