Investment Buckets

[CyTwister]

I’m a recent 23 YO college grad with no college debt.

What is everyone doing for investment allocations to 401k/IRA/Savings etc?

I’ve been maxing out my Roth IRA and traditional 401k then putting anything left in savings. 99% index funds and 1% bonds in all accounts. Have an emergency fund in a High Yield Savings account built up and am living pretty cheaply compared to a lot of my coworkers...trying to save now so I don’t have to worry later.

What are you doing for retirement and other savings goals? Curious to hear some other perspectives.

 

[scottwv]

Sounds like you have it nailed. I would add avoid accumulating dept in your 20s that you have spend your 30s paying off.

 

[Trice]

I’m a recent 23 YO college grad with no college debt.

What is everyone doing for investment allocations to 401k/IRA/Savings etc?

I’ve been maxing out my Roth IRA and traditional 401k then putting anything left in savings. 99% index funds and 1% bonds in all accounts. Have an emergency fund in a High Yield Savings account built up and am living pretty cheaply compared to a lot of my coworkers...trying to save now so I don’t have to worry later.

What are you doing for retirement and other savings goals? Curious to hear some other perspectives.

Just do what you're doing. The experts would probably say you should dial back on stocks a little bit but for someone so young I've never seen the harm in it.

The hard part will come when the economy really turns south - as it inevitably will - and people start freaking out and pulling out of the stock market. You need to have the discipline to stick to your plan even when you lose money. And actually, if you can stomach it, that's the time to invest even more if you can.

 

[VeloClone]

Just do what you're doing. The experts would probably say you should dial back on stocks a little bit but for someone so young I've never seen the harm in it.

The hard part will come when the economy really turns south - as it inevitably will - and people start freaking out and pulling out of the stock market. You need to have the discipline to stick to your plan even when you lose money. And actually, if you can stomach it, that's the time to invest even more if you can.

This is true. That is another reason that a standard amount invested every pay period like your 401k is a good thing. When the market drops your periodic investment is actually buying more of the cheaper stock. When it rebounds the additional cheap stock you were able to get with the same money helps your portfolio to bounce back from the losses during the market correction quicker.

 

[cytown]

1. Pay off credit cards and any auto loans
2. Max out 401k and roth IRA if your income is below guidelines
3. Save up 6 months living expenses in money market account (1.5% - 2% available)
4. Pay off house
5. Invest with post tax income in target date funds for 2055+ with excess monthly income.

Oh, and avoid women at all costs.

 

[Trice]

1. Pay off credit cards and any auto loans
2. Max out 401k and roth IRA if your income is below guidelines
3. Save up 6 months living expenses in money market account (1.5% - 2% available)
4. Pay off house
5. Invest with post tax income in target date funds for 2055+ with excess monthly income.

Oh, and avoid women at all costs.

Obviously this is in jest but they say money is one of the biggest sources of marital stress, arguments, divorce, etc. Even if your future spouse isn't heavily into personal finance, if you can find someone who isn't a big spender, with your diligence in managing your money you guys will be in fantastic shape and can avoid most/all arguments about money.

 

[DeereClone]

For now put money into tax-advantaged retirement accounts.....do Roth on anything you can.

Keep investing in stock-based index funds and aggressive mutual funds. Eventually you may want to invest outside of retirement accounts in case you want to retire early or make other investments outside retirement, but I would wait another 10 years before thinking about that.

 

[Deleted member 8507]

I’m a recent 23 YO college grad with no college debt.

What is everyone doing for investment allocations to 401k/IRA/Savings etc?

I’ve been maxing out my Roth IRA and traditional 401k then putting anything left in savings. 99% index funds and 1% bonds in all accounts. Have an emergency fund in a High Yield Savings account built up and am living pretty cheaply compared to a lot of my coworkers...trying to save now so I don’t have to worry later.

What are you doing for retirement and other savings goals? Curious to hear some other perspectives.

1. Pay down/off any debt (credit cards, personal loans, etc)
2. Max the Roth contributions
3. Hefty HSA contributions if you are in one of those (will be handy later with family)
4. Hefty to Max 401k contributions
5. Build up the emergency fund (can be done slowly as long as an emergency doesn't occur during the build).

Looks like you are setting up for a FIRE life.

 

[Cyched]

Obviously this is in jest but they say money is one of the biggest sources of marital stress, arguments, divorce, etc. Even if your future spouse isn't heavily into personal finance, if you can find someone who isn't a big spender, with your diligence in managing your money you guys will be in fantastic shape and can avoid most/all arguments about money.

I’d adjust his response to say “it’s okay to be picky when choosing a spouse (but not impossibly picky)”

 

[Cyched]

I’m a recent 23 YO college grad with no college debt.

What is everyone doing for investment allocations to 401k/IRA/Savings etc?

I’ve been maxing out my Roth IRA and traditional 401k then putting anything left in savings. 99% index funds and 1% bonds in all accounts. Have an emergency fund in a High Yield Savings account built up and am living pretty cheaply compared to a lot of my coworkers...trying to save now so I don’t have to worry later.

What are you doing for retirement and other savings goals? Curious to hear some other perspectives.

You’re off to a good start for being fresh out of college.

1. Keep adding to your 401k until you’ve got the max ($19000). Didn’t know if that’s what you meant, or just maxing to the employer match. If you’ve hit that limit, great.
2. Build your emergency fund to 6 months expenses. If you’ve hit that, save for a house/nice vacation/anything you want.
3. Consider opening a taxable account online for additional leftover money.
4. Avoid insurance salesmen masquerading as “financial advisors.”