Financial help

URL :P

I am 39 years old and want to be sure I am on the right track or rather get on the right track with my finances.
I have about $180,000 equity in my home, $40,000 in 401k funds, 23,500 in cash. Owe $17,000 on a car, have a 9 year old. What can I invest in -- what are some smart money moves?

I would start by not imbedding huge files in your post!

You mention that you owe 17K on a car and have 23.5K in cash. If the interest rate on the car loan is 4% or more, paying off the car will save you more $ than any investment will give you in the next year safely.

[charlie]

Well, Cut-Throat is riight from a purely financial point of
view, but I think you need to keep a 6 mo reserve of
cash for emergencies. Pay off the loan as fast as you
can within that limitation. Put your 6 mo reserve in a
money market that allows check writing. When you
get the car paid off, start buying I-bonds. Keep maxing
out your 401k in the meantime.

Cheers,

Charlie

[Nords]

Then go read Tom Stanley's "Millionaire Next Door" and/or "The Millionaire Mind" followed by William Bernstein's "The Four Pillars of Investing" or Frank Armstrong's "The Informed Investor".

While you're finishing the books-- max out your 401(k) & IRA contributions, save at least 10% of your gross pay, and don't pay more for debt than you'd earn on savings. It's probably better to pay off the car loan but you'll know after you finish reading.

You should have some exposure to the stock market in the 401K. Something like 50%-70%, depending on your stomach for market flucuations. Consider a diversified bond fund for the remainder. Don't worry if the stock and bond market goe down, just keep on contributing the max.

You've come to the right place for advice.

--JB