The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: LRibeiro on April 03, 2018, 06:32:31 PM
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Hi MMM Family!
My path to financial independence started through Bigger Pockets and the Real Estate bug. I am 26 years old, single and earn about $71K/Yr in Chicago.
I have always saved a little money in an Ally Savings account for emergency but am up to around $15K now. I contribute 6% to my 401K to match the employer contribution (I have about $14K in there right now).
Basically I want to start to put my savings money to work, and I feel like I have one of 3 options:
1) Jack my 401K contribution up to ensure I max it out for the year, and use my $15K in the bank as my living expenses for anything I come up short with through my living expenses ( I spend roughly $2200/mo all inclusive )
**Is there any way to optimize my Employer Fidelity 401K for max growth?**
2) Put $11K into a Roth IRA with VTSAX stock by putting 2017-2018 contributions in and raise my 401K gradually.
3) Do the same thing as #2 with a Traditional IRA.
I'd like to make every dollar optimal at this point and have about $3K in an emergency fund (Does a taxable account in VTSAX stock count as an emergency fund??)
Any insights or recommendations would be greatly appreciated. I've been listening to many podcasts, and reading a whole bunch of blogs and articles and I am VERY MOTIVATED to game the system of finance. I just know I need to make sure I start ASAP!
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LRibeiro, welcome to the forum.
You might take a look at Investment Order (https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1333153/#msg1333153) and Fidelity three-fund portfolio (https://www.bogleheads.org/wiki/Three-fund_portfolio#Other_than_Vanguard.2C_Boglehead-style) for some ideas. What do you think of those suggestions?