Mrs. Dreamer and I recently opened our first investment account together. It is an account through a local mutual fund company. We made this decision based on the fact that our emergency fund is fully funded to the point we want it to be. If we both lost our jobs tomorrow we would be ok without getting new jobs for at least 6 months. Probably longer considering we would cut back some on expenses. Since we have our emergency fund fully funded, we were unsure what to do next with excess cash we have each month after the bills are paid. We made the decision to go ahead and open a joint investment account. I'll post later on how we came up with this decision over other options such as paying off our mortage at an accelerated rate.
So once the new year was upon us we opened the joint account. We are putting our money in two different funds (a government securities fund and an asset allocation fund which invests in all different kinds of securities). Ideally the government securities fund will give us a solid return with fairly low risk on our investment while the asset allocation fund will offer us the posibility of higher returns. As of right now we are set up to put in a total of $200 a month towards these two funds. This will have to do for now until we completely pay off my car loan which we hope to have accomplished by June of this year. At that point we will allocate all extra cashflow each month into this investment account.
We don't really have a goal for this investment account. It will merely be in place to provide us extra security in case of bad times.