What should I do with extra cash after maxing out my Roth IRA?

I’m in a pretty good spot right now. I don’t have bills to worry about, make $50k a year at my job, and I’ve been earning around $100 a day from trading stocks (mainly speculative plays). While I know this extra income isn’t guaranteed long-term, it’s been steady for now.

I’m 25 years old, have good credit, and live with my family who aren’t in a rush for me to move out. My main focus has been maxing out my Roth IRA. I’ve invested in Vanguard’s ETFs (BND, BNDX, VTI, VOO) and added SPY. After hitting the Roth IRA max, I still have about $4-5k each month to work with.

I also keep some money in a high-yield savings account for emergencies and big future expenses. I’m looking for advice on what to do with the rest of my funds. Should I put more into ETFs, try individual stocks, or something completely different? I’d love to hear your thoughts. Thanks in advance!

Why are you holding bonds at 25? You should focus on growth stocks and ETFs. VOO is solid, and VXUS could give you some international exposure. Drop SPY—it’s basically the same as VOO. Keep it simple but effective.

@Shay
So you’re saying I should just stick with VOO? I’ve been considering VXUS too. Thanks for the tip!

Payne said:
@Shay
So you’re saying I should just stick with VOO? I’ve been considering VXUS too. Thanks for the tip!

Exactly. You could go 70% VOO, 20% VXUS, and maybe think about bonds way later, closer to retirement. Right now, growth is where you should focus.

@Shay
Makes sense. I’ll adjust my portfolio. Thanks again for the advice!

What’s your goal with the extra cash?

  1. If you’re thinking of buying a house someday, start saving in a safe option like CDs or a high-yield savings account.

  2. You could invest in yourself—maybe classes or certifications that will help your career.

  3. If your employer offers a 401k, that could be a good move. Otherwise, a taxable brokerage account works too.

  4. For long-term investing, stick with simple ETFs like VOO and VXUS. Bonds can wait until you’re older or want to lower risk. Just rebalance your portfolio every so often to stay on track.

@Oren
Thanks for breaking it down! Right now, my plan is maxing out my Roth IRA, keeping a decent emergency fund, and putting the rest into ETFs and maybe some individual stocks. Any stocks you’d suggest or strategies to try?

@Payne
Sounds like you’re on the right track. For individual stocks, go with companies you know and believe in. If you’re unsure, sticking to ETFs is a great choice. Keep up the good work!

Why do you have both VOO and SPY? They track the same index.

Blaine said:
Why do you have both VOO and SPY? They track the same index.

Good point. A friend suggested SPY, but I didn’t realize it’s redundant. I’ll consolidate and stick with VOO.

Start with ETFs like VOO and VXUS for diversification. If you want to branch out into individual stocks, check out companies like MELI, IDXX, or ASML—they’re doing well right now. Skip bonds for now, and good luck!

@Nico
Thanks for the stock ideas! I’ll focus on ETFs for now and look into those companies. Appreciate the input!

If you’re new to investing, check out this Peter Lynch lecture on YouTube. It’s packed with solid advice: https://www.youtube.com/watch?v=rf_f8GV0yYM

This forum has a helpful wiki and flowchart for financial planning. Check it out if you need more guidance.