Author Topic: Investing for a beginner  (Read 1119 times)


  • 5 O'Clock Shadow
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  • Posts: 1
Investing for a beginner
« on: July 07, 2016, 06:29:01 PM »

I just finished school and am new to the working/investing world, so I'm looking for some advice. My current situation allows me to comfortably save about $35,000 - $40,000 per year. I'm trying to figure out how to invest this income that will mathematically allow for the greatest return over the long run. So far, I have identified these investments in order of priority. I will be investing in index funds when possible.

* 401k , $18,000 : Maxing out my 401k will take advantage of a 5% company match, defer taxes until retirement, and allows for tax free growth.
* Roth IRA, $5,500: This money will grow tax free (my filing status and income level will not allow for traditional IRA tax deductions).
* Non-retirement investments, $11,500 - $16,500: After investing in retirement accounts that get employer matching, tax deductions, and tax free growth, I will invest in index funds.

Does this look like a decent plan? Any suggestions are welcome.


  • 5 O'Clock Shadow
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  • Posts: 12
Re: Investing for a beginner
« Reply #1 on: July 08, 2016, 06:09:40 AM »
So far that shows you know what you are doing, but it also matters what kind of index funds you choose (balance of stock and bond, domestic and international, others).  Have you thought about that yet?


  • Stubble
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  • Posts: 130
  • Age: 34
  • Location: Charlotte, NC
  • FIRE goal: April 2032
Re: Investing for a beginner
« Reply #2 on: July 08, 2016, 06:32:26 AM »
Are you eligible to have an HSA? If so, max that out too. Here's an article that explains why it's such a powerful vehicle for retirement:

Also, there's a very good argument to be made for going Trad IRA instead of Roth, explained here: