With my next paycheck, I will have maxed out my Roth IRA contribution for this year, totaling $11,000 in contributions between VTIVX and VTSMX. Considering that I was a little uptight about dropping the initial $1000 to open my account last year, I am pretty proud of my modest progress and sticking with it. :-) I just wish I had started so much sooner.
My Roth 401k is now at ~$400, (a pittance, I know) but I dialed back my contributions from 10% to 7% since, between this and my Roth IRA, my take-home pay has been really taking a hit. (This still affords me the max employer match of 2% where the total contribution (deducted pay+match) is ~$100 per paycheck, and I will be fully vested in about a year). There is no way that I can even come close to maxing out my 401k, and everything I read/hear suggests that this is a must.
I contributed the vast majority of this year's Roth IRA allowance during the recent dips, excited for the opportunity to buy at a much lower cost. I know that, generally, "timing" the market is frowned upon, and with good reason, but what about merely making strategic purchases in order do bring your average cost down? Whenever I see that prices are less than my average cost, I'd buy as much as I could since I can't afford to make a lump-sum contribution of $5500.00 on the first of the year.
It doesn't seem like there are many threads/posts where people are investing on a low income,
so, at times, it's a bit difficult to gauge how to proceed or draw immediate parallels.
I'll also be able to establish a Self-401k soon, but what else can I do with a $30k salary and grad school coming?
Roth IRA: $11,000.00 contributed (VTIVX and VTSMX)
Roth 401k: $400.00 (7% plus 2% match SSgA S&P 500 @ 75% and SSgA Mid Cap @ 25%)
Liquid: ~$4000.00 (between checking/savings)
Debt: Zero.
Thanks as always, everyone -- Your guidance continues to be really helpful!