So I've saved 20k in 21 months

Just updating that I managed to save another 10k since I updated Jan of this year!

I posted in my other thread, but figured I'll start a new thread to keep it straight forward.

Should I invest in some low cost index funds now, or wait another half a year?

Thanks guys for all your tips last time, it made a world of difference. I still socialise and eat out, I'm going to two concerts a year and have a trip planned for next year! Life is great.

Good for you! I dont think there's too many, if any, financial advisors on here, so you'd be better off finding one in your area, you can ask at your local bank as they have financial planners who can assist you.

Amazing!!!!!!!!!

Look into Vanguard or Fidrlity for no load funds. Be very careful with financial advisers, as the fees can eat away at many of your gains if you do not know what yo look for. Check out Index funds for much diversification. I also suggest taking some non credit Finance classes.

One more thing, how you invest is dependent on your age. At 30, you should probably do an 80/20 split. Eighty percent equities and 20 percent bonds. The bonds will help when the markets dip. You should also balance out some of your portfolio with international stocks and bonds .

That's pretty impressive, welldone!

Do you already own your own home? Because if not, I would definitely look at getting on the housing ladder first.

I have worked in a UK investment management firm before and I have friends who work in finance. The truth is that for the average person (i.e. not high net-value investor), financial advisers are usually a waste of money, because let's say that you find one who can give you an average of 1% better return than just buying a safe index like the FTSE 100 (index of top 100 companies listed in the UK), then the management fee eats up the difference, because 1% of $20k is $200, whereas 1% of $2M is $20k.

I am not sure where you live. I'm going to assume the US. I don't know what the US housing market is like, but if I had a lot of money to invest, I would look into real estate in emerging markets. My parents bought a house in the UK for £250k in 2008, it is now worth about £400k. If they invested that money in Beijing in 2008, they would have about £4M worth of real estate in the Chinese capital now.

Assuming you already put money in a company sponsored or independent retirement fund, I might suggest putting some extra money in a CD, which usually has a year and a half maturity date.

Assuming you already put money in a company sponsored or independent retirement fund, I might suggest putting some extra money in a CD, which usually has a year and a half maturity date.

Just a little extra info: CDs range from three months to five years. A CD has a very low return, but is FDIC insured. The S & P has had a return of 9% YTD.

I also suggest that you start a Roth IRA, instead of a regular IRA. You will not get slammed with the awful withdrawals (RMDS) and taxes in your later years.

Our Vanguard funds have been extremely lucrative over the years. And they're very helpful about steering you into the right direction. Give them a call.

Good for you! I agree to ask at your bank. Good luck!

Our Vanguard funds have been extremely lucrative over the years. And they're very helpful about steering you into the right direction. Give them a call.

Vanguard is great. That is where my family and I, do all of out investing.

ÇDS are good if the point is making sure you can't touch a sum of money and are not tempted by it. The return is not crazy high, but it serves its purpose to hold money aside for awhile and its better than a regular savings account.

I would first put aside enough money to pay all of your bills for 6 months in case anything catastrophic would happen

Pay off your debt

Put another sum away for smaller emergencies like a relative dies and you suddenly have to fly out at a moment's notice.

And then i would invest in YOU before investing in any sort of fund. That would mean - is there a certification class for a skill that would open the door for you to get promoted or make a lateral move into a more interesting position with better money and growth or more in tune where you see yourself long term. Or are you 2 credits away from a degree you never finished?

Then i would look at your 401k contributions and make sure you have life insurance.

And then think about what things you would need to start that side gig you have always wanted.

ÇDS are good if the point is making sure you can't touch a sum of money and are not tempted by it. The return is not crazy high, but it serves its purpose to hold money aside for awhile and its better than a regular savings account.

 

I would first put aside enough money to pay all of your bills for 6 months in case anything catastrophic would happen

Pay off your debt

Put another sum away for smaller emergencies like a relative dies and you suddenly have to fly out at a moment's notice.

 

And then i would invest in YOU before investing in any sort of fund. That would mean - is there a certification class for a skill that would open the door for you to get promoted or make a lateral move into a more interesting position with better money and growth or more in tune where you see yourself long term. Or are you 2 credits away from a degree you never finished?

 

Then i would look at your 401k contributions and make sure you have life insurance.

And then think about what things you would need to start that side gig you have always wanted.

Why life insurance?

Why life insurance?

Because there is extra money, its time to get it if the OP never thought about it before. it will be cheaper now vs waiting until the OP is 40+

My friends parents got it for her when she was very young - maybe under 2 and i think its less than $50 per month. if she bought it new now, it would be a couple hundred a month. If something were to happen to her, the funeral expenses is not something her niece (parents are deceased and so is niece's mom) could shoulder. The OP needs it to cover final expenses so as not to bankrupt a wife and kids with it, or if he remains single, so he has a proper burial or cremation and any last expenses so that next of kin, be that a sibling, parent, nephew is not suddenly burdened with it. And it will pay out if there is a life altering injury. Some of it has cash value.

If the OP were to save 2 million dollars or something, then sure, its not as needed (although if not married and held in a joint account, probate will take a healthy cut)

Its not an investment per se but "insurance" for the future.

My aunt died when the rest of the siblings were 14-21 years old. One newly married with a baby living and the rest in middle or high school. Grandpa already had died and it was on the "kids", her siblings to bury her. Had their been life insurance, there would have been less hardship.

I am not trying to be morbid, but if the OP is looking what to take care of now that there is a level of comfort, i would look into that before its 10 or 20 years later and they have to pay more

What happened to Honey, and she never responded ?

Because there is extra money, its time to get it if the OP never thought about it before. it will be cheaper now vs waiting until the OP is 40+

My friends parents got it for her when she was very young - maybe under 2 and i think its less than $50 per month. if she bought it new now, it would be a couple hundred a month. If something were to happen to her, the funeral expenses is not something her niece (parents are deceased and so is niece's mom) could shoulder. The OP needs it to cover final expenses so as not to bankrupt a wife and kids with it, or if he remains single, so he has a proper burial or cremation and any last expenses so that next of kin, be that a sibling, parent, nephew is not suddenly burdened with it. And it will pay out if there is a life altering injury. Some of it has cash value.

 

If the OP were to save 2 million dollars or something, then sure, its not as needed (although if not married and held in a joint account, probate will take a healthy cut)

 

Its not an investment per se but "insurance" for the future.

 

My aunt died when the rest of the siblings were 14-21 years old. One newly married with a baby living and the rest in middle or high school. Grandpa already had died and it was on the "kids", her siblings to bury her. Had their been life insurance, there would have been less hardship.

 

I am not trying to be morbid, but if the OP is looking what to take care of now that there is a level of comfort, i would look into that before its 10 or 20 years later and they have to pay more

Yes. If you have dependents. I agree.

Yes. If you have dependents. I agree.

But if you don't *now* it will be more expensive later. If you are single, then you won't be burdening your parents or grand-nephew or whomever

I've been reading the thread! I already have life insurance so that's sorted. I've decided to put 5k into some index funds (haven't yet deposited the money yet)-been researching and will put some into Vanguard and some other sectors. Anyone own cryto?

Term deposits give minimal interest so I'd prob skip that.