I’m 23 years old and have a regular job making around $80,000 per year. I recently sold a sneaker business and now have $500,000 from that sale. Right now, I’m actively managing this money, mostly investing it in ETF funds, which have been giving me an average return of 8% over the past few years.
I’m wondering if there’s a better way to generate passive income or increase my wealth faster, either within the stock market or outside of it. Should I consider more advanced strategies like selling covered calls on my stocks? Or perhaps investing in real estate?
Next year, I plan to start medical school in my state, and I’ll have financial aid which will keep my costs low. Medical school should lead to a high income in the future, but I’d like to enter it with a strong financial foundation.
Hey Barbara. For $500,000 you can be a millionaire in no time.
Have you considered a good REIT or MMF?
It should be better than the annual 85 you get from ETFs.
Also, it’s good to spread your investments rather than put all your money in one basket.
If you were to invest in big dividend funds like voo/vto and follow the r/boggleheads or bobbleheads method, I would reinvest the dividends until I needed to retire and then start utilizing them to support myself.
Get yourself a treat, go on a trip, commemorate your grandfather’s life, and take out about $20k. Establish an emergency fund with at least $10k. The remainder should be invested in an inexpensive all-stock ETF. You will have some wonderful memories and be well-positioned for an early retirement by the time you are about 40.