27 year old looking for advice. What should I be doing with my money?
 

27 years old
live in CA, bay area
poker income ~175k/year (plus or minus 50k)
rent, $950/month
additional spending ~2500/month
no debt


Here is what I am currently doing with my money. I feel like I could be doing so much better, but I don't know anything.

Retirement:
5k in roth ira
24k in sep ira, invested in Fidelity "freedom 2045" retirement fund

Investments:
32k in SP500 index
12k in an international index
7k loaned out on prosper

Liquid:
22k in cash
2500 in 0% interest checking
70k on poker sites
50k in 5% savings account

I only need about 30k on poker sites to be comfortable. I use the cash for live play. So that leaves 40k there that needs to go somewhere.

Anyway, I would like to hear what more experienced people would do in my situation. I would like to hear all sorts of suggestions. I have a medium risk tolerance. I think real estate and renting out property sounds like it would be interesting. However, given where I live it seems to me that this isn't a smart thing to do. A goal for me would be to have the option of retiring at 35.

Re: 27 year old looking for advice. What should I be doing with my mo
 

ur rich!

Re: 27 year old looking for advice. What should I be doing with my mo
 

Looks like your doing perfect. You are already saving plenty in your roth and SEP IRA. You will be rich whenever you decide to retire.

Re: 27 year old looking for advice. What should I be doing with my mo
 

You realize you don't qualify to invest in a Roth given your income, right?

Re: 27 year old looking for advice. What should I be doing with my mo
 

[ QUOTE ]
A goal for me would be to have the option of retiring at 35.

[/ QUOTE ]

Not going to happen unless you increase what you make.

I make more than you and am 4 years younger. Retiring by 35 is a stretch even and I'm planning on 40.

Re: 27 year old looking for advice. What should I be doing with my money?
 

Congrats, but you aren't going to retire in 8 years. It wouldn't make much sense at all.

Looks like you are doing pretty well, you've got money spread out in various areas.

If you really think you only need $30K online, then definitely take the extra $40K out and invest. The opportunity cost of that is pretty large.

Re: 27 year old looking for advice. What should I be doing with my money?
 

Retire at 35???

And do what at 35 for the rest of the 35-45 years of your life?

I'd have a heart attack if I retired at 35.

Re: 27 year old looking for advice. What should I be doing with my mo
 

[ QUOTE ]
Retire at 35???

And do what at 35 for the rest of the 35-45 years of your life?

I'd have a heart attack if I retired at 35.

[/ QUOTE ]

Don't get me wrong. I'd be thrilled to be retired at 35. I don't understand this sentiment at all.

He would do... whatever the hell he wants?? That's the only point.

Re: 27 year old looking for advice. What should I be doing with my mo
 

[ QUOTE ]
[ QUOTE ]
A goal for me would be to have the option of retiring at 35.

[/ QUOTE ]

Not going to happen unless you increase what you make.

I make more than you and am 4 years younger. Retiring by 35 is a stretch even and I'm planning on 40.

[/ QUOTE ]

Not necessarily. It depends a lot on his definition of retirement and his expected level of spending.

Krishan

Re: 27 year old looking for advice. What should I be doing with my mo
 

[ QUOTE ]
You realize you don't qualify to invest in a Roth given your income, right?

[/ QUOTE ]

Metetron is right here.

Krishan

Re: 27 year old looking for advice. What should I be doing with my mo
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
A goal for me would be to have the option of retiring at 35.

[/ QUOTE ]

Not going to happen unless you increase what you make.

I make more than you and am 4 years younger. Retiring by 35 is a stretch even and I'm planning on 40.

[/ QUOTE ]

Not necessarily. It depends a lot on his definition of retirement and his expected level of spending.

Krishan

[/ QUOTE ]

Ok, true. But even retiring at 1/3 of his current income won't be possible 7 years from now.

Re: 27 year old looking for advice. What should I be doing with my money?
 

get some real estate and vary your investments out of the financial markets.
if you cant afford in the bay area buy a vacation home someplace you think will grow in value.
but there are many places in the bay area that can be bought for less than 500,000 and make a nice liveable home.
good luck you are moving in the right direction that so few do.

Re: 27 year old looking for advice. What should I be doing with my mo
 

[ QUOTE ]
You realize you don't qualify to invest in a Roth given your income, right?

[/ QUOTE ]

Yes I realize this...so? I didn't say I was planning on putting any more into the Roth.

Re: 27 year old looking for advice. What should I be doing with my mo
 

[ QUOTE ]
get some real estate and vary your investments out of the financial markets.
if you cant afford in the bay area buy a vacation home someplace you think will grow in value.
but there are many places in the bay area that can be bought for less than 500,000 and make a nice liveable home.
good luck you are moving in the right direction that so few do.

[/ QUOTE ]


It's tough to get something decent for 500k out here... How much do you think would be wise to spend on a home given my financial situation?

Re: 27 year old looking for advice. What should I be doing with my mo
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
A goal for me would be to have the option of retiring at 35.

[/ QUOTE ]

Not going to happen unless you increase what you make.

I make more than you and am 4 years younger. Retiring by 35 is a stretch even and I'm planning on 40.

[/ QUOTE ]

Not necessarily. It depends a lot on his definition of retirement and his expected level of spending.

Krishan

[/ QUOTE ]

Right, thanks. Probably shouldn't have used the word retire. What i meant by retire was more along the lines of I want to not have to worry about money too much by the time I'm 35, and can have the option of not earning for a while. I don't mean once I hit 35 I plan to stop working and spend 100k a year (adjusted for inflation) every year till my death....

Re: 27 year old looking for advice. What should I be doing with my mo
 

two and a half times your income or some more. if you like renting then wait awhile till you build up more money.

Re: 27 year old looking for advice. What should I be doing with my mo
 

[ QUOTE ]
[ QUOTE ]
You realize you don't qualify to invest in a Roth given your income, right?

[/ QUOTE ]

Metetron is right here.

Krishan

[/ QUOTE ]

What's the maximum income level what can have and still be eligible to invest in a Roth?

Re: 27 year old looking for advice. What should I be doing with my mo
 

This would be easy to google. 94kish or something I think.

Re: 27 year old looking for advice. What should I be doing with my mo
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
You realize you don't qualify to invest in a Roth given your income, right?

[/ QUOTE ]

Metetron is right here.

Krishan

[/ QUOTE ]

What's the maximum income level what can have and still be eligible to invest in a Roth?

[/ QUOTE ]

http://www.fool.com/money/allaboutir...boutiras04.htm

Re: 27 year old looking for advice. What should I be doing with my mo
 

Start buying rental real estate. Something with break even or positve cash flow. In 10 years you'll have a lot of equity built up in the property from someone else paying down your mortgages (and increases value of the house) and if you have positve cash flow you'll have extra $$ coming in every month in the mean time.