Reader Case Study - Where Should I Invest Next? I live in NYC and highly doubt I will be able to afford to buy an apartment in a neighborhood that I like.
Current income: $70,000 salary, take home is $3520/month
Current expenses:
Rent: $600 (split $1200 with my girlfriend)
Student Loan: $115 ($12K of $30K outstanding, 2.88% interest)
Haircut: $20 after tip
Giving: $15 per month
Internet: $20 per month
Cell phone: $85 per month (considering Republic Wireless for $19 per month)
Subway: $40 per month (I bike mostly)
Groceries: $250 per month
Out and about: $200 per month
Savings: goal of $1500 per month through June then max out Vanguard IRA after that ($5,500/year)
Assets: $17,000 in savings account and looking to invest $10K ASAP; Vanguard Targeted Fund (Roth IRA) with $4,000; very good credit (over 830).
Liabilities: $12,000 in SL with 2.88% interest…began with $30K in debt after undergrad and no credit card debt.
Specific Question(s): I finally opened a Roth IRA when I turned 30 in 2012 but have only invested $4,000 to date. I plan to max out the IRA and would like to get thoughts on where to invest the extra cash. I like Vanguard and the online recommendation from their site is the Vanguard Life Strategy Growth Fund (6-10 years or 11-15 years). What do you think of this mutual fund and has anyone bought real estate in a city other than where they live?
Thanks!