Hi all, first Reddit post here. I wanted to get other’s people on where I should go from here, financially speaking. I’m 26 and have been very diligent with my money since I was 17. Here’s my situation:
– served in the military for 4 years after high school and saved a lot
– I bought a small flat 2 years back where I put down almost all of my savings at the time for 160k (only put down 40), I’m getting $400 monthly from it (after bills) and it’s now worth around 240k
– my stock market portfolio just hit 100k today (25k is cash there cause I’m scared of the volatility )
– I have another 28k liquid cash
– the only debt I have is the apartment which is paying itself at the moment (and some leftover as mentioned)
– I just started medical school in Italy last year, and I’m now in front of 5 more years of school and a long residency
– I got a nice scholarship and school is totally free for the next 5 years
– I work and make about 25k a year now.
First of all I am very proud of getting to this point – completely self made and didn’t take any shortcuts. HOWEVER, I’m at a complete loss of where to go from me. I’m wary of the volatility of the economic world right now and I’m unsure what my next steps should be. Should I sell more of my stocks? Or should I say f it I’m young and keep on investing? I’m planning on getting married next year and have started thinking more “defensively” with my moves, but everyone always says “you’re young take risks”.
Anyways, I’ll be very happy to hear some of your guys’ opinion on where I should go from here, financially speaking. Please explain your reasonings too.
Appreciate your time reading this! (All the numbers are in USD)
I’m 26, got big Savings but a low paying near future
byu/Odd_Lab_699 inpersonalfinance
Posted by Odd_Lab_699
2 Comments
You are 26. You have about 4 decades of work life ahead of you. Keep 6-12 months of emergency reserve in cash(HYSA) and invest the rest in low cost broad market stock index funds. You can do zero, or very little in bond funds at this time, if that makes you sleep better.
25K in cash just parked in your investment accounts is ridiculous. Invest that asap. You already have $28K in liquid cash.