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