Dear XXXXXXXXXXXXXX,
Its really good to know that you are in best of your financial condition that you can now think of what to do with your money.
Coming to your query, I would suggest a little agressive approach.. I understand from your question that your rent is taking care of your mortgage. i.e. mortgage payment is $ 1674 and the rent is $ 2000. So no worry on that. The rate you have got is competive enough.
So I would suggest the three-point apporach. Although the economy has seen the worst of times, it is also the fact that the worst is behind us and we are on path of recovery and the things look no longer gloomy as it used to be.
So, I would suggest you a 40:30:30 Approach.
From your available funds, invest 40% into equity shares of index companies and keep accumulating. THis would help you build a formidable equity portfolio over peroid of couple of years.
The other 30% should go into creating CDs (Deposits) with banks. This will lend instant liquidity and stability to your savings.
The last 30% should go towards your savings for your girs's college. This mix (40:30:30)shall represent a ideal mix of good returns (equity) liquidity and safety (CDs) and investment for higher education.
I hope the above helps...
Regards,
Yes, I would certainly recommend IRA. You can take out 5% each from Bank CDs, and Equity's share and put in IRA>
New Ratio therefore would be : 35% Equity, 25% Bank Deposits (CDs), 10% or so in IRA and 30% (unchanged) in girl's education.
Coming to Investment vehicles for girl's education, you can consider 529 College Savings Plan http://www.aarp.org/money/personal/articles/saving_for_college.html
Financial Advisor
Technical Analyst in Financial Markets -- Experience of more than 10 years in consulting