What is the next step in my personal financial situation?

I am 28 years old. I have no credit card debt. I have $18,000 in a high yield savings account (5%). I have $2200 in Mutual Funds (made 10% so far YTD). I have $12,500 in my 401K. I own a house in Texas that I currently rent out. The rent pays for the mortgage. I rent in California and cannot buy as I am here only for a short period of time. I save approximately $1500 to $2000 a month. Where should I put this money? More mutual funds, high yeild savings, 401K, IRA or other? Do I have too much money in the high yield savings account? I am willing to take an above average amount of risk but nothing on the crazy risky side! Need some financial guidance world...please help! I know I'm not doing too bad, but I know I could be on my way to financial freedom in the future with some right guidance. Thanks!

Asked By: DLC - 6/21/2007
Best Answer - Chosen by Asker
GREAT JOB!!!! From just the info you have given, I'm not sure what your goals and dreams are. If you work this thing right you will be able to retire at probably 50. If I were you i wouldn't max out the 401k since you can't have access to that money until (at this point) 591/2 years old, in the future it might be... More
Answered By: Ben A - 6/28/2007
Additional Answers (9)
Put them into your highest yield account. This way you will collect the most money. Be careful if you plan on using the money for something in the near future (EG a down payment on a house.) If that is the plan, make sure you can withdraw it when you need it, most 401ks have pretty stiff penalty's for pulling money out... More
Answered By: rragsdaleii - 6/21/2007
Just from what you have written, there are three things I would do. First, max out your 401k. You can put up to $13,000 a year. Since you are young-ish, that will be the #1 way to create wealth in the future. I am not sure hwo liquid you want to be so keep that in mind as you decide where to put money. Second - I... More
Answered By: GG - 6/21/2007
Personally, I would say put as much as you can afford into your 401k or a Roth IRA. The more you put into your retirement savings now, the more time it has to grow, and the less you have to put in over the years to reach your target amount... More
Answered By: teresathegreat - 6/21/2007
Your savings account is, I believe, as it should be. I believe that this is a bad time to invest in stocks because I see them correcting themselves in the near future and you would be buying into expensive securities. Stocks and mutual funds are expensive... More
Answered By: Taurean W - 6/21/2007
Maxing the 401k is a good idea. Your tax situation will determine whether you should be maxing a traditional IRA or a Roth... More
Answered By: John T - 6/21/2007
Awesome questions! For emergency savings, you want up to 6 months of expenses (think salary less taxes and savings) in a savings account where you can access it should something happen. $12,500 in a 401K isn't bad, but at 28 years old, you might want to be more aggressive about putting more into retirement savings... More
Answered By: leftlovin_darnright - 6/21/2007
wow congrats and kudos! maybe all you need now is a maintenance here is a free ebook for you
Answered By: Tutti F - 6/21/2007
Answered By: PrettyBrownEyes - 6/21/2007
Waw! That's mean you have a lot of cash. Becareful to manage it.
Answered By: Yvonne L - 6/28/2007
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