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What Is Your Everything Else Fund?

After you’ve funded your 401k, your Roth, and your emergency fund… where do you put the remainder of your savings? Do you just stick it in a high yield savings account [3] where it can earn a respectable 5%+ interest or do you feel that it’s “wasted” there? Do you open up a brokerage account and slip the extra cash into a mutual fund, either actively or passively managed, so that it can get a shot at earning the market return, which is hopefully better than 5%?

That’s the situation I’m in right now. My fiancĂ©e and I currently have our emergency fund fattened up and sitting an FNBO Direct [4] account, both of our Roth’s are fully funded for 2006, our 401k’s contributions are at least the minimum match, and we’re currently using a Vanguard account as our wedding savings fund with the funds invested in one of Vanguard’s target retirement funds. The question is, what do we do next? Just keep putting the rest into the brokerage account until we need it?