Fellow monkeys and ex-monkeys,
I left my investment banking position after 2 years to travel and look at options outside of finance. I'm not here to discuss why I left but rather what to do with the 60k cash I was able to put aside.
I plan on taking a few contract like jobs for the next year, and travel a bit while thinking about potentially starting my own business. The contract work will essentially cover my housing and travel expenses, so that I don't dip into the 60k.
Have any of you been in similar situations? As I see see it now, some of the main options are as follows:
* Invest in equity: I'm of the belief that equities are at all time highs and don't think it is an optimal choice, as I will likely want to access the money in the next 3-5 years. I think investing in equities with an, with regular monthly contributions (benefiting from dollar cost averaging etc), can be a good strategy for those who have a 10 year+ horizon and regular money coming in to contribute. This is not my case.
* Lower risk (Bonds, Term deposits, GICs): Some of these options might make sense, however most term deposits / high interest savings account won't even cover inflation. Not too keen on the bond market either with interest rates only going one way.
* Buying property: Will be tough to get a mortgage as I no longer have a steady job. No properties to be purchased outright in cash for 60k in my area (one of the most expensive cities in North America).
Any thoughts on the above or other options you would consider if you were in this situation?
Look forward to discussing.