Hi everybody, I am seeking your guidance. I'm feeling a bit lost. I want to start financial planning and being smart with money. I've also tried to read online a bit about financial planning, and to be honest, I'm a bit overwhelmed. Please advise me what you would do if you were in my situation. I appreciate any help you can offer me. I do not have a finance background (I am in the health sciences) and growing up, I watched my parents earn huge amounts of money and also lose considerable amounts of money in the stock market. The only person I know who has some background in stocks/finance would be my father, but he has been dealing with dementia for the past few years, and his logic and memory are patchy (I don't feel comfortable speaking to him about finances given his cognitive state). There is no one else in my life that has investments or crypto. Most of my friends are in grad school or are paying off college debt, so their financial situation is different than mine.
My situation: I'm a 29 y.o. female, with an income of about $120K (with $20K bonus to come in 18 months), and have about $125,000 saved. I just transferred my savings to a savings account with 0.4% APY. My retirement money is w/ Fidelity and I have about $52,000 there. I just moved to Texas, and my employer matches my contribution up to 6%, so I am contributing that amount to my retirement account (403b). I live with my BF and we split rent (I pay $600 a month). He covers the utilities, and I pay for groceries. We don't have kids and are not married (yet). My car is paid off. Aside from rent, food, car insurance, and subscriptions (just a few), I don't have any other monthly standard bills. I am blessed to not have college debt. In 3 years, my BF will be done with medical residency and will be an attending physician. Although we are not married yet, marriage is something we have talked about as being part of our future, and at the very least, we have spoken about buying a home together in 3 years (when he is an attending). My goal is to purchase a home in 3 years, but I'm also interested in starting some investments because according to my research, letting money sit in a savings account is a bad idea given inflation. I'm curious about cryptocurrency but have too much anxiety for the volatility. I was reading about mutual funds.
I'm hoping to save $75K more in three more years, making my savings $200,000 by the time I'm 32 and ready to buy a home. P.s. Yes I am aware that I could have purchased property in Texas when we moved here in the summer, but when we moved this summer the housing prices were high (I was worried it was inflated) and I read about the 5 year home ownership rule that recommended renting instead of buying if you are living somewhere less than 5 years). I do like Texas but if I were to stay here longterm, I would like to move to a more metropolitan city in Texas. If you were me, with the goal of purchasing a home in 3 years but also interested in starting some investments, what would you do? I am seeking the advice of this community to broaden my knowledge.
What kind of investment would you recommend for me? How much of $125K would you invest?I do not need this money right now, but would like it to grow when I am ready to purchase a home in 3 years. Do you recommend mutual funds? How much would you invest? I appreciate this community and your honest advice.
Submitted October 13, 2021 at 02:40AM by Working-Ad130 https://ift.tt/3awpyzt
