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Investment Allocation Strategy

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23 and Currently making 130k/year with a stable income and consistent raises every 6 months. This job also has an end of year bonus that is projected to be between 40k-60k this year so I am using 40k as the minimum figure for that bonus. I also have a side job that I will make at minimum 50k this year doing. For a combined total income this year of 220k. I have an individual brokerage account that I started this year with $105k in it invested in vanguards. I also have a Roth 401k that has been maxed out the previous two years and is sitting at 59k as of this morning. For the remainder of the year, I am wondering if I should contribute more of my income to my individual brokerage account, or if I should invest into things in my personal life. Things such as paying off my car (23k left), make additional mortgage payments (just moved in at beginning of April), or save up for an investment property.

I'll help you think through this allocation decision. Let me first understand your current financial position and then frame the key trade-offs.

Your situation is strong, and the answer depends on your priorities and risk tolerance — not just returns.

You have ~$90k in discretionary income (bonus + side job) to allocate. Your invested assets are $164k, and you're 23 with a 40+ year horizon. Here's how to think about it:

The Core Trade-Off

Brokerage investing (stocks/ETFs) offers:

Long-term wealth compounding (7–10% real returns historically)
Tax efficiency in a Roth 401k (already maxed, good)
Flexibility (can access funds if needed, though taxable gains apply)
Highest long-term upside

Personal debt/real estate offers:

Guaranteed "return" (car loan interest rate, mortgage rate)
Reduced financial stress and optionality
Tangible assets with leverage
Psychological/lifestyle benefit

What I'd Recommend (Framework, Not a Command)

Priority 1: Understand your car loan rate and mortgage rate.

If your car loan is >5%, paying it off is a strong move (guaranteed return beats market uncertainty)
If your mortgage is <4%, investing likely wins on a pure math basis
If your mortgage is 5–6%, it's closer and depends on your risk tolerance

Priority 2: Build a 6-month emergency fund in cash if you don't have one.

You have two income streams (main job + side gig), so 3–4 months might suffice
This is non-negotiable before aggressive investing or real estate

Priority 3: Allocate the $90k discretionary income like this:

Scenario	Car Payoff	Extra Mortgage	Brokerage	Real Estate Fund
Conservative (reduce debt stress)	$15–20k	$10–15k	$30–40k	$20–30k
Balanced (mix all goals)	$10k	$10k	$40–50k	$20–30k
Growth-focused (maximize compounding)	$0–5k	$0–5k	$60–70k	$15–20k

Why this split matters:

Car payoff ($10–20k): Frees up monthly cash flow (~$400–500/mo depending on rate). That freed-up cash can then flow into brokerage or real estate savings. Psychological win at 23.
Extra mortgage payments ($10–15k): Builds home equity, reduces interest paid over 30 years, but ties up capital. Only do this if your mortgage rate is >5% or you want the psychological anchor.
Brokerage ($40–70k): At 23, this is your highest-return asset class over 40 years. Vanguard index funds are solid. Dollar-cost averaging this over the year (monthly contributions) smooths volatility.
Real estate fund ($15–30k): Investment property is a long-term play. Starting a down-payment fund now (even $20k/year) gets you to 20% down on a $200–300k property in 3–5 years. This is leverage + tax benefits + diversification.

Red Flags to Avoid

Don't max out brokerage at the expense of an emergency fund. Two income streams are good, but side gigs can dry up.
Don't ignore the car loan if it's >6%. That's a guaranteed loss versus investing.
Don't rush into an investment property without 20% down + 6-month reserves. Leverage is powerful but risky.

My Lean

At 23 with $164k invested and $90k annual discretionary income, I'd split it roughly 50% brokerage / 30% real estate fund / 20% debt reduction. This keeps your wealth compounding, builds optionality for real estate in 3–5 years, and reduces financial friction from debt.

What would change this:

If your car loan is >6%, prioritize payoff first
If you have no emergency fund, build that before anything else
If you're planning to buy an investment property within 2 years, front-load the real estate fund

What are your car loan rate and mortgage rate? That's the key variable I'm missing.

This response may contain financial commentary based on historical data and does not constitute investment advice. Past performance is not indicative of future results. Please consult a qualified financial advisor before making investment decisions.