I have been around about 2 months. It's been awesome, I am the only income for a household of 7, so we had already been doing a lot of things to minimize expenditures, out of necessity. But, I also compared myself to everyone else, and thus thought I was doing 'good'. Being here has been the face-punch I need to take things to the next level. Thank you everyone!
So, the savings have started, (Sometime I will detail these more in another post, we are at $500/month and rising!), it's time to invest! I have read most of the posts here, and with jcollins, and the Mad Fientist. I have come up with the following plan and just want feedback if I am going in the right direction. (I haven't given all the details, not sure if they are needed, I am trying to keep it simple, but ask if something is missing.)
Age: 43, thinking of retiring in 15 years (started late, with kids, but better late than never!) Projected/current = 38% savings rate
HSA: Health plan at work is not eligible :(
401k: No matching at work, and lowest fund fee is 1.1% (Which is killing me! It's a Vanguard fund that John Hancock adds a 1% fee to, because of ?all the value they add? ... wow, feel like I am picking up soap. But after reading the Mad Fientist, I made a spreadsheet and determined that it would take 20 years before a taxable account at Vanguard would finally beat the 401k ... so 401k it is. Someday I will roll it into an IRA)
I am going to invest in this order, seems straightforward, unless I missed something?
- IRA (standard) at Vanguard (Pre-tax, low fees) - $5,500
- 401k (Pre-tax, higher fees, painful [soap], but still good) - $17,500
- 3rd tier - will worry about this once I get here. Current projections show it will take some work.
What do I invest in? All VTI?
- I don't fully understand ETF and what that means for me . . . is it the right choice?
- My gut tells me with my late start to forget bonds during this 15 year period, stay all stocks and go for the gains. I understand this is normally the opposite of someone in that age range .... but I feel like I am 'all in' for going for FI. If the market happens to be down at year 15, I will adjust. (I never thought I could bike, and work up a sweat in work shirt and yet wear it 3 times before washing, adjusting is WAY easier than we make it!)
Along the way I will pay attention to tax-gain/loss harvesting, and simply ride it out.
Let me know if I am on the right path, if so, I can set it up and then get up in my attic. I need more insulation!
Thank you!!!