- I'm 24, single, and I live with my parents in the United States
- I have no debt and I have 100k in a savings account
- I have a 90k job
- I am currently maxing out my 401k
- I have no experience with investing and no family with any experience
My company offers a discount deal for managed 401k accounts with Alight for half of a percent, which I am using.
I recently started looking at this site and realized that due to inflation, I am losing money by having that much in my bank account. I'm not sure how much I have lost but it must be a lot.
From reading other questions, I am interested in dumping some of my savings into Index funds which rise with inflation. Admittedly I don't know much about it.
My parents have suggested that I consider buying a house as an investment and renting it. With my savings I could put down a larger down payment to get a better deal on a mortgage. They said they would help me fix it up and that I could live with them until I decided to move into the house in the future.
I understand that property should not be thought of an as investment and that there could be another crash like in 2008 at any time. But I still think that is an interesting suggestion.
Question 1: Any suggestions where to invest my saving account money, especially options not presented? In principle, is getting a house with a bigger down payment a good idea?
On the new investing options side:
I have plenty of room to invest more per month.
After my monthly part of the bills, rent, groceries, and putting some away for fun stuff, I can afford to invest 3k per month.
I have read a lot about Index funds, Vanguard, and Roth IRA on this site but I don't understand most of it. While I continue to study, where is a good place to immediately put this extra money instead of letting it deteriorate in my savings account?
Question 2: Is there a basic advice where to invest after maxing out a 401k?
Lastly, what are some good sources to start researching some investing concepts?