I have quite a lot of cash on hand, but I'm discouraged that I haven't been able to make my money work for me.
- I have no debt and live well within my means.
- I have an emergency fund in a savings account (earning 0.10% apr) which covers about 8-10 months of living expenses.
- I put 10% of my after-tax salary in a traditional IRA every year (earning 0.60% apr). Next year I will be receiving retirement contributions from my employer (after being with the company x number of years, they start contributing a percentage of my salary).
- I have about $60k in CDs, but they aren't earning much (0.20% apr).
- I'm just shy of 30 with no dependents.
- I rent and do not own any real estate.
- I have a 14 year-old car (bought used), so it's likely that I might have to replace it in the next few years if it gets too expensive to repair. (I'll buy used again, rather than new).
I tend to be somewhat risk averse, so I'd rather not invest in something too volatile or go into debt in order to invest in something (such as real estate). But on the other hand, safe investments like CDs just earn a few bucks a year, which is rather disappointing considering the amount I've been able to save up. Plus, the interest probably isn't even covering the rate of inflation.
I can't really ask any of my peers, as things are tight with most of them and as such, don't really have any investment advice.