Here's my situation. 1-year fellowship starting this summer.
Anticipated Household Income: $125-50k
Max out 401ks by year end.
Roth IRA maxed out already.
Current Cash on hand $60k. ($30k emergency fund)
We need to buy a new car for my wife probably in the next year (trying to push for two) depending on how long I can hold her off. Her car has 250k miles on it, so might be sooner than later as I'd really hate to see her get stuck or for it to breakdown while she's driving. We've casually looked into some Ford, Honda, Toyota SUVs for like $30-40k. (probably buy used 1-2 years old)
My question is should I continue to keep the Cash in Ally @ 1% or should I toss it into a taxable account? My fear with a taxable account is a market correction in the next year and our $30k taxable becomes a $10k account. I was hoping to finance the car at 0% with $10k down on a CC for points anyways and then just make monthly payments of $200-400. Thus, even if I lose $20k, would it really matter? If we purchase a car for $30k next year, should I move $30k from taxable to Ally at that point? No other major expenses coming up beside vacations (we like to travel 3-4 times/yr), rent ($2k/month * 3 years - wherever I get a job after fellowship), then saving for a down payment on a starter home in 3 years.
Just wanted to hear some opinions...
Anticipated Household Income: $125-50k
Max out 401ks by year end.
Roth IRA maxed out already.
Current Cash on hand $60k. ($30k emergency fund)
We need to buy a new car for my wife probably in the next year (trying to push for two) depending on how long I can hold her off. Her car has 250k miles on it, so might be sooner than later as I'd really hate to see her get stuck or for it to breakdown while she's driving. We've casually looked into some Ford, Honda, Toyota SUVs for like $30-40k. (probably buy used 1-2 years old)
My question is should I continue to keep the Cash in Ally @ 1% or should I toss it into a taxable account? My fear with a taxable account is a market correction in the next year and our $30k taxable becomes a $10k account. I was hoping to finance the car at 0% with $10k down on a CC for points anyways and then just make monthly payments of $200-400. Thus, even if I lose $20k, would it really matter? If we purchase a car for $30k next year, should I move $30k from taxable to Ally at that point? No other major expenses coming up beside vacations (we like to travel 3-4 times/yr), rent ($2k/month * 3 years - wherever I get a job after fellowship), then saving for a down payment on a starter home in 3 years.
Just wanted to hear some opinions...
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