Hi,
I’ve just recently registered here but I have lurked for awhile soaking up information from what looks to be very informed opinions around here. I know there are other topics started regarding beginning investing but I wanted to receive input on my specific situation.
I will try to give as much relevant information as I can think of. I am 20 years old. I live at home with my parents because I am going to a local community college right now. Next fall I will be going to Washington State University planning to get my bachelor’s degree in accounting. I have earned about 10K from my job up until this point this year for about 700-800 per month. Next year I plan on getting a work study job and at this point I don’t know how much I will be earning from that.
My current expenses are each month about $100 for insurance, 25 for internet, about 30 for gas, and 100 for entertainment/food/other. No credit card as well as I don't see a need to purchase something unless I have the money to do so. I don’t pay rent to my parents even though I probably should. My family received an inheritance from my grandmother that will help pay for my 2 years at WSU, so I don’t think I will have to take out any loans and I’ll try to get some scholarships.
I want to start up a ROTH IRA since I believe I will be in a higher tax bracket later in life. I highly doubt I will be making more than the max allowed to contribute to a ROTH when I am at my money making peak. As far as investing, I don’t want to have to keep a close eye on everything at this point in my life. When I get older I may want to get more in depth with my investment. I think I would check on my investment each month or so. I would be able to put 100 to 150 into my account now easily and possibly more. I have been eyeing the target retirement 2050 fund at Vanguard even though I will be retiring closer to 2055, so I believe I will shift my investment over to the 2055 fund when that comes out to increase the asset allocation towards stocks.
I have 16k in an online savings account at HSBC and 5500 at Wells Fargo which I’m moving to a local credit union at the start of the year since they have a really good checking account rate as opposed to the measly WF rate. From doing questionnaires I’ve found my asset allocation to be in the ballpark of 80-20 to 90-10 stocks to bonds.
So finally my question would be would a target fund be good for me since I don’t want to track multiple funds at once and try to come up with a fund mix at this point in my life.
Thank you in advance for reading this.
I’ve just recently registered here but I have lurked for awhile soaking up information from what looks to be very informed opinions around here. I know there are other topics started regarding beginning investing but I wanted to receive input on my specific situation.
I will try to give as much relevant information as I can think of. I am 20 years old. I live at home with my parents because I am going to a local community college right now. Next fall I will be going to Washington State University planning to get my bachelor’s degree in accounting. I have earned about 10K from my job up until this point this year for about 700-800 per month. Next year I plan on getting a work study job and at this point I don’t know how much I will be earning from that.
My current expenses are each month about $100 for insurance, 25 for internet, about 30 for gas, and 100 for entertainment/food/other. No credit card as well as I don't see a need to purchase something unless I have the money to do so. I don’t pay rent to my parents even though I probably should. My family received an inheritance from my grandmother that will help pay for my 2 years at WSU, so I don’t think I will have to take out any loans and I’ll try to get some scholarships.
I want to start up a ROTH IRA since I believe I will be in a higher tax bracket later in life. I highly doubt I will be making more than the max allowed to contribute to a ROTH when I am at my money making peak. As far as investing, I don’t want to have to keep a close eye on everything at this point in my life. When I get older I may want to get more in depth with my investment. I think I would check on my investment each month or so. I would be able to put 100 to 150 into my account now easily and possibly more. I have been eyeing the target retirement 2050 fund at Vanguard even though I will be retiring closer to 2055, so I believe I will shift my investment over to the 2055 fund when that comes out to increase the asset allocation towards stocks.
I have 16k in an online savings account at HSBC and 5500 at Wells Fargo which I’m moving to a local credit union at the start of the year since they have a really good checking account rate as opposed to the measly WF rate. From doing questionnaires I’ve found my asset allocation to be in the ballpark of 80-20 to 90-10 stocks to bonds.
So finally my question would be would a target fund be good for me since I don’t want to track multiple funds at once and try to come up with a fund mix at this point in my life.
Thank you in advance for reading this.
Comment