[USER]

Hello there. I find myself in a situation looking for insight.
I’m 38 years old, live in Houston
I’m currently making $200k a year while my significant other makes $100k

Last year we downsized and paid off all of our debt. My Condo is paid off, cars paid off, no other debt.

I recently bought a motorcycle with promotional financing at 0.99% so it made sense to take on that loan. This is my only obligation currently.

I have $350k in the condo, 320k in my 401k and the rest is my Fidelity in index funds.

Now that the debts are all paid up I’ve started putting $4,000 a month in the S&P.

One of the main drivers of our decision to downsize and get debt free is because I work a very stressful and time consuming job and I’d like to see the world.

I’m wondering how long should I be solely investing in just the S&P? How comfortable does that make you? What’s another strategy that’s relatively safe?

I’m hoping to hit my 1M net worth by 40, I can do it if I sacrifice my lifestyle and make the right investment.

[Brandon]

Sounds like you’re in a strong position—great job getting debt-free and building solid investments.

Personally, I think investing in the S&P 500 is a solid foundation, especially since you’re consistent with $4K/month.

That said, I wouldn’t put everything in one place. I’d consider a bit of diversification—maybe adding some total market index (like VTI), a small allocation to international stocks (like VXUS), or even a small REIT position if you’re not already exposed through your condo.

Since you’re looking for more flexibility and less stress, maybe also look at building a “freedom fund” or a high-yield savings buffer.

That way if you want to take a sabbatical or slow down work, you’re not forced to sell investments during a dip.

You’re already close to your $1M goal. With $320K in your 401k, $350K in the condo (assuming that counts toward your net worth), and a healthy income + monthly investing, you’re on pace.

The key now is staying consistent and not letting lifestyle creep get in the way.

Also—if your job is burning you out, maybe that’s the next thing to explore. You’ve bought yourself some freedom.

Now the question is what to do with it.

[Apurv]

Why do you want to sacrifice your golden years to reach 1M by 40? What happens if you enjoy your current life to its fullest and reach your 1 million by age 43?

Investing solely in index funds will give you the peace of mind that no other individual stock would do.

Even Apple has fallen 20% this year.

Do not rush to become a millionaire. Great job on paying off your house.

[Allen]

How about setting a certain percentage of allowances for anything you want and slowly increase that percentage as you get closer to your goals.

Every time I get the urge to waste money, I ask myself how much longer I want to put up with work stress

[Paul]

I would just keep investing in the S&P 500 for the rest of your life. It is the least volatile index and has stable predictable gains even though they are not consistent.

You should average about 10% a year. You’re a relatively young man and have a lot of time for compounding and $4000 a month is quite a lot to put away.Don’t put off traveling forever.

There are a lot of things you can’t do when you’re older.

[Qinli]

First of, great work! You didn’t mention kids. Is that something you will consider in the near future?

That could change everything!

[Farre]

I would say push for it. You never know if a spouse dies or you become disabled.

The money is a safety net–particularly if you’re in the US.

A lot of women are going through menopause much earlier and having worse symptoms in our generation.

[Mike]

Once you’re debt free, I would figure out how much you have leftover each month after bills and budget 25% of it to investing, 10% of it to giving, and 70% of it to living and traveling and going to fun concerts/sporting events in a club box and upgrading to first class and hitting the spa and doing whatever else you want.

You need that balance.

My cousin was a huge saver, kept telling me everything he was going to do in retirement, etc., and had a massive heart attack, passing away at age 51.

[Lowell]

Married or single? Jointly or separate account?
Still amazing regardless.

But for the future prenuptial and protect it if you are single atm

[Laurie]

I’ve been invested in the S&P since I was 32. While working, I invested the max in it including my Roth every year. I retired at 54 two years ago and I have no plans to move it out of the S&P.

I can also recommend VUG and VGT with Vanguard. Both ETFs have had higher performance than the S&P.

Since you’re still young, I recommend Fidelity FSPTX and FSELX.

I invested in those long term and their performance long term beat the S&P as well.

Whatever you choose, at least leave your investment in the S&P.

[Marcelo]

Kudos on getting the motorcycle – As one of your goals is to see the world, I recommend checking out companies that do guided tours like Eaglerider – did many trips and met people all over the world in these tours.

Apologies for moving away from the main topic of investment and money management.

[Ronke]

Congratulations on not having the biggest debt of mortgage. Position looks solid for coast FI.

As others have said I would look into international markets and REITs to diversify the portfolio.

I have also started diversifying into private equity as well.

Lastly start traveling now, nothing extravagant don’t wait till later you are not promised tomorrow.

[Joshua]

Once clients hit $1m, I start talking to them about diversifying into some things that only accredited investors have access to.

Might be worth looking into.

[Wardle]

First of all, congrats! I am same age in TX as well. Paid off my 2-3% mortgage to be debt free and work towards FIRE.

Do 50% VOO (or VTI) to pair with 50% QQQM (or SCHG/VUG) for more aggressive growth stay disciplined and DCA into it.

You don’t need bond or dividend focused stuff right now. Fidelity has the auto investment feature.

I’m currently sitting around 6M NW and 5M liquid, plan to work till age 50 or sooner.

I saved about 40% of my gross income.

[Ricardo]

you should also consider platforms that do all the trading for me and I just cash in every week or leave the money to grow with compounding interest daily if you don’t have much time.

[Jan]

Check out ASTS – might be worth throwing a bit of money in. You don’t need to go all in, but a small position could pay off big over the next 5 years.

[Author]

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