Simply to present a little bit of context into my present monetary scenario: I am a 24 12 months outdated with no debt and I at the moment have a 6 month emergency fund and I am maxing out my HSA and Roth IRA and contributing as much as my firm’s 3% match into my 401k. I count on to get a promotion quickly and plan to boost the contribution quantity into that account. The twist right here is that I’ve a brokerage account with Vanguard that was began for me by my household that comprises cash I’ve acquired as presents from my dad and mom and different members of the family since I used to be born. The quantity on this account has grown to a wholesome $38k. And I name it a “twist” as a result of this type of goes in opposition to the frequent recommendation I hear that you must solely max out your 401k earlier than you begin to open a taxable funding account. I’ve gained management of this account a pair years in the past and have by no means touched it myself.
Contemplating the sum of money I’ve on this account, I am questioning what I ought to do with it. I’ve a number of monetary targets in thoughts
I plan to purchase a automobile (both new or used) inside the subsequent 1-3 years
Shopping for a house is one thing I will surely love to do some day. I do not know what the precise time-frame for that is. I am younger and single and do not needed have a location picked out that I wish to calm down in. Perhaps inside the subsequent 5-10 years?
Retiring early. This aim is a bit amorphous since retirement is a good distance away and quite a bit can occur between at times, however retiring earlier than 60 appears engaging to me. Barista FIRE appears cool since I can nonetheless work and maintain myself occupied whereas on the similar time having a extra relaxed relationship with work like working half time or freelancing. However I have to additionally contemplate the chance that I’ll do this out and be taught that it is not proper for me and should need to change again to one thing extra conventional, however I wish to at the least have this feature open. The brokerage account appears good for this IMO since there aren’t any age limits or penalties if you pull this cash out. So perhaps reaching Barista FIRE at 40-50 and retiring absolutely at 55-60?
I am questioning if this brokerage account is the fitting car for these targets and in that case, ought to I make any contributions to this account or alter my portfolio on this account? Presently, the cash is 80% in VASGX and 20% in VDADX. I am considering switching this cash to extra aggressive funds like VTSAX and VTIAX. Please let me know the way you’d attempt to obtain these targets and if the cash in my brokerage account may be of any use.