Investing tips

justforgigs96 · 2020-03-01T07:12:34+00:00

Writing out a giant guide would be overwhelming for you so I’ll give you the basics and if you need more help, contact me and I’ll give you more information. Please don’t just listen to me or anyone else here though, and do your own research as well.

Firstly, the ROTH IRA: Max it out. You get around $6000 maximum investment each year. That’s a tax free account, so $500 a month should be invested here to get everything out of it that you can.

Next, with your paralegal job, do they have you on a 401k or some kind of company investment vehicle? If they do: max it out. Invest enough to get the maximum investment match from your employer. That’s free money, winners don’t turn down free money. This account is also tax-free.

On only 25k a year, it’s going to be very hard to max out both of these and have much money to spare minus your expenses. Once you make more money, then you can also open a regular brokerage account (I have one of these for fun right now where I invest leftover dollars into individual securities.)

Now, in terms of what to specifically invest in. Conventional wisdom from the old heads will say “MUTUAL FUNDS”. Just no. Fees are outrageously high, and in this area Dave Ramsey doesn’t know what tf he’s talking about. Stick with an Index Fund like VOO, SPY, etc which tracks the S&P, and you will historically earn around 8% on average ROI each year. Most of your portfolio should be Indexes, and then if you REALLY want, you can add some sexy Blue-Chip stocks. I personally have Amazon, Apple, Adobe, Starbucks, but grand total they only make up 30% of my total portfolio. These are riskier than the Indexes because it’s an individual company vs the entire market as a whole.

Hope this helps

2020-03-01T11:01:53+00:00

Your MBA is indicative of a huge mistake, given the lack of context provided. You either incurred some serious debt for it, or you paid for it in cash. Both would be extremely poor decisions unless you are attending a Top 15 (preferably M7) B-school. This leads me to a related observation: you didn't mention whether or not you're taking out loans and if so, what the payments are.

Get current on and begin making your payments on all non-deferred loans ASAP
Begin saving up 6 months of living expenses (rainy day account)
Get general healthcare plan
Maximize HSA and Roth IRA account (if offered)
Liquidate all of your stock and fund holdings if the above bullet points are not met. (crawl before walking)
I'd get a side hustle to help pay down all debts, then and only then should you consider investing stocks.

Title	Investing tips
Author	Averr0e5
Upvotes	1
Comments	5
Date	March 1, 2020 6:15 AM UTC (6 years ago)
Subreddit	Posted in /r/askTRP
Original Link	https://old.reddit.com/r/asktrp/comments/fbq1ex/investing_tips/
Archive Link	https://theredarchive.com/r/askTRP/investing-tips.341395 https://theredarchive.com/post/341395

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