I'm new to responsible adult life, and trying to figure out what to do with some spare cash: A little information that might be relevant --
-- 26 y/o single, finished PhD last year, and started first 'real job'
-- income before any taxes: ~75k this year
-- Maxing 401k, IRA, and HSA contributions for the year, no debt
Main question: I have ~40k in cash sitting around, which I don't anticipate needing for a very long time. Terrible, I know. What's the prudent thing to do with this money? I have a respectable emergency fund apart from this already.
I was thinking I would just put it into my taxable Vanguard account, but I'm wondering if there's a better strategy. If I understand correctly, I could make sizable after-tax contributions to my 401(k), and then move the money into a Roth later. Is that a better idea? Other factors I should be considering?
If it's relevant, the 401(k) is with Fidelity. I haven't figured out yet if I can do in-service distributions (maybe this depends on the plan?) but in any case I'll be leaving this employer within a year or two (it's limited-term academic appointment). Happy to provide more details if they'd be helpful.