After you've maxed your contributions...then what?

Keyboard Ninja · 10-30-2008, 02:46 AM

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?

haha · 10-30-2008, 03:08 AM

Quote:

Originally Posted by Keyboard Ninja

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

Notmuchlonger · 10-30-2008, 03:14 AM

Dont forget protection..

Texarkandy · 10-30-2008, 06:57 AM

Guns & bullets?
Canned goods & MRE's
Pickle jar full of silver & gold buried in the backyard?

travelover · 10-30-2008, 07:23 AM

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.

**Sarah in SC** · 10-30-2008, 07:33 AM

Gee Travelover, don't go suggesting something useful here!

Pssst: guns and ammo!

**Want2retire** · 10-30-2008, 08:17 AM

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.)

KB · 10-30-2008, 08:55 AM

Make sure you have an Emergency fund and pay off any credit cards and then invest as previous mentioned.

armor99 · 10-30-2008, 09:08 AM

Quote:

Originally Posted by Want2retire

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....

**Want2retire** · 10-30-2008, 09:13 AM

Quote:

Originally Posted by KB

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.

Rich_in_Tampa · 10-30-2008, 09:23 AM

Annuities.

Just kidding.

travelover · 10-30-2008, 10:19 AM

Quote:

Originally Posted by Sarah in SC

Gee Travelover, don't go suggesting something useful here!

Pssst: guns and ammo!

Sorry, my bad.

Condoms and booze!

scottie1 · 10-31-2008, 09:30 AM

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.

FinanceDude · 10-31-2008, 09:33 AM

Quote:

Originally Posted by travelover

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........

Lusitan · 10-31-2008, 10:07 AM

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.

Notmuchlonger · 10-31-2008, 11:59 AM

Quote:

Originally Posted by FinanceDude

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

Keyboard Ninja · 10-31-2008, 03:42 PM

Quote:

Originally Posted by scottie1

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.

doxeyweb · 11-02-2008, 04:18 PM

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)

**Want2retire** · 11-02-2008, 04:48 PM

Quote:

Originally Posted by Keyboard Ninja

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.

BunsGettingFirm · 11-03-2008, 09:41 PM

Quote:

Originally Posted by haha

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?

10-30-2008, 02:46 AM	#1
Keyboard Ninja Recycles dryer sheets Join Date: Apr 2008 Posts: 132	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? __________________ - Active Duty USAF since 2006 - I'm hoping to also complete the necessary college course work to get accepted at a school in DC. - Reading is my biggest problem because my eyes jump all over the pages, and I think about a million things at once. - I think I am a pretty good multi-tasker but sometimes that also gets me no where.

10-30-2008, 03:14 AM	#3
Notmuchlonger Thinks s/he gets paid by the post Join Date: Dec 2007 Posts: 3,192	Dont forget protection.. __________________ lemony

10-30-2008, 06:57 AM	#4
Texarkandy Thinks s/he gets paid by the post Join Date: Feb 2008 Posts: 1,158	Guns & bullets? Canned goods & MRE's Pickle jar full of silver & gold buried in the backyard? __________________ Wanna buy my house?

10-30-2008, 07:23 AM	#5
travelover Thinks s/he gets paid by the post Join Date: Mar 2007 Posts: 1,079	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. __________________ Feral Engineer

10-30-2008, 07:33 AM	#6
Sarah in SC Moderator Join Date: Sep 2005 Location: Charleston, SC Posts: 2,920	Gee Travelover, don't go suggesting something useful here! Pssst: guns and ammo! __________________ "Never argue with a fool, onlookers may not be able to tell the difference." - Mark Twain DINKS, 38 and 46, plan for his ER at 50, mine few yrs later. Boy it sucks getting older and having to edit your sig line to reflect that!

10-30-2008, 08:17 AM	#7
Want2retire Moderator Join Date: Jan 2007 Location: New Orleans Posts: 6,411	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.) __________________ Dreaming of retirement....306 days " - - my greatest skill has been to want but little - - " (Henry David Thoreau, in Walden)

10-30-2008, 08:55 AM	#8
KB Full time employment: Posting here. Join Date: Jun 2004 Posts: 999	Make sure you have an Emergency fund and pay off any credit cards and then invest as previous mentioned.

10-30-2008, 09:23 AM	#11
Rich_in_Tampa Moderator Emeritus Join Date: Feb 2006 Location: Tampa Posts: 6,007	Annuities. Just kidding. __________________ Rich Tampa, FL (10% retired) As if you didn't know..If the above message happens to contain medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any medical purpose whatsoever. Consult your own doctor for all medical advice.

10-31-2008, 09:30 AM	#13
scottie1 Confused about dryer sheets Join Date: Apr 2008 Posts: 8	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.

10-31-2008, 10:07 AM	#15
Lusitan Recycles dryer sheets Join Date: Jan 2006 Posts: 367	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.

11-02-2008, 04:18 PM	#18
doxeyweb Dryer sheet wannabe Join Date: Sep 2008 Location: Mississippi Posts: 22	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) __________________ *Live like no one else now, so later you can live like no one else!!*