Critique my investment plan
I have around $120k to invest, after maxing out my 401k. Here is my plan. $20k emergency fund, in a 2% account with Ally $25k in a 5 year brokered CD ladder (so CDs maturing every year) $20k car payoff (optional. I can finance my car at 4.5%). $55K in index funds I have a mortgage on my primary residence and an not looking to invest in real estate right now. I do not have any major financial goals/ events coming up in the next 5 years. Thoughts on how I could do better?
Also take a look on debt etf, stable and high dividend stock. I suggest to leetcode more for more saving.
Thanks. I am not a dev and don't have to leetcode to increase my TC
Look into series i bonds instead of the CD ladder. They may make more sense for you.
Are you maxing out espp? If not, you should, and then put in that ally account
Did you do the after tax to Roth conversion on your 401k and a backdoor Roth ira?
No. I don't want to put in retirement funds in case I need the money 5 years later
Roth contributions can be freely withdrawn at any time.
Can you make more than 4.5% roi with that 20k instead of paying off the car? IMHO, your plan seems reasonably safe. Also, did you weigh putting your funds in an index or money markets?
Probably not, which is why I want to buy the car with cash. Money market accounts have return barely over savings account. Are you seeing anything different?