Hello all,
Let me start by saying I am a complete newbie with everything.
Some background:
Late 20's, earn $72,000/year pretax, $15,000 in emergency savings in Ally account, contribute up to employers 401k match (.25 cents on the dollar up to 8% of my salary), have roth IRA through Schwab funded with $6000, but not entirely sure where to invest it (hopefully soon I will :)), and have a few thousand in my individual Schwab account. Someone told me to go back and max my 401k before investing in my individual account and I plan to increase my 401k contribution in the future. However, I am a bit confused on investing for my roth IRA and taxable individual account.
I read that index ETFs are preferred in taxable accounts and mutual funds are better in tax-advantaged accounts (I think this means my IRA?). I want to be a lazy investor and this is why the idea of the '3-fund portfolio' intrigued me. I want to invest and forget it for a while while it compounds.
This is my game plan so far:
Roth IRA: 55% SWTSX, 35% SWISX, and 10% SWAGX (and potentially a REIT: SCHH)
For my individual (taxable) Schwab account I will invest in the ETF versions of the above mutual funds:
SCHB, SCHF, SCHZ
Is this an okay plan? Am I making it too complicated and maybe I should just invest in SWTSX, SWISX, and SWAGX in my roth IRA and individual taxable account? Let me know your thoughts please :)