[USER]

Hi, I am 36 year old and need advice on how to invest my monthly salary to maximize the benefits. I believe my methods are not working for me so any insights will be of great use as California Is very expensive.

I earn currently 130k a year in California where health insurance is provided by employer. So monthly, pre tax i put 1000$ in 401k and post tax I get 6800$ in hand.
My mandatory meter of expenses is below.

Home emi part – $3k
Bills n other expense – $1500
Total expense – $4500

I do have 150k in 401k from years of living below means but now not possible due to HCOL.

Any advise on investment in 401k, stocks, CD , secondary investment property, from monthly perspective will be greatly appreciated.

[Mark]

U don’t say what ur invested in now. So, we can’t really tell what to change to

[Christopher]

Pre-tax is the way to go, putting as much into the 401k will avoid taxes now while you’re still earning.

Stocks can be tax efficient if you buy and hold (long term capital gains and qualified dividends are taxed less than ordinary income), CD interest will be taxed as income, so you’re probably better off using US Treasuries for cash-like investments/holdings.

Investment property is an incredibly broad topic.

I won’t touch on that here but there are many various plans and strategies you can use depending on your overall goals with real estate.

[Tristan]

Total monthly expenses is 4500 and you take home 6800? So, left with 2300 to do something with?

Is that accurate?

[Jamie]

I’d put everything you can afford into your 401k at that salary. Max a HSA first though if you are eligible.

Take some time to understand how you want your portfolio to look.

You mentioned you are not invested at all.

Get your 401ks invested asap

[Kimberly]

Have you read The Simple Path to Wealth by JL Collins?

[Author]

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