Hi Blind. I'm a few years into my career, just paid off my student loans and have a bit saved up (in the $30k range). I have no clue where to put the money / invest it, and I want up to date advice. One complication is that I may move overseas im 6 months or so (will most likely take a paycut, but this is worth it to me for personal development). I'm wondering what implications that has, if I should leave it in a US bank, invest part of it, etc.... All advice or pointing me to resources is very much appreciated. Thank you.
You should tell us where you’re moving and when you will return if you want specific advice.
Either Japan or Europe. I suppose if everything went well I would not plan on returning within 5 years, so we're talking pretty long-term, but I guess if it went poorly maybe I'd return in 2.
Pretty wide open. :) if it was me I would put it in a high yield savings account as an emergency fund until I decided where I would be living long term. https://www.nerdwallet.com/best/banking/high-yield-online-savings-accounts
You should be building your emergency fund that contains 6 to 12 months of expenses. Once that is completed, start investing in passive funds.
Why not put all the money in passive funds? Also, I'm assuming you'd keep the emergency fund in a high-as-possible-yield savings account? How much do you keep in checking?
Are you asking why not keep the emergency fund in a market account? Because market accounts can lose value if the economy takes a dump, meaning unemployment rises, and if there’s a chance you lose your job that’s exactly when you don’t want your “emergency” fund losing 40% of its value. Yes to high yield savings. In checking keep enough to cover rent and monthly expenses plus a few grand buffer in case something happens like your car breaks down and you don’t want to wait several days for a transfer.
1. Read https://engineerseekingfire.com/8-critical-decisions-for-a-successful-investing-strategy/ and https://jlcollinsnh.com/stock-series/ 2. Join bogleheads.org 3. Avoid financial advisors 4. Become a millionnaire
A trustworthy financial advisor can help you with wealth management. Invest it all in 401k / HSA / Ira and then after that, stocks / index funds.
Do you actually use a financial advisor? Every one I’ve talked to wanted to take 1% of my net worth every year to invest my money into whatever high load funds they are peddling.
are 401k and ira the same? dumb question i know