Tech Industry
Yesterday
318
Airbnb or HubSpot
World Conflicts
Yesterday
575
The False Narrative of Israel Committing "Genocide"
World Conflicts
Yesterday
334
Game on - IDF Tanks take the main road in Rafah, encircling half the city
Tech Industry
3h
1222
Serious question: why are Indian marriages arranged?
World Conflicts
Yesterday
1966
Please accept Indians. I can’t go back. 🇺🇸🙏
CONTEXT: Single, almost 28 Software engineer, 200 TC 640k Net worth Annual expenses: 40k * Includes 28k rent in bay area Want the option to buy a house in 5 years TARGET NET WORTH ALLOCATION: 1. 6 months expenses in Cash (Wealthfront cash account) - $20k 2. Employer ESPP (hold minimum until qualified) - $35k 3. House down-payment fund - Wealthfront bond account * Contribute 125k now * Contribute 25k/year for next 5 years 4. Remainder in investments ($460k) * 80% in US Total Index Fund (SCHB) * 20% in International Index Fund (SCHF) * 0% Bonds until age 35 * Excess cash invested monthly * Allocation rebalanced annually * Location priority: * Max out 401k ($23k in 2024) * Max out HSA ($4150 in 2024) * Max out backdoor Roth IRA * Remainder goes in taxable brokerage NEXT STEPS: * Pull money out of: International Emerging markets (SCHE), I-bonds, low APY CDs * Open wealthfront bond account, 401k * Convert IRA into Backdoor Roth IRA
Why bonds instead of HYSA? It feels like an additional risk with limited upside.
Bond fund seemed like right balance of risk and return. I was debating between bond fund, vs directly buying bonds and CDs for zero risk
If your home purchase date is flexible that seems reasonable. If you're dead set on buying a house in 5 years, I wouldn't add any risk to the equation.
What level are you at box?
All in BTC and you will retire in 2 years
You save well and think of the future. You are giving up control and need to have a percent that you manage to grow you. You need to learn how to invest to be wealthy. Also try to learn to grow your ability to manage the money. Also too many account and check the fees.
$35k espp is above the limit.
The stocks are already purchased over the past two years and are in my brokerage. I mean I'm sitting on $35k of box stock that I have now until I can sell them
Buy a condo to join the party now. Bay area property is your best investment that is 5x leverage TECH ETF.
20% international is not required. US index has enough exposure to international funds.
What do you think of this counter-argument https://youtu.be/1FXuMs6YRCY?si=tDs3V66SU6b7Zyh6
International has been bad for the past 20 years. Don’t want to bet on something like that If you want to hold something that will continue to underperform the next few years just in case it might outperform later, that’s a personal decision
Nice plan. You need to have some fun funds too, like travel and all. Also since you are planning, why do funds only and not individual stocks. Spread your investments between index and individual stocks if you are worried. Possibly higher return with that strategy. Of course you will have to study more and higher risk, also higher reward.
All studies show that the average return of individual stock investors lags behind the market. Some make more, but it's due to luck not skill.
Does Box offer mega backdoor Roth? If so, you should prioritize that over your taxable brokerage account.
What about children fund? Car and second source of income like a second house
I'm single, children are far off. No car needed in SF. Would prefer stocks over investment house because they have higher returns on average and lower time commitments