re: New grad, new job, need investment help.

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If you had the wisdom to start a Roth IRA at the age of 15, you probably don't need our help.

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Not to knock on TTT, but I'm sure his parents helped him in that aspect. I like getting help and reading ideas from the money talk. One of the best boards on the site IMO.

It was a compliment to you. It seems like you have enough financial intelligence

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A Roth should be a long term investment vehicle. The principle is after-tax but the EARNINGS are not taxable if you do not remove them until retirement. Growth without taxation at the end is a pretty awesome vehicle for long-term investment.

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Right, but in my case, I'm debating as to how much I should allocate to my emergency fund and prospective Roth IRA (given limited means). I have no intention of dipping into my emergency fund anytime soon of course, but I'm trying to get a sense of what negative consequences I'd face if I shortchanged my cash reserves and had to draw from my IRA principle.

Contribute whatever percentage your company matches, no more. For most that's up to 6%.
Get out of the target fund. Go 50/50 bond fund/stock fund(s). S&P 500 index fund is fine.
Rebalance every 6 months.
Hold off on the Roth until you have 18 months of bills (not entertainment &clothes, etc., but rent, food, utilities, etc)
In the Roth pick 5 - 8 dividend paying stocks. Preferably companies which have raised the dividend on yearly basis for a good while. Auto reinvest the dividends.
And don't buy stuff on credit! So save your money and pay cash. Remember it's not what you make, it's what you keep that is important.

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And don't buy stuff on credit! So save your money and pay cash. Remember it's not what you make, it's what you keep that is important.

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You can easily keep more of your money by using a credit card for your expenses and paying off the balance each month. Most reward-granting credit cards will give you 1% back on all of your purchases, and usually about 5% or more on certain categories. If you have the discipline to restrict all of your purchases to cash, then you should also be disciplined enough to keep your credit card purchases in check.

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Also, don't buy on credit? Why not? I get a free hotel room every couple of months and pay off my balance in full every month. I don't see the harm.

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He means don't buy on credit and pay the interest every month. You're losing money that way.

If you're paying it off every month and using it to get rewards, there's nothing wrong with that.

ETA: Also, I'll be in a similar boat soon, though not bring home quite as much. Congrats on the job!

I took Finance last fall at UGA and had a brilliant professor for it. He held a voluntary class at the end of the semester to give us investment advice. He recommended this book, which goes over 10 rules for financial success. He went over several of them and it was sound advice, so I'd recommend checking this book out.

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And don't buy stuff on credit! So save your money and pay cash. Remember it's not what you make, it's what you keep that is important.

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I didn't completely agree with you but when I got to this point you lost your credibility with me.

Anyone who says avoid credit at all costs does not know how to utilize it. I pay my bill off each month and have free flights, hotels stays, and cash for my commitment to those cards. All you have is an expense with no reward.

ETA: When posters say not to use credit, I am not going to assume they are trying to say "just pay it off each month".

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Hold off on the Roth until you have 18 months of bills (not entertainment &clothes, etc., but rent, food, utilities, etc)

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Seems like too much in cash reserves considering you're basically losing money in order to maintain liquidity.

Yeah that's a shitton of money, like over 20 grand for me

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LSUtoOmaha

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How's your new job coming along?