Author Topic: Getting Started  (Read 1131 times)

kyle1987

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Getting Started
« on: March 22, 2017, 11:30:54 AM »
I'm a 30 year old that makes roughly 40k/yr in social work. I'm new to the investment game but I have no debt whatsoever! I have a 401k through my work but my company does not do any matching so there's not much incentive to put money in it. I have roughly 25k just sitting in a bank account as I  try to determine how I want to invest... So do I start by opening a Roth IRA? If so, where do I go to open an IRA? Aside from that, should I also open a Vanguard acct and start investing what I can into index funds or is there something I should do prior to that? I just need some basic guidance to get my feet wet and get myself on a solid foundation... Thanks for any help!

Vindicated

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Re: Getting Started
« Reply #1 on: March 22, 2017, 11:39:08 AM »
Welcome Kyle!

You certainly want to put your money to work, but how much of it should go where is tough to answer.  I'll let other more seasoned Mustachians give advice on this.

I wanted to post to tell you that there are a group of us in the Indianapolis area that have begun a meet up.  Our next event is in April.  Are you close?  If so, join us!

Here is the link to the forum thread:  https://forum.mrmoneymustache.com/meetups-and-social-events/anyone-in-indiana/msg1465091/#msg1465091
My MMM Journal: https://forum.mrmoneymustache.com/journals/my-almost-perfect-life-experience/

"Remember that sometimes not getting what you want is a wonderful stroke of luck. - Dalai Lama

kyle1987

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Re: Getting Started
« Reply #2 on: March 22, 2017, 11:53:12 AM »
Hey thank you! I appreciate the warm welcome. Looks like it would be about a two hour drive (one way) for me so probably count me out this time around but I appreciate the offer!

MDM

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Re: Getting Started
« Reply #3 on: March 22, 2017, 04:47:30 PM »
I have a 401k through my work but my company does not do any matching so there's not much incentive to put money in it. I have roughly 25k just sitting in a bank account as I  try to determine how I want to invest.
For your consideration: Investing a total of ~$21,500 into your 401k and a traditional IRA would get you the highest saver's credit tier, making your federal tax $0 for the year and saving ~19%.

See Investment Order for a general strategy.

kyle1987

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Re: Getting Started
« Reply #4 on: March 23, 2017, 07:58:13 AM »
That's super helpful! Thanks MDM!!