Check-in: 24M 200k NW
Currently 24 with a net worth of 200k. I live in a HCOL city in the US. I have zero clue what I want to do with my life. Not sure on kids, not sure on where I want to live. Flexibility is important to me. I’d like to retire early, but I’m not sure when/how.
Current net worth breakdown (round numbers):
401k: 80k
Taxable brokerage: 105k
Cash: 15k
85% in large cap US equities; 15% in mid cap. I maintain a small trading sleeve (~$10k) for discretionary purchases and speculation.
Income and growth: Annual income is 300-350k (and household income w/ my long term partner is a bit over 400-450k). I work in finance and receive a large portion of my compensation at the end of the year. It’s much less variable than other positions in my field, but there’s always the chance that I get blown out and 0’d for the year. Over the course of my career, I would expect my annual income to cap out at about ~LSD $M unless I go back to school.
My rent is $4500/mo, I spend probably $1500/mo on all other recurring expenses. We live very simply and I don’t really get much out of luxury/spending money.
I’m planning on saving around $150k/yr. I hope to have around $600k NW by 26, via $300k of saved capital and some appreciation.
Questions:
- Big picture, what should my top financial planning priorities be? What decisions can I make today, to support long term flexibility/stability?
- Any advice on tax planning/avoidance? I do little today to mitigate my tax bill.
- Any other words of advice?
- What did it take for you to find purpose/direction in your life?