Nate- is the $17k needed for emergency funding? or is this excess liquidity?
Eric - I think bond funds are more likely to decline than increase in the next year.
Hi Nate - that's a great rate for a cash/liquid account. If the second account is smallish (
Italy sounds nice but if you want to avoid injury, I would suggest adding to your current diversified portfolio, if you have one. There is not one specific idea that I or our firm would recommend. However, consider the asset classed in you portfolio that might be lower and consider adding to them.
Some of the asset classes that are current down year to date are emerging markets, many bond asset classes, commodities, and depending on the day.. real estate funds.
Nate - I'll finish my post - if the second account is smallish (
kzlink - without knowing the dividend rate and expenses on the life insurance I can't really say. Some older policies do pay well, and if the policy is big enough expenses don't consume too much of the dividend.
Nate, one more try: if the second account is
If the second account is less than $5k you probably need this for emergency fund.
Orthodoc - Adding foreign equity to your 401k is a fine idea if you have a good vehicle in your 401k. You probably have more choices outside your 401k, so look for a well-managed growth-oriented low-turnover fund to minimize taxes.
Orthodoc- Yes. I would consider adding to foreign exposure. 401k accounts might limit your options but outside of your 401k account, I would consider index ETFs. ETFs will eliminate the need to pick stocks and are considered more tax-efficient than mutual funds.
Nate: Note to self: do not use less than sign, spell out the word. Emergency fund amount depends on expenses, salary, job stability, etc. However, you could still consider moving some to a Roth IRA if you're eligible (single filer income less than $112k). It could still be liquid in the Roth, e.g .money market, and Roth contributions can be withdrawn at any time without tax or penalty.
Nate, thanks for the additional information. I would fully fund the Roth ($5500 if you're under 50); in January you could make your 2014 contribution with another $5500. That takes care of $11k. Depending on your risk tolerance, age, and 401k investments, you could consider investing the $6k (stocks or a mix or stocks and bonds) in a brokerage account, e.g. E*Trade.
You can research VWO/EEM for emerging markets. EFA for Foreign Large Blend exposure or ACWX for All world county index - ex US. International small, SCZ, is worth researching