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Staying the course

January 5, 2008

I have an asset allocation I’m comfortable with. I have goals I like, and prioritized appropriately. My current goals are keeping an e-fund in savings, funding retirement accounts, and general savings for a future car/home. Also, paying student loans, though this is a low priority.

Then I get an idea in my head and want to run with it. I start to wonder if I’m being too conservative. I suddenly think that I need to open up a taxable account for investments . Despite the fact that none of my goals are long enough away (besides retirement) that a taxable account really makes more sense than a simple high yield savings account. I start to think 4-5% isn’t enough, and that I need to grow my wealth faster.

Logically, I don’t really believe I’m ready for a taxable account. I have too many other goals to randomly throw another one in the mix for no good reason. What is the money for? Why not put it in retirement? Or savings? Besides the fact that before I open a taxable investment account, I have some research to do on how to be tax efficient.

I think it is the comments of my friend ringing in my ears, even if these comments aren’t necessarily qualified. We just have different philosophies.
“He’d probably do something stupid with the money, like leave it in savings instead of investing it.”
“I am young. I want to invest as much as I can now.”

I have a good plan and good goals. I just have to stay the course

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