Where and how to invest monthly savings from paycheck?
Relatively new to investing so would like to ask for guidance: Say you save $3000 every month from your paycheck of $8000 after tax, how and where would you invest it? Which stocks/index funds/mutual funds, and what percentage of each? Do you have automatic transfer set up to have these funds deducted from your bank account each month? Is 37% saving after tax good enough for late 20s? Looking for the best strategy and specific recommendations, thanks! tc 210k
And 37% is great. No amount of saving is too much, but most people do far less.
50% checking in
Max out 401k and HSA first. Then I do 50% vanguard ETFs, 25% direct stock I like and have good growth/dividends (other than Apple as I already get RSUs), and 25% to high yield savings account at Barclays and convert regularly to CD at 2.5~3%.
Which CDs pay 3%?
I'd imagine some people would want to be more candid on said platform🤷🏼♂️
Well I couldn't care less. I'm not the OP.
Since your investments will be taxable make sure the funds you put it in aren't moving companies in and out of their portfolios all the time since that triggers capitol gains. I auto-invest bi-weekly into Vanguard Total Stock Market Index which has done well from a tax and growth perspective.
What’s good from tax perspective in vanguard funds?? I thought you only pay tax once you sell back if there’s a gain, is there any other tax optimization I don’t know if?
@vistabucks. What is the ticker symbol you auto-invest in? Is that ETF or MF? I ask because i understand that you can auto-invest only in MF. For ETFs, you have to manually invest.
10%
I have automatic transfers set up from my bank account to Vanguard twice a month. Only mutual funds, no specific stocks. So VFIAX, VTSAX, VTIAX, VIGAX, you can't really go wrong with any of them or a mixture. Just diversify!!