Hi Money Minder,
So, I’m sitting on about $130k in savings, raking in $130k a year + bonuses. Most of my moolah is sitting pretty in a high yield account at 4.1%. I dipped my toes into the investing pool by opening a Roth IRA last year with $4k in FXAIX, but haven’t touched it since. Been chucking money into my 401k since I was a wee lad of 19. Oh, and got some stocks from an old job valued at ~$40k that I’m still holding onto.
Now, I’ve got my eye on upgrading from my condo to a house as my main financial goal (stupid market conditions holding me back, ugh!). No more student loans to worry about, but I do have a $330 car payment and a mortgage clocking in around $1600.
What’s my game plan from here, Money Minder? Feeling good about the long term gains, but need some advice for the short and medium term stuff. Lay it on me!
Cheers,
Response from THE MONEY MINDER:
Hello There,
Congratulations on building such a solid financial foundation for yourself at a young age. Your savings, investments, and ongoing contributions to your 401k and Roth IRA are commendable steps towards securing your financial future. It’s great that you have a clear short-term goal of upgrading to a house, and I understand that the current market conditions can be challenging.
Given your situation, it seems like you are on the right track with a focus on long-term gains. To diversify your portfolio and work towards some short to medium-term gains, you might consider reallocating some of your savings towards investments that offer potential growth opportunities. Since you already have a Roth IRA, you could look into other investment options within the account that align with your risk tolerance and financial goals. Additionally, reviewing and potentially adjusting your asset allocation in your 401k could provide you with a more balanced and diversified approach.
Regarding your goal of upgrading to a house, continue monitoring the real estate market and be ready to act when conditions are favorable. In the meantime, consider ways to increase your savings specifically earmarked for this purpose. You might explore areas where you can cut back on expenses or increase your income to accelerate this goal.
Overall, maintaining a balance between long-term financial security and short to medium-term goals is key. As you navigate your financial journey, remember to regularly review your financial plan, stay informed about investment opportunities, and adjust as needed to stay on track towards your objectives.
Best of luck, and feel free to reach out if you have any more questions or need further guidance.
Farewell,
THE MONEY MINDER
