Investing in big law: I just started working and since student loan interest is frozen, how do we invest that money in the meantime? I mean I’m sure between now and the end of January, I won’t make huge investment gains, but I would like to have my money work for me. I’m maxing out my 401(k) but I want to invest anything over that. The only thing I know about investing is Robinhood lol. Also pre-tax 401(k) or roth 401(k). Parents emigrated from Mexico so I have no financial knowledge. TIA!

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Consider paying down the principal even though frozen. There’s nothing quite like the freedom of having no debt and therefore no real need to work in BigLaw. Also vanguard index funds and etfs that track the market are great. VTI is my go to for spare cash, but I paid off my loans long ago.

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I agree here. Unless you are investing $100k-plus, the potential returns are not be worth the risk here. And if you are investing $100k+, the risk is not worth the potential returns.

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1. Max out tax-advantaged investment accounts (i.e. 401k, HSA, Backdoor Roth)

2. Build emergency fund to 3-6 months’ worth of expenses (i.e. high-yield savings account)

3. Throw all excess savings at student loan debt (i.e. remove your golden handcuffs)

4. DM me if you want help implementing this (i.e. requisite shameless plug 😉)

Hope this helps!

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My sister did one of these. The limited research I did on them told me they were a bad idea lol

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Bitcoin and Ethereum

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I am on crypto.com , I believe this is and exchange however. Haven’t had any issues.

This might be obvious to you, but make sure you’re actually investing the money you put into your 401k, and not just letting it sit in a money market fund. I only flag because people do make this mistake.

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You’re great! Thank you!

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Depends how liquid you want your money. You could look into an IRA or Roth IRA (depending on your salary) but those are long term investments. You could just put the money in a mutual fund with reinvested dividends for liquidity and then just pay taxes on the gains when you need to pull it out

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Awesome! Thank you so much!!

Check out the “Bogleheads” wiki and forum and do some research into 3 fund portfolios (US stock, intl stock, bonds). Low cost, passively managed index funds are simple and easy and the returns are very, very, very hard to beat.

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Sorry for the silly question, but what’s the difference between index funds and market funds?

Crypto.

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For me it’s index funds and crypto (mostly bitcoin and etherium, but a few other random coins as well). 401(k) is for non liquid cash, so how much you put there depends on your future projects / personal situation. Personally, I have not invested in my 401(k) yet.

Build an emergency fund.

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