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After you've maxed your contributions...then what?
Old 10-30-2008, 02:46 AM   #1
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After you've maxed your contributions...then what?

Yearly IRA/Roth IRA contributions are capped at $5000. What do you do once you max that, and your company's 401k (if available)?

- savings account?
- individual stock investments?
- follow whatever Warren Buffett buys?
- buy a bigger mattress?
- other?
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Old 10-30-2008, 03:08 AM   #2
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Originally Posted by Keyboard Ninja View Post
Yearly IRA/Roth IRA contributions are capped at $5000. What do you do once you max that, and your company's 401k (if available)?

- savings account?
- individual stock investments?
- follow whatever Warren Buffett buys?
- buy a bigger mattress?
- other?
A really big mattress and a bunch of hookers. Remember, all work and no play make Jack a dull boy.

Ha
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Old 10-30-2008, 03:14 AM   #3
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Dont forget protection..
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Old 10-30-2008, 06:57 AM   #4
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Guns & bullets?
Canned goods & MRE's
Pickle jar full of silver & gold buried in the backyard?
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Old 10-30-2008, 07:23 AM   #5
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Ninja, if you haven't lurked at the Boglehead's Forum, I think you'd find it useful. I think they'd suggest buying into an index fund, like Total Stock Market, in a taxable account - minimum capital gains and dividends, appreciation taxed at 15% max. only when you eventually sell.
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Old 10-30-2008, 07:33 AM   #6
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Gee Travelover, don't go suggesting something useful here!

Pssst: guns and ammo!
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Old 10-30-2008, 08:17 AM   #7
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I would second the idea of buying Vanguard's Total Stock Market.

(But first, pay down or pay off all high interest credit card debt and that kind of thing.)
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Old 10-30-2008, 08:55 AM   #8
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Make sure you have an Emergency fund and pay off any credit cards and then invest as previous mentioned.
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Old 10-30-2008, 09:08 AM   #9
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I would second the idea of buying Vanguard's Total Stock Market.

(But first, pay down or pay off all high interest credit card debt and that kind of thing.)
Yep.... that is exactly what I did.... RothIRA is maxed.... 401k at 13% (almost maxed...) Just moved over a bunch of cash 50% Total Stock Market at Vanguard... and 50% Total International at Vanguard....
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Old 10-30-2008, 09:13 AM   #10
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Make sure you have an Emergency fund and pay off any credit cards and then invest as previous mentioned.
Good point. I forgot to mention an Emergency fund.
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Old 10-30-2008, 09:23 AM   #11
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Annuities.




Just kidding.
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Old 10-30-2008, 10:19 AM   #12
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Gee Travelover, don't go suggesting something useful here!

Pssst: guns and ammo!

Sorry, my bad.

Condoms and booze!
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Old 10-31-2008, 09:30 AM   #13
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I posted this question a while ago. Basically, the responses suggested paying off all debt first. Starting with the highest interest rate. Do you have car loans, student loans, credit card debt, etc? For example, if you have a car loan at 8% and you are paying extra payments; it is like tax-free investing earning 8%. IMO, mortgage debt is different because it is tax deductible.
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Old 10-31-2008, 09:33 AM   #14
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Sorry, my bad.

Condoms and booze!
Solid idea. Problem is if you forget the condoms and use that extra money to buy booze, the result is children........
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Old 10-31-2008, 10:07 AM   #15
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After maxing out the 401(k) and the his+hers IRAs, I have been funding a 529 with maximum contributions for the state tax deduction (NY) for my kid.

After all of those tax-advantaged plans have been maxed out, I've been paying down extra principle on my student loans and mortgage, as well as increasing my short term savings with an eye toward buying a larger home at some point in the near future. If I didn't have those two things (debt reduction and down payment goals) I'd be sticking with my asset allocation in regular taxable accounts, probably Vanguard Total Stock Market Index + Vanguard Total World Stock Market Ex-US.
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Old 10-31-2008, 11:59 AM   #16
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Solid idea. Problem is if you forget the condoms and use that extra money to buy booze, the result is children........
Worked well in the olden days. You had them work the farm
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Old 10-31-2008, 03:42 PM   #17
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I posted this question a while ago. Basically, the responses suggested paying off all debt first. Starting with the highest interest rate. Do you have car loans, student loans, credit card debt, etc? For example, if you have a car loan at 8% and you are paying extra payments; it is like tax-free investing earning 8%. IMO, mortgage debt is different because it is tax deductible.
no mortgage, no kids, no debt.

AND i stay away from smoking and alcohol. That stuff would kill my run time and add kids, a mortgage, and debt.
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Old 11-02-2008, 04:18 PM   #18
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Here's my list...(same as others listed above)
-emergency fund. 3-6months
-debt..smallest to largest.
-college fund.(if you need it)
-max roth, 401k, etc...
-mortgage.
(make sure a play...along the way)
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Old 11-02-2008, 04:48 PM   #19
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no mortgage, no kids, no debt.

AND i stay away from smoking and alcohol. That stuff would kill my run time and add kids, a mortgage, and debt.
I don't smoke or drink either. Cigarettes and alcohol cost a lot these days! That's not my only reason for not smoking or drinking, but it's a good one.
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Old 11-03-2008, 09:41 PM   #20
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A really big mattress and a bunch of hookers. Remember, all work and no play make Jack a dull boy.

Ha
Wait, you're not planning on stuffing anybody under the big mattress, or are you?
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