When your funds are deposited into Farther, we use our cash triage system to put it to the best use for you. We invest your funds in your accounts based on what you want to accomplish and how you can best minimize taxes. That usually means we invest according to the following rubric:
- Fill up your emergency fund to ensure you’re protected from the unexpected
- Max out your annual IRA contribution to save for retirement and minimize your taxes
- Save up for any large purchases
- Max out annual contributions to your children’s 529 if applicable
- Contribute to your donor advised fund if you plan to set aside funds for charitable contributions
- Allocate remaining savings to your long-term savings fund
If you prefer, we can alter the order to fit your unique goals as well.