Hey Bogleheads, noob investor here who recently discovered this subreddit and looking for advice. I've been sitting on ~550k liquid for a while now (initially planned to by a house within a few years but plans have changed). Looking to instead invest in a low-risk account that I don't plan to touch until retirement (or house 5+ years down the line).
I'm a Software Engineering living in a HCOL area in SoCal.
- Yearly take home ~400-500k per year pre-tax
- Rent ~3.5k/month
- Bills and fun money ~2.4k/month.
- 550k savings in HYSA
- No debt
My current strategy includes
- Maxing out 401k pre-tax with a Mega Backdoor Roth hitting the 72k yearly cap. Invests into VTTSX (currently ~150k in account).
- Plan to open a backdoor Roth and invest the 7.5k per year into VT
- Plan to keep ~250k in my HYSA as a multi-year emergency fund due to the current lay-off climate in my industry (high long-term career uncertainty, might consider career change in extreme) and health needs.
- Leaves ~300k excess that I would like to invest.
I'm wondering where would be the best place to invest this 300k + excess income I receive going forward. I'm not an investor and would prefer to just let my money sit in one place without requiring active management. I'd prefer global exposure as it seems a safer bet.
- Would VT be the best place to invest everything and forget about it until retirement? Or should I spread/diversify further?
- As for bonds, outside of what's in my 401k target date fund I don't plan to invest in any. Given my 250k emergency fund, I don't see the need. Is this the correct approach?