#InvestingTips #FinancialPlanning #InvestingInYour20s
Hey everyone! 👋 Sounds like you’re in a great position to start investing and planning for your future! Here are a few tips to help you get started:
– Consider setting up a meeting with a financial advisor or fiduciary to get personalized advice and guidance tailored to your specific financial goals and situation.
– Look into local small financial services as well as larger well-known names to compare fees and services offered.
– Take advantage of employer-sponsored retirement accounts like 401(k)s or IRAs to start building your retirement savings.
– Explore investing in low-cost index funds or ETFs as a way to start building a diversified investment portfolio without too much risk.
– Don’t be afraid to ask questions and seek out resources to educate yourselves on different investment options and strategies.
Starting to invest in your 20s can set you up for long-term financial success, so take the time to do some research and find the best approach for your individual needs. Good luck on your investing journey! 🌟
Financial advisor here. You’ll see a lot of advisor hate in this sub from the DIYers. If you’re seriously considering an advisor just make sure you vet them first. Advisors at smaller firms don’t have big compliance teams overseeing their activities so they may not necessarily work in your best interests. Larger firms are more structured and unlikely to push products you don’t need (such as annuities, avoid these). This is not to say small firms will scam you, there are just fewer checks and balances.
You don’t need a financial advisor. Read up on Bogleheads and the FinancialIndependence subs about basic strategies. For long term investing, prioritize your tax advantaged accounts, and only buy index funds, either total market or SP500. If you max out all of your tax advantaged space, then buy the same funds in a brokerage account. Fidelity, Vanguard, and Schwab are the best places to use. For short term savings, like buying a house in the next few years, put it in a HYSA or CDs.
Go to the money guy show, check out their free resources and follow the FOO. That should give you a good head start
Before you jump onto investing, save up for emergency fund, max out your retirement plans. Then invest remaining in S&P 500
Start with a robo-advisor like Vanguard or Fidelity, low fees and easy to use.
Get employer match on 401K if available > Fully funded emergency fund > Open IRA on Fidelity(or a brokerage of your choice) > automate weekly contributions to IRA preferably in an index fund (VTI & VXUS in an 80:20 split) > Open HSA account on fidelity and invest the same as the IRA > Go back to your 401K if you can invest more > save cash for short/medium horizon expenditure
Are you both already investing in 401K? (Both of you can pick a target fund for your retirement date and let it ride)
Roth IRA? (Throw all the money in voo until you learn more)
Brokerage account? (Wait until Roth IRA is maxed out)
Do you have an emergency fund (3-6 months) as a couple?
Read I will teach you to be rich and the simple path to wealth. These books will help you understand different account options, easy ways to invest. Then from there look up some things on bogleheads. You don’t need a financial advisor. I was in your spot a year ago and I did exactly what I said here.
You could just start reading up on Bogleheads from the start but I wouldn’t have understood much of it, I needed the background info from the two books I mentioned to help give me a better understanding first. They’re not super long or difficult reads.
Learn the difference between the luxury of money and the power of money. When you figure that out, you’ll be fine.
Whatever you do, a portion of your investments should involve a “get rich slow” component. Which to me means, retirement account invested in the S&P 500 with dividends reinvested. never stop contributing, and never sell until you retire. Also understand that you will not fully understand the power of doing this until about year 25/30, and then it goes parabolic from there.
Where is your 401k? Does that provider have any resources available? My work offers some basic lessons and services through vanguard as a benefit.