Hello Mustachians,
I've just finished paying my student loans (in December), and just got a windfall of 4000€. So, what to do with the money?
I earn 2000 euros as take home pay. I invest 1000/month. I'm 30 and my job is in a public service, so very small chance to get fired.
My SO is earning well (but is NOT trying to FIRE, though he is by no mean a spendypant), and we have no child at the moment. We just bought together an apartment that we will use as a rental income once it's finished and as a tax deduction tool (being built at the moment).
My small but growing stash is:
- around 2000 euros on different accounts with credit cards, waiting to be invested
- 3000 euros in Emergency Fund (a tax free account saving account, bringing 0.75% annually, the money can be taken in/out instantly)
- 3000 euros in stocks (in a PEA, which is a tax free account, but the money is there to stay 8 years at least, or I'll pay massive taxes if I get the money out - I currently own Vanguard ETF: VEUR and VNRT - not all Vanguard funds are eligible for the PEA account type. Thinking about investing in a third ETF tracking emerging countries)
- 2000 in a life insurance account (tax sheltered, but money is not liquid at all. If I want to sell and get the money, have to wait 4 months at least).
I wonder if I should raise the Emergency fund, or go to the stocks at once (especially now with the market having stocks on sale).
I've never had much cash as an Emergency fund (my current EF is 3 months expense), but wonder if the recent real estate purchase (I'll rent it, not use it as a home) will create more need of cash.
My target investment goal is:
Equity 90% Vanguard VNRT: USA small & large 50% (0.10% fee)
Vanguard VEUR: Europe small & large 40% (0.12% fee)
Amundi Emerging markets 10% (0.20% fee)
Bond 10% 50% europe / 50% international
Waiting for your advice.