Super New To Investing and Looking For Advice.

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Topic Author
Optimistic.Pessimist
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Joined: Sun Mar 31, 2024 3:18 pm

Super New To Investing and Looking For Advice.

Post by Optimistic.Pessimist »

Hi Bogleheads,

First, wanted to say that I’m super new to investing and the finance world. Second, I am 32 years of age and About 6 months ago I opened a Target Date fund on vanguard and I am on target to max it before April 15 2024 for 2023. Lastly, I wanted to know what other investments I can do to make my retirement worth while.

I’m a freelancer that works in the entertainment industry (tv shows, movies, commercial) so no 401k.

I also wanted to see what investments I can get started for my son that’s almost 2 years of age and another child that due in November. I wanted to get them a head start in life. But not sure what I can contribute to for them or if there is anything I can do for them.

Would love something super easy and simple.

Only investment platforms I have are

Vanguard and Robinhood.

Type of Account: Roth IRA w/ Vanguard

No employees

Tax Bracket: Mostly 12%, One time I was in the 22% / Depends on how much I work in the year.

Filing Status: Jointly

State Income taxes: Califorinia

Health Insurance plan and pension plan through employer

No 1090, I have a W2, I have multiple Employers for the career I'm in.

Emergency Fund is currently at 32800 / contribute 150 a month currently

My Spouse is currently a Stay at home wife. So no income there.
Last edited by Optimistic.Pessimist on Tue Apr 02, 2024 11:39 am, edited 1 time in total.
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22twain
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Re: Super New To Investing and Looking For Advice.

Post by 22twain »

Optimistic.Pessimist wrote: Mon Apr 01, 2024 11:46 pm About 6 months ago I opened a Target Date fund on vanguard and I am on target to max it before April 15 2024 for 2023
Why is there a maximum? There are different types of accounts. Some have maximum contribution limits, and some don't. You mentioned April 15, so that gives a clue, but you should say the type of account explicitly in ordet to avoid confusion.
Meet my pet, Peeve, who loves to convert non-acronyms into acronyms: FED, ROTH, CASH, IVY, ...
Topic Author
Optimistic.Pessimist
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Joined: Sun Mar 31, 2024 3:18 pm

Re: Super New To Investing and Looking For Advice.

Post by Optimistic.Pessimist »

Sorry the Target Date fund I have its ticker symbol: VLXVX. The maximum yearly contribution is 6500 for 2023 and for 2024 is 7500. Could I contribute more than this amount to that?
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retired@50
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Re: Super New To Investing and Looking For Advice.

Post by retired@50 »

Optimistic.Pessimist wrote: Tue Apr 02, 2024 9:48 am Sorry the Target Date fund I have its ticker symbol: VLXVX. The maximum yearly contribution is 6500 for 2023 and for 2024 is 7500. Could I contribute more than this amount to that?
I think 22twain meant for you to specify the account type, not the name and/or ticker symbol of the fund, although both are helpful.

Account types: Traditional IRA, Roth IRA, non-retirement account, etc.

Given what you've shared so far, I'm guessing it's an IRA of some sort. Is that right?

Regards,
"All of us would be better investors if we just made fewer decisions." - Daniel Kahneman
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ruralavalon
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Re: Super New To Investing and Looking For Advice.

Post by ruralavalon »

Welcome to the forum :)

Do you have any employees in your business? Which fund firm or brokerage is your current IRA with? About how much (in dollars) do you believe that you might be able If contribute annually to investing?

What is your tax bracket, both federal and state? What is your tax filing status? What state do you pay any state income taxes to?


Optimistic.Pessimist wrote: Mon Apr 01, 2024 11:46 pm Hi Bogleheads,

First, wanted to say that I’m super new to investing and the finance world. Second, I am 32 years of age and About 6 months ago I opened a Target Date fund on vanguard and I am on target to max it before April 15 2024 for 2023. Lastly, I wanted to know what other investments I can do to make my retirement worth while.

I’m a freelancer that works in the entertainment industry (tv shows, movies, commercial) so no 401k.

I also wanted to see what investments I can get started for my son that’s almost 2 years of age and another child that due in November. I wanted to get them a head start in life. But not sure what I can contribute to for them or if there is anything I can do for them.

Would love something super easy and simple.

Only investment platforms I have are

Vanguard and Robinhood.
Optimistic.Pessimist wrote: Tue Apr 02, 2024 9:48 am Sorry the Target Date fund I have its ticker symbol: VLXVX. The maximum yearly contribution is 6500 for 2023 and for 2024 is 7500. Could I contribute more than this amount to that?

There are tax-advantaged retirement plans available for the self-employed which are a SEP IRA, SIMPLE IRA, and individual (solo) 401k. You should open one of these tax-advantaged retirement plans for yourself, they have higher annual contribution limits than a normal IRA.

Vanguard, Small Business Retirement, Compare our small business retirement plans, link. Fidelity and Schwab also offer these types of tax-advantaged retirement plans for the self-employed.

Do you have any employees in your business? Which fund firm or brokerage is your current IRA with? About how much (in dollars) do you believe that you might be able If contribute annually to investing?

What is your tax bracket, both federal and state? What is your tax filing status? state do you pay any state income taxes to?

Please simply add any additional information to your original post using the edit button (the pencil icon near the upper right corner of your post), it helps a lot if all of your information is in one place.
Last edited by ruralavalon on Tue Apr 02, 2024 10:08 am, edited 2 times in total.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
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BolderBoy
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Re: Super New To Investing and Looking For Advice.

Post by BolderBoy »

Optimistic.Pessimist wrote: Mon Apr 01, 2024 11:46 pmI’m a freelancer that works in the entertainment industry (tv shows, movies, commercial) so no 401k.
Does this mean you are paid via 1099? You are an independent contractor?

If so then you should consider setting up a solo401k plan and max it out as well as the tIRA or rIRA as you are doing already.

Do you have a health insurance plan? Is it a high deductible plan? If so you should consider opening an HSA and maximally funding it as well.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect
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CyclingDuo
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Re: Super New To Investing and Looking For Advice.

Post by CyclingDuo »

Optimistic.Pessimist wrote: Mon Apr 01, 2024 11:46 pmFirst, wanted to say that I’m super new to investing and the finance world. Second, I am 32 years of age and About 6 months ago I opened a Target Date fund on vanguard and I am on target to max it before April 15 2024 for 2023. Lastly, I wanted to know what other investments I can do to make my retirement worth while.

I’m a freelancer that works in the entertainment industry (tv shows, movies, commercial) so no 401k.

I also wanted to see what investments I can get started for my son that’s almost 2 years of age and another child that due in November. I wanted to get them a head start in life. But not sure what I can contribute to for them or if there is anything I can do for them.

Would love something super easy and simple.
In addition to your use of either a traditional IRA or a Roth IRA, do you qualify for a solo 401k or a SEP IRA?

Moving beyond those plans, you can invest in a taxable account. You can even set aside post-tax money into a tax deferred vehicle such as I Bonds, or something like the Fidelity Personal Retirement Annuity.

As for your toddler, you can use college education fund vehicles such as a 529 plan, and also a taxable account UTMA/UGMA.

CyclingDuo
"Save like a pessimist, invest like an optimist." - Morgan Housel | "Pick a bushel, save a peck!" - Grandpa
sailaway
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Re: Super New To Investing and Looking For Advice.

Post by sailaway »

The best thing you can do for your kid(s) right now is to put your own oxygen mask on.

Did you open a traditional IRA or a Roth IRA?

Have you looked into solo 401k options or other self employed retirement options?

Do you have a solid emergency fund?
bonesly
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Re: Super New To Investing and Looking For Advice.

Post by bonesly »

Optimistic.Pessimist wrote: Mon Apr 01, 2024 11:46 pm First, wanted to say that I’m super new to investing and the finance world.
...
Would love something super easy and simple.
I would continue with your choice of a Target Date Fund, at least for now in a tax-advantaged account (Trad or Roth 401k/IRA). They are super easy and simple since the asset allocation is roughly chosen by the date that you picked and it is automatically rebalanced (you just add funds annually and that's it).

Since you're new, it's good to spend some time learning about investing (as well as personal finance). I would highly recommend reading the five topics in the Wiki on Getting Started for US Investors:
Getting started - Start here.
Investment philosophy - Our investment principles.
Investing start-up kit - A top-down approach to start investing.
Investment policy statement - Identify your investment objectives and how you plan to meet them.
Prioritizing investments - Choosing where to save your investing money, such as an employer's retirement plan or a savings account.

A good book or two is also a valuable addition to you personal library and knowledge:
The Bogleheads' Guide to Investing (Lindauer)
The Little Book of Common Sense Investing (Bogle)
Common Sense on Mutual Funds (Bogle) <-- personal favorite
If You Can – How Millennials Can Get Rich Slowly (Bernstein) <-- free & brief online PDF


The Personal Finance topics are also a worthwhile read (broader scope):
Personal finance planning start-up kit - Start here.
Financial planning - The first thing you should do.
Household budgeting - Understand how much you make and how much you spend.
Emergency fund - Have cash on-hand for life's unexpected events.
Insurance - Auto, home, medical
Estate planning - Be prepared when bad things happen.
Topic Author
Optimistic.Pessimist
Posts: 3
Joined: Sun Mar 31, 2024 3:18 pm

Re: Super New To Investing and Looking For Advice.

Post by Optimistic.Pessimist »

Thank you guys so much. I’ll definitely take all this into consideration and continue to do what I’m doing, while educating myself more.

Also I’ll look into a solo 401k, are there any recommendations for solo 401Ks?
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ruralavalon
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Re: Super New To Investing and Looking For Advice.

Post by ruralavalon »

Optimistic.Pessimist wrote: Tue Apr 02, 2024 10:06 pm Thank you guys so much. I’ll definitely take all this into consideration and continue to do what I’m doing, while educating myself more.

Also I’ll look into a solo 401k, are there any recommendations for solo 401Ks?
It depends on the plan features you desire. For example do you want a plan which permits Roth contributions? Do you want a plan which will accept a rollover from an IRA? Do you want a plan which permits you to loan yourself money from the plan?

White Coat Investor, Best Solo 401(k) Providers, outlines features of individual (solo) 401k plans from Vanguard, Fidelity, Schwab, E*Trade,and TDAmeritrade. "Vanguard now seems seems like the best overall option to me, but eTrade may be the next best."
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
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