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25 and seeking financial/investing advice
Posted on 1/3/21 at 10:12 am
Posted on 1/3/21 at 10:12 am
I am 25 and I work as a registered nurse. I bought a house over the summer and, with diligent budgeting, I am able to put 15% into my roth 403b, a couple hundred in savings, and cover all of my expenses with the rest every month. I usually have some money left over at the end of the month. I have an account with Edward Jones that my grandma started several years ago that she gave to me when I graduated that has several thousand in mostly gas and oil that I don't contribute to. The return on that has never been spectacular. I was just wondering what I should be doing with that extra money that I have at the end of the month and if I should change anything regarding my investments. I feel like I should be doing something with that Edward Jones account that's just sitting there, but I'm not sure where to start.
6
Posted on 1/3/21 at 10:25 am to cd2645
You're probably paying high fees in the Edward Jones account. I would look at moving that elsewhere (Vanguard or Fidelity) and just buy low cost index funds/ETFs. Depending on your tax bracket you likely pay 15% or zero % long term capital gains on the growth. Depending on balance and taxes move it all now or spread over multiple years. But get it into something that will keep up with market and not scalp you on fees. Even 1% management fee makes a huge difference over decades of growth.
Posted on 1/3/21 at 11:10 am to TorchtheFlyingTiger
Continue to maximize your 403b, select Roth if your employer has made that available. (Pay your taxes up front and let it grow tax free).
Max out your Roth IRA.
Your home can become a huge asset if it is the right house.
I'd set up a TD Ameritrade account and xfer your EJ accounts and put that couple of hundred dollars you invest monthly into this account and start investing into things you feel good about long term.
That left over money, I'd stick into a coin base account and put it into BTC or ETH and watch what happens.
ALWAYS PAY YOURSELF FIRST!
This is assuming you already have an emergency fund ready to roll.
Max out your Roth IRA.
Your home can become a huge asset if it is the right house.
I'd set up a TD Ameritrade account and xfer your EJ accounts and put that couple of hundred dollars you invest monthly into this account and start investing into things you feel good about long term.
That left over money, I'd stick into a coin base account and put it into BTC or ETH and watch what happens.
ALWAYS PAY YOURSELF FIRST!
This is assuming you already have an emergency fund ready to roll.
This post was edited on 1/3/21 at 11:20 am
Posted on 1/3/21 at 11:19 am to cd2645
My biggest advice is to start thinking about saving / investing inverse of how you described it.
Currently it sounds like you are spending and saving what is left over
Instead, decide how much you want / need to save per month. Save 1st and spend what is left over
Set an aggressive, but realistic, savings goal. The 1st couple of months may be tough but you’ll get used to it quickly and you’ll be happy later
Currently it sounds like you are spending and saving what is left over
Instead, decide how much you want / need to save per month. Save 1st and spend what is left over
Set an aggressive, but realistic, savings goal. The 1st couple of months may be tough but you’ll get used to it quickly and you’ll be happy later
Posted on 1/3/21 at 11:22 am to POCKET
What are y’all’s thoughts on NW Mutual? Same boat as EJ? Just curious.
Posted on 1/3/21 at 12:01 pm to cd2645
As mentioned, EJ has some higher fees so you should probably look into relocating those investments if applicable.
However, don’t feel like you “have to do something” with it. Evaluate the fees and your options. But the main thing is to keep saving and keep your spending in control. Don’t feel like you need to dive into the stock market just because you’re hearing all about it right now.
Posted on 1/3/21 at 2:56 pm to cd2645
Congratulations. You are way ahead of the game compared to most 25 year olds. You are in a profession that will always be in demand. You have started by putting away 15% in a Roth 401B. That is a great starting percentage that most young people don’t come close to. Also, be sure to thank your grandmother for getting you started.
I wouldn’t be in a big hurry to get out of oil and gas at this time. Most oil and gas is still depressed due to Covid. Once people get back to more normal travel (airplane, automobile, cruise ship & vacations) and demand for fuel increases from current levels, oil and gas should recover nicely. At least I hope so because I purchased a number of these during the drop early in 2020.
Most don’t seem to like Edward Jones. I’ve never used them so I don’t know. I currently use both Fidelity and Vanguard. Like them both. You’re young so take your time, continue to learn and make up your mind after you’ve researched.
One bit of advice I have given my children about 401Ks or 403Bs. Increase the contribution percentage every time you get a raise. You’ll never miss it as your net pay should still go up.
I wouldn’t be in a big hurry to get out of oil and gas at this time. Most oil and gas is still depressed due to Covid. Once people get back to more normal travel (airplane, automobile, cruise ship & vacations) and demand for fuel increases from current levels, oil and gas should recover nicely. At least I hope so because I purchased a number of these during the drop early in 2020.
Most don’t seem to like Edward Jones. I’ve never used them so I don’t know. I currently use both Fidelity and Vanguard. Like them both. You’re young so take your time, continue to learn and make up your mind after you’ve researched.
One bit of advice I have given my children about 401Ks or 403Bs. Increase the contribution percentage every time you get a raise. You’ll never miss it as your net pay should still go up.
This post was edited on 1/3/21 at 2:57 pm
Posted on 1/3/21 at 10:49 pm to cd2645
Personally I think at that age, I would just put enough in retirement to get full employer match and invest the rest in an independent account. More flexibility that way.
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