Quote:
Originally Posted by A Salt Weapon
Thinking I need to setup a Roth IRA, tossed between Vanguard and Fidelity. I plan on doing the max $5500/yr in addition to my 401k through work (currently 6% with a 3% match).
I have about $11k in a savings account right now and that should let me do the max for this year and next in 1 shot.
Preferences on which company to use?
My only debt currently is my truck I bought in Jan17 at 3.04%, (43k financed, 31k left, I’ve been paying extra on already, but thinking it might be smarter to invest the extra money instead of paying it off early.)
I am single HOH with 2 dependents (~60k/yr gross income), so my tax liability is lower now than it would be later, unless lowering my taxable income drops my income into the free shit eligible category (EITC, etc), which I should look at before the end of the year.
Anyone have some free ChiefsPlanet advice for me?
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My first piece of advice would be to make sure you have 3-6 months of reserved in your savings account in case of job loss or inability to work. It's good you feel confident that you could find a job to offset job loss, but don't rely on it.
So after you decide what amount is appropriate. Decide if youre going to be thinking serious retirement money or if this will be a "playing around" account. If it's serious, you will want to be doing indexed funds so you are diversified. This is much more reliable long term than picking individual stocks.
I think someone with limited investment experience, or who will have a long term buy and hold approach should go with Vanguard. Their in house funds/etfs have microscopic expenses, and they don't charge to make trades of those funds. Pick up an etf or a few that track the S&P 500. If you want to add some more diversity besides that to stabilize your portfolio, an intermediate bond fund is not a bad idea.
If you're an active trader, fidelity has more research tools. You can buy Vanguard funds through them but they will hit you with a trade commission. I don't think this is what you're looking for.
I think you should go with Vanguard.