My financial literacy is crap. I will be the very first to admit it. I have tried to understand it all and how to get tax breaks (earn 6 figures, so higher taxes in my state). I feel so ashamed for not understanding this but I’m approaching my late 20s and really need to figure out what to do and how to invest it. I have looked into getting a financial advisor but am worried about getting scammed. I also have stocks with Microsoft in fidelity that I have not touched in four years, so they are all vested. I have no idea what to do with it next. The sheer mention of stocks stresses me out but I really need to get my sh*t together for lack of a better phrase. I had a co worker mention Charles Schwab but don’t even know where to start. I’d like to think that I am decent as far as debt to income as credit cards give me anxiety and I try to buy anything I can at discounted price or on sale (although it would be nice to actually own a Tesla or something) This is starting to affect my mental health because I constantly compare myself to peers who invest in real estate or came from a background where they just “get it.” #investments #personalfinance #help #money #poor
Ignore everyone here except me All you need to do is have a vanguard account preferably and put your money into vtsax you’re investing in the total stock market
Why vanguard over fidelity or others? So after a very quick search it looks like vtsax is a index fund so essentially all the Microsoft stocks I’ve earned would be redistributed to different indexes or stocks
Vanguard or Fidelity are similar and either is a good place to start. Some people prefer Vanguard, some Fidelity. VTSAX is an total stock market index fund; Fidelity offers similar index funds (FSKAX). As for the Microsoft stock (MSFT), these are yours and will not be/cannot be re-distributed into the index funds. Once you learn some basic information about investing, you can sell the MSFT stock, then use the cash to buy an index fund - for example, VTSAX.
Check out Financial Tortoise and Whiteboard Finance on YouTube. Tons of free content from two great personal finance teachers/content creators.
It’s pretty common to be overwhelmed. You have a Fidelity account start there. Use their services (800 number) and ask the dumbest questions, they’ll set you up. 1. Set up Roth IRA (you may need to do Backdoor to contribute as you likely make too much money, so just set it up for now - take 2 min). 2. Set up 401K to contribute at the very least the company match. Fidelity has an S&P option, so just contribute to that. Don’t buy individual stocks, or options. Don’t download Robinhood and try to get fancy. Check out YouTube videos on John Bogle, dude was super simple.
Start with sharing your TC and portfolio here. We can suggest based on that. What's your monthly take home and expenditures?
Low risk investment ideas for people like you - 30% in S&P 500 ETF like SPY VOO. Use Vanguard/fidelity not Robinhood!! 30% in CD 30% in high yield savings account 10% individuals retail trading/day trading. This 10% is subjective. Can be 0%. Only invest if you are fine with losing all of it. If you earn less than 134k, put 6k in roth IRA every year and invest that in S&P500. Investment is literally that simple
You need to chill out OP.
Start by reading How To Make Money In Stocks by William J. O'Neil several times, and join a local meetup.
dm me lostherew, ill share a couple diagrams that pretty much explain at the highest macro level what makes the overall US stock market go up or down
Try doing investments through backdoor and mega backdoor roth instead of a regular brokerage account. You can diversify some of the vested stock if you like but might as well keep it.
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The personalfinance subreddit was great for me. At the end of the day personal finance is actually very straightforward, but there’s definitely some stuff to learn first. And yeah, you don’t need an advisor if you’re smart.