My wife and I were doing our budget for 2013 yesterday and determined that we'll end up having about 30-40k in unallocated income in the next CY after expenses. This takes into account maximum contributions for our respective 401k and IRA accounts. We don't plan on having children for another 3-5 years and otherwise have no debt outside a mortgage (3.875%). I'm unsure what the best plan for the surplus is at this point. The options I've considered so far are:
- Move into unprotected investment accounts and save for a downpayment on a future home (we'll be moving in a few years and used a VA loan on our current home, so there is no equity built up atm)
- Start a 529 account for children's education (not sure if this is possible before they're born)
- Hookers and blow
- ???
Seriously, any suggestions would be helpful here. Are there other tax sheltered investment vehicles that I should be looking into aside from the ones I mentioned? We've been doing the first option for the past few years but the amount has always been much smaller since I just received a promotion and large pay bump.
- Move into unprotected investment accounts and save for a downpayment on a future home (we'll be moving in a few years and used a VA loan on our current home, so there is no equity built up atm)
- Start a 529 account for children's education (not sure if this is possible before they're born)
- Hookers and blow
- ???
Seriously, any suggestions would be helpful here. Are there other tax sheltered investment vehicles that I should be looking into aside from the ones I mentioned? We've been doing the first option for the past few years but the amount has always been much smaller since I just received a promotion and large pay bump.