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NHwmnf t1_jefitgr wrote

You could open a Roth IRA, contribute the max for last year and the max for this year. Then make a plan to automate investing in it for the rest of your career. That would take care of a good chunk.

It would be a good idea to keep a good bit liquid as a 3-6 month emergency fund. You can open a brokerage account and invest in index funds for growth, or if you're risk averse, a simple money market fund will get you very close to your CD return rate and you can pull it and spend it in an emergency without penalty.

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maccc095 OP t1_jefxdcs wrote

I did actually open a roth a couple of years ago but I only made the initial max contribution and never did anything with it :-/ I got a little overwhelmed/intimated with that direct investing so have just avoided it. What do you mean by automate investing?

I have 6 months emergency funds set aside and another chunk of savings I was planning to put in a hysa. Any major difference between that and a money market fund? Thanks!!

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appleshit8 t1_jeg0g1d wrote

I think they're meaning like a target date retirement fund. Basically vanguard or whomever you use will set up a fund that re balances itself based on when you pick a target date. The closer you are to retirement the less stocks it holds and starts switching to less risky investments automatically. You can just automatically contribute $x/week to max out your Ira and it does the rest. Typically like a .1% fee or something

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NHwmnf t1_jeg630g wrote

Well, investing in a target date fund is, in fact, a good way to be on a set it and forget it glide path and can help take the intimidation factor out of investing in the Roth IRA. I meant though, set up your Roth to automatically move money from your savings account to your mutual fund (for example, the target date retirement fund previously mentioned) every payday or month to keep that tax exempt growth going to set you up for the future.

If you can figure out what you're saving this money for, you can find a place for it and keep it going. Take a look at the subreddit's prime directive. After that, there's nothing wrong with enjoying the fruits of your labor either though.

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NHwmnf t1_jeg6but wrote

HYSA or money market fund will get you comparable gains these days where cash is no longer trash

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