11 thoughts on “Where Should You Put Your Money?”

  1. we’re trying to get enough w-2 money from mrs. smidlap’s part time job to fund the full 6500 to each roth ira. i consider it the king of all money with the tax free withdrawals in retirement, even on gains and dividends. what did you tell the friend who asked about the CD? to me, that’s right up there with annuities and whole life insurance. they are bound to enrich the person selling you the product!

    1. Nice! Yes the benefits are pretty sweet from Roth IRAs–I love the Mad Fientist’s assessment of the different retirement options. For my friend, I recommended that she just keep the money in an emergency fund, and if she wanted to earn a higher interest rate then she should put money in her investment accounts. The only caveat to that in my mind would be if you’re extraordinarily risk averse and prefer to have lots of cash on hand. Then you could put half your cash in a CD for a slightly higher interest rate.

  2. What a great plan! And great progress as well. You’ll be successful, and my guess is that like my wife and me, you will find that even after you early retire you won’t need to withdraw much, if any, from your portfolio. I bet you will be making enough from side gigs to pay your costs with a zero withdrawal rate.

    1. Thanks so much for the vote of confidence Steveark! πŸ™‚ That would be amazing. We’re still working on the spending part, because that’s definitely our hurdle right now. But I feel like we’re slowly getting there.

  3. I agree that keeping things simple is key, as is having your finances organized in “buckets” for specific purposes. The nice thing about most of the savings vehicles you mentioned is the automation. The money goes where it needs to and grows – out of sight, out of mind, which means it doesn’t get spent! I’m glad you guys are setting aside money for things like flights and travel. Taking advantage of life experiences, both as a family and as a couple, is an important goal too.

    1. Thanks Kara. I’ve noticed that you’ve worked hard to keep things simple for your family. I agree that automation has been such a great savings/investing tool because we just become used to having less money hit our checking account so there’s less to spend.

      We’re excited about our financial goals but I honestly think if we had to pursue them without traveling, we’d be a lot less motivated. πŸ™‚ As I’m sure you can appreciate, travel is a big one for us. Plus, the kids grow up so fast!

  4. Hey

    Hope you are well. Apologies for not keeping in touch, I’ve been busy building a website.

    May I ask if you have considered having a tenant for the house in Chile?

    Secondly, its smart how you park your money to fund your goals! I will have to see if there are any ‘investment’ type accounts in the UK.

    1. Thanks Mohammed. Congratulations on the website! πŸ™‚ We have had a tenant in the house in Chile in the past, but we bought it for a relative who’s living there now. For now we only count the principal towards our net worth but the apartment would bring in around $7000/year if we rented it. I wish I knew more about investment accounts in the UK but I bet there are a lot of options. Looks like Vanguard is one of them: https://www.vanguardinvestor.co.uk/ Cheers!!

      1. Thanks for the link Laurie. I will be looking into those accounts as part of the permanent retirement plan!

        Good on you for housing a relative over a tenant. Very giving of you guys!

  5. I have to admit I just have most of my money on autopilot, and don’t spend too much time thinking about things, which is really liberating.

    I just pay myself into my current account, then it goes out to ISA/Taxable. And my company pays into my SIPP.

    I don’t tend to portion out specific amounts for goals etc, it’s all one big pot.

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