Submitted by spaceflamingo3 t3_yxs762 in personalfinance
Hey everyone. I'm 22 years old, I have a 50k cash reserved for an emergency, checking balance, car fund and fun fund. This 50k is sitting in a HYSA earning 3%. Currently making around 80K a year pre-tax. Maxed out my Roth IRA every year. Contribute 15% towards a company 401k. Expenses are around 500$ - $600 which leaves me a ton of money to work with each month. Not a huge spender, and I budgeted money that I allow myself to fund hobbies and going out around 200$ a month. I still have about 2000$ a month I would allocate towards savings. I really don't have any major plans of purchasing a house or anything (maybe in about 8-10 years from now). I also don't have any debt to worry about. Car is also working fine. My question is that that does it make sense for me to dump all this money (2000$ a month) in an S&P500 fund for the time being, at least until I know what I want to do with it? I know I want to invest it, as 50K for me is more than enough to have in cash reserves. But technically speaking would buying S&P500 index funds monthly be a good move for me financially and tax wise?