younginvestor2013
Recycles dryer sheets
- Joined
- Feb 6, 2013
- Messages
- 226
As we all know, the market is very high right now. By no means am I trying to be a market expert, but I foresee some sort of correction by the end of the year. My investments, like many others, are doing very well.
As a little bit of background, I am 24 and have about a $300K net worth now, with no debt (largely due to inheritance but also aggressive saving and investing after college).
I live in one of the large metros of the country. I thought about buying when my lease is up at the end of this month, but couldn't seem to find the right place and also wasn't ready to take on the commitment yet.
So, long story short....I am renting again. My rent is currently very cheap for living in the city, but my place is so "college" and I'm ready to live in a little bit nicer of a place. So my rent will be increasing from about $850 to $1200, utilities included in both cases. While this is more than I would like, I am sick of living in a basement, in a small cramped bedroom, and am sick of having a very small bathroom and shower and just an overall old and poorly kept apartment. Therefore I am OK with this increase because I think having the amenities I will now have will be worth it to me, and I will still be able to save 18-20% of my gross income yearly.
Now on with my idea....
I still have some cash on the side lines from when I pulled the money out from my family's wealth managers....however, most has been invested since then in Vanguard index ETFs. Since then (it's been about ~2 months), my funds (obviously) have seen some nice appreciation, mainly in market fluctuation (some income but very immaterial).
I am thinking about selling off the amount of appreciation and putting it in my AmEx Savings account (85 bps interest rate). This would cover about 8-10 months rent for me at my new place.
And then since I wouldn't have my monthly housing coming out of my salary-based budget, I would either save more back into my Vanguard brokerage (hopefully when the market may be a bit lower?) or put a much higher percentage into my Roth 401K.
I know this is playing the market, which I am generally against and have never actually done.
Thoughts??
I'm only 24, and I wouldn't really "hurt" myself unless the market never goes down at all. I think I just would need to be aggressive about saving without having a monthly housing cost factored into my budget, and not let the extra cash flow go to waste.
As a little bit of background, I am 24 and have about a $300K net worth now, with no debt (largely due to inheritance but also aggressive saving and investing after college).
I live in one of the large metros of the country. I thought about buying when my lease is up at the end of this month, but couldn't seem to find the right place and also wasn't ready to take on the commitment yet.
So, long story short....I am renting again. My rent is currently very cheap for living in the city, but my place is so "college" and I'm ready to live in a little bit nicer of a place. So my rent will be increasing from about $850 to $1200, utilities included in both cases. While this is more than I would like, I am sick of living in a basement, in a small cramped bedroom, and am sick of having a very small bathroom and shower and just an overall old and poorly kept apartment. Therefore I am OK with this increase because I think having the amenities I will now have will be worth it to me, and I will still be able to save 18-20% of my gross income yearly.
Now on with my idea....
I still have some cash on the side lines from when I pulled the money out from my family's wealth managers....however, most has been invested since then in Vanguard index ETFs. Since then (it's been about ~2 months), my funds (obviously) have seen some nice appreciation, mainly in market fluctuation (some income but very immaterial).
I am thinking about selling off the amount of appreciation and putting it in my AmEx Savings account (85 bps interest rate). This would cover about 8-10 months rent for me at my new place.
And then since I wouldn't have my monthly housing coming out of my salary-based budget, I would either save more back into my Vanguard brokerage (hopefully when the market may be a bit lower?) or put a much higher percentage into my Roth 401K.
I know this is playing the market, which I am generally against and have never actually done.
Thoughts??
I'm only 24, and I wouldn't really "hurt" myself unless the market never goes down at all. I think I just would need to be aggressive about saving without having a monthly housing cost factored into my budget, and not let the extra cash flow go to waste.