I’m looking for some advice from you wise Mustachians on how to most effectively place my cash stash. I’ve been sitting on some cash for a while -- unsure of how to properly invest it and debating using it as a down payment on a condo. Here’s my breakdown:
Cash 55k (8k for emergencies; 47k waiting to be placed)
Roth 11k
401K 6k
Other pertinent information:
I’m 25 years old and have minimal student loans (which I’ll probably take care of first). My salary is 67k. Please note, I don’t currently have an employer match on my 401K. In terms of lifestyle, I grew up in a family with very poor financial stability, so I’m naturally very frugal, don’t have a TV, ride a bike, etc.
At this point, I’m unsure of whether I should be stuffing money into my 401k even though I have no employer match, placing money into non-IRA index funds, or investing in real estate.
As far as real estate is concerned, I live in Chicago and am currently renting. I should mention that I’ve only recently begun looking at real estate and reading into forums such as biggerpockets. In other words, I’m a complete tyro. I’ve looked at a few two bedrooms with the assumption that I could rent one out and the knowledge that I might be re-locating within a year and would then have to rent out the entire property. Conversely, I could buy a rundown 2-flat, rehab it, and then rent it out using a management agency when I’m presumably out of town a year later.
I’d greatly appreciate any feedback. Thanks!