Author Topic: What should I do with $15k knowing that I have a large sum on the near horizon?  (Read 2904 times)


  • 5 O'Clock Shadow
  • *
  • Posts: 1
23 years old
0 debt & my only expenses are leisure and transportation
$56k/year salary
~$11,000 401k
~$12,000 Roth IRA
$30,000 cash
$6k emergency fund

Hey All,

I am looking for some suggestions for what to do with $15k.  Of the cash I have, I'll need $5500 for my IRA next year and an additional $5k this year to max out my 401k (I have set my contribution % high and am paying down my expenses with this cash). I'd like to put the other $4.5k into my emergency fund. That leaves me with $15k that I can do whatever I want with.

The kicker is that I will be begin to receive a large payout on my 25th birthday (to be paid over 10 years). It's enough that I can afford to take on as much risk as possible with this $15k.  What kinds of high risk/high return investments should I be looking at? I've been thinking about taking a gamble with some individual stocks but I am open to other avenues that I havent though of.


  • Pencil Stache
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  • Age: 79
  • Location: coastal southern california
Just because you CAN gamble doesn't mean you SHOULD gamble.

In your position I'd let it grow in a Vanguard fund.

It looks like you can easily retire at about 35 if you don't blow it.


  • Pencil Stache
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  • Posts: 761
I've really liked the Vanguards funds we've invested in.  Personally, individual stocks, well, they are okay, but I'd diversify.

I don't understand, you have $30k in cash and then $6K in an emergency fund???  What's the $30k for??

Also, do you own property or do you rent?


  • Guest
Max your 401k to $17,500 and put $11,000 into your ROTH on 1/1/15 investing in index funds .  Keep that money available so you can assure to do this from here on out.    The rest goes into a taxable acct with index funds


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  • Senior Mustachian
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It looks like you can easily retire at about 35 if you don't blow it.

Sounds like he can retire at 25, depending on the size of the payouts and if the payouts are reasonably assured, even if he is only getting 1/10th of, say, 40x his annual spending, that first year's and second year's payouts should last him nearly the whole 10 years, and the rest makes him FI.

I agree with the rest of your sentiment - you don't have to take risks just because you can.

One lesson I really like around this says: When you've won the game, stop playing.
I am a former teacher who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and am now settled with three kids.
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  • Bristles
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  • Posts: 337
  • Location: Central CA
Yep.  I would park it in an index fund or look at using some of it to buy a house.  Good job saving at such a young age!  Very impressed.


Wow, a phone plan for fifteen bucks!