Investment help for lucky newbie

[L337R3dN3k]

I am a recent college graduate with a well-paid job in a Fortune 500 company which values career employees. The company has done well despite the recession, and the odds of layoffs seem slim.

I have no debt other than a $5,000 car loan which I plan to sit on for a few more months to build credit, and pay off this December.

After taxes, insurance, HSA deductions, 401K deductions (my 401K is split between 3 different mutual funds to spread it across domestic stock, foreign stock, and corporate bonds), and calculating in rent and living expenses, I am able to bank around $2400/month.

I currently have enough savings to pay off my car loan and to live on for about 6 months should I lose my job. This means, discounting increases in living expenses, my future savings can be put to work. My goal is to balance short-term investments (it'd be nice to buy a modest -- $90K ish -- house in 4-5 years) with long-term investments (for any major expenses in the future so I don't need to borrow).

The real question is, what are the best investment guides that can get me started putting my money to work? Most of the guides I have seen focus on lowering living expenses (I could cut back a little, but they're already low) or eliminating debt (I have very little and will soon have none). I realize I am extremely fortunate to be in this position, but am not really sure how to start leveraging it.

[bhkyra]

What is a "major expense?" what is "long-term?" What are your goals? Do you want to travel the world? Do you want to start your own business? Do you want to be able to retire comfortably?

I'd start by saving for the down payment on the house since it looks like you've got retirement savings going already. If it were me, I'd put that money in high interest savings account, or in CDs.

[FinanciallySMART]

I would advice you to look at the things you want to achieve. You only have one debt as you pointed out and so you are partially debt free. Your goal of owning a home should enable you to invest or save more. So looking at this you should ask your self this question "Will this be a short term or long term goal?". You also said that your work is stable but you should never be too sure about this and so look at how you can create a passive income or what other investments you can get involve with. Make sure you educate yourself of the one that interest you.

[trustno1]

I would park your cash in short term CDs for now. Then head to sites like
http://www.bankrate.com
http://www.moneyadvisor.com

and browse through all of the explanations of investment vehicles, play with all of the calculators to gain some basic concepts like compound interest, short vs long term strategy, read the free advice of experts and focus on understanding the investment "portfolio" concepts, check on current rates/comparisons of any area CDs, etc which are posted in real time. Leave the cash in the CDs until you grasp the basics, which will not take long.

Then take a break and shuffle over to HR and put my resume' on the top of the "Yes" pile, please....lol

[L337R3dN3k]

@trustno1: Thanks for the links -- and lol yeah, I wish. There are quite a few friends who have asked me (one repeatedly) to help get them jobs. I was incredibly lucky in that I got in just before a hiring freeze; sadly, they're not looking for more talent yet.

To the others who've suggested I clarify goals: Some of that depends on how far I go with my current gf. I have decided to wait at least 3 years before buying a house (though the market is very tempting right now). I may wait longer. Saving to avoid a big mortgage when I buy will be my primary goal.

The secondary goal is trying to play the bank / market, building a nest egg that will work for me in the future. I may run into health issues, kids, etc. in the future and would like to be able to afford it. There are no specific goals here, but I'll put a 10 year timeline on this nest egg. On the outside chance I never need it, well, I can use it for something fun or give some more away to charities

[trustno1]

Couple more of my "basics" to share...

re: Financial Planners...and "seeking advice" in general...

"never seek advice from anyone that has a vested interest in the outcome". (I always pay flat fees, in cash, for any "service". It provides the most honest information, the most options, and most importantly~ the best protection of my personally identifiable information.)

Marriage & finances:
"Always make sure you are worth more "alive" than dead." lol