Author Topic: Advice on allocating my 'stache  (Read 1299 times)


  • Stubble
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  • Posts: 152
  • Location: Portland, OR
Advice on allocating my 'stache
« on: February 11, 2014, 06:20:15 PM »
Hi all,
Thanks to your help, I've got my 401k in a place where I'm comfortable with it, and ready to tackle the next part of my FI planning: what to do with my extra cash! 
Some quick background: I'm 22, with a steady source of income and about $11,000 that I need to do something with, since it is currently sitting idle in my bank account (in addition to my "emergency money"). I'm very new to this subject, so I just wanted to make sure all my reasoning is sound/I'm not making any big mistakes.
I'm planning on taking this $11,000 and putting it all into a Roth IRA with vanguard, maxing out my contributions for 2013 as well as 2014. (My tax return this year ended up refunding me more than I put in, so I don't believe I would gain any benefit from a 2013 traditional IRA; this won't be the case in 2014 but I believe my tax bracket will be low enough to justify a Roth nontheless - 15%).
My current plan is to take all $11,000 and place it into VTSAX. It seems like many people (like mr. collins on his stock series) recommend just sticking everything into VTSAX, at least while you are far from retirement (I only entered the workforce late last year). Plus, by putting in over $10,000, I get access to admiral shares, which sounds nice.
Second, I expect to have around an additional $15,000 in unused cash by the end of this year, should I just place that in a regular vanguard account and throw it all in VTSAX as well? (It seems like once my accounts grow and I start investing in other things as well, I may want to keep things like REITs in tax advantaged accounts and put stocks in my normal accounts, but I imagine that is a topic for another post :) )
Basically just want to make sure that I haven't been misreading everything and I'm not about to throw away all my money!
Thanks a bunch!


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Re: Advice on allocating my 'stache
« Reply #1 on: February 11, 2014, 06:30:14 PM »
You've got the right idea.  No need to do anything else besides what you've already suggested.  Good job.