Now that my loans are paid off and my e-fund is almost at the point where I want to stop (6 months of expenses), I've been debating on what to do next. I've been thinking a lot about this MMM quote in that context: "So while I still advise maxing out any tax-deferred savings accounts like the 401k, you’ll also need to invest elsewhere simultaneously. My own strategy was in Vanguard index funds, a paid-off house, and some rental properties, but you will surely find other places depending on your own interests." From this lovely post:
http://www.mrmoneymustache.com/2011/11/11/how-much-is-too-much-in-your-401k/My mind is currently stuck with ideas (Max out the 403b! Max out the Roth IRA! Max out a tIRA! Buy investment property! Save for a down-payment!) that I can't see clearly what is the best next step for me given that I need to find ways of financing retirement between the ages of 45-60 (see MMM's post above).
I'm curious what the rest of you have done once you've hit the stage of no debt and fully-funded e-fund. Did you decide to put less in the 401k/403b and open up other accounts, like conservative index funds or CDs for a home downpayment? Or decide to try getting some income via real estate investments/landlording?
I'm interested in where people are a few years down the road from where I am. How is it going? Glad you bought that home or wish you would have invested in the market? I thought about doing a case study post, but I wanted to see what others decided to do instead to give me some examples.
As far as my details, you can learn more about me in my
journal. But for the quick and dirty:
Age: 29 (would love to retire by 45)
Gross Income: $55,000
403b w/Fidelity (index funds): Currently contributing 10% of salary; company contributes 12% of salary and it isn't a matching deal. They just put it in there regardless of how much I contribute. Current balance is $15,600
Roth IRA w/Vanguard (index funds): Current balance is $20,000. Not currently contributing.
Other: I want to own a home eventually. I live in a high COL area, so it makes sense to rent right now. But what I wouldn't love to own a condo here and then rent it out later! I can also live on approximately $30,000 in today's dollars in retirement, will be half that if I own a home!