Friday, December 31, 2021

Single early 30s HENRY - guidance and resources please

General Info:

Age: early 30s

Status: Single

Location: Bay area

Income: $250k+ annually (bonus potential)

Savings/Cash on Hand: $150k

Recent Event: $120k bonus after taxes (the reason I have $150k in the bank)

Debt: none

Current Investments:

401k: $150k; max out every year with employee match

Back Door Roth IRA: $15k, max out every year

Stock: $150k

BLPAX Mutual Fund: $50k ($500/month)

Restricted Stock Units (1 out of 4 year vest): $20k

Ethereum: $1k

Bitcoin: $1k

Insurance:

Whole Life: $7,391 annually

Term: $179 annually

Disability: $1,734 annually

Hoping to get some general guidance/resources for someone in my situation. I’ve never been particularly interested in personal finance, but I’m realizing that I need to take more ownership. Especially as I want to start a business in the next few years.

I feel like I’m in a really good place, but I’m struggling with what moves to make next. Generally I’m moderate to conservative when it comes to investing.

In 2020 I started consulting with a Northwestern Mutual advisor and ended up purchasing whole life, term life, and disability policies. Like many people, I get term and disability through work. Frankly, I feel like a dumbass for doing this and it was really just because I was too lazy to do the research.

I would like to invest in real estate soon, but I live in the Bay area so I struggle with whether it is a worthwhile investment while I’m single or if it would be better to buy at lower cost in other regions (home state — also high-ish cost of living).

I realize this is a lot so any thoughts/guidance would be much appreciated!

Questions:

  • Feedback on supplemental insurance policies - pros/cons?
  • Have any tips for getting out of a whole life policy?
  • Given my situation, should I use a financial advisor at all?
  • Buying real estate to live in vs. income property?
  • General investing guidance for my financial situation?
  • Recommended resources (books, podcasts, etc)?

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