The Basics: my money is currently split 51% in FDIC insured, low interest bank savings accounts (most in Capital One360 & some in Bank of America) and 49% in non-FDIC insured investments (two 401k's and several Vanguard index funds with low expense ratios). I'm wondering if I should invest more in the Vanguard funds, which seem awesome so far (2 months after initially investing).
More Information: I'm 35 years old, no kids, with an annual income of around $125k/year, and living in one of the most expensive cities in the world with a low monthly rent of $1k. After paying off $90k in student loans a few years ago, I was able to begin saving in earnest for the first time in my life. I now keep a detailed spreadsheet to track everything and I'm starting to feel very confident about saving. So far in 2017 (9 months in), I've managed to save $48k - both the FDIC insured and non-FDIC insured figures rise by a few thousand dollars each month, with the non-FDIC insured investments growing a little more on average. I want to hit $60k this year in total gains, and I think it will happen.
I have about $41k in a Vanguard brokerage account spread over 5 funds (per a Redditor's great advice a few months ago: 40% in VTSMX, 10% in VISVX, 20% in VFWIX, 5% in VEIEX, and 25% in VICSX). I also have around $3,300 in a Vanguard Roth IRA that doesn't seem to grow much compared to the index funds, but I do plan to max out contributions every year moving forward. My current work 401k is OK, but the company only contributes "100% up to 1% of my contributions," which is not great and a deceptive description in my opinion (former office fully matched, which was awesome; I've let it sit since switching to the new job 3 years ago because it outperforms my current office's 401k account). So I'm more inclined to invest more in the Vanguard funds than my current office's 401k. I'm already contributing 11% of my income to my current office's 401k.
The basic question: what percentage of overall wealth should a person keep in FDIC-insured, low interest bank accounts? I feel like I could tilt the balance more toward the higher-interest Vangaurd index funds (specifically, at the very least, hitting the $10k minimum for VTSMX low-cost admiral shares - at $3k right now). Thanks in advance for any help!
Submitted September 30, 2017 at 04:54PM by spzlops http://ift.tt/2kdr6XE
