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Decided to invest

August 15th, 2020 at 12:24 am

So I just dumped a ton of money into the stock market and gave up on waiting to buy investment property and moving. Was talked into it by a CFP that our 15 year time frame is ridiculous to be sitting so heavy in cash. So I pulled the trigger. I guess the market could crash but then at the same time he's right in that the market has 15 years.

I also started to reinvest more for the kids 529; $250/month into each account so $3000/year each and $2000 into ESA. This is my biggest accomplishment and the thing I'm most proud of. Saving for my kids college and taxable accounts. I looked at what I have and we have saved around $55-65k for each kiddo. Split between taxable and college savings about 60% college/40% taxable.

Ideally I want to preserve their 40% taxable for them for maybe a house and a head start in life. Imagine if I can get them to save into a Roth IRA in high school it would be amazing.

But right now I'm nervous. It's been a long time since we've had only 6 months of cash in EF. I am debating even dropping it lower. We have about 6 months in I bonds as well so it's not only cash.

How do most people handle it?

Posted in Savings | 3 Comments »

3 Responses to “Decided to invest”

  1. Carol Says:
    August 15th, 2020 at 10:34 am 1597487651
    1597487651

    Three thoughts, no big answer: fifteen years is a long time to sit on cash; invest, but this market is very volatile , so maybe don't invest too equity heavy. You can always start saving about another month of cash and see if you feel more comfortable and finally, if something really bad happened, you could raid the kids' taxable accounts and so on, since it's a really long time before they will graduate college. As they say, money is fungible.

  2. rob62521 Says:
    August 16th, 2020 at 07:52 pm 1597607554
    1597607554

    Anything in the stock market at this point is volatile. I think we are going to see some lows before the election, and depending on if Biden wins, we may see stocks go down even more since he isn't considered business friendly.

    We keep 6 months in an emergency fund, and we have investments in bonds, CD's, as well as stocks. We have CD's coming due in November and we are worried about how low interest rates are.

  3. LivingAlmostLarge Says:
    September 2nd, 2020 at 04:36 am 1599021370
    1599021370

    Gosh at this point it's more insanity than ever I think. Singuy might be right. People normally in bonds are in equities because bonds and CDs are paying nothing.

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