Submitted by gchaudh2 t3_11emt1l in personalfinance
drockaflocka t1_jaezfd8 wrote
Everything looks pretty good. You have a few options that really depend on your goals/future plans.
- Increase 401k contributions. This makes the most sense if you don't plan to retire early. You can also consider backdoor roth.
- Increase brokerage contributions. This is ideal if FIRE is on the table and you want to set aside money for medium-long term bridge account. Index funds and/or bonds are both good options depending on your risk tolerance.
- Build CD ladder. This would work great for money in the 3-5 year timeline. Rates are currently great and would be locked in.
- Start a 529 or other savings vehicle/educational expense fund for kids. There are a lot of options here so do some research.
- Keep additional savings in HYSA. Rates are decent but not guaranteed. Cash position is good if you're concerned about a potential recession or want to keep options open (both for investments or fun). You could splurge on a nice vacation, a few lifestyle upgrades, look into alternative investments like REITS, rentals, etc. You've done all the correct things and deserve to enjoy the fruits of your labor!
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