Advice on investing savings

First, it's important to recognize that your regret is a common feeling among many young investors. However, at 27, you're still in an excellent position to build long-term wealth through investing. Here's how to move forward:

  1. Reframe your perspective: Instead of focusing on missed opportunities, consider that you've built a strong financial foundation with substantial savings and no debt. This puts you ahead of many peers.

  2. Start investing now: The best time to invest was yesterday; the second-best time is today. Don't let past inaction prevent future action.

  3. Create an investment plan:

    • Emergency fund: Keep 3-6 months of expenses in your HYSA (about $13,200-$26,400).
    • Retirement accounts: Maximize contributions to tax-advantaged accounts like 401(k) and Roth IRA.
    • Taxable investments: Allocate a portion of your remaining savings to a diversified investment portfolio.

  4. Investment strategy:

    • Consider a simple three-fund portfolio: Total US stock market, Total International stock market, and Total Bond market index funds.
    • Start with a 90/10 or 80/20 stock/bond allocation given your age and risk tolerance.

  5. Dollar-cost averaging: To address market timing concerns, invest a fixed amount regularly (e.g., monthly) rather than all at once.

  6. Educate yourself: Read books on index investing (e.g., “The Simple Path to Wealth” by JL Collins) to build confidence in your strategy.

  7. Prepare for potential layoff: Keep a larger emergency fund until your job situation stabilizes.

  8. Automate investments: Set up automatic transfers to your investment accounts to maintain discipline.

  9. Regular review: Assess your investment strategy annually and rebalance as needed.

  10. Professional advice: Consider consulting a fee-only financial advisor for personalized guidance.

Remember, successful investing is about consistency and time in the market. By starting now and sticking to a solid, long-term strategy, you're setting yourself up for financial success. Focus on the decades of growth ahead rather than the years behind you.