Hello all, I’ve enjoyed reading the blog and forum for a few months and I’m hoping to get some advice on what to do in my current situation.
I’m 24 years old, with a well paying job with good security and potential for advancement. I expect that my salary will increase over the next few years, and even if the unthinkable were to happen, I don’t think I would have much trouble finding a job at a comparable level of pay. I currently live with my girlfriend of five years in an apartment, and I’m paying for all of our living expenses while she goes to medical school. She just finished her first year, in three years she will graduate and get a job as a resident, and approximately three years after that she will be allowed to make a salary commensurate with her education level. I fully expect that we will get married at some point in the next few years.
I’m currently maxing out my 401k and Roth accounts every year. I’ve got $32,000 in a taxable brokerage account (VTSAX and VTIAX) and am adding to it every month. GF and I will be renting for 3 more years while she is in med-school, at that point, if she is able to get a residency in our current location we will likely look to buy a house, if not we will rent in the new location for 3 years and then move back. My job is flexible enough that I could keep it even if we have to move out of state for those years. I currently have $10,000 saved for a house down payment in a savings account earning 1%. I would like to invest this, but I want to be sure that the money will be there in 3 years. CDs seem to be at lower interest rates than the savings account, and I feel that a bond index fund is subject to quite a bit of interest rate risk over the next 3 years. Should I just invest the money into stocks, knowing that I’ll need the money in 3 years, or are there other options that I haven’t thought of?
switch2richnow 