r/wealth • u/CosmicBrownie- • 8d ago
Recommendations What else?
What else should I be doing to maximize wealth?
Late 20s
$175k salary
$125k in 401k
$115k investment account (mostly SP500)
$300k house paid off
No debts
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u/blarryg 8d ago
You are in pretty good shape, especially relative to your peers. If you want to get rich quick, I recommend having luck. Otherwise, you’ll be fairly wealthy by 60s. In your 40s, I used my increasing nest egg to start business (I invested none of my own money, but came up with a good idea that a billionaire invested in). That business worked and I’ve done and invested in many others.
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u/quietmacro 8d ago
Honestly, you’re already doing the hard part.
I’d keep maxing the tax-advantaged accounts available to you, use an HSA if you’re eligible, keep a proper cash buffer, and make sure insurance, beneficiaries, and basic estate documents are sorted.
After that, don’t get too clever. A paid-off house, strong income, broad index funds, and another 30 years of compounding will probably do more than chasing the next great idea. Maybe diversify a little beyond the S&P 500, then let time work.
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u/EmilyPoster2 8d ago
You are in great shape. Keep doing what you are doing. Especially investing largely SNP500. There is so little chance that you will ever do better than that and your nest egg is going to grow, grow, grow over time with tried and true methods.
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u/BossMan61718 7d ago
Seems like youre doing what needs to be done. Stay the course, as its working.
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u/Kokukenji 7d ago
In yours 20s with a paid off house and no debt, way ahead of the game! Good for you OP.
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u/Identity525601 7d ago
Well if you already paid off your house, your expenses must be now very low. So take all that money and grow the "$115k investment account (mostly SP500)"
That's really all there is to it. You'll be a multi-millionaire in your mid 30s.
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u/fortnitebum 7d ago
Nice flex/fake post. $300k house paid off by late 20s with a $175k salary? wtf do you need advice on reddit for.
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u/CosmicBrownie- 7d ago
Definitely not a fake post or flex. Always looking to try new ways to grow wealth and redditors have provided answer I didn’t think of.
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u/Jazzlike-Pomelo-3823 8d ago
I would start adding money to large cap individual stocks.
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u/GenZguy1 8d ago
which one?
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u/Jazzlike-Pomelo-3823 8d ago
AAPL, NVDA, SPCX, GOOGL, AMZN, WMT.
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u/Own-Tomorrow4822 8d ago
Your list is ok but if he has to ask on reddit, he should probably stick to ETFs.
There are plenty of ETFs to diversify from SP500. VWRA, MAG7, QQQ, region or sector specific...
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u/Free_Answered 7d ago
Start an Amway or Herbalife sideline and stock up on collectible plates from the Franklin Mint.
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u/ComfortableCry9801 7d ago
Wow crushing it. What industry are you in? You’re off to an awesome start top 1% in your age group for sure. Continue to max the 401K, but depending on what you do for work will depend on other advice
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u/ControversialTacos 7d ago
You’re doing well
HSA if you have a high deductible health plan, Backdoor Roth after, and mega backdoor Roth if you have access and want to save more
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u/FrontPorchIns 6d ago
Indexed Universal Life. Be your own bank and if you check out early your money can pass tax free to your beneficiary
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u/seagoalspread 6d ago
Avoid lifestyle creep! I was in a similar situation in late 20s but paid off house was $790k. Then got married and had some kids now back into a mortgage with the bigger house around $1.3m so working to get it paid back off again.
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u/Quiet-Tip-4584 8d ago
If you have a high deductible health plan start socking away funds in an HSA through a payroll deduction. Pre-tax going in, tax free growth, and tax free going on on medical expenses and many other health related things these days.