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Learning, Sharing, and Teaching => Investor Alley => Topic started by: longrunoutlook on June 10, 2019, 09:39:50 AM

Title: Modifying Investment Order and reallocating inefficient decisions
Post by: longrunoutlook on June 10, 2019, 09:39:50 AM
Hello everyone! I've been lurking in the FI community for a while, and for the last 18 or so months I've finally been in a position to really dive in and try some different investment options.

My current situation looks something like this:


Here's where I may have made a misstep: I got really entranced by the whole concept of FIRE, so I started a taxable Vanguard account as soon as I felt able in order to have something that I could immediately draw upon if I hit an amount that I could attain FIRE. But after doing a bit more reading, I realized this was probably not the smartest or most efficient way to allocate my resources (Though certainly far better than letting it sit in a checking account or buying a fancy car).

It boils down to two questions: Should I stop contributing to the taxable Vanguard Fund and return to the standard investment order (At least until I increase my salary substantially)? And if I do stop contributing to Vanguard, should I let what I have already invested stay in the account and reinvest the dividends (Around $20k), or should I invest it elsewhere?

Thank you for your time!
Title: Re: Modifying Investment Order and reallocating inefficient decisions
Post by: MDM on June 10, 2019, 09:50:26 AM
The standard Investment Order (https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1333153/#msg1333153) is not a law of nature, so there can be reasons to do otherwise.  In the absence of such reasons, however, ...?
Title: Re: Modifying Investment Order and reallocating inefficient decisions
Post by: bacchi on June 10, 2019, 10:06:49 AM
Your brokerage account is now your emergency fund at a 50% discount (your $20k is worth $10k in e-funds).

Invest your e-fund using the Order.
Title: Re: Modifying Investment Order and reallocating inefficient decisions
Post by: Car Jack on June 10, 2019, 11:42:13 AM
Yes



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