My goal is to have over $30,000, cash in a savings account, by the end of 2009. What would you do with $30,000? Assume no debt except a mortgage. Off hand:
- Keep it in savings, let it earn 5% interest or so
- Divide it up, keep an emergency fund in cash and invest the rest in the market
- Pay a huge chunk of mortgage principle with most of it, retaining some as emergency funds
- Fund a Roth IRA, 529, or some other retirement fund with the interest it earns in a 5% savings account
- Buy a Lexus
1 comment:
I'd go with the second bullet item... save some as an emergency fund (in a money market so it would still gain interest) and then I'd invest the rest, probably max out the Roth IRAs for me and the wife, then put the balance into my brokerage account.
Since I don't own a home, I'm trying to save up a small next egg too, for a down payment in a few years. I'm keeping that money in fairly safe investments (CDs, money market, etc) in case we run into a bear market in the near future.
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