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Started By
Message
Late to the game: Investing in my late 20's
Posted on 12/27/17 at 9:09 am
Posted on 12/27/17 at 9:09 am
Looking for advice/constructive criticisms/thoughtful insight regarding getting started in investing.
I've got 3 months salary set aside for my "just in case fund". Should this money be invested at all? Seems wasteful to have that lump sum sitting in a savings account, but I guess it's also much less risky.
I'm wanting to dive right in. I don't have much to invest, but I know I want to get in now. I'm considering a mix of the following; mutual funds/ETFs/Peer to peer lending.
What criteria do you use to research potential Mutual funds? Are there any I should shy away from?
All advice is welcome. I like hearing different perspectives.
Forgot to mention.. I have 0 debt. But not that much capital. My next big purchase will be a home. I wouldn't say that I'm necessarily struggling to raise capital, I have just been careless with my money. On the bright side, I invest 10% into my 401k (which is currently all allocated to a target date?) and another 10% into my company's ESPP.
I've got 3 months salary set aside for my "just in case fund". Should this money be invested at all? Seems wasteful to have that lump sum sitting in a savings account, but I guess it's also much less risky.
I'm wanting to dive right in. I don't have much to invest, but I know I want to get in now. I'm considering a mix of the following; mutual funds/ETFs/Peer to peer lending.
What criteria do you use to research potential Mutual funds? Are there any I should shy away from?
All advice is welcome. I like hearing different perspectives.
Forgot to mention.. I have 0 debt. But not that much capital. My next big purchase will be a home. I wouldn't say that I'm necessarily struggling to raise capital, I have just been careless with my money. On the bright side, I invest 10% into my 401k (which is currently all allocated to a target date?) and another 10% into my company's ESPP.
12
Posted on 12/27/17 at 9:20 am to SouthMSReb
Keep the 3 months set aside as your "emergency fund". Take 20 bucks and buy Dave Ramsey's book "The Total Money Makeover" Should help you out a lot. Easy read.
Posted on 12/27/17 at 9:39 am to SouthMSReb
quote:
I've got 3 months salary set aside for my "just in case fund". Should this money be invested at all? Seems wasteful to have that lump sum sitting in a savings account, but I guess it's also much less risky.
You never know when something can pop up. Good to have money on standby.
quote:
I'm wanting to dive right in. I don't have much to invest, but I know I want to get in now. I'm considering a mix of the following; mutual funds/ETFs/Peer to peer lending.
I suggest Vanguard. I got started with a Target Date fund. They have a lot of resources on there to teach you.
Start a Roth IRA, pick the Vangard Target Date Retirement fund (I think it costs $3,000 to open), then make monthly contributions up to the yearly limit (or however you want to do it.)
Posted on 12/27/17 at 9:43 am to SouthMSReb
If you have cash set aside and no debt in your late 20s then you’re not late to the game.
Job well done.
Job well done.
Posted on 12/27/17 at 9:53 am to HailToTheChiz
quote:
I suggest Vanguard. I got started with a Target Date fund. They have a lot of resources on there to teach you.
Start a Roth IRA, pick the Vangard Target Date Retirement fund (I think it costs $3,000 to open), then make monthly contributions up to the yearly limit (or however you want to do it.)
Slight thread hijack here...I have a target date fund with vanguard and did exactly as you mentioned. I have retirement accounts through work but I wanted to do a little extra so opened the VG fund and contribute monthly into it.
My question is, let's just say by some utter miracle I retire earlier than 60-whatever and want to essentially "cash out" prior to the target date I have set. Is that possible? I know it'll be decades before I actually have to worry about this but I'm just curious. and let's say it's not possible and it is totally locked in...what happens in the year that I set as my target date? Does it basically turn into like a checking account that I can take out of it as I please?
Posted on 12/27/17 at 10:04 am to Popths
quote:
Keep the 3 months set aside as your "emergency fund". Take 20 bucks and buy Dave Ramsey's book "The Total Money Makeover" Should help you out a lot. Easy read.
Did you even read his post? He has no debt. Amazes me how many people blindly recommend this book to people.
To the OP: Hope this serves as a lesson not to come to a forum to ask for investment advice.
Invest in an S&P 500 Index Fund or Total Stock Market Fund (Vanguard) if you aren't going to seek professional advice.
Posted on 12/27/17 at 10:22 am to LSUgolf04
I have a few thousand in an S&P 500 replica mutual fund, can get money out of it at any time within a couple days. Have earned a few hundred off of it since I set it up rather than have it sit in savings.
Posted on 12/27/17 at 10:26 am to LSUgolf04
Not to mention that the book is available for free at any public library, so no need to spend $20 lining Dave’s pockets.
Posted on 12/27/17 at 12:13 pm to WG_Dawg
quote:
My question is, let's just say by some utter miracle I retire earlier than 60-whatever and want to essentially "cash out" prior to the target date I have set. Is that possible?
I know it'll be decades before I actually have to worry about this but I'm just curious. and let's say it's not possible and it is totally locked in...what happens in the year that I set as my target date? Does it basically turn into like a checking account that I can take out of it as I please?
The target date is nothing more than a handsoff approach. The year you pick is just a way to tell Vanguard when to change your fund to a more conservative fund.
Example - you are 30 years away, it will be a lot of stocks - very aggressive, and will get conservative to as you get closer to retirement.
You can cash out whenever you want.
Posted on 12/27/17 at 12:16 pm to HailToTheChiz
thanks Chiz. So let's say I won a few mil and retired next year (definitely not happening jsut a hypothetical)...do I just call VG and tell them I want out, and then what happens? That was the other part of my question about "cashing out", I assume they don't just mail me a check. Will they transfer all the money into my bank account?
Posted on 12/27/17 at 12:19 pm to WG_Dawg
Is this just a standard account (not ira/401k)? If so, they will liquidate and send you your money however you want it.
Posted on 12/27/17 at 12:23 pm to WG_Dawg
quote:
thanks Chiz. So let's say I won a few mil and retired next year (definitely not happening jsut a hypothetical)...do I just call VG and tell them I want out, and then what happens? That was the other part of my question about "cashing out", I assume they don't just mail me a check. Will they transfer all the money into my bank account?
i have not cashed out before BUT my understanding is that they would transfer it to your linked bank account
You would essentially sell your fund, or a portion, to get the money out
Posted on 12/27/17 at 12:29 pm to SouthMSReb
8% gains in the Dow Jones
1000%-4000% gains in crypto
you decide
1000%-4000% gains in crypto
you decide
Posted on 12/27/17 at 12:43 pm to rocket31
Borrow money and invest in crypto to get these kinds of returns
quote:
-4000%
Posted on 12/27/17 at 12:57 pm to txtiger21
The strategy I use with the target funds is to spread money throughout a few different funds.
Posted on 12/27/17 at 1:09 pm to SouthMSReb
I am in pretty much the same exact situation as the OP.
Late 20s, good bit of money in a regular savings account, 8% into 401K, a little bit in cypto, no debt besides a credit card that I pay in full every month, but that is it. I want to invest. Bookmarking.
Late 20s, good bit of money in a regular savings account, 8% into 401K, a little bit in cypto, no debt besides a credit card that I pay in full every month, but that is it. I want to invest. Bookmarking.
Posted on 12/27/17 at 1:35 pm to txtiger21
quote:
-4000%
Is that what Jim Cramer told you when BTC was $5k?
This post was edited on 12/27/17 at 1:35 pm
Posted on 12/27/17 at 1:44 pm to rocket31
quote:
Is that what Jim Cramer told you when BTC was $5k?
in all seriousness, bitcoin is not an investment vehicle for retirement (and I know you arent recommending that but being funny)
Posted on 12/27/17 at 1:48 pm to HailToTheChiz
When are you scooping some ETH bro?
Posted on 12/27/17 at 2:31 pm to hungryone
quote:
Not to mention that the book is available for free at any public library, so no need to spend $20 lining Dave’s pockets.
I have nothing against Dave Ramsey really, but most of his advice seems pretty damn obvious. Stop wasting your money on stupid shite and eat on a rice and beans budget until you save some money and pay off your debts...
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