Tips for new grad swe on how to start growing money?

Salesforce laZ
Sep 9, 2018 19 Comments

Thinking about speaking to a financial advisor (Schwab or Fidelity) since I don’t really have too much knowledge around wealth management.

Here’s my situation:

~1.5 YoE, 200k TC, 60k in savings account, already max out 401k.

Wanted to ask what would be the recommended next steps to start growing/diversifying the nest egg?

Thanks!

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TOP 19 Comments
  • Google NewGrad++
    Didn't know Salesforce paid that well gj
    Sep 9, 2018 0
  • Amazon / Eng onMyWay
    Pretty much where I am as well. Following.
    Sep 9, 2018 0
  • Intel MurthysLaw
    Open a trading account and for your age, pick growth and aggressive growth mutual or index funds. Otherwise look at buying a house or buying rental property.
    Sep 9, 2018 6
    • VTSAX
      Sep 9, 2018
    • Intel MurthysLaw
      VTI, VUG, VGT. Maybe VHT. My current split is 35/20/20/20/(5 other) amongst those four.
      Sep 9, 2018
    • Salesforce laZ
      OP
      Thanks a bunch! How much of your monthly income do you typically contribute to the above funds?
      Sep 9, 2018
    • Intel MurthysLaw
      Anything extra. Prioritize fun, but invest whatever is leftover at the end of the month. Also, keep 6 months of expenses in cash which I think you are already doing.
      Sep 9, 2018
    • That's a bit more aggressive than I'd go, fwiw. I think there's a lot of exposure to US large caps with that allocation. I generally like 60/20/20 large/small (or growth)/international for equity, and like a 90/10 stock/bond split (and once I'm done with student loans probably increasing that bond portion)
      Sep 10, 2018
  • Google NewGrad++
    I have One YoE and add about as much post tax to my NW as you do. Is the 60k just in cash/savings acct? I only have 30 in there and even that feels conservative to me. Try putting 27k into high growth investment account and 3k+ into Robinhood. That should teach you about investment products and give you the chance to try making some bets.

    Also, always max hsa. I don't max 401k (just enough to get match) but hsa can be used for glasses, expensive meds etc. Definitely max it out, it's only $100 pre tax per paycheck and the money stays with you.
    Sep 9, 2018 3
    • Google QNrQ72
      Google match is the full max though... they match 50% up to the max
      Sep 10, 2018
    • Google NewGrad++
      Yeah but 3k for first 3k and 18k for full 9k. I fund it to a point then put it elsewhere.
      Sep 11, 2018
    • Google QNrQ72
      Why? A free 50% return and tax benefits are significant.
      Sep 11, 2018
  • FutureAdvisor / Eng wAvH13
    If you speak to an advisor, make sure they are acting as your fiduciary and not trying to sell you high fee funds. If you don’t want to read up on different index funds and DIY, you can pay for a robo advisor such as FutureAdvisor.
    Sep 10, 2018 0
  • Check out bogleheads. The three-fund portfolio is self-managed gold.

    Start here: https://www.bogleheads.org/wiki/Three-fund_portfolio

    Also be sure to join their forums and read everything. Post your questions there if something doesn’t make sense. Lots of wealthy folks frequent that site and are happy to share knowledge.
    Sep 9, 2018 0
  • Microsoft Ygfitb
    If you are on a health savings plan, you should also max out your HSA. Pay for your medical expenses out of pocket and let the HSA money grow. Triple tax savings.

    If you can contribute to after tax 401k, you should do that as well. Roth IRA is another way you can save.
    Sep 9, 2018 2
    • Salesforce laZ
      OP
      What is the usefulness of an HSA?
      Sep 9, 2018
    • Intel MurthysLaw
      Pre-tax account (lowers your tax liability), the funds can be invested just like 401k or IRA, and you can pay for medical bills without paying taxes on the gains. Win, win, win.
      Sep 9, 2018
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