I am 22 and have recently started putting money into a Roth IRA and have abt 1k in it rn and have also started to collect silver. ( I understand that silver isnt necessarily an i”investment) I have about $11,500 in my savings. I was wondering how much of that savings I should invest with and how much to keep liquid. Or should I just open a HYSA and let is accrue?
Retirement and Savings Ratio
byu/Illustrious-Bike-169 inpersonalfinance
Posted by Illustrious-Bike-169
3 Comments
The typical recommendation is to keep 6-8 months in savings as an emergency fund in a HYSA or similar. Your 22, invest the rest. Try and max your Roth IRA. And keep in mind, hoarding silver will lead to things to consider like secure storage and how you will sell it safely. As you get more ounces, it takes more space.
Follow the steps of the Prime Directive: https://www.reddit.com/r/personalfinance/wiki/commontopics
Don’t waste your money on silver, especially at age 22.
You’re off to a good start, OP. Few questions: 1) Do you have 3-6 months of essential expenses set aside? (rent, food, gas, etc) 2) Any near term cash needs coming up? 1-2 years? A move, a trip, school, etc..if so, this money should not be in the market. 3) Any credit card balances? If so, pay these off first. Nothing you invest will reliably beat an 18%-25% APR.
A reasonable split for your $11,500: $4k as an emergency fund in a HYSA. Max your Roth. DCA. $7k is the max per year at 22. Your Roth should be in a simple total market index fund like VTI, VTSAX, FZROX.
I mean, you could continue to collect silver as a hobby and spend any little extra on this, or anything left over can go into another brokerage growth account, just keep feeding it over time.