I'm always curious what response/advise this diverse crowd brings in...

So, I'm a 31-year-old married homeowner with a steady job, minimal debt, a decent chunk in savings, a 2:1 company-matched 401k, and some company stock options that I've not touched.

And I know absolutely nothing about where to go from here.

Sure, I could put more toward my 401k. Or I could sell and/or trade my stock. Or I could open a Roth IRA. But I have no financial sense or direction. I'm not looking to make millions, but I'm certainly in a spot where I could be doing more with my financial situation, and hopefully not get raped by taxes.

I'm looking for resources to begin with - books, websites, institutions that could shove me in the right direction. Hopefully something simple to understand. Since this is not the Lamborghini Owners Club, I'm thinking some of you may be able to relate and point me to some reasonable and/or obtainable information.

Thanks!

Where is your savings?

A totally safe way for that money to grow is to do some laddered CD's. (laddering means break it up with different maturity dates - a mix of 1 year, 2 year, 3 year, 5 year, etc CDs. That way as each matures, you can take advantage of rates and roll them over into new CD's...it's a way to reduce risk of having your money tied up long term in case interest yields go up. I've started this recently myself.

If you do have any debt (car payments, credit cards, etc.), consider getting a home equity line of credit and consolidating that under there so you can write off the interest you pay on your taxes. That's a way to boost your tax refund and give you a little more investment capital each year.

I'm by no means an investment expert when it comes to stock and funds, but hang onto those options (be aware of any mandatory exercise or expriation dates though), as stocks typically trend upward over the long term. Or, if you don't think your company's stock price is going anywhere, and you want a safe investment, go with bonds or CD's. CD yeilds are approaching 5% apr nowadays...that's considerably better than a savings account and equally as safe.

Beyond that, consider going to your local bank and getting some other investment advice. If you really feel like doing your homework, there are several websites where you can buy/sell at under $10 per trade if you open a brokerage account with some sort of minimum balance, but to do it all on your own means you'll need to know what you're doing.

How good is your life insurance and disabilitiy?

I second the laddered CD plan. I am starting one soon but my ladder is going to look slightly different.

Start a new 12 month CD every 3 months for the first year. That way, every 3 months until I decide to pull the money someplace else, a chunk of money frees up and I can A) spend it or B) take advantage of new rates.

Also look into a ROTH 401k. They tax you when you first invest, not when you finally withdraw at year x when the money should be much larger.

Im not gonna spew advice but the book "Automatic Millionaire" is great. Like 12 or 13 bucks at Barnes and Noble...well worth the read.

Another option apart from a CD is a Money Market Account. Now they actually have better rates and you pay no penalties for early withdrawl. Check out the link below for lots of other good into.

Bank Rate

Tim

Wow you're situation sounds so similar to mine it's crazy. I'm stupid and haven't been paying into the 401k, firing that up soon. Selling my 1st house and paying off my cars with the proceeds, then we're buying the new house cheap from a family member - so the mortgage is only gonna be about $100k. So I'm gonna be in a situation to invest some $$$ here soon too.

We have enough in savings to cover several months of both salaries right now. We are fully life-insured, and both our health/disability plans are acceptable.

I have a little over a year to activate the most lucrative of my stock options before they expire, so I could cash out a good chunk to put into other investments. I still have a grant that's offered at a higher price than the stock has yet risen, so unless we skyrocket, those are basically worthless. The company switched over the RSU's in the last couple of years, so I actually own stock now.

Like I said, one of my biggest worries is taxes.

I'll definitely check out the "Automatic Millionaire" book, and look into CDs. We have been considering moving our savings over to a MMA, so that is one step we knew about.

Thanks for the info! Looking forward to more.

401k with company matching should be your FIRST priority. Max it out. It's free money!

Then put any extra into ROTH-IRA. Pay the taxes now, but you can keep whatever it grows into TAX FREE.

Suze Orman web site

She's also got a show on cable tv that might be worth checking out, lots of good info.

She's a 40 or 50 something virgin. Never known a man. Lesbian CD's and money markets. I'll find a different adviser. By the way free advice is generally what it's worth. Read up on Money and Forbes and other money mags and make you own decision as to what's the right mix for your investments and goals. Goals are a necessary part of investing.

Without getting into too much detail...

There are other investment vehicles out there that are lower maintenance than you might think. I'll let you do the homework, but take a look at the following:

-"lifestyle" mutual funds (also known as a "fund of funds")

-exchange traded funds/index funds

While CDs are safe, keep in mind that low risk generally equals low return. 401k, especially with employer match, is great. Take advantage of it. You may be interested in finding a fee-only financial planner who can help you outline some of these things without you worrying that he is only thinking about his commission. If you decide to work with someone, be sure that you ask about his/her compensation and are comfortable with it. Do the homework, be honest with yourself about your situation/habits/goals and don't put all your eggs in one basket.

Good luck.