I am 22 years old and graduated college this past year. My annual salary is $85 K (12% goes to 401K) and my rent is $1,300 per month (I live in Manhattan).
I have no debt, and $10,000 for an emergency fund set aside from previous jobs and internships.
I recently came into an inheritance of ~$50 K from family, and have no clue where to put this amount of money. I’m incredibly fortunate to be in such a position, but I’d like some advice as to how I can maximize my savings or invest with moderate risk in the long-term, as my salary covers my current living expenses.
Any help would be appreciated!
How is rent $1300 in Manhattan?!
Buy a house in another state as a rental. Have a property manager look after it. You I will build equity while the renter pays the mortgage. Look at idaho, houses are $250K. $50K should get you a mortgage. Rentals are about $1600 and the 30 year mortgage is around $1000.
There is a section in the FAQ about dealing with a windfall. Feel free to ask any questions you may have after reading it.
>$1,300 per month (I live in Manhattan).
Assuming you have roommates? Or you live in a place without a bathroom.
>and have no clue where to put this amount of money.
Read the windfall section of the PF wiki and follow the Prime Directive.
That’s crazy to me that you are making more than me out of college. I have been working my way up the ladder in engineering for 19 years and I only make 60k.