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Let’s hear it. Why is this a bad solution?
Conversation Starter
What reason to give while rejecting any offer?
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Come on Cravath, do better for all Classes!
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Just sock money away in indexes are low cost (like vanguard). VTI, VOO, etc.
And congrats btw! Hell of an accomplishment.
And you can call these companies with questions about how to set or up and they’ll walk you through it
Hey, fellow first-gen here. Look up r/bogleheads. There are tons of guides for beginners. Maximize tax-advantaged accounts first - 401k, Roth, HSA, etc. Try to invest in broad-based index funds. Then open up a brokerage account with fidelity, Schwab, vanguard, whatever (I use vanguard because that’s the platform my firm’s 401k is on on). What I do is buy those same broad-based index funds in my brokerage. As a sixth year in Chicago, I generally try to put half each paycheck in the brokerage account after a substantial 401k contribution each check. But your mileage may vary based on spending. To save aggressively in our line of work, it’s easier to cut spending than it is to add income (also works out better dollar for dollar when you account for taxes).
Don’t worry about suboptimal. The ultimate point of personal finance is not to maximize your net worth but to improve your quality of life. If to you that means prioritizing negating stress from debt, housing, etc., then you’re already doing a great job.
@A3, thank you so much, that’s exactly what I needed next!
This made me smile to read as a fellow first gen of immigrant parents. Feels great to help family that have sacrificed it all for you to be here. I haven’t accomplished what you have yet but those are my goals too and you gave me hope! Rooting for you!
I don’t know about being behind financially but you’re in the front of the line for heaven.
Probably. I'm not familiar with that particular tool, but I assume it has a high percentage of diversified stocks (as opposed to bonds or cash) or broad market ETFs, which is basically what people usually mean. Make sure you have cash (or a CD ladder or bond ladder, if you want to get fancy) in an emergency fund and then pour everything else into equities, assuming you have a long timeline left to retirement.
I’m a third year who wants to do this for my family. You’re an inspiration and I can’t imagine how hard you must have worked to get here. I am on track to pay off loans in 2 more years and start saving more for down payment.
How many years in are you?
And as a 9th year owning your house frees up a lot of cash to invest that your peers are spending on a mortgage. 9th year-13th year or a bit later (as people are in their first handful of years of partnership) are when people make the big home jump up to something expensive and so you’ll have a lot more free cash to invest if you’re staying in current home long term.