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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: kcore2000 on February 07, 2020, 09:24:03 AM

Title: Getting Married and Starting Family with Extra Cash.
Post by: kcore2000 on February 07, 2020, 09:24:03 AM

Hey! I'm getting married early summer. I sold my house, moved in with my fiancé and have around 50k in cash from the sale. She owns a house and I’m paying her “rent” but we plan to purchase a new and/or build a house within 4-5 years together. Children are also in the plans sooner than later … Any thoughts on what could be done with the extra 50k to invest? Below are my current assets and our combined income is around 200K. Thanks!


ASSETS

VANGUARD Roth IRA ) (Contributing Max/Yr)
Total Stock Market Index Fund (VTSAX) ---> $41,176
Total International Stock Market Index Fund (VTIAX) ---> $11,537

EMPLOYEE 401k (Contributing 5%)
Roth 401K (2050 Portfolio) ---> $32,764

TD AMERITRADE
American Funds Capital World Growth and Income Fund® Class F-1 (CWGFX) ---> $4,500
American Funds SMALLCAP World Fund® (SCWFX) ---> $3,000
Various Individual Stocks ---> $7,000

PROPERTY
Car ---> $1,800  << Remaining Loan

CASH
Emergency Fund ---> $11,000
Extra Cash ---> $50,000

Title: Re: Getting Married and Starting Family with Extra Cash.
Post by: terran on February 07, 2020, 09:36:32 AM

Probably increase the 401(k) contribution. See https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1333153/#msg1333153

Title: Re: Getting Married and Starting Family with Extra Cash.
Post by: kcore2000 on February 10, 2020, 05:25:46 AM

any other thoughts?

Title: Re: Getting Married and Starting Family with Extra Cash.
Post by: Spitfire on February 10, 2020, 08:16:10 AM

Do you need that cash for a down payment on your next house? If so you might want to stay conservative with a high interest account or CDs. The market could dip at a bad time if your timeline is 4-5 years.

Title: Re: Getting Married and Starting Family with Extra Cash.
Post by: kcore2000 on February 10, 2020, 09:01:25 AM

I would say no that we may need some of it with the addition of equity she has in her house. I would like to put some in a more conservative area and some somewhere more long term. Long term options would be the question with the assets I currently have ...

Title: Re: Getting Married and Starting Family with Extra Cash.
Post by: Kayad on February 17, 2020, 08:08:39 AM

This isn’t really enough info to provide much advice.  If your cash flow is such that you don’t need this money for your future plans, invest it in the market (or other investment of your choice).  If you need it for your short to intermediated plans and can’t risk the principal, you have to stick it in something like a cd or high yield savings account.

Maybe you don’t know exactly how household finances are going to look; put it in a high yield account and reassess in 6 mos.