After a job change and required company stock sale, I am going to have around $75K after taxes. My question is, what's the best thing to do with this money?
Our current situation:
1) ages 35 and 33. 2) 120K family income. 3) 5K monthly expenses 4) 3 children ages 2 to 16 years. 5) no debt besides our 170K 30-year fixed rate mortgage. 6) 13% of our income goes into retirement accounts (150K total in various accounts) 7) funding college accounts for the kiddos. 8) only 2K in our emergency fundMy first thought is to drop it all into our MMA and use it as our fully funded emrgency fund. However, it's more than the 6 months of expenses (5K expenses X 6 months = 30K) rule that I often read about. Would it be a better choice to have a 30K emergency fund and use the other 35K in a non-retirement account, pay down our mortgage, fund up the college accounts or hide it under the mattress :) ?? MMA rates don't look that great right now, so I'd like suggestions.
Regards, HH
-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.