No One Agrees on the Right First Investment Move

“I wouldn't argue with the wiki ;-) -- But open a Roth IRA. You probably can't afford to max it - you probably can't even afford to max your workplace plan (trad or roth). But in your 20s? Trust me as a 52 yo -- toss as much as you can spare at the Roth IRA? Even as a "last notch" vehicle while you prioritize your 401k + other life stuff? Wish I'd have done that earlier. I'd be retired at 52.”

“Honestly tapping a 401(k) early usually hurts because you're losing out on decades of compound growth and getting hit with income taxes but since you're planning to work until 68 and turning 60 this October you do have some runway left to rebuild that balance. That said pulling out 25k all at once could still spike your taxable income more than you think even if you stay in the same bracket so you might want to look into a 401(k) loan instead of a withdrawal if your plan allows it that w”

“I mean it sounds like you can't afford to do this if you need to either cash out of the 401k or take a loan. At this point you need to preserve the 401k for your actual retirement, and doing a HELOC or other type of mortgage is just cashing out equity you could take and spend in retirement Look at it this way, if you were to sell the house today would it get you $25k more in sales price if you did these repairs? If not, it's not worth doing them”

“So you’re taking cash out of investments, that presumably will continue to grow for 8 more years - maybe double. You also have to consider whether your plan will allow you to take an in-service withdrawal On the other hand, using a HELOC is using other people’s money to fund your fixes that would presumably be repaid by the rent you would receive, effectively lowering the cost to you. I guess the question is - would you rather work another eight years or do you have enough equity that downsizing”

“Hi everyone, I’d love to get some opinions from people who have been investing for a long time or who have gone through a similar situation. I’m 32 years old, have a very long investment horizon (20–30+ years), and I’m not planning to touch this money unless something truly unexpected happens. My goal is long-term wealth creation rather than generating income today. My expected cash flow looks like this: Net salary: €11,000 per month 2026:Annual bonus: approximately €150,000 net, paid in three i”

“Hello Everyone, If you were handed $1 million today , would you invest it all in the S&P 500 , or invest in real estate , or simply hold onto the cash? choose your fighter and let the OG share their experience The S&P 500 has historically been one of the best long-term wealth-building investments. By owning shares in hundreds of America's largest companies, investors benefit from diversification, long-term economic growth, and the power of compound returns. While the market experienc”

“1) if/when markets drop your leverage ratio could change a lot. 2) the percentage leveraged will go up every year with those numbers. 3) 250k/year (assuming that doesn’t include taxes) already has real risk of failing with just 7m”

“Hello! I started investing into a Roth IRA about two years ago. I was late to the party (am in my late 20s) and only have about 11k so far. Currently my breakdown by percentage is roughly: 28% VTSAX 37% VTWAX 6% AVUV 8% VGT 22% VOOG I've had pretty good yield (>20% so far). I'm trying to stay as diversified as I can by looking at Vanguard's "difference from the average" on percentage, and am a bit confused looking at overlap. It looks like I could use more mid-cap? Any g”

“I have about 35 more years until i retire, and the selected ones in the second pic are what I was thinking. https://imgur.com/a/BBmHo49 My employer also offers target date funds and risk based funds. New to investing so any thoughts would be greatly appreciated! submitted by /u/sktngiceprncss [link] [comments]”

“Basically the title I have 43k in my checking and 20k in my Roth through my job m, everyone tells me to invest but I have no idea in what or how much to invest. I am moving countries for work next month so idk if I should just hold off until I’m settled in my new area. Seeing alot of these posts makes me feel like I’m behind any advice is appreciated submitted by /u/Darcevader2 [link] [comments]”

“What am i not thinking of? My current salary is 78200. My wife's current salary is 66000. My 457b is currently at 156031k roth and 9128 pretax. I am contributing 630 towards roth a month and 400 towards pretax. I have a 401a that the employer contributes 40 dollars a month. Current balance is 7050. Wife also has a 457b with 15161 in it. She adds 100 dollars a month. I bought my house in June 2022 for 265k. Down payment of 26500. Current monthly payment of 1620. Putting 300 extra towards prin”

“I'm curious how others here would approach this. Let's assume the following: - Portfolio: $2,200,000 - Annual spending: $60k–70k (around a 3.0–3.5% withdrawal rate) - Goal: Maintain or increase purchasing power over time, so withdrawals should ideally keep up with inflation. - Investment horizon: Potentially 50+ years. A few questions I'd love to hear different perspectives on: Asset allocation - How would you split between asset classes? Withdrawal strategy - Fixed percentage? - Inf”

“Thanks for the input guys. For context I’m 36, own my own home (where most of my net worth is tbf) live in the U.K. and goal is to use the below for retirement. So looking for something that is diversified but can handle volatility given my time horizon. Revamped things based on pointers + additional research and backtesting. My previous post had my portfolio more defensive, only 55% stocks and with those made of multiple ETFs: large cap + small/medium cap US, rest of world and emerging. So I’ve”

submitted by /u/SpecialReturn7706 [link] [comments]

Part of the salary is stocks + high tax rate

“I have the chase college account already and I meet the requirement for the IRA, I'm making a Fidelity account right now, thank you so much for your tips!”

“Would love to hear different folks opinions about this. My own case: Been working steadily over that time. Our HHI (2 earners) has gone from $150k in 2000 to $420k in 2026 - so a little under 3x over 26 years, which is an average annualized growth rate (CAGR) of 4%. As you can imagine, that just represents annual raises of 3% for inflation, with one or 2 occasional promotions or job changes thrown in. Both of us have been in the same jobs, getting 3-4% raises, for over 15 years. Just individual”

“I want to do 75% VOO, 10% AVUV, 10% QQQM and 5% to whatever individual stock to play around with. This is for my brokerage, my Roth is going to be 100% VOO for now. Does this make sense for the long term? Any critiques? I am early 20s and just started investing, for reference. submitted by /u/Successful-Location6 [link] [comments]”

“Read the following. https://www.reddit.com/r/personalfinance/wiki/commontopics/”

“I'm 29, married, living in California (VHCOL). My wife is a stay-at-home spouse and we don't have kids yet, although we'd like to have four in the future. My current compensation is around $500k/year , but I don't expect that to last forever. I work in an industry with a high risk of layoffs, so I'm assuming I have at most a few more years at this income level. My goal is to retire around 34 because of a chronic health condition. I don't necessarily mean never working aga”

“Hello! I recently joined a new company and they have a 401k plan that seems to be a bit more complicated than my old one. I am 26 years old right now and my ideal set up (or at least what is in my Roth and HSA) is ~70% VTI and ~30% VXUS. I am trying to mimic this with the funds offered in my new 401k. Here are my options: Vanguard Developed Markets Index Trust Vanguard Emerging Markets Stock Index Fund Institutional Plus Shares Vanguard Institutional Total Bond Market Index Trust Vanguard Instit”

“Since the 530A (Trump) accounts were announced, I’ve been thinking a lot about how to fit it into how we are optimizing our funds towards our child’s future life choices. On paper, the 530A possibilities look great. Up to 18 years of tax sheltered compounding, that can be converted to child’s Roth IRA to continue decades of tax exempt compounding to retirement. A generational tax exempt compounding vehicle! But we stepped back and looked at the stats. Our child is currently 3. We are betting mon”

“I wanted to describe my personal investing philosophy to see if anyone else has adopted a similar approach and could maybe give some insight on some things I’m seeing with the strategy. I follow mostly a working capital strategy that goes something like this: Invest in higher yield (6-10%) closed end funds, option ETFs, dividend stocks, BDCs, REITs, etc preferably at a discount to NAV that I’d be willing to hold forever Treat capital gains as “accelerated dividends.” If a position produces a gai”

“23M, first contributed and maxed out Roth in 2025, plan on doing so every year moving forward. Very aggressive, long time horizon, zero emotional ties to volatility and corrections. Current allocation: 50% VOO 25% AVUV 15% AVES 10% VSS Have been doing $200 bi-weekly contributions with automatic buys. Wanted to leave myself a cushion to average down in a turbulent market. Played around early on with different allocations but finally settled upon this a few months back. More of a “set it and forge”

“I just can’t wrap my head around this. Wouldn’t removing the limits just result in more investment into the stock market for essentially zero tax tradeoff?”

“You should probably keep in mind that a 16 year window is fairly short in investing terms, and we've had multiple periods of 16 years where real return was around 0%. That would put your starting value $1.3M not at $4.3M but at.... $1.3M in inflation adjusted terms in the end. Given these periods tend to follow periods of high valuations, and we are currently near record high valuations, this is more likely to happen now than on average too. I don't know what's going to happen of cou”

“Puzzleheaded, as I’m sure you know, only about 10-20% beat the S&P 500 over a five-year horizon. And if you don’t, the nominal returns will look good while the purchasing power of your portfolio erodes over time. Also, in my opinion, the CPI does not capture a fat lifestyle basket of goods. If you’re looking at high-end goods and service, that lifestyle probably has an inflation rate closer to 5% unless you are in a LCOL area, keep consumption deliberately moderate, don’t use a lot of servic”

“I know the answer is out there somewhere, but I've never gotten a clear answer. Okay so: in a brokerage. Say I want to invest 1000$. If I make 70k, then that 1000 is taxed at 22%. So I can only invest 7800$. Say over 10 years that money doubles to 15600$. Then I sell all my investments. I made 7800$ in capital gains. So first of all, does that get taxed as income, capital gains, or both??? If I make 70k normally, do I count that as making 77800 that year, and thus it gets taxed at 22%. Is it”

“I’m opening both a taxable and Roth IRA in vanguard. Currently at EJ. now wouldn’t it make sense to put only vanguard funds into vanguard or does it really matter? submitted by /u/Zach-12345 [link] [comments]”

“Basically my aim is to throw minimum 1k a month (I'll probably manage more some months) into either of those for 15+ years (or less if yearly profit is double my contribution). I just don't know if it's better to invest into qqqm (lower expense than qqq and underlying does generally perform better than the dividend equivalent) and leave it be or into qqqi and let the dividends drip. On one hand I get that qqqm will have better price appreciation than qqqi but on the other I do like t”

“Hello. My job uses Empower retirement but we don't have any access to financial personal to help us know how to break down our investments. I did a little YouTube watching and just trying to do what I can to make good returns so I can retire with something to live comfortably. My job matches 8% or if I put 4% they give the 8%. I'm sure you all know what the match is just trying to make sure it's clear. I currently put 5% and as I get my vehicles paid off which is very close I was goi”

“$80k inheritance from family and needing to decide on an investment plan for this. Please see my options below and share your thoughts and feedback. Invest all in taxable (max flexibility to withdraw gains, selection of stocks, least tax efficient): I would do as I do with my existing taxable account plan, VTI+VXUS for the vast majority and some SPMO+SMH for a sector tilt. Funnel my paycheck into Mega Back Door Roth through my employer’s plan and use the inheritance as my “paycheck” (Most tax ef”

“This question has been on my mind for a long time. A little about me: I’m 27 years old, a non-native English speaker, and I’ve been living in the U.S. for about two years. I have legal work authorization. My long-term goal is very clear：I want to reach a point where I can retire early, or at least achieve financial independence, by the time I’m around 45–50. The problem is that I honestly don’t know which career path to pursue. Right now, I’m working at a relative’s nail salon and trying to save”

“You are good for another 10 years then. Flashy cars are the ones that separates people from their financial security lol.”

“Workplace offers a financial advisement service and they've recommended moving some of my gains into bonds.... but I feel that I am far too young for this and would limit a lot of growth for myself. Core positions are basically 70/30 VOO/VXUS. submitted by /u/Savings-Anything420 [link] [comments]”

“Assuming these goals are 10+ years away, move the money to a brokerage account and invest in a broad market index fund (e.g. VTI or VT).”

“Excluding 1st/2nd homes, I would be well under the OPs $5m until you add in my 3 rental properties. They are about 1/3rd of my assets funding my retirement. My career was good paying engineering and IT jobs - great income but not untouchable. The non-traditional assets make a big difference. Been enjoying the cash flow lately and know that I could always sell one if I needed a bigger boost.”

“So how terrible is it to hold VASGX in my taxable account? I’m looking for a clean one and done fund to just dump money into when I can. submitted by /u/snoops1230 [link] [comments]”

“Hi everyone. I’m 36, living in the U.S., and starting my 30-year retirement plan with $1,000/month. I plan to max out my Roth IRA, then use my Roth 401k. My current portfolio strategy: 50% VOO 30% QQQM 20% SCHD I plan to reinvest all dividends and hold this for 25 years before rebalancing. Does this portfolio look solid for a long-term "set and forget" approach, or are there any major adjustments you would suggest? Thanks! submitted by /u/No-Pollution2205 [link] [comm”

“401k doesn’t offer VTI or VXUS and I don’t really want to over complicate with a PCRA setup yet. Does this combo roughly approximate VTI 70% and VXUS 30%? (I know it’s slightly too much S&P500, just trying to keep percentages easy to remember and manage in the future) Vanguard Institutional 500 Index Trust 60% Vanguard Institutional Extended Market Index Trust 10% Vanguard Developed Markets Index Trust 20% Vanguard Emerging Markets Stock Index Fund Institutional Plus Shares 10% Other options”

“I am not saying these assets dont have significant value, all I am explaining is that its really hard to get an effective estimate of their value for the purposes of this calculation. Perhaps real estate is more straightforward, but small businesses seems impossible to put any fair number, especially when some need the proprietor to be active for the business to do well Even with them though how much do you think the number change? Does it double? I doubt its higher than that”

“Pretty much what this question is asking. I’m just curious to know what this subs opinions are on which one is considered more impressive. I obviously know index funds are the way to go for building long term wealth but for curiosity’s sake I was wondering about which type of outperformance requires the most skill when it comes to individual stocks. The shorter horizon with greater returns or the longer horizon with lesser returns. Thank you. Edit: single digits total. submitted by /”

“Yes, I think $5M is like 1% not 0.1% if you look at total investment assets. Just 401K assets is meaningless. There is a limit to what you can contribute to these vehicles.”

“I have setup a recurring “set it and forget it” investment strategy on Fidelity for long term growth. Here’s the allocation: VOO: 55% VXUS: 20% VBR: 15% SPMO: 10% Would you recommend I change it in any way? submitted by /u/Educational_Agent160 [link] [comments]”

“Incredibly lucky to be looking at potential retirement options at 36M with my wife at 35F. I have followed the FI/RE community for a while and only recently discovered r/ChubbyFIRE and even more recently realized that we might find ourselves in this situation. Hoping you can provide some guidance based on where we are financially and some potential options of where life will take us next Spending ($10k monthly / $120k annually): $3k/mo mortgage on ~$600k house, 3.3% interest $2k/mo insurance $1k”

“I’m 35 years old and looking for some advice. Current investments: Retirement account: about $36,265 Individual brokerage account: about $4,673 Total invested: about $40,900. Car loan: Balance: about $33,000 Interest rate: 7.44% Monthly payment: $622.20 I already invest regularly and max out my Roth Individual Retirement Account every year. My goal is to build as much wealth as possible by retirement. If you were in my position, would you: Keep investing and make the minimum car payment? Focus o”

“I just opened a brokerage account with Fidelity. Already max out backdoor Roth IRA, and 401K, and have a well funded HYSA. My IRA and 401K investments are just in target date funds, as I have little to no idea what I’m doing, and prefer a set it and forget it approach. What should I do with the money in the brokerage? Can I also do target date with this? submitted by /u/MelMcT2009 [link] [comments]”

“I do have a brokerage account and some extra savings that I could invest. Need tips submitted by /u/JRx117 [link] [comments]”

“I am worried that we are significantly behind on our retirement savings. Unfortunately, we started contributing to our retirement accounts late. Currently, we have only about $550K combined in our IRA and 401k. I would appreciate your insight into our position and any recommendations you may have. We are in our early 50s and both still working. Below is a snapshot of our finances: - Total Income: ~$220K - Primary Home: Worth ~$800K with $200K left on the mortgage (9 years remaining) - Rental Pro”

“I probably won't retire for another 25 years. Due to circumstances, I will most likely have a much larger brokerage account than 401k. Maybe a ratio of 2:1. I don't plan on an IRA. I will use my brokerage account to hold various sinking funds to pay for large purchases, but also to use in retirement. I read that one advantage of this is I only pay long term capital gains taxes on withdrawal, which is less, instead of being taxed as ordinary income. Are there any other advantages to using”

“pull the $5k for grad school and the $8k scholarship amount now since you skip the penalty on that. the roth rollover is great but double check the 529 has been open 15 years, a lot of people miss that rule. with your earned income this year you can only move about $7k so start that process. honestly the rest is a solid foundation for your future kids college fund, just let it grow.”

“How bad would it be to delay the expense in a downturn? If you have to pull the money in 1-4 years, HSA and avoid the risk of a downturn by then. If you have flexibility--you would ideally buy a house then but a downturn just means you delay the purchase 3-5 years while markets recover--brokerage.”

“I'm closing up my HYSA and putting that money in SGOV within my brokerage account. It will have a smaller yield than my HYSA, but it's all in one place so managing the money will be a lot easier.”

“We will be at close to a $200-225k joint income pretax when she finds a job again. I am making $97k now and on in the running for a management spot which will hopefully net a 20% raise. She is looking for something in the $100k range again as she was underpaid at her last company.”

“High yields get nothing right now. You’re looking at like $20 a month interest on a 10k principal. Not worth it imo”

“There isn't really a 'best' option, it's all about where you want that money to sit. You can roll it over to a IRA, or keep it with TransAmerica. What you want to look at is what options for investments are available at TransAmerica, and what is available at whatever institution manages your IRA. Here is my story and what I did in a similar situation. I'm not saying this is "the best" way, but it's what I've chosen to do. I was in the military for 20 years a”

“If you want to spend $300k per year over a 40+ year retirement, you’d need a portfolio of about $8m. If you wait until you have the mortgage paid off, then you’d still need about $6.5m. The math is pretty simple, just take your desired annual spend and multiply by 27. Don’t count inheritance until you have the funds in your account.”

“I am curious what this communities thoughts are on exercising employee stock options--most of the advice I see is about RSUs. There are a few competing things I am trying to consider: I am already invested in this company because it is my employer, having a lot of my NW tied up in its options as well is the opposite of being diversified (so I should exercise and sell immediately). They're currently worth ~10% of our household NW (~200k out of ~2M). The options have a long time to expiration”

“The amounts they want you to have saved by retirement age can be a little overwhelming if you have slacked off and not saved earlier in life. But then I realized these models are assuming you’ll live until you’re 97, 30 years after full retirement age of 67. The male average life span is 74, females are 76. So these amounts they give us are rubbish, we could only save 33% and we’d be just fine. Murphy’s Law would certainly apply in this case. If you don’t save much, you’ll live long. And if you”