ย ๐๐ธ #InvestmentAdvice #FinancialPlanning #BeginnerInvestor
Hey there! ๐ Congratulations on your savings and inheritance, that’s amazing! It’s awesome that you’re looking to invest and grow your wealth. Here are some suggestions for you to consider:
1. Consider diversifying your portfolio by looking into low-risk, high-yield options like:
– 12-month CD with a 5% APY
– Roth IRA for tax advantages
– Index funds for long-term growth
– Real estate investment trusts (REITs) for passive income
2. Educate yourself on investment basics and strategies before diving into higher risk options. It’s always good to start with a solid foundation.
3. Seek advice from a financial advisor to create a personalized investment plan tailored to your goals and risk tolerance.
Remember, investing is a journey and it’s okay to start slow and steady. Best of luck on your investment journey, and I’m sure your mother would be proud of the responsible choices you’re making! ๐ช๐ฐ #FinancialEducation #Investing101 #GrowYourWealth
High yield savings account is a good place to put the money while you figure things out.
For sure good to open up a Roth IRA. I think it would be worth setting aside some money to max that out each year.
Do you want to buy a house, or need a car? That money can help for a down payment on those. You can also put some money in a taxable brokerage and put the money in a target date fund or in VTI.
Last thing to consider is if you have access to a 401k or any other retirement plans. But I did see you say you are self employed.
Why don’t you just put it into a Fidelity Brokerage account? All cash is defaulted to a 4.95% interest rate in a money market fund (SPAXX), it is completely liquid and you can withdraw at any time like it is cash, and you can also start trading more high risk options (like VOO) when you’re ready.ย
Start by talking to a certified financial advisor. Follow their advise short term. In the meantime learn all you can about self investing safely. Then take the bull by the horns and do it yourself. Good luck!
Sorry to hear about your mother
Figure out your risk tolerance and liquidity needs (i.e. when do you need a lump sum to buy a house etc.) There are plenty of questionnaires online.
Once you figured out your investment persona, you can start putting the available funds in the market (given your age and financial situation, a diversified portfolio of stocks and bonds is most likely the best. but if you don’t wan to mange it, can pick some ETFs according to your own risk tolerance )
Sorry for your loss. The first thing to consider is determine your risk appetite and investment horizon. If you are looking into a short term investment, a high interest rate saving is a good option. ETF investment is also quite liquid but generally needs a longer term horizon and higher risk. Property investment is another option but of course it is in illiquid asset so it would be difficult to cash out the money if you need them in the near future.
Donโt do anything rash. Take your time. An HYSA is a good start. It sounds like you have a good approach to money, already. I would suggest making sure that a portion of that money utilizes a โget rich slowโ component. Meaning investing in a low-fee broad market index with dividends reinvested. The S&P is a good start with an ETF like IVV or VOO. Your retirement account is an excellent place to start with this strategy because you wonโt be touching that money for a very long time. The key with this portion of your portfolio is to never sell, and to consistently buy in regular intervals NO MATTER WHAT HAPPENS IN THE MARKET. Thatโs the most important part.
You mentioned you own your own business. Talk to an accountant on things like LLCs and other business accounts. There are massive tax benefits and retirement opportunities that โnormal workersโ donโt have. You may be able to create your own 401k and contribute much more than just IRA contributions. I only know this from a family member who has an LLC, so I donโt have any expertise in the matter. I just know heโs able to do so much more because of the LLC.
I wouldnโt do a CD. The interest rate difference isnโt enough to justify locking your money up vs just having an HYSA.
A good portion of it in VOO would be smart while you learn about other investments