Hi all, I recently graduated and finished paying off my student loans (~18k) and am now transitioning to beginning to take control of my investments. Here is my situation:
- 4.7K in Betterment (100 stocks/0 bonds) as an emergency fund
- 6K available for investing (I plan on allocating 5.5K to max my Roth IRA)
- 10K in a Roth IRA my parents set up for me
I am going to be switching over my Roth IRA account to Vanguard soon, and plan to max out my Roth IRA right after switching over. I am trying to think of what allocation would be best to start out with.
I was thinking 70% VTSMX (7K) and 30% VGTSX (3K) for the switch over.
Then with my Roth IRA contributions balancing with VBMFX (3K) and putting the rest in VTSMX so that I can unlock Admiral shares (VTSAX) the next year. My allocation would then be 61% VTSMX (9.5K), 19% VGTSX (3K), and 19% VBMFX (3K).
I'd like to hear thoughts on this plan.
Aside from my Roth, I plan to put another 1.3K into Betterment and leave that as a 3-month emergency fund (I'm okay with the risk of putting an emergency fund in Betterment).
After that though, I'm not sure what the best strategy would be in regards to starting my Taxable account. Should it simply mirror my Roth? Should I instead purchase ETFs? I intend on opening this taxable account with Vanguard as well.
I'm 22 and am not very risk-adverse. My monthly expenses come out to 1.5K, I can save about 2-4K a month (depends on my side business' income which varies by month). I anticipate monthly expenses going up to 2K in September when I move. My goal is to max my Roth and have 25K in a taxable by the end of the year.
Thank you for your help.