How to Grow My Money?

Question

I&rsquo;m 26 years old and I write software for big corp. My goal is to be smart early to allow my wealth to compound so I&rsquo;m in a good position in my 30s and 40s and maybe seek to early retirement.I currently have a net worth of $550k all cash. 500k is invested in a mix of 401k and various low expense ratio index funds (large, mid, small and international). 50k I have in cash and plan on investing.My salary is > $200k. How should I consider diversifying my portfolio? Should I be more into crypto? Is index funds a safe bet?

DantesKite · Accepted Answer

I'm not sure what you should do, but I know what you probably shouldn't: I'd personally stay away from crypto.
People waste a lot of brain cycles in that space, when they're much better off doing what you're doing.
Nassim Taleb wrote a brilliant "black paper" explaining why bitcoin is worth $0 and his arguments are pretty solid. Like steel.
https://www.fooledbyrandomness.com/BTC-QF.pdf

randomlurking · Answer

Check out r/financialindipendence on Reddit. The people over there have the same goals and discuss strategies etc

auslegung · Answer

You&rsquo;re doing great, keep on doing what you&rsquo;re doing. If your money grows 10% every year, it will double in roughly 7 years. So without adding any more money, your current $500k will become 2mil when you&rsquo;re 40.

lucas03 · Answer

Even after reading bunch of suggestions from fellow hackers, I would still focus on your view of the world and what assets have value to you.
My main core would be real estate and stocks. I find them safe, real estate more than stocks. Though stocks are connected to products that produce value. For retirement maybe DGI might be interesting.
then probably gold, diamonds, etc -> to store value, not to expect huge gains
p2p lending -> can do ~10% annually, but it's risky.
crypto - risky bet, as you are in software, small % might make sense. Choose the coin that makes most sense to you as a software developer

yuppie_scum · Answer

Read up on Bogleheads and investopedia. The goal is to keep fees low. Max put your 401k

tiefquart · Answer

A diverse portfolio is what most people would suggest, I guess. If I had your money, I'd be looking to buy something like a house or land.Also I am amazed by that salary at such a young age (and a bit jelly). Good job!

Trias11 · Answer

Don't keep savings in US cash. This thing is quickly being driven to the edge of the cliff. I'd stay out of US securities at all for that matter. Dems are ramping us their game to tax people like you to death, so better keep your hard-earned savings out of their hands.
Assume value of USD goes down a lot and possibly soon and likely whole US economy, hence plan for it.
I'd suggest international real estate and crypto.
I'd also suggest to invest in second or third residency and passport in highly likelyhood of government getting even more stupid.
Crypto has multiple levels from beginner to extremely aggressive high risk/high reward games, pick your poison.
Not an investment advise. You may lose 100% of your savings.

whateveracct · Answer

Is an HSA available to you? That's an easy way to get a few now k of tax advantaged investments a year in savings.

How to Grow My Money?

Check out r/financialindipendence on Reddit. The people over there have the same goals and discuss strategies etc

You’re doing great, keep on doing what you’re doing. If your money grows 10% every year, it will double in roughly 7 years. So without adding any more money, your current $500k will become 2mil when you’re 40.

Read up on Bogleheads and investopedia. The goal is to keep fees low. Max put your 401k

A diverse portfolio is what most people would suggest, I guess. If I had your money, I'd be looking to buy something like a house or land.
Also I am amazed by that salary at such a young age (and a bit jelly). Good job!

Is an HSA available to you? That's an easy way to get a few now k of tax advantaged investments a year in savings.