I’ve been going on and on about how I don’t know where to put my savings. I’ve been trying to save and invest, but right now I have a feeling my portfolio breakdown is not advisable. I still need to open an HSA and money needs to start going into that ASAP, but other than that I’m not sure where to invest.
Right now, my savings breakdown is:
$2167 — liquid checking to pay off debts, rent, bills, etc (checking, liquid savings & paypal)
$19,599.34 — pre tax non-retirement, non liquid savings (CD #1 & #2, Sharebuilder, Vanguard, Prosper)
$7067.75 — Roth IRA (down from $7300 of initial investment. Have $1700 more to invest in 2008)
-$1037.88 — debt (to be paid from checking as soon as the deposit fully clears in my checking account)
-$450 — to go to taxes
TOTAL NET WORTH: $27,346.21
So that means right now 71.6% of my total portfolio is taxed once, then is put into a pre-tax account to be taxed again when it take it out one day down the road.
Savings wise, here are my priorities to save for…
1. My Health (As I have a high deductible health insurance, I need to make sure my HSA savings at least covers that deductible. Hopefully I’ll never have to use it. Right now I don’t have an HSA account set up. I need to do that pronto.) This also covers general dental care, yearly cleanings, etc, and vision expenses (I’m not sure if an HSA can go to vision costs or not, I’ll have to find out. But I need new contacts!)
2. A House (I’m 24 now, I’d like to purchase a home by the time I’m 30)
3. Grad School (I’m pretty sure I want to go back to grad school one day, either for directing — a huge expense –, an MBA, or a degree in computer interaction design. I want to do this by the time I’m 27.)
4. Cosmetic Dentistry (my teeth make me so sad. I’d love to be able to get them fixed at some point!)
5. Travel / Gifts / Fun / Gadgets (I’d like to save for enjoyment expenditures and gadgets, so I can buy things like a DSLR camera without feeling guilty.)
6. Laser Hair Removal (due to having polycystic ovary syndrome, I have excess hair that grows on my face and it drives me nuts. I also spend a small fortune buying tweezers and razors every other day. If laser hair removal really is permanent then this expense might be worth it. I’ll probably have to save about $5000 to get it done, or maybe just $2000 or something for my face alone.
7. Marriage & Kids (I want to get married when I’m 33 or so and have three kids. Well, one to start with and I’ll go from there. The cost of getting pregnant, thanks to having PCOS, will be huge. I’ll have to get drugged up and do in vitro, probably, over and over again. This is going to be majorly expensive. If I don’t start saving now, I might never be able to have children. Even adopting is expensive, so either way I’ll need the money before I can have a family.)