RRZ.com Investments

When you have maxed out your 401K and Roth IRA, what other long term investments should you consider?

My fiance and I are both 25, have dependable high paying jobs, and are already home owners. Neither of us have school loans, credit card debt or other outstanding debt with the exception of one car payment. I'm wondering where we should look to invest our money in the coming years as I'd like more return on investment than my current money market account is offering. What other long term, moderate risk investments should we consider?

Public Comments

1. Give mutual funds a good look but concentrate on no-load funds from a low-fee company like Vanguard or Fidelity. Index stock funds are a good idea because they tend to not throw off much taxable income--they just rise in value over the years. Be sure to reinvest any dividends and capital gains distributions so your holdings will grow faster. You will hear about lots of more exciting ways to invest but you sound like very mature, responsible people who will benefit from this conservative approach. Because this money won't be in a tax-deferred account you will be able to access it if you decide to buy a rental property, a vacation home or something else you'd like to have.