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I’m in my late 20s and I’m doing well financially. I’m debt free. I have an emergency fund. I contribute the maximum to my 401(k) and I fully fund my IRA annually. Any suggestions for my next moves besides saving as much as possible?


Wow, I always thought that highly frugal individuals like you were a myth, like the tooth fairy or unicorns. Well done for getting in such great financial shape at such a young age. It sounds as if you’ve got most of the basics covered. As you suggest, you don’t need to be encouraged to save, but how about narrowing the focus of your thriftiness to certain concrete goals, like buying a house? You may not want to take the plunge while prices are still, you know, plunging. At some point you’ll be ready, though, and it will help to have a big portion of the down payment set aside so that you’ll qualify for a mortgage more easily, your payments will be more manageable and you’ll be able to limit or even avoid the onerous mortgage insurance that is often required of borrowers but that protects their banks and not them.
If you’ve still got extra money, you can set up a fund to pay for college for your kids, if you have any now or expect to down the road. If there is yet more cash burning a hole in your pocket, then why not buy a fancy car or take a nice vacation somewhere? You’ve earned it.
-Conrad de Aenlle