financially illiterate need guidance
Hey everyone! Got my first job after graduating recently and im looking at savings plans. My company offers a 6% match using vanguard and im probably gonna go with the Roth IRA. My question is what should I pick within that plan? Im definitely more conservative something with safe decently high consistent returns. How should I go about picking and any other advice in general? Other context: I am living at home so I’m saving a lot TC: 90k Thanks for the help blind community!
They're likely matching 401K so at least do the 6% there and probably pick something simple like VOO/S&P 500 and VTI(total market index) so Vanguard doesn't take too much of a management cut from your retirement funds. You can also max out Roth IRA as it only goes up to around $7K. It's generally a good idea to max out Roth IRA at the beginning of your career as your tax rate is gonna get higher as you make more money in the future.
Target date fund. You are welcome.
I’d recommend getting a Blinkist or headway account and subscribing to a few best selling financial literacy books. They were having a 60% off sale last week still
Do you mean ROTH 401k? Roth IRA is Individual Retirement Account, you can set that up outside of your employer . Both/either are good. As far as what to pick, I’d probably go something between 80/20 and 60/40 stocks to bonds. Stocks just do a total market fund or an index like SP500 or Russell 3000. Picking any 1 from VTSAX, VTI, or VOO is probably fine For bonds something like BNDW is probably fine. This is very conservative and typically considered to be well diversified and a pretty good set and forget deal. As you get older, you may want to adjust the balance to decrease the percent of stock you buy and increase the percent of bonds. If you actually want to learn more, I’d recommend financialIndependence and Boggle heads reddits and The Money Guys youtube channel Always happy to chat if you want to DM me with questions, I like teaching and finance and tech are 2 of my favorite topics