Now what?

[Walt34]

Invest in something fun for you. Learn to ride a motorcycle or fly an airplane or skydive or scuba dive. Take a photography class.

Sounds like you've paid your dues. Do something for no other reason than you want to. It doesn't have to make sense to anyone else.

 

[nun]

Two things that help with ER are no mortgage and a nice stash in a taxable account. So I'd put some money towards extra principal and the rest in low cost index funds. Start thinking about an appropriate AA for ER. It will probably be heavier on the cash and short term bonds than with your accumulation phase. Finally do a detailed budget, I've been tracking every item that I spend for the past 6 months so that I know exactly where my money is going and I can relate my expenditures to the income I anticipate I can generate in ER.

 

[FinanceDude]

After a divorce, I would go with the "half your age plus 7" methodology........

 

[flyfishnevada]

Keep saving. Then start developing a retirement plan. What are you gonna do? Figure that out and then start developing those interests. It's at least as important as saving enough money. Beyond that, have fun. Sounds like you are in a good position so start enjoying the fruits of your labor. Indulge a little. Good Luck!

 

[jayc]

Fund the kids Roth IRA if they have any earned income. Open at a discount broker and you manage it.

Big ticket toys. 'He who dies with the most toys: wins'

 

[Wolverine]

Lord willin' and the creek don't rise, I'll be running out of financial goals soon:

Got a good payin' job? Check.
Adequate life insurance? Check.
6 month emergency fund? Check.
Own a home? Check.
No debt other than the mortgage? Check.
Refi the mortgage lately? Check.
Max out 401k match? Check.
Kids' college funds taken care of? Check.
Max out the Roth? Check.
Heading towards FIRE at a fast enough clip? Check.

Now what?

I could increase the emergency fund more, but 6 months seems like enough when the longest it has taken me to find a job in the last decade has been 4 months.

I could pay down the house more, but with a 4.625% fixed interest rate 15 year mortgage, planning to itemize for the indefinite future, decent equity and no real plans to move, doesn't seem especially urgent either.

I could buy stuff, but after been hyper-frugal for the past 4 years (and merely a cheap b*stard before that) I don't really want to.

Maybe I'll add to the taxable account.

Suggestions?

2Cor521

I think it is always good to pay down the mortgage so that you can stop paying for housing earlier.

 

[freebird5825]

Buy Freebird a Jaguar. Manual transmission please. You pick the color.

 

[W2R]

I'd either pay down the mortgage, or else accumulate substantial taxable investments at Vanguard.

And guess what, you get to pick which one! If you are a pay-off-the-mortgage kind of guy, do that. But if not, I'd suggest investing it. For the taxable account I'd buy equity index funds like VTSMX (total stock market index).

 

[ProspectiveBum]

Buy Freebird a Jaguar. Manual transmission please. You pick the color.

My kinda gal.

 

[Lusitan]

I could increase the emergency fund more, but 6 months seems like enough when the longest it has taken me to find a job in the last decade has been 4 months.

It's never taken me longer than 4 months to find a job either, but I've never lost a job during such a terrible economic crisis. So I'd say beef up the emergency fund to 12 months.

Other than that, sounds like you're doing great so I second what everyone else said about chasing the girls in a Jaguar or whatever ...

 

[NW-Bound]

Heck, one can buy Freebird a Jaguar, but what does one get in return? And what does Mr. Boston have to say about that?

I say the OP should get a teardrop trailer like he originally planned. And don't worry about it not being attractive to the opposite sex. In my trip, I saw a good-looking couple in their late 30s, or at most 40s, camping out with a teardrop trailer. Walking the campground past their site, I smiled at their cute set up, and they smiled back at me, obviously proud and happy with their setup. One would be happier with a mate of the same mindset.

 

[Arnie]

Decide how you're going to cover LTC? If self-funded, get it started?

Not really a financial goal, but have you created your bucket list (getting in shape and chasing the girls in a Jaguar can be on this list)

 

[freebird5825]

Heck, one can buy Freebird a Jaguar, but what does one get in return? And what does Mr. Boston have to say about that?

My eternal gratitude.
Mr B is driving my good old 92 Accord, so he has his [-]winter rat[/-] midlife vroom vroom car with the 5 speed all set.

Back on track now...increasing investment levels sounds like a good plan for the OP until he figures out what else to do.

 

[zedd]

At MegaMotors, we were allowed to contribute up to $4x,000 to our 401(k). The last portion being after tax. I believe there are ways to wrangle that after tax portion into a Roth once you retire.

Isolating 401k Basis for a Conversion

Interesting thread along those lines over at the Bogleheads forum
Bogleheads :: View topic - After Tax 401K Rollover to Roth IRA, Continued

 

[racy]

How about: Contribute to a good charity. Forbes had a recent article on efficient ones.

In Pictures: The 10 Most Efficient Charities - More bang for your charity buck. - Forbes.com

 

[MDJO]

Start dreaming about what you want to do in retirement. Then save as much as you can as fast as you can and then pull the plug when you hit your goals.
If you can't quit, then treat yourself to something.

 

[cardude]

Definitely save more after tax money!!

Put it into a tax advantaged MF, or buy some tax efficient Berkshire Hathaway since it's pretty cheap right now.

 

[SecondCor521]

Thanks again for all the suggestions.

As I was thinking about this thread on the way home from work tonight, it dawned on me what has happened. I was divorced about 5 years ago, and at the time was an unemployed grad student living in an apartment with my kids sleeping on the floor in sleeping bags (turns out they thought that was fun...anywho...). I can be a fairly goal oriented person, so I made a list of financial goals for myself. Then I stuck my nose to the grindstone.

5 years passed.

I wake up now to find that I have accomplished nearly all of those goals (I'll be at 15 out of 18 in about a month). But I'm so used to having my nose to the grindstone that to take it off seems a tad unnatural. And for the most part, I like my job and my life. So I guess I ended up successful in the sense that I never wanted to feel trapped by monthly payments or by a lack of savings. Obviously I still have a few years to go, and things can always go wrong, but for the most part, I'm where I want to be.

It's a bit like climbing that mountain that I did last year. You keep climbing and climbing and when you get to the top it's a little disorienting to get there...Isn't there more climbing to do? Of course there's always stuff to do, but it does feel a little surprising to wake up and realize you're there.

I'll probably have to set more goals for myself, but they just won't be financially-oriented. Health, travel, relationships, and giving back all seem like good options.

Thanks again,

2Cor521

Various Postscripts:

Not interested in 20 year olds. They're cute but I appreciate a more mature viewpoint on life.
Already do a detailed budget, as those who know me well can attest.
@FD, the math works out to 28. Depends on what my relationship goals are as to whether that makes sense.
@jayc, no earned income by the kids yet.
@W2R, not really a pay off the mortgage kind of guy. And currently the taxable account is all in VFINX (I swapped out of VTSMX to do some tax loss harvesting fall 2008.
@freebird, I think you're supposed to ask Mr. Boston about that ;-)
@NWBound, teardrop trailer is still on the list, and being happy in one is probably going to get added to the list for the future ex-Mrs. 2Cor521
I have a full-fledged bucket list.