What’s Next?

Many of you have been asking what we will do with our money now that we are debt free minus the house. This is also something I’ve asked myself. In the short term, I plan on saving every penny to build up an emergency fund of three to six months of living expenses. This will also allow me to see what plays out in the European debt crisis this year. Also, I will be changing jobs and could use the emergency fund in case I am left unemployed or underemployed.   After that… It is past time for me to begin investing for retirement, and I’m hoping that my large monthly contributions to a personal pension plan will help me eventually catch up to where I need to be. I’ve written before about the Permanent Portfolio, and at this time I am giving serious consideration to following Harry Browne’s famous asset allocation plan. If you recall, the Permanent Portfolio is simply placing the money you can’t afford to lose, the money you will need for retirement, into four asset classes for proper diversification during all types of markets: 25% in stocks, 25% in cash, 25% in gold and 25% in … Read more