Beginner Seeking 401K and IRA Advice!

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youngpleb
Posts: 22
Joined: Mon Oct 16, 2017 7:06 pm

Beginner Seeking 401K and IRA Advice!

Post by youngpleb » Mon Oct 16, 2017 7:53 pm

Hi everyone, this is my first post! To tell a little bit about myself, I recently graduated from grad school (Wahoowa!) with my master's and entered the work force as a software developer. I've been reading up on investing because I like to be well-informed, and recently I finished The Bogleheads' Guide To Investing, which I really enjoyed. I learned a lot as well :happy I've been lurking on the boards for about a week, so I figured I should register and post to seek information and feedback about my current situation!

I am currently 6 weeks into my new job, and have opened a Roth IRA through Vanguard and am contributing to my Roth 401k (also Vanguard). I'm 26 years old and debt free. I have moved back home in order to save up extra hard for the next 12 months or so. I'm not sure if I want to buy a house following that or just find a place to rent for a while, but either way I'll have some good savings stored up, if not for anything more than just an emergency fund (my current one sits at $6,000).

I guess what I am seeking is asset allocation help mainly (as well as any other life advice you feel like you wish to dispense :mrgreen: )

Here are my 401k options available through work and their expense ratios:

Passive
Vanguard Institutional Index Fund (VINIX) .04%
Vanguard Extended Market Index Fund (VIEIX) .06%
Vanguard Total International Stock Index Fund (VTSNX) .09%

Active
Wells Fargo Discovery Fund (WFDSX) .87%
T. Rowe Price Inst. Large Cap Core Growth Fund (TPLGX) .57%
Diamond HIll Large Cap Fund (DHLYX) .58%
AMG SouthernSun U.S. Equity Fund (SSEIX) .96%
Dodge & Cox International Stock Fund (DODFX) .64%

Bonds
Vanguard Total Bond Market Index Fund (VBTIX) .04%
Scout Core Plus Bond Fund (SCPZX) .4%

As well as the standard VG Target Retirement Funds 2015-2060.

I'd like to think I didn't do a terrible job with my current AA, which is as follows:

------------------------------------------------------------------------
Vanguard Extended Market Index Fund -- 25%
Vanguard Institutional Index Fund -- 25%
Vanguard Total International Stock Index Fund -- 20%
T. Rowe Price Inst. Large Cap Core Growth Fund -- 12%
Diamond HIll Large Cap Fund -- 8%
Vanguard Total Bond Market Index Fund -- 10%
------------------------------------------------------------------------

I know index funds are hard to beat in the long run, so I let them dominate my portfolio except for the 20% for T. Rowe and Diamond Hill. They've both been performing strongly so I wanted to give them a small try, especially the T. Rowe fund since it is oriented towards LC growth, and I'm trying to tilt my portfolio towards growth and also small and mid caps (hence the 25% in VIEIX).

So that is my 401k as it currently stands. I'm now contributing 40% gross of each paycheck for the rest of the year, just to lay a solid foundation. Once next year starts, I figure to invest about $8400 a year, plus the company will put in another $3600, which is the max I can get from them.


On the Roth IRA front, I've maxed it out for 2017 and plan to max it out every year for the foreseeable future. Since I only have $5,500 in it at the moment, the $3,000 minimums are pretty tough to work around lol. So I put some in a target fund temporarily since they have 2K mins.

------------------------------------------------------------------------
Vanguard Small-Cap Index Fund (NAESX) .18 ER -- 60%
Vanguard Target Retirement 2055 (VFFVX) .16 ER -- 40%
------------------------------------------------------------------------

The Roth IRA is where I feel a realm of possibilities awaits me, simply from all the funds that are available. It probably wasn't the best idea to put most of this in SC, but once I have 6K in my IRA, I think I will put 3K of that into VTSMX. Then once I'm at 9K, I plan to add an international index fund. Then a LC or MC growth fund. Then an actively-managed fund with good results, like Windsor perhaps. Then something like an international explorer-type fund. Then begin working towards admiral shares where possible, starting with VTSMX-->VTSAX.

This is all preliminary, and exists as nothing more than an Excel spreadsheet right now besides my small-cap fund and the 2055 target fund :thumbsup

So...what do you think? Feel free to ask questions if I left out anything important! I'm looking forward to talking with you all.

JBTX
Posts: 1530
Joined: Wed Jul 26, 2017 12:46 pm

Re: Beginner Seeking 401K and IRA Advice!

Post by JBTX » Mon Oct 16, 2017 11:55 pm

Congrats, welcome to BH and you are off to a great start! Keep saving like this and 30 years down the road you won't regret. I'm sure you've seen examples of how maximizing savings when you are young makes a huge difference with what you end up with.


youngpleb wrote:
Mon Oct 16, 2017 7:53 pm
Hi everyone, this is my first post! To tell a little bit about myself, I recently graduated from grad school (Wahoowa!) with my master's and entered the work force as a software developer. I've been reading up on investing because I like to be well-informed, and recently I finished The Bogleheads' Guide To Investing, which I really enjoyed. I learned a lot as well :happy I've been lurking on the boards for about a week, so I figured I should register and post to seek information and feedback about my current situation!

I am currently 6 weeks into my new job, and have opened a Roth IRA through Vanguard and am contributing to my Roth 401k (also Vanguard). I'm 26 years old and debt free. I have moved back home in order to save up extra hard for the next 12 months or so. I'm not sure if I want to buy a house following that or just find a place to rent for a while, but either way I'll have some good savings stored up, if not for anything more than just an emergency fund (my current one sits at $6,000).
Rent as long as you can. Worry about a house if and when you married and/or want to start a family, or otherwise you want to "settle down" and spend more of your weekend (and money) maintaining your house.

I guess what I am seeking is asset allocation help mainly (as well as any other life advice you feel like you wish to dispense :mrgreen: )

Here are my 401k options available through work and their expense ratios:

Passive
Vanguard Institutional Index Fund (VINIX) .04%
Vanguard Extended Market Index Fund (VIEIX) .06%
Vanguard Total International Stock Index Fund (VTSNX) .09%

Active
Wells Fargo Discovery Fund (WFDSX) .87%
T. Rowe Price Inst. Large Cap Core Growth Fund (TPLGX) .57%
Diamond HIll Large Cap Fund (DHLYX) .58%
AMG SouthernSun U.S. Equity Fund (SSEIX) .96%
Dodge & Cox International Stock Fund (DODFX) .64%

Bonds
Vanguard Total Bond Market Index Fund (VBTIX) .04%
Scout Core Plus Bond Fund (SCPZX) .4%

As well as the standard VG Target Retirement Funds 2015-2060.

I'd like to think I didn't do a terrible job with my current AA, which is as follows:

------------------------------------------------------------------------
Vanguard Extended Market Index Fund -- 25%
Vanguard Institutional Index Fund -- 25%
Vanguard Total International Stock Index Fund -- 20%
T. Rowe Price Inst. Large Cap Core Growth Fund -- 12%
Diamond HIll Large Cap Fund -- 8%
Vanguard Total Bond Market Index Fund -- 10%
------------------------------------------------------------------------

I know index funds are hard to beat in the long run, so I let them dominate my portfolio except for the 20% for T. Rowe and Diamond Hill. They've both been performing strongly so I wanted to give them a small try, especially the T. Rowe fund since it is oriented towards LC growth, and I'm trying to tilt my portfolio towards growth and also small and mid caps (hence the 25% in VIEIX).
If I were in your shoes, I'd just stick with the index funds. Funds that "perform strongly" typically after a while revert to the mean, except they have higher fees. Hot funds attract a lot of new money, and even if there was some skill behind the "alpha" (which is debatable vs just coin flippling luck) the fund quickly becomes bloated and performs like the market, minus higher fees). But if you really want to try them for a while, at 20% of your portfolio it won't make a huge difference. (Full disclosure, I have a fair amount in some active funds, mostly low fee, for specific reasons (of which the legitimacy is debatable), but trying to move more towards index funds)

So that is my 401k as it currently stands. I'm now contributing 40% gross of each paycheck for the rest of the year, just to lay a solid foundation. Once next year starts, I figure to invest about $8400 a year, plus the company will put in another $3600, which is the max I can get from them.
Just curious, how are you putting 40% of your salary in a 401k?
On the Roth IRA front, I've maxed it out for 2017 and plan to max it out every year for the foreseeable future. Since I only have $5,500 in it at the moment, the $3,000 minimums are pretty tough to work around lol. So I put some in a target fund temporarily since they have 2K mins.

------------------------------------------------------------------------
Vanguard Small-Cap Index Fund (NAESX) .18 ER -- 60%
Vanguard Target Retirement 2055 (VFFVX) .16 ER -- 40%
------------------------------------------------------------------------

The Roth IRA is where I feel a realm of possibilities awaits me, simply from all the funds that are available. It probably wasn't the best idea to put most of this in SC, but once I have 6K in my IRA, I think I will put 3K of that into VTSMX. Then once I'm at 9K, I plan to add an international index fund. Then a LC or MC growth fund. Then an actively-managed fund with good results, like Windsor perhaps. Then something like an international explorer-type fund. Then begin working towards admiral shares where possible, starting with VTSMX-->VTSAX.

This is all preliminary, and exists as nothing more than an Excel spreadsheet right now besides my small-cap fund and the 2055 target fund :thumbsup

So...what do you think? Feel free to ask questions if I left out anything important! I'm looking forward to talking with you all.
You are doing what I have done over the years, and still do. You pick some good funds, like you are at a fund supermarket, become attached to them for various reasons, and likely end up with a portfolio that in total mostly resembles the broader market.

It is hard for me to find the logic of having a Roth IRA 40% in a target retirement fund, then 60% in a small cap fund. But they are both good funds. And it isn't unreasonable at your age to want to tilt toward small cap.

I suspect what you are doing will probably work out fine, but ask yourself for the added level of complication of a hodge podge of funds, are you really going to be better off vs something like a 3 index fund portfolio or a retirement date fund?

Good luck!

mega317
Posts: 1115
Joined: Tue Apr 19, 2016 10:55 am

Re: Beginner Seeking 401K and IRA Advice!

Post by mega317 » Tue Oct 17, 2017 2:20 am

Welcome to the forum. I have a few thoughts:
+1 rent until your life takes shape.
+1 active funds that have performed well are not guaranteed, or even particularly likely, to continue. IMO there is no reason to pay more than 0.09% ER in your 401k. You are extremely lucky.

I think you're putting the cart before the horse a bit. The first step is to determine your risk tolerance and goals. From there you choose an asset allocation. (I think 10% bonds is not enough at any age.) Then you choose funds to fit that allocation. The usual result is that you end up with a more simple portfolio. I prefer the three fund portfolio, but there is nothing wrong or bad about tilts or other choices. But you need a plan, don't just choose funds because they seem good without fitting into a larger picture.

Quick, can you tell us what % of your overall portfolio is growth vs value, and what % in large/mid/small caps? IMO if you don't have an idea off the top of your head, your portfolio is too complicated.

Nice job contributing such a large amount to the 401k. I'm curious why you are planning to dial back contributions after this year? (You didn't explicitly state that but it seems like that's what you're saying.)

There are easier ways around the 3k minimums. Just buy one fund in the Roth for now, and adjust your allocation in the 401k so that the total portfolio is what you want it. Don't get carried away with "a realm of possibilities." Just because you have options it doesn't mean you need to or should use them all.

It's hard to create a sample portfolio without numbers on the size of your 401k and contributions but one possible option is to start with all VTSAX in the Roth, and set your 401k contributions to a combination of institutional index, +/- small cap, total international, and total bond so that you reach your target allocation by the end of the year. One simple asset allocation is 50% US stock, 25% international, 25% bonds.

I wouldn't think twice about investor vs admiral shares. The absolute dollars difference is meaningless.

Olemiss540
Posts: 189
Joined: Fri Aug 18, 2017 8:46 pm

Re: Beginner Seeking 401K and IRA Advice!

Post by Olemiss540 » Tue Oct 17, 2017 6:25 pm

Can't beat a target date fund for an all in one low cost solution.

Why not stick with target date funds and improve convenience while a small shift in returns will gain you little early in your investing career. Spend your time focused on maximizing your personal capital and increasing that income!

youngpleb
Posts: 22
Joined: Mon Oct 16, 2017 7:06 pm

Re: Beginner Seeking 401K and IRA Advice!

Post by youngpleb » Tue Oct 17, 2017 7:35 pm

JBTX wrote:
Mon Oct 16, 2017 11:55 pm
Congrats, welcome to BH and you are off to a great start! Keep saving like this and 30 years down the road you won't regret. I'm sure you've seen examples of how maximizing savings when you are young makes a huge difference with what you end up with.
Yeah I definitely have. I'm actually kinda bummed that I self-limited myself to start investing until age 26 haha. Grad school was worth it though, because it helped me get my current job! Thanks for the welcome and the reply!
JBTX wrote:
Mon Oct 16, 2017 11:55 pm
If I were in your shoes, I'd just stick with the index funds. Funds that "perform strongly" typically after a while revert to the mean, except they have higher fees. Hot funds attract a lot of new money, and even if there was some skill behind the "alpha" (which is debatable vs just coin flippling luck) the fund quickly becomes bloated and performs like the market, minus higher fees). But if you really want to try them for a while, at 20% of your portfolio it won't make a huge difference. (Full disclosure, I have a fair amount in some active funds, mostly low fee, for specific reasons (of which the legitimacy is debatable), but trying to move more towards index funds)
I guess the 20% in active funds is just kind of me sowing my wild investing oats :mrgreen: I will definitely be transitioning to an even higher percentage of index funds in the future.
JBTX wrote:
Mon Oct 16, 2017 11:55 pm
Just curious, how are you putting 40% of your salary in a 401k?
So it's not 40% of my annual salary, just 40% of what I will be making in 2017 at my job, which I just started in September. So 40% of 1/3 of a year's salary! Sorry, I probably didn't explain that clearly.
JBTX wrote:
Mon Oct 16, 2017 11:55 pm
You are doing what I have done over the years, and still do. You pick some good funds, like you are at a fund supermarket, become attached to them for various reasons, and likely end up with a portfolio that in total mostly resembles the broader market.

It is hard for me to find the logic of having a Roth IRA 40% in a target retirement fund, then 60% in a small cap fund. But they are both good funds. And it isn't unreasonable at your age to want to tilt toward small cap.

I suspect what you are doing will probably work out fine, but ask yourself for the added level of complication of a hodge podge of funds, are you really going to be better off vs something like a 3 index fund portfolio or a retirement date fund?

Good luck!
Yeah my IRA is a mess right now, and I probably should just put it all in a total stock market index fund. I definitely like the simplicity of the 3 index fund portfolio, and I'm sure as I hit my 30's I'll transition towards it. I am definitely just excited starting my investing journey right now, hence me spewing funds all over my initial post lol. Once I calm down though (and also contribute more), my IRA will shape up. The retirement funds are ok to me, but I like having the ability to fine-tune.

youngpleb
Posts: 22
Joined: Mon Oct 16, 2017 7:06 pm

Re: Beginner Seeking 401K and IRA Advice!

Post by youngpleb » Tue Oct 17, 2017 7:49 pm

mega317 wrote:
Tue Oct 17, 2017 2:20 am
Welcome to the forum. I have a few thoughts:
+1 rent until your life takes shape.
+1 active funds that have performed well are not guaranteed, or even particularly likely, to continue. IMO there is no reason to pay more than 0.09% ER in your 401k. You are extremely lucky.
Thanks, I really do consider myself blessed to be working for a great company. Having seen other people's 401k options through work, I realize how lucky I am.
mega317 wrote:
Tue Oct 17, 2017 2:20 am
I think you're putting the cart before the horse a bit. The first step is to determine your risk tolerance and goals. From there you choose an asset allocation. (I think 10% bonds is not enough at any age.) Then you choose funds to fit that allocation. The usual result is that you end up with a more simple portfolio. I prefer the three fund portfolio, but there is nothing wrong or bad about tilts or other choices. But you need a plan, don't just choose funds because they seem good without fitting into a larger picture.

Quick, can you tell us what % of your overall portfolio is growth vs value, and what % in large/mid/small caps? IMO if you don't have an idea off the top of your head, your portfolio is too complicated.
Sorry, I should have mentioned that in my original post! I am extremely risk tolerant, and my general investing goals are to get a nice nest egg going to utilize the power of compound interest, especially while I am still unmarried and with relatively low living expenses. Overall my plan is a good balance while tilting towards growth and small & mid caps. I like to track percentages of growth vs. value and the cap distribution too, so I'm not worried about things becoming too complex too quickly. I'm just trying to fine-tune my future plan as far as which small/mid/growth funds to invest in and whatnot in order to achieve the balance that helps me sleep good at night!
mega317 wrote:
Tue Oct 17, 2017 2:20 am
Nice job contributing such a large amount to the 401k. I'm curious why you are planning to dial back contributions after this year? (You didn't explicitly state that but it seems like that's what you're saying.)

There are easier ways around the 3k minimums. Just buy one fund in the Roth for now, and adjust your allocation in the 401k so that the total portfolio is what you want it. Don't get carried away with "a realm of possibilities." Just because you have options it doesn't mean you need to or should use them all.
So the dialed-back number of $8,400 is just a rough estimate right now, which assumes I move out into the worst-case scenario (i.e. no roommates, poor insulation so higher heat bill, et cetera). So 8,400 is kind of my "floor" number. Keep in mind I'll also be maxing out my IRA as well as my HSA (another $2,900, which I will also invest). It could very well be more around the 12K range though, time will tell.
mega317 wrote:
Tue Oct 17, 2017 2:20 am
It's hard to create a sample portfolio without numbers on the size of your 401k and contributions but one possible option is to start with all VTSAX in the Roth, and set your 401k contributions to a combination of institutional index, +/- small cap, total international, and total bond so that you reach your target allocation by the end of the year. One simple asset allocation is 50% US stock, 25% international, 25% bonds.

I wouldn't think twice about investor vs admiral shares. The absolute dollars difference is meaningless.
So by the end of the year, my 401k will have about $8,500 in it and my IRA will be maxed out at $5,500, if that helps. Currently my IRA is maxed out, and I have ~$3,500 in my 401k.

I'll gross 60K/year starting next year, so with $8,400 + $5,500 + $2,900 = $16,800 invested next year (maybe up to 20K, depending on how life goes!). Even at the minimum, that's 28% of my gross salary, which I feel is a good starting point.

mega317
Posts: 1115
Joined: Tue Apr 19, 2016 10:55 am

Re: Beginner Seeking 401K and IRA Advice!

Post by mega317 » Tue Oct 17, 2017 8:20 pm

By goals I mean what are you going to do with your money? Some examples would be: pay off student loans, buy a car, take a vacation, retire early. If every free dollar is going in to 401k, Roth, and HSA, you won't be saving towards a down payment on a house, for example. I'm not saying what you're doing is wrong, just make sure it's considered.

WRT risk tolerance I'll take you at your word but I always point out my opinion that you can't really know you're extremely risk tolerant because you've never lost a lot of money in a stock crash.

youngpleb
Posts: 22
Joined: Mon Oct 16, 2017 7:06 pm

Re: Beginner Seeking 401K and IRA Advice!

Post by youngpleb » Tue Oct 17, 2017 8:45 pm

mega317 wrote:
Tue Oct 17, 2017 8:20 pm
By goals I mean what are you going to do with your money? Some examples would be: pay off student loans, buy a car, take a vacation, retire early. If every free dollar is going in to 401k, Roth, and HSA, you won't be saving towards a down payment on a house, for example. I'm not saying what you're doing is wrong, just make sure it's considered.

WRT risk tolerance I'll take you at your word but I always point out my opinion that you can't really know you're extremely risk tolerant because you've never lost a lot of money in a stock crash.
Ah ok thanks, I figured you meant long-term investment goals. I'm debt free at the moment, so there's no immediate need for paying anything off, but I do want to build up a sizable emergency fund (say 18 months of my standard operating expenses) over the next couple of years. As far as retirement, I'd love to be retired by my mid-to-late fifties. Other than that, I don't too many other goals, like vacations or big purchases and the like.

crumbone
Posts: 52
Joined: Thu Oct 12, 2017 11:50 pm

Re: Beginner Seeking 401K and IRA Advice!

Post by crumbone » Tue Oct 17, 2017 10:26 pm

youngpleb wrote:
Tue Oct 17, 2017 7:49 pm
mega317 wrote:
Tue Oct 17, 2017 2:20 am
Welcome to the forum. I have a few thoughts:
+1 rent until your life takes shape.
+1 active funds that have performed well are not guaranteed, or even particularly likely, to continue. IMO there is no reason to pay more than 0.09% ER in your 401k. You are extremely lucky.
Thanks, I really do consider myself blessed to be working for a great company. Having seen other people's 401k options through work, I realize how lucky I am.
mega317 wrote:
Tue Oct 17, 2017 2:20 am
I think you're putting the cart before the horse a bit. The first step is to determine your risk tolerance and goals. From there you choose an asset allocation. (I think 10% bonds is not enough at any age.) Then you choose funds to fit that allocation. The usual result is that you end up with a more simple portfolio. I prefer the three fund portfolio, but there is nothing wrong or bad about tilts or other choices. But you need a plan, don't just choose funds because they seem good without fitting into a larger picture.

Quick, can you tell us what % of your overall portfolio is growth vs value, and what % in large/mid/small caps? IMO if you don't have an idea off the top of your head, your portfolio is too complicated.
Sorry, I should have mentioned that in my original post! I am extremely risk tolerant, and my general investing goals are to get a nice nest egg going to utilize the power of compound interest, especially while I am still unmarried and with relatively low living expenses. Overall my plan is a good balance while tilting towards growth and small & mid caps. I like to track percentages of growth vs. value and the cap distribution too, so I'm not worried about things becoming too complex too quickly. I'm just trying to fine-tune my future plan as far as which small/mid/growth funds to invest in and whatnot in order to achieve the balance that helps me sleep good at night!
mega317 wrote:
Tue Oct 17, 2017 2:20 am
Nice job contributing such a large amount to the 401k. I'm curious why you are planning to dial back contributions after this year? (You didn't explicitly state that but it seems like that's what you're saying.)

There are easier ways around the 3k minimums. Just buy one fund in the Roth for now, and adjust your allocation in the 401k so that the total portfolio is what you want it. Don't get carried away with "a realm of possibilities." Just because you have options it doesn't mean you need to or should use them all.
So the dialed-back number of $8,400 is just a rough estimate right now, which assumes I move out into the worst-case scenario (i.e. no roommates, poor insulation so higher heat bill, et cetera). So 8,400 is kind of my "floor" number. Keep in mind I'll also be maxing out my IRA as well as my HSA (another $2,900, which I will also invest). It could very well be more around the 12K range though, time will tell.
mega317 wrote:
Tue Oct 17, 2017 2:20 am
It's hard to create a sample portfolio without numbers on the size of your 401k and contributions but one possible option is to start with all VTSAX in the Roth, and set your 401k contributions to a combination of institutional index, +/- small cap, total international, and total bond so that you reach your target allocation by the end of the year. One simple asset allocation is 50% US stock, 25% international, 25% bonds.

I wouldn't think twice about investor vs admiral shares. The absolute dollars difference is meaningless.
So by the end of the year, my 401k will have about $8,500 in it and my IRA will be maxed out at $5,500, if that helps. Currently my IRA is maxed out, and I have ~$3,500 in my 401k.

I'll gross 60K/year starting next year, so with $8,400 + $5,500 + $2,900 = $16,800 invested next year (maybe up to 20K, depending on how life goes!). Even at the minimum, that's 28% of my gross salary, which I feel is a good starting point.
While factor-tilted portfolios (small cap and value being the best-known and most-discussed) may earn you some additional risk premium, consider this:

-They may not, or may underperform for many years (and have in the past)

-They add complexity and require you to exercise additional discipline in maintaining their desired percentage allocation

-it is generally cheaper to hold cap-weighted total market funds (or equivalent), and an expense avoided is essentially a return


Remember that all of this is fun and exciting until your first serious bear market. The best way to make sure you stay out of your own way is to give yourself as little room to tinker as possible. That means either a target date fund or 3-fund (4 in your case-- institutional index/extended market/total international/total bond) portfolio in a pre-set, policy-defined asset allocation (that can't be changed on short notice.)

By all means, make spreadsheets about everything you want, but make your portfolio simple, contribute as much as you can, and then SIT ON YOUR HANDS.

clydewolf
Posts: 673
Joined: Tue Jul 21, 2015 12:51 pm

Re: Beginner Seeking 401K and IRA Advice!

Post by clydewolf » Wed Oct 18, 2017 2:21 pm

Good suggestions on investing.

I do hope you are paying your parents some amount for Room and Board!

GMT-8
Posts: 121
Joined: Fri Mar 26, 2010 5:11 pm

Re: Beginner Seeking 401K and IRA Advice!

Post by GMT-8 » Wed Oct 18, 2017 2:37 pm

"make your portfolio simple, contribute as much as you can, and then SIT ON YOUR HANDS"

I fully agree with this, put your depositing strategy on autopilot so you do not have to actively put money in.
Then leave your retirement money alone and if you want to sow your wild oats, go to the beach or mountains!

Don't do it in the stock market, and don't use your retirement money. It has 50 years to grow for you if you leave it alone.

My 2 cents.

GMT-8

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