Topic Title: How should I invest my take home pay?
Life Situation: Singe, 37, Male, no dependents, living in Los Angeles (Culver City, CA)
Gross pay $95,000/year
Income After Taxes $65,112
Individual amounts of each Pre-tax deductions:
401K Ė Max $15.5k/year, no employer matching contribution.
Qualified Dividends & Long Term Capital Gains: IRA and Vanguard mutual fund dividends and capital gains are auto-reinvested
Current monthly expenses:
Alcohol & Bars $50
Coffee Shops $25
Fast Food $50
Water & Power $35
Personal care $70
Total expenses $2,000
Vanguard Funds $67k
Traditional IRA $130k
Total Assess $215,000
Liabilities: $0, excellent credit.
Specific Question(s): My liquid investments currently total about $67K in a Vanguard S&P 500 mutual fund. I have about $130K in a traditional IRA (active since 3/07). My after-tax take home pay per month is approx. $5,200. After monthly expenses, I have at most about $3,000-$3,200. How would you recommend investing that leftover money? A couple of choices I have so far are either adding to the $67K in the Vanguard S&P 500 mutual fund or contributing into my companyís 401K plan (no matching employer contribution), up to $15,500 in 2017. I love the idea of investing in a condo or SFH but LA is ridiculously expensive and I tend to switch jobs and cities in LA often.
While I anticipate my income to increase over time in my digital marketing career, this is where Iím at now, and hey Iím still in the top 1% of the world right?! I consider myself fortunate. I have a hard time grasping the idea of saving 25x my yearly expenses or 600K. I believe in treating my future self well and having some savings is better than none. Iím looking for some genuine advice in order to help change my current behavior for the better. Thanks in advance!