33M | $520k Net Worth | $111k Income | Heavy Cash Position & House Hacking. Thoughts?
I (33M, single, no kids) finally completed entering all my assets into one place to track my full net worth, and it's currently sitting at $520,000 (not including home equity). Even seeing this number, I constantly feel behind. I started taking investment seriously in 2021
A lot of it comes down to a deep seated fear of financial emergencies. I grew up outside the USA, witnessed poverty firsthand, and don't really have family to fall back on if things go sideways. Because I am my own safety net, I hold a very high cash position for peace of mind.
Here is the breakdown:
Income: $111,000 gross from two jobs (Full-time + Part-time).
Primary 401k: $60,000 balance (10% contribution as of two month before match it and increase 1% every year I was at 6%, 2% match).
Secondary 401k: $4,000 balance (10% contribution as of two month before just match it, 6% match).
Roth IRA: $51,000 total balance. (The Catch: $19,000 has been sitting completely uninvested as cash for 3 years because I hesitated to deploy it).
Cash Holdings (33% of Net Worth): $171,600 total. About $40,000 is in checking earning zero interest, and $131,600 is in HYSAs.
The Real Estate Setup:
I own a three family home in New England. Tenants cover about 95% of the mortgage, which keeps my personal out-of-pocket living expenses incredibly low and helps insulate me from risk.
I know the general advice is to minimize cash and maximize market investments, but given my background, leaving myself vulnerable scares me. How can I balance optimizing these accounts while maintaining the bulletproof safety net I feel I need?