Hello! I am 39 years old, I have no debt, I rent, I make over 100k a year, I have a savings of 80k and a 401k with employer who matches 6% I put in 15%. I recently signed up for a Robinhood account but really no idea how that works so haven’t added more than 2k to it. I bank with BofA and a credit union and have 10k in a CD but other than that I have no idea what to do with my money. I was thinking of buying but CA is expensive and with how the world is right now I’m just scared, also I work in real estate so business is booming right now, but it’s always up and down so that 100k/ur may be 80k or less at times. I see your simple steps but just wanted to know if you have any advice/suggestions. Thanks!
Welcome, here are some resources to get started! Check them out and then reply with more questions!
How to prioritize your money (The phases of investing)
The layers of investing: Why “IRA vs Index Funds” doesn’t make sense
Three-Fund Portfolio
Seven reasons to put 100% of your portfolio in a target date index fund
Hey @Air21!
Yeah, in a word: invest.
I would definitely skip the Robinhood account and go to a book to learn about investing in index funds. Within a weekend or two you could learn everything ever need to know and your portfolio will outperform 95% of investors who are picking and choosing stocks or paying high fee advisors or mutual funds.
Here’s a reading list to get started:
If you want a recommendation of one book to get started, I’d probably say The Simple Path to Wealth. It won’t steer you wrong.
Thank you for the response. I will do just that, and I actually purchased that book not to long ago now I will definitely find time to read it. Regarding 15% in my 401k do you recommend only doing up to the match and move down the simple steps list?
Yeah, I would prioritize in that order. But if you know you’ll have $6K for your IRA, no need to dial down the 401k, since you’ll be right back to it. I would shoot for at least doing a maxed out IRA ($6K) and the 15% of your 401k% That would be a solid investing rate!
Thank you very much.
Hello it’s me again, so I was reading more on Roth IRA, HSA, etc. Apparently for Roth you dont qualify if you make over 124k. So far this year I have. So would you recommend just doing the HSA and then brokerage account?