This is a pretty good resource than putting that money in a savings account max out your 401 k , IRA , and HSA if you have one . In those accounts , invest in index funds or target date index funds . The growth rate is on average 7 % and taxdeferred . This money is for retirement , so put it there and leave it there . Do not pull on the money unless you need it for retirement . If the stock market crashes , stay the course and keep the money in there . It will rebound over time . With the rest of the money invest in an index fund . If you are unsure how to start out , look into Wealthfront or Betterment . These are roboadvisors that will invest your money into index funds and manage the money for you . They do charge a small fee though , depending on how much you have in there . Watch and learn how they allocate your money based on your risk level . Then once you feel more comfortable , open your own account through Vanguard , Fidelity , etc and start investing on your own .