Hi everyone, on an anonymous account since I didn’t want people to know my current situation for those who know me.
To put it quick, I’m in a situation where I’m
very lucky but I’m not sure what to do, or where to learn.
I’m 25y/o making 93k a year in my job, I’ve recently released a game on steam which has done way better than expected. From the game alone, I was able to add 140k to my savings, it’s an Apple saving account with something like 3.6% interest. It gains around 340$ a month in interest. A lot of people say to invest it for better returns but that’s plenty vague. I’ve done research on index funds and what not but I get scared to put it all in and one day the market crashes and I lose it all.
The game is still making wound 8k a week and will seem to be doing so consistently for a bit if not drop slowly.
I also have an LLC, with a business checking with 30k (most I’m assuming will be for taxes and any future expenses I may have. Which would be little as I don’t have expenses.
Any ideas or help?
My original plan is long term financial dependence, and from what it seems to be the most stable is to invest in ETFS. I was thinking like 40k in my savings high yield for emergencies. 60k into voo. Also any books that help with money management / investing? I’m also receiving some good passive income from the game, and will releasing another before the end of the year.
Made some money, not sure what to do with it.
byu/Ok-Expression8492 ininvesting
Posted by Ok-Expression8492
9 Comments
What’s the game
How about re-investing into your company?
Hire good people make a studio and focus on the future?
Why would you think about taking the money and run after a successful run?
Make sure you set aside some for taxes. Do you personally own the game? Or does your corporation
The best books for beginners would be The Bogleheads Guide to Investing and The Four Pillars of Investing. The second one is better, but the first one goes into more basic stuff.
If you want a fast read, search for If You Can by William Bernstein (the same author of The Four Pillars) and you can read it for free.
Remember to always put some money aside for taxes and keep your emergency fund (six months of expenses, not necessarily 40k) and pat down any high interest debt you have.
In regards to investing VOO is fine but it doesn’t include international markets. They’ve underperformed the US in the last 15 years or so but who know what will perform best in the future so better to invest in everything.
invest it
Don’t be in a hurry. Read a couple of investing books. Right now, interest-bearing savings are a fine place for your money until you understand more about risk and reward.
There’s some reason to think that right now, many components in VOO may be overvalued and spoiling for a fall. That may not happen for a while, but it would be a shame to jump in without really knowing the risks and immediately see a big drop in your account.
congratulations. there might be several things you want to invest in.
1. your skills/money making machineries, are there tools, courses, hardwares you want to invest in to help you make new gam(es) or DLC, or spending on social media influencer to further capitalize your success?
after 1, maybe
2.the standard VT/bond and chill play book in retirement saving account makes sense
You’re on the right track, just overthinking the risk a bit.
If lump sum feels uncomfortable, just DCA into VOO over time and keep a solid cash buffer.
The bigger mistake is sitting out and missing compounding, not a short-term dip.
Are you making quarterly estimated tax payments? If not, I would hire a CPA and get your accounting and taxes in order before you start investing.