Related Posts
Food debate: Square or Triangle
Where can I get the best latte in the city
Additional Posts in Big Law
How is the capital markets group at Kirkland?
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
Maxed out 401k and IRA from year one
This. For me I think I was intimidated by the process of setting it up or selecting investments, or maybe some other excuse. Just do it. Today.
Read biglawinvestor.com
Mentor
Set the goal of setting at least half of your after tax income away for paying off loans + saving, and stay away from large purchases until you have saved enough to pay for them upfront. Until then, don't get a very expensive dwelling or car, just get something reasonably comfy. It will help you tremendously.
Mentor
I say set the goal because half of after tax income may not be doable in year one, but if you think of it as this is where I need to be in a few years, that's more than enough to set you on the right path.
Subject Expert
Great that you’re thinking about this early! I wish I had invested more early on (after maxing out 401k, backdoor Roth, HSA etc, whatever tax advantaged methods you have available). I’d just do a robo-investor or ETFs to stock market match/grow over a several year period. I am too busy/anxious to try and pick my own stocks (tried and failed as a baby lawyer). I’m also in HCOL area but honestly we make so much money most of us can still put aside some money for investments every month. I’d automate it so you’re not tempted to just spend it. And every year when you get your lockstep raise increase your investment and try not to increase your spending and fall victim to lifestyle creep. You can always pull some money out the stock market (takes like a week) for big purchases like down payment on a house, emergencies etc., people over-blow the tax concerns (you’re never going to do better by just keeping your money in cash - your tax is on the extra income you’re getting from investments if/when you realize it).
Check out this bowl: https://joinfishbowl.com/bowl_zpchkxbgab
Keep it simple. Maximize tax advantaged accounts (401k, Roth, HSA (if offered)). Invest all of those accounts in target date index funds. Don’t time the market, just pump it in there and let it sit. After that, brokerage account into same index funds. After that (or simultaneously), rental properties, crypto, other investment types. I’m on the rental property route right now and the cash flow—aside from the other benefits—is paying for my living expenses. Epic!
Coach
A1–if you are interested in real estate, practice real estate law (me), and already hit your tax advantaged/brokerage accounts in index funds, real estate is a great play. Sure, it’s not simple. But it’s not rocket science.
Mentor
Just buy VTI
Enthusiast
QQQ and VGT should be a good chunk