Young with good money, need help investing.
Hello! I (25M) have a good job and have been able to set aside a good chunk of change, however im not doing anything with it and I feel like im losing value because of that.
Currently I have around 165k\~ just rotting inside my savings account. I already have a 401k where im putting in 10% a week, that's currently valued around 155k\~. My yearly income is 110-130k year depending on production. My monthly bills total 630 a month. That's everything including rent, food, phone, etc etc.
My problem is like stated im not doing anything with my savings account money. I'm aware that scared money don't make no money and ive always said I'll invest it but im not sure where to start. Any help or ideas would be great! Or if you need more information please let me know. Thanks!
25, need help with investing
byu/Rawhawk56 inpersonalfinance
Posted by Rawhawk56
4 Comments
You’re in a really good spot for 25 keep some cash for emergencies and start putting the rest into broad index funds no need to overcomplicate it.
sounds like you are over the Roth IRA limit in terms of income (congrats and also too bad). Given that, ste 6 months expenses aside as an EF and put the rest in a brokerage account so you can make money over the long term. If you are not stock savy, put 70% in VTI and 30% on VXUS so you capture the global stock market returns. Best of luck
Keep about 3-5 months expenses in a HYSA for emergencies. Open a Roth IRA and max your contribution. Then open an investment account (Vanguard or Fidelity) and put the remainder in there. Invest in VOO or VTI or VXUS or a combination those funds.
with $630/month in expenses, keep a reasonable emergency fund in a high-yield savings account and invest the rest in low-cost broad-market index funds, because $165k in cash is way beyond an