I am 37 and just started aggressively saving 4 years ago (beyond maxing my 401k). I have around $500k in retirement accounts and $350k in savings and investment accounts. About $200k in equity in my house (half paid off). Beyond maxing my 401k I have 6k/month I save/invest. Ideally want to retire in 8 years (45). What are good options to do with the 6k/month? Right now I just blindly buy mutual funds.

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Congrats, you might currently be better off, and closer to FIRE, than you may want to believe!

You have $850k in liquid assets. Maxing your 401(k) and investing $6k/month, and assuming a modest 6.5% return (just boring index funds return), you should have almost $2.4M in 8 years! And this is without tapping any equity in your home.

Unless your expenses are more than $96k/year in retirement, you're all set.

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Oh my goodness - I just did a quick search on 72(t). This is almost too good to be true - this really changes everything. Thanks so much!

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I just turned 39 and have similar equity in the home but nowhere near the savings in accounts that you do, and have really only become aggressive about building a portfolio the last few months. I’m curious what percentage of your income (or actual dollar amounts) you’ve actually contributed vs made from your investments, if you know... And/or what were the initial steps you took to step your savings into high gear. Just want to wrap my head around how to do something similar. And, I have a high tolerance for risk. Thanks!

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Of course! Good luck on your journey! And of course take all of this with a grain of salt. 2016 and 2017 were meh years, most of my growth was just an explosion in 2018-now so I am not expecting 54% all the time. My parents have T Rowe Price so I just went with some 4-5 star mutual funds that had a good mix and performance I liked. Landed on Blue Chip (TRBCX) and Diversified Mid-Cap Growth (PRDMX) to start. Then added Communications and Technology (PRNTX) and Global Stock (PRGSX) later. I also double downed on the large stocks they held in the portfolio and bought some of the common stocks (probably not the best idea from a diversification perspective - but I had a weird thought process on the logic there) in a brokerage account. So I also bought Microsoft, Apple, UNH, Amazon, DIS, CRM, and Boeing (mistake) to name a few. For the most part they did well. As you can see I had some risk, but still pretty risk averse. Boeing I’m still deep in the red and JPM a I’m almost in the green, but overall just matched the large stocks in the mutual funds. And totally open to new ideas if my method is not optimal here... I literally blindly just put money in - not sure if it is a legit strategy or just a product of the market doing so well these past 2 years.

Play with leverage/margin if your risk tolerance is high. I heard interest rates are pretty low right now...

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Yeah - I’m definitely in the lower risk category. I don’t know enough about leverage/margin to do it effectively.

Not sure exactly which mutual funds you’re buying but nothing wrong with index funds. Might be worth considering to rebalance the portfolio in a few years but I think if you’re 8 years out then securities are still the way to go.

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At what point do I transition to less risky assets? Most of my mutual funds are blue chop/mid-cap/global growth/ and telecommunications.

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What’s your salary?

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