I'm 34M (single) loving in a HCOL city with about 500k net worth. Annual salary is $163k but total comp is around $220k last year. I grew up poor and low income until 28. I made 20-60k from 2012 through 2018, in 2018 I got a job that made my income jump to 120k, and from 2018 onwards I've made significant jumps in total income every year except this year. My current numbers are as follows:

    • $215k IRAs (Roth, Rollover, and Traditional IRA)
    • $230k 401k
    • $33k HSA
    • $1500 Brokerage
    • $40k RSU (vested)
    • Bought a house this year, at $615k @ 6.375% interest and 20% down ($115k)
    • $15k in savings

    I'm trying to figure out where to put my money next. I'm currently maxing out my Roth IRA, 401k, and HSAs. I am very invested into expensive, outdoor hobbies (rock climbing, skiing, snowboarding, mountaineering, mountain biking, etc.), which makes my savings rate a bit lower than I'd like. I have about $1k extra per month that I'm trying to figure out where to put it to use. I could either pay off my mortgage early, or put this into a brokerage account. Monthly net income is $7k (excluding annual bonus / selling RSU) and expenses are about $6k. I could probably drop this down to about $5k if I didn't spend so much money on gear, training, and traveling. I probably spend 100-150 days a year doing outdoor sports and I go through gear pretty quickly.

    I'm currently planning to put $500 per month into the brokerage, $500 into a savings account to throw throw at my mortgage once a year. After I'm settled in (only ~3 months at this house, I'd like to find a roommate to help some of the costs). My long term goals are to become an AMGA rock guide and do some hobby guiding as a side gig and/or as a retirement job, the pay is absolutely terrible though, so I'd like to be financially independent to do this. Guiding certifications are also pretty expensive, so I'm saving money for this too.

    Any other ideas on where I should put my money? Am I better off paying off my mortgage instead of an investment account?

    34M — ~500k Net Worth Next Steps?
    byu/pethebi infinancialindependence



    Posted by pethebi

    2 Comments

    1. LeverUp_xyz on

      Save about 3-6months worth of expenses into a HYSA, and then full send any excess cash into your brokerage since you’re already maxing your retirement.

      I would not worry about that mortgage at all. Refinance in a year or so when rates drop.

    2. What’s your monthly PITI on the house? You need more cash savings so I’d focus on that. You lose your job it could get narly quickly.

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