One of the questions that is probably on your mind is how can I get the most out of my by weekly paycheck?
One great solution is to ask your employer to direct deposit it in a high yield saving like Ally, American Express or Discover savings and collect a 2% interest. This by itself is a $2,000 free money on a cash reserve of $100k that most people keep in their savings anyways.
My wife an I did not have a high yield savings account and I looked into whether or not I should open one. The plan was for our salaries to go into a high yield saving from American Express and then from there for us to deposit it to various investment accounts or pay our mortgage and bills. This is still on my todo list. We have an account with First Republic that is a relatively local bank and we are happy with their 0 international fee ATM cards. However their savings account gives us peanuts compared to any of the online banks.
We however religiously do a dollar cost averaging through Vanguare, we feel this is more appropriate for us. Our salaries go directly to our First Republic account and then every week Vanguard takes $1,250 out of it and invests in VTSAX (VTI is more tax efficient but I have not figured out how to automatically invest in VTI). That way we can get a dollar cost averaging benefit and also not manually modify our strategy.
You can set it up very easily by going to
My accounts > Account maintenance> Automatic Investments
And setting it up to deduct weekly cash from your bank and invest into a Vanguard mutual fund.
I am personally comfortable doing a weekly investment in VTSAX and do not feel the need to diversify that further. I am slightly bothered that I cannot invest into VTI directly and I hope there is some way to correct that. The only remaining optimization is for me to move our cash reserve to an online savings account to get that $2K funny money back from our bank.
Mark my money 