What to do with my paycheck?

Salesforce SiliconMan
Feb 9 17 Comments

Junior eng. here who is really confused on what to do with his paycheck. I've heard of things like betterment/vanguard, low cost index funds, bonds, etc. What's the best way to invest money so I can save for the future reliably with peace of mind?

Dont know much about finance or economics in general.

TC: 145k

comments

Want to comment? LOG IN or SIGN UP
TOP 17 Comments
  • New IAmPepe
    day trade crypto
    Feb 9 0
  • Mentor Graphics entrep
    Here is something that I would do if I could go back 15 years at the start of my career:
    1. Create a rainy day fund of 6-9 months of expenses. Mostly cash and money market
    2. Put 80% of intended savings in S&P500 and Nasdaq every month. With the rest 20%, buy some brands that you use daily and love (at that time it would’ve been Netflix, Apple, Nike, Google etc).
    3. When you have enough savings, buy a house and rent out one/two bedrooms if you are still single.
    Feb 9 3
    • LinkedIn Al_Bundy
      Ditto. Wish I knew this 15 years ago. I’d be a multimillionaire by now.
      Feb 9
    • Google / Eng yuyu
      If I could go back 10 years, I would just put 100% in Bitcoin. Hindsight is 20/20.
      Feb 9
    • LinkedIn Al_Bundy
      And cash out in late Nov 18... lol
      Feb 9
  • Amazon / Eng DynamoDB
    Throw it all in index funds if you don't know. Otherwise it's best to read a few things on investing.
    Feb 9 0
  • Google tsukino
    passive/long-term investing in S&P with developed market bonds ETFs as primary hedge (depending on your personal risk profile), and optionally a small percentage of real estate and gold if you are really paranoid about black swan events; example of semi-aggressive portfolio: 60% equities, 25% bonds, 10% real estate, 5% gold

    to better understand risk (which is different from volatility), consider looking at graphs of how cointegrated pairs and return correlations break down in crises; illiquidity premium becomes very expensive during such times, so make sure you can ride out the waves
    Feb 9 1
    • Google / Eng yuyu
      This is the best answer here.

      Most are giving advice and throw out suggestions without ever talking or understanding risk, optionality, Black Swan events, randomness, etc.
      Feb 9
  • Nintendo wood
    Throw one egg each in all the below buckets and you will thank yourself and me in the future. :-)
    1. Kids education bucket even if you don't have kids as of today,like 529 plan.
    2.retirement
    3. Term life insurance
    4. Stock market
    5. House
    6. Improving your skills
    7.Fun and travel
    8.health

    Happy to know if I missed any bucket.
    Feb 9 0
  • Google / Eng
    prodaccess

    Google Eng

    BIO
    Top Contributor or GTFO
    prodaccessmore
    Read "The Simple Path to Wealth".
    A summary: buy VTSAX and hold for 40 years.
    Feb 9 1
    • Walmart.com ToKL28
      Yes, this is right.
      Feb 9
  • Uber @++1
    Just stash at Marcus. Dont risk hard earned money without studying
    Feb 9 0
  • Salesforce SiliconMan
    OP
    Thank you all for the tips and helpful resources :)
    Feb 9 0
  • Reddit y34bas
    Ditto on most of the comments above, don’t get too fancy, buy some passive ETFs VOO, SPY and REIT and wait. If you know you will need the money in a couple of years do a CD, you can get a 2.5 interest rate (ends up lower after taxes) per year. Don’t do options or say trading
    Feb 9 0
  • Amazon / Eng tylium
    Watch these videos. Follow the advice and you will have a strong strategy to building long term wealth with minimal risk https://www.bogleheads.org/wiki/Video:Bogleheads®_investment_philosophy
    Feb 9 0
  • Capital One EXwk33
    If you need the money in the next few years for something like a house get a high interest savings account. If it's for retirement buy the stock with the ticker SPY (it is a very low cost fund that tracks the market)
    Feb 9 0