Investing Advice

You have well above average income for your age (and presumably a HS education?) - which is the good news. The bad news, you may be at the ceiling of what's reasonable unless something changes - management, increased skill rating, etc.

You have a little bit of a spending problem - no reason for a kid your age to be almost $300k in debt and yet so liquid. I would eliminate that truck note and, particularly the boat note. Good job on the credit card debt.

So, now to the "advice" advice - I would still retire as much of that $36k money hole debt (even at 1%, it is silly to pay any interest at all on a vehicle, whose value drops every day). With those gone, you immediately set your new investment contribution (not counting your 401K) at around $650 to $700 per month (the debt service on your non-mortgage debt, currently) - and STAY IN THAT HABIT.

That contribution - by itself is going to be raw inputs of ~$8k per year - with even modest growth (6% to 8%) is going to be in the neighborhood of half a million when you're 50, and a million at 60. Now, a million dollars ain't what it used to be, but if you're 60 and you plan on living to 85 or so, that's about $5k or a little better per month without batting an eye - not counting your 401k or SS.

So, I would go further - particularly if you're likely to not stay with this particular company for 30 years - drop your 401k to the minimum required to get the match, open a Vanguard IRA, research some Vanguard Index funds - and just dump as much as you can afford in there per paycheck - I would go traditional in your situation until you hit the max.

Conventional wisdom is - if you expect to make less in retirement that you're making now, make your contributions traditional now - you get the guaranteed tax savings now, and have to pay taxes on retirement income. If you think your retirement income will be greater than your income now - go Roth now - pay the taxes now, not later.

Avoid commercial debt - drive the truck/use the boat as long as you can stand it - you should be liquid enough in short order to negotiate/pay cash for everything and just pay yourself back with extra contributions.

Good luck - you're in a good situation right now, but that can change on a dime.

Because of your line of work, I would also strongly consider long-term disability insurance.

Personally, I would just invest up to the match for the 401K and invest the other 10% in something more liquid like an Mutual Fund you can withdraw and add to with no transaction fee. If you’re disciplined and won’t spend the money because it’s more liquid than your 401K, I think the flexibility is better. Also, I would move some of that 40K in savings into some sort of investment as well.

I see Ace gave similar advice, I echo what he said.

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However, i'm not too sure about paying off the truck while I have it locked in at 1%.

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I look at it this way - if you're disciplined enough to pay it off and invest the truck payment (even if it's something liquid, like a set aside "new truck" fund), you're going to come out ahead, regardless of how "free" the money is right now.

Dumping cash into the market, sporadically, eliminates the biggest safety feature in the "buy and hold" strategy - dollar cost averaging - that alone should eat any marginal differences in yield on that money - plus it gets you "out" of the habit of a truck note and "into" the habit of saving money yourself, borrowing money "from" yourself and never paying anybody any interest, ever.

On the other hand, at 1%, if you know that you will weaken and just buy another truck because you "miss" the truck note, then a better yield would be to pay down on the house. I know the min/maxxers will quibble with this, but putting the money in your house is essentially a guaranteed yield of your interest rate for the rest of the time you hold the mortgage.

You can do the "snowball" - pay off the boat, and then throw the boat payment into the truck - you'll pay it off quicker, but not dump your cash into the truck all at once. But, again, I'd rather see you commercial debt free, and pouring $700, $800, maybe $1000 into your savings/investments and build that wealth growing habit, rather than borrowing and convince yourself you're "getting over" - because in my opinion, you're not.

Borrowing money for a house? That makes sense. It's not a legitimate investment, but is a functional one. Tax advantages notwithstanding, it is the most sure way for the middle class to build wealth.

Borrowing money for a "real" investment, meaning one that will make you money? If the ROI is right? Sure - that's a rich person habit.

But borrowing money for transportation/recreation? I get that folks don't want to drive beaters, but vehicles are terrible uses of money - doubly (or trebly) so if you're paying interest on top of the money poorly spent. That's why I recommend breaking the habit and never going back.

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Ace Midnight

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AKA Dave Ramsey.

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But borrowing money for transportation/recreation? I get that folks don't want to drive beaters, but vehicles are terrible uses of money - doubly (or trebly) so if you're paying interest on top of the money poorly spent. That's why I recommend breaking the habit and never going back.

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If you are as disciplined as you talk about above you would absolutely want to use leverage to maximize your returns and cash flows. I get that a lot of people can't, but using the above as a blanket statement is incredibly misguided.

TLDR but the first guy seemed to be on to something, but I’d add you won’t be able to take a deduction on an IRA, but a Roth is an option if you’re not worried too much about those taxes if nobody said this.

Sounds like you’ll end up going back to the 401k though since you should be saving way more than $5500 year (especially if you reduced the 401k down to the match as suggested).

what is the goal for investing?

imo, OP is in great position..i think when i was that age i had $150k in student loan debt and zero income.

if no wife and kids i'd become an "extreme saver"...
the house is fine...obviously get rid of the boat.
and i'd try to trade in or get rid of truck payment also..

review this wiki:
LINK

with your age and take home...you COULD be able to retire within 4-5 years (if that was a goal)

imo, what to invest in is less important than having the desire and aptitude to invest.
(try to find an online summary of the classic "zurich axioms" by gunther max--explains much better than i can)

what i would do...keep doing what you already are.
purchase more income producing property if possible. ...and invest regularly in a S&P500 index fund for your stocks

Throw some cash into FB and Amazon. Neither are going anywhere for the next 10 years.

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It’s not about your income, it’s about your assets and liabilities. It seems your liabilities are far outweighing your assets right now.

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He has more in cash than all of his liabilities not withstanding mortgage?

Index fund(s).