Author Topic: Advice needed from a government employee  (Read 1020 times)


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Advice needed from a government employee
« on: April 07, 2019, 02:42:54 PM »
Hey everyone,

Let me start by saying I have read JL Collins' "Simple Path To Wealth", been on MMM blogs, listen to financial podcasts, etc.. These are all amazing tools and resources that we're fortunate to have. That being said, I know I have several options for my situation and have come here to see what your opinions are.

I am currently 29 years old. I am a government employee. I currently make around 44-45k/year pre-tax. My expenses vary but typically are around $1700/month. This does include a car payment on a loan of 3 years and $6000 at 2% Interest. My credit is very good. I have no other debt. I currently rent a 1/1 with my girlfriend and we split the cost down the middle. I am fairly minimalistic and enjoy living that way.

I believe that I have cut my expenses a good amount, and at this point I am seeking to invest and work on earning more income. I have around $25k in liquid savings, as well as about 10k in an old 401k from a former employer. I do contribute to a 403B in my current position with the government. This job also gives me a pension, so the 403B is in addition to that. I should mention that I have a side hustle starting an Amazon business.

My goals are to:
1.Move my 401k from my former employer, either into an IRA (Roth/deductible) or add it into my current 403B
2.Invest a portion of my $25k savings (around $20k)
3.Save a smaller portion of my $25k savings (around $5k) to invest into my startup
4:My five year goal is to achieve financial independence, leave my government job, and do my Amazon business as well as invest in residential real estate full time.

My questions are:
1: In your opinion, where should I invest my 401k from my former employer?
2: What should I do with the around $20k in liquid savings?
3:Any other advice on reaching my five year goal?

If you've made it this far through my writing, I have to say I am appreciative! Thanks!