What to do with FAANG TC?

Chase / Eng
bhgrr23

Chase Eng

PRE
JPMorgan Chase & Co., IBM, Thomson Reuters
bhgrr23more
Aug 19 26 Comments

asking this for genuine advice on how to properly save/invest with these high TC packages tech companies are giving out.

background:
- based in nyc
- top 50 CS undergrad
- 1 yoe SWE at big bank - 105k TC
- just accepted FAANG SWE offer with 183k TC

first year post grad i did no saving whatsoever and simply focused on living expenses and tackling student loan debt. within a year i was able to reduce student loan debt from 21k down to 14k. upon moving to my new role i plan on completey wiping out my student loan debt asap. but, what to do next? we’ve all heard the term “let your money work for you” but how can this actually be accomplished?

as i do not come from a background where i can get advised in these topics, i am just looking to see how our community budgets and invests given the amount of money we are able to work with.

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TOP 26 Comments
  • Amazon / Eng AMZNBucks
    Trade options. Listen to r/wallstreetbets
    Aug 19 1
    • Chase / Eng
      bhgrr23

      Chase Eng

      PRE
      JPMorgan Chase & Co., IBM, Thomson Reuters
      bhgrr23more
      OP
      r/wallstreetbets and r/nofap ... pure enlightenment
      Aug 19
  • Twitter
    Oomnj

    Twitter

    BIO
    It’s all shitposts and jokes - get a sense of humor!
    Oomnjmore
    Give back to the community. Support lgbtq and plus size artists, establishments. Donate to organizations that help empower women. Don’t be just another bro
    Aug 19 7
    • Twitter
      Oomnj

      Twitter

      BIO
      It’s all shitposts and jokes - get a sense of humor!
      Oomnjmore
      I genuinely believe you should give to charities
      Aug 19
    • Workday / Product tdf
      His buddy Atinlay2 ain’t around.
      Aug 19
    • Microsoft techladki
      Do you people donating to KKK? If not, then don't donate to empower one race or in gender or one orientation either. That's not charity
      Aug 19
    • Jet hROD00
      Don't empower anyone plus size. They already make public transport unbearable enough.
      Aug 20
    • Facebook FrdV78
      "Support plus sized artists" this has got to be a joke
      3d
  • Google room ba
    While Twitter's answer is a fine one for when you have your own finances sorted out, the right answer is to do your own research.

    Start with a web search for bogleheads, invest in the index funds they mention, and ignore all the noise.

    Do the charity work you're comfortable with, and pay it forward as you find appropriate.

    Do not let others pressure you. Optimize your personal happiness for the medium term at least and don't let people guilt you into feeling selfish.
    Aug 19 1
    • Chase / Eng
      bhgrr23

      Chase Eng

      PRE
      JPMorgan Chase & Co., IBM, Thomson Reuters
      bhgrr23more
      OP
      awesome, i appreciate the genuine response!
      Aug 19
  • Microsoft / Eng cholical
    With 105k tc how did you only pay off 7k of debt in a year and not save anything? You should be making ~6k/month take home. If you spend half that on an apartment and utilities, what are you doing with the other 3k? You should have around 30k saved
    Aug 19 2
    • Microsoft / Eng cholical
      You're priorities should be
      1. 401k matching
      2. ESPP if offered
      3. Wipe away debt
      4. 5k or less in checking
      4. Emergency fund of 10k in a high yield savings account
      5. Safer long term investments in index funds
      6. A small portion can go into risky investment such as single stocks or etfs
      Aug 19
    • Chase / Eng
      bhgrr23

      Chase Eng

      PRE
      JPMorgan Chase & Co., IBM, Thomson Reuters
      bhgrr23more
      OP
      thank you that is sound advice. was just promoted in march which increased TC to 105k, it was 85k prior. otherwise, moving to nyc alone and living alone has cost me.
      Aug 20
  • Apple workn0more
    Max out your 401k and ESPP. Then aim to buy a house (buy the best property you can get loan for in a nice neighborhood, rent out spare rooms to roommates to help pay mortgage). Then buy rental property or upgrade to bigger house but keep old one as rental. Keep doing that and you’ll be able to retire before you know it.
    Aug 19 1
    • Verizon Media / Acctg sue2612
      Our approach except the renting out rooms as we're a family with young kids so no spare rooms lol! But yeah buying houses in cities with good rental ROi has beeneen working well so far 😊
      Aug 20
  • This comment was deleted by original commenter.

  • Facebook r9gjen DC
    Long term view find a low cost index fund and invest regularly
    Aug 19 0
  • Amazon ohjangbeum
    any Chase perks? free CPC?
    Aug 20 2
    • Chase / Eng
      bhgrr23

      Chase Eng

      PRE
      JPMorgan Chase & Co., IBM, Thomson Reuters
      bhgrr23more
      OP
      nope :/
      Aug 20
    • Amazon ohjangbeum
      just walk over to finance/wealth management guys and grab them for coffee brah
      Aug 20
  • Weight Watchers / Eng xlax
    Agree mostly with cholical's response here.

    I'd recommend reordering some things though. Your first order of business should be getting a safety net / emergency fund in place that can cover 3-6 months of your expenses. Then, focus on savings in an employer 401k, ESPP if your employer offers it, HSA, Roth IRA (do a backdoor if you are over the income limit which you likely are for a traditional IRA). Then start hitting the taxable investment accounts.

    For actual investments, invest in low cost highly diversified index funds. This is a great article to get started on the allocations: https://www.bogleheads.org/wiki/Three-fund_portfolio

    For more general philosophy, check out:
    1. The Simple Path to Wealth by JL Collins
    2. Set for Life by Scott Trench
    3. Your Money or Your Life by Vicki Robin

    Generally, decide on what makes you happy in life and what your goals are. Make sure that your spending lines up with those things.

    Generally, the greatest determinant of your financial strength will be a high savings rate. Aim for 50%+ if you are aiming for financial independence or early retirement (FIRE).

    Lots of blogs on that subject if you are interested.
    Aug 20 1
    • Weight Watchers / Eng xlax
      Also, there is nothing wrong with using a low fee robo advisor to automate the investment side for you if you are not comfortable doing it yourself. Paying for the service is better than not doing it at all. The most difficult part of investing for most people in your position is often starting.
      Aug 20
  • Google / Eng intrnltrfr
    That looks like amazon or google L3
    5d 0
  • Amazon / Eng Impostors
    Talk to a financial advisor, that's your first step.

    I do find it ironic that a SWE at a big bank is asking about money though ;p
    Aug 20 0