ProfessorPlatypus wrote:I’m 24, making $50k, I have $25k sitting in my savings/checking accounts, and I want to start investing my money.
My employer unfortunately uses ADP as their 401k provider. I've heard bad things about them, but my company will match up to 4% if I contribute 6%. So my plan is to contribute 6% every year, and have a maxed out Vanguard Roth IRA on the side. Does this sound like a good idea?
I also need help choosing which funds to invest my 401k into. Here are my options:
-0.46 PTTRX PIMCO Total Return Fund - Class A
-0.18 SVSPX SSgA S&P 500 Index Securities Lending Series Fund - Class IX
Because I’m young, I don’t mind taking on a decent amount of risk. But I also know that the market has been skyrocketing lately, and it seems like a bad time to get into investing. Let me know your thoughts.
WHL wrote:I'm not an expert, but I concur with Bolder on the two funds to use. For international exposure, use your Roth IRA.
Unless you can gain a tax credit or something by reducing your taxable income, I would contribute to a Roth.
I would also think that you have no need to open a taxable brokerage account. If you want to contribute more, just up your 401k contribution amount. The two funds suggested are decent enough.
ProfessorPlatypus wrote:I could also open a separate 401k with Vanguard if I can cheaper expense ratios.
ProfessorPlatypus wrote:So here's my current plan. I'm going to invest 10% of my salary, with the 4% match, in my 401k, 60% in stocks and 40% in bonds. I'll max my Roth IRA purely with stocks (including an international fund). So in a year, that will come out to roughly $9700 in stocks and $2800 in bonds. This gives me 77.6% to 22.4%. Is this too much in stocks? What do you guys think?
Johm221122 wrote:This seems like a good soultion for now, but revisit your traditional vs Roth decision as time goes by.Read this link about Roth and occasionally look at your traditional vs roth decision
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