Author Topic: Help me start investing!  (Read 3384 times)

Zman

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Help me start investing!
« on: February 03, 2015, 09:58:35 PM »
So I just took a financial 180 and went from ~$20k in debt to positive net worth!

I have a small amount in checking and in savings for monthly and emergency expenses; and currently have $1500 sitting in a Vanguard account(more on it's way, I have 2k showing up for selling a car). Plus I will be putting a few hundred each paycheck and want advice how to allocate it...

I'm thinking about etf's or a Roth since I don't have enough for index fund. Also, I'm 30 and have $38k in a seperate retirement account 403(b) that is set up fairly conservative.


Can somebody please help me get on a mustachian path!!! Thanks!

MDM

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Re: Help me start investing!
« Reply #1 on: February 03, 2015, 10:11:37 PM »
Can you put $18K into the 403b this year?

What marginal tax bracket do you expect to be in for 2015?

dividendman

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Re: Help me start investing!
« Reply #2 on: February 03, 2015, 10:14:50 PM »
What is the $38k in in the 403b?

Note that many ETFs are index funds, they're not mutually exclusive. The ETFs I've listed below are index funds.

Read http://jlcollinsnh.com/stock-series/

If you don't want to read all of that, put 50% money in VTI, 30% in VEU and 20% in BND and keep that balanced across all accounts forever. Open up a Vanguard account and get crackin'!

Zman

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Re: Help me start investing!
« Reply #3 on: February 03, 2015, 10:24:46 PM »
Can you put $18K into the 403b this year?

What marginal tax bracket do you expect to be in for 2015?

Im going to try to put 10K in the vangaurd this year (at least)...
As for the 403(b) I have auto deductions from the paycheck to equal $5200/year

I will make about 75k this year




What is the $38k in in the 403b?

Note that many ETFs are index funds, they're not mutually exclusive. The ETFs I've listed below are index funds.

Read http://jlcollinsnh.com/stock-series/

If you don't want to read all of that, put 50% money in VTI, 30% in VEU and 20% in BND and keep that balanced across all accounts forever. Open up a Vanguard account and get crackin'!

Thanks for the ETF advice, below is the 403(b)

Guaranteed 10.02%   $4,026.21
TIAA Traditional   $4,026.21
Equities 2.33%   $936.99
CREF Stock   $849.00
Vanguard Institutional Index   $14.71
TIAA-CREF Mid-Cap Value Fund - Institutional Class   $14.71
CREF Global Equities   $14.68
Oppenheimer Global Fund Class I   $14.65
CREF Growth   $14.63
Wells Fargo Advantage Emerging Growth Fund Institutional   $14.61
Real Estate 1.38%   $555.63
TIAA Real Estate   $555.63
Fixed Income 0.83%   $334.66
CREF Bond Market   $334.66
Money Market 4.76%   $1,912.83
Vanguard Prime Money Market -Institutional   $1,557.92
CREF Money Market   $354.91
Multi-Asset 80.66%   $32,400.31
TIAA-CREF Lifecycle 2040 Fund - Institutional Class   $32,400.31

innerscorecard

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Re: Help me start investing!
« Reply #4 on: February 03, 2015, 10:27:39 PM »
I'm thinking about etf's or a Roth since I don't have enough for index fund. Also, I'm 30 and have $38k in a seperate retirement account 403(b) that is set up fairly conservative.

ETFs, a  Roth IRA and index funds aren't mutually exclusive things. ETFs and index funds are types of investment vehicles. A Roth IRA is a place to put those vehicles. In fact, you could do all of them at once. You could buy index fund ETFs in your Roth IRA.

MDM

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Re: Help me start investing!
« Reply #5 on: February 03, 2015, 10:33:26 PM »
Can you put $18K into the 403b this year?

What marginal tax bracket do you expect to be in for 2015?

Im going to try to put 10K in the vangaurd this year (at least)...
As for the 403(b) I have auto deductions from the paycheck to equal $5200/year

I will make about 75k this year

Assuming you are single, $75K gross puts you firmly in the 25% bracket.  Why not put $18K into the 403b and $0 in the taxable Vanguard account?  Just checking to understand your thought process.

Zman

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Re: Help me start investing!
« Reply #6 on: February 03, 2015, 10:35:37 PM »
I'm thinking about etf's or a Roth since I don't have enough for index fund. Also, I'm 30 and have $38k in a seperate retirement account 403(b) that is set up fairly conservative.

ETFs, a  Roth IRA and index funds aren't mutually exclusive things. ETFs and index funds are types of investment vehicles. A Roth IRA is a place to put those vehicles. In fact, you could do all of them at once. You could buy index fund ETFs in your Roth IRA.

I know I guess I'm trying to figure out how to allocate  the Vanguard funds... My current thought is every year 5500 in Roth first and the rest in ETF's . I want to know if that is a good plan and then how to invest in those account like dividendman said "50% money in VTI, 30% in VEU and 20% in BND".

Zman

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Re: Help me start investing!
« Reply #7 on: February 03, 2015, 10:41:41 PM »
Can you put $18K into the 403b this year?

What marginal tax bracket do you expect to be in for 2015?

Im going to try to put 10K in the vangaurd this year (at least)...
As for the 403(b) I have auto deductions from the paycheck to equal $5200/year

I will make about 75k this year

Assuming you are single, $75K gross puts you firmly in the 25% bracket.  Why not put $18K into the 403b and $0 in the taxable Vanguard account?  Just checking to understand your thought process.

Im going to sound like an idiot here, I'm sure but here is my thought process....

If i have all my extra money to the 403(b) account I wont be able to sell assets for big purchases(house?), emergencies, or FIRE (wontt I get nailed with taxes and penalties if i do this in my 40's or 50's?).

I thought the Roth/ taxable portfolio(is that what it is called?) would be good because the Roth would allow pre 59 1/2 withdrawals of contributions and the portfolio would help with FIRE/House/Emergencies etc.


Am I an idiot for thinking that way?