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Now what?
Old 01-30-2011, 11:21 AM   #1
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Now what?

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
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Old 01-30-2011, 11:27 AM   #2
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You really need a midlife crisis. A pony tail, a red Corvette and a 20 year old girlfriend.
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Old 01-30-2011, 11:55 AM   #3
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Since everything is checked in the finance side, how about spending more time on leisure?
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Old 01-30-2011, 11:56 AM   #4
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You really need a midlife crisis. A pony tail, a red Corvette and a 20 year old girlfriend.
Good answer! Ha! Ha! Ha!
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Old 01-30-2011, 12:05 PM   #5
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It sounds like you have reached that convergence of time and money: save now (it's not a sin to save post-tax money given the likelihood of higher future taxes) and you can either FIRE earlier or else enjoy a higher income and level of financial security when you do retire.

In a sense, it's as simple as that if I understand your situation correctly.
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Old 01-30-2011, 12:23 PM   #6
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.....
Max out 401k match? Check...........
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
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Old 01-30-2011, 12:25 PM   #7
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Make sure you stay healthy. Eat healthy, exercise, and preventive healthcare. That takes a bit of education and execution as well.

Estate planning. You should have a will and maybe a revokable trust. Healthcare directives. Make sure you have beneficiaries named for everything. Make sure your executor can find all the needed documents and accounts. Make sure your family can handle the finances without you there to help them. Make sure your finances hold up if you are married and only one of you dies, probably reducing Soc Sec, and increasing taxes to the higher single rate.

Think about what might happen to investments if debt starts taking down developed countries, US state governments, and US governemt programs like Soc Sec and Medicare while raising taxes and inflation. What if China and the US start fighting for resources? Can you be flexible with your retirement timing and income? Always plenty to worry about!
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Old 01-30-2011, 01:00 PM   #8
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Bake more cookies!

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Old 01-30-2011, 01:11 PM   #9
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Bake more cookies!

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Old 01-30-2011, 01:12 PM   #10
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Now what?



Suggestions?

2Cor521

Girlfriend !
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Old 01-30-2011, 01:13 PM   #11
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Make sure you stay healthy. Eat healthy, exercise, and preventive healthcare. That takes a bit of education and execution as well.

Estate planning. You should have a will and maybe a revokable trust. Healthcare directives. Make sure you have beneficiaries named for everything. Make sure your executor can find all the needed documents and accounts. Make sure your family can handle the finances without you there to help them. Make sure your finances hold up if you are married and only one of you dies, probably reducing Soc Sec, and increasing taxes to the higher single rate.

Think about what might happen to investments if debt starts taking down developed countries, US state governments, and US governemt programs like Soc Sec and Medicare while raising taxes and inflation. What if China and the US start fighting for resources? Can you be flexible with your retirement timing and income? Always plenty to worry about!
Good advice.

Since you are only about 3 years from your target retirement year do you have good plans about what you want to be doing in retirement? In our case we wanted to live much closer to the kids so we spent time and money firming up where we wanted to live, what club(s) we wanted to join etc.
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Old 01-30-2011, 01:14 PM   #12
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What Animorph says. You are in a good spot now and you have choices which can safety proof your FI. In your position I would enhance my financial security by adding to the taxable account.
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Old 01-30-2011, 01:19 PM   #13
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Might also consider an umbrella insurance policy.
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Old 01-30-2011, 01:22 PM   #14
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Thanks to all for the suggestions, especially the girlfriend and cookies ideas. I'll let those ideas simmer for a bit :-)

Kinda already had the midlife crisis a few years ago, but it wasn't really the fun kind...got divorced and got an MBA.

Good idea to work on the health. That's not my best feature right now...lots of work and no girlfriend = a few extra pounds and who cares?

Have the estate planning stuff all done. Will, healthcare directive, letter of instruction updated regularly...check, check, check.

I think my max 401k contribution is $16,500 -- I'm too young to do the catchup thing. I think the $41,000 number is for a different kind of savings plan -- SEP or Keogh or one of those others.

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Old 01-30-2011, 01:42 PM   #15
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I'd add count your blessings. Congrats on being at a good point.
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Old 01-30-2011, 01:51 PM   #16
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Heading towards FIRE at a fast enough clip? Check.
What is this "fast enough" of which you speak?
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Old 01-30-2011, 02:14 PM   #17
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I suggest you follow John Prine's words of wisdom:
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Blow up your TV, throw away your paper
Go to the country, build you a home
Plant a little garden, eat a lot of peaches
Try an' find Jesus on your own
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Old 01-30-2011, 02:27 PM   #18
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[QUOTE=SecondCor521;1030593]

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.

Not a bad idea

Quote:
Suggestions?

2Cor521
Give some away?
(not to me)
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Old 01-30-2011, 02:28 PM   #19
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Good idea to work on the health. That's not my best feature right now...lots of work and no girlfriend = a few extra pounds and who cares?
Actually, having no girlfriend is a very strong reason to stay in shape. Like most things, holding on to an incumbency is easier and more certain than creating a new relationship.

Usually your existing girlfriend will put up with some flab out of inertia, love, or whatever. But when you go to meet someone new, she just might put the calipers to you.

Ha
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Old 01-30-2011, 02:40 PM   #20
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Ha = resident girlfriend expert!
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