It’s taken almost a year, but now every stray dollar that is associated to my name is now in my possession. This thanksgiving I picked up a few bonds and stock certificates that I ‘owned’ but didn’t have in my possession. Now, the question is where to allocate this ‘found’ money?
401(k), Roth IRA, Emergency Fund, Brokerage Account? There are so many options and all are viable vehicles that could use an influx of cash.
This decision comes down to priorities. Next year I may be able to max out my 401(k) and get my bitchin’ employer match, but if I do this, it’s likely I will not be able to fully fund the Roth. At the same time, my emergency fund is only around $3.7K. I never set a specific goal, but $10K sounds appropriate so I will need a boost to get there within the next year.
When you have excess money, what is it you do?
I think I will be looking at cashing in the bonds to boost my emergency fund. I may have to run the numbers to make sure this is wise though. 2010 is quickly approaching and I have yet to calculate my expected costs. Until that is done, I can only make some assumptions as to what is best.
Of course, my colleagues in the Personal Finance world will be happy that I have finally come around on an emergency fund after so boldly claiming that I didn’t need one several months ago.
Lastly, December looks to be an exciting month as it is a three paycheck month at my day job. It looks like that emergency fund will be getting at least one boost this month.