Where to put extra $1,200/mo?

[StepRightUp]

After paying off my student loans (hooray!), fully funding my EF, putting 15% to retirement plus 3% employer match, and contributing to a new car fund, I'm left with $1,200/mo after all expenses and saving.

How should I use this $1,200/mo? My instinct is to put it in a Vanguard 500 Index fund or Total Stock Market Index. Would you recommend diversifying a bit more? I'm 37, single, and rent in the Boston area.

[bjl584]

Do you have a ROTH IRA? That will take care of about $450 of it a month.

The rest you can put into a taxable brokerage account such as the ones you mentioned.

[autoxer]

If you don't have a short term goal for this money, then take full advantage of your tax deferred options. Use a traditional or roth ira, depending on your tax bracket and increase your contribution to the employers retirement account until it is maxed out. For 2015, the limit is $18,000.00

[StepRightUp]

I am maxing my Roth, but I am not maxing my 403b. I'm at $10K/year on that.

The only possible short-term goal is for a downpayment on a house, but that is so theoretical, that it hardly seems worth considering. (Being single and buying in the Boston area requires a windfall.)

Perhaps, I do both? Put more towards retirement and also open up a taxable account? Or is it hands-down max out the 403b?

[autoxer]

Doing both is a fine idea. Having money in a taxable account will give you more flexibility. And the funds that you are considering are fairly tax efficient. The 403b is better for the long term, but if some other short term opportunity comes up, you'll be glad you used a regular brokerage account.

I started my brokerage account with the s&p500 index and added an international index when I had enough for the fund minimums. The total stock market index is also a great place to start.

[LittleMissSplendid]

I'd say split it between a down payment on a house and retirement. The housing market is always changing or your job could send you somewhere more affordable or maybe you won't want to do it for another 10 years. Either way you'd have some money for it.

[StepRightUp]

The split sounds good the more I think about it. And thinking ten years out to buy a place seems reasonable given the insanity that is this market. Thanks for the advice!