I finished fellowship last year and took up my first job. I maxed out on my 401 k and 457B for the year. Also did the roth back door. After saving for an emergency fund(approx. 6 monthsof income ), what is the best way to invest any cash remaining ? I am 40 and plan to retire at 65 yrs of age. Advise appreciated.
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Do you have school loans? Adequate life and OO disability insurance? Any need to fund a 529? Next step is to fund a taxable account.
11 Reasons You Need a Taxable Account
ps - I think 6 mos in an e-account for an attending is too much.My passion is protecting clients and others from predatory and ignorant advisors 270-247-6087 for CPA clients (we are Flat Fee for both CPA & Fee-Only Financial Planning)
Johanna Fox, CPA, CFP is affiliated with Wrenne Financial for financial planning clients -
no school loans. Life insurance in place. No disability insurance . I fund a 529 around 10K/year .Not sure how much should I contribute to it as there is no upper limit to itComment
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Pat on the back re: the student loans. OO Disability insurance is a priority, imo, even at 40. The chance of becoming disabled is greater than the chance of dying at every age up to 65. There are some great providers who support this site - get some quotes. No long-term group disability at your job?
I'm very cautious about overfunding a 529. You'll need to do some projections and decide if you want to also fund a separate taxable account earmarked for college. A Coverdell ESA can be used for private school for all ages, too.
If you have the opportunity and desire for side income, you can set up a second (solo) 401k, too.My passion is protecting clients and others from predatory and ignorant advisors 270-247-6087 for CPA clients (we are Flat Fee for both CPA & Fee-Only Financial Planning)
Johanna Fox, CPA, CFP is affiliated with Wrenne Financial for financial planning clientsComment
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With your apparent earning potential, own-occupation disability insurance should be moved to the top of your to-do list.Comment
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Your top priority should be to get a high quality own occupation disability policy. Keep your disability insurance until you reach financial independence.
Other than that, consider an HSA if you have a high deductible plan. Put some money into the 529 and throw the rest of your money in a taxable account. I agree with Peds on what to put in your taxable account.Comment
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