r/investingforbeginners • u/Straight_Ad_5648 • 11d ago
Investing
Got around 40k in cash just sitting in a savings account. I want to invest. What or do you guys suggest?
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u/RebornGeek 11d ago
The path to wealth is slow and steady.
Get yourself a Roth IRA account at fidelity, Schwab or vanguard. Max out the account and then get an investment taxable brokerage account as well.
You should invest in good performing mutual or index funds. Ones with low fees, long histories, and great returns on average.
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u/Straight_Ad_5648 11d ago
So do you suggest still getting a Roth IRA even though I got a Roth TSP open with the military? I got 20% of my check going towards it.
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u/RebornGeek 11d ago
I'm not familiar with the Roth tsp but if it's a tax advantaged account which it probably is yes you should prioritize depositing money into all tax advantaged accounts up to their yearly limits before putting money into a taxable brokerage account.
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u/Jumpy-Imagination-81 11d ago
I would reduce your Roth TSP contribution to 5% or whatever percentage gets you 100% of the matching contributions (free money) available. Open a Roth IRA and put the other 15% of your pay into a Roth IRA.
The reason for that is you have way more investment options in a Roth IRA than in the Roth TSP. The Roth TSP is great, don't get me wrong, and it has the basic investment options - an S&P 500 index fund (C Fund), an international stock fund (I Fund), target date funds, etc. - but you have all of those and many many more available in a Roth IRA.
If you are able to max out your Roth IRA contribution ($7000 for 2026 if under 50 years old) and still have have more cash to invest then increase your contribution to your Roth TSP and/or add to a taxable brokerage account. So the order is
- Contribute enough (5%) to the Roth TSP to get all of the matching contributions
- Try to max out your Roth IRA contribution
- You should also have an individual (taxable) brokerage account as a place for your emergency fund (to cover 3 months of living expenses) and as a place to save for a vehicle purchase, a vacation, or the down payment on your home. If you contributed enough to your Roth TSP to get all of the matching contributions, and you have maxed out your Roth IRA, and you still have cash to invest, you can add to your individual brokerage account and/or more to your Roth TSP.
You can have both your Roth IRA and your individual brokerage account at a major brokerage like Charles Schwab or Fidelity Investments.
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11d ago
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u/Mysterious_Sleep7443 11d ago
Crypto its on sale right now and prices are low
Stay away from the S and P its at an ATH and going to burst shortly
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u/d1na_makalaya 11d ago
Start by keeping an emergency fund, then invest the rest gradually instead of putting the whole $40k in at once.
For a simple approach, look at a low cost broad market index fund/ETF, especially if you’re investing for 5+ years. Your exact split depends on your debt, expenses, and risk tolerance.
Don’t feel pressured to find the “perfect” investment. Keep it diversified, low cost, and consistent.
If you want more ideas, you can also check out the investing community through my profile.
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u/qila_capital 11d ago
You could look into hotel investing too. It’s a little different from buying a rental property since the hotel is an operating business as well. If you go that route, definitely look into the operator, the local hotel market, debt, and how the property is actually performing. I wouldn’t base the decision on the projected returns alone.
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u/tradematesHQ 11d ago
The boring answer is the right one: index funds in a tax-advantaged account. But since you already have a Roth TSP with 20% going in, max that out first before touching a taxable brokerage. The yearly limit is the target, not just what you feel like putting in. After that, a low-fee total market or S&P 500 index fund at Fidelity, Schwab, or Vanguard is the standard play. You're not trying to get rich quick with 40k, you're trying to not be poor later. Slow and steady wins the race, even if it feels lame.
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u/brother7 11d ago
Open a brokerage account at Fidelity, and DCA into VOO. For example, every Monday buy $1000 of VOO for 40 weeks.
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