My SO has ~100K sitting in a savings account. She’s a student so very low income. Does it make more sense to start a 401K + IRA and invest it in chunks of 25K? Or max out this years retirement and then just throw the rest in an ETF?

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Bitcoin

likefunny

To the 🌕

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You can start an IRA but you can only contribute 6,000 per year

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Still better than the .5% interest rate if you keep it in a high yield savings account

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It also makes sense for her to decide how much risk tolerance she has and what she wants to invest in, as any loss of principal resulting from your decisions is likely to have an understandably negative impact on your relationship.

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Yeah I know, its a tough topic but I’ve advocated for a target date mutual fund

Starting an IRA and investing a good deal of it in a mutual fund is a good idea. Depends what their goals are.

If you had invested that 100k in s&p 500 index last year , you would of had 118k total by now. You’re missing out in a lot of money. Putting money is a savings account doesn’t even offset inflation which is about ~2% per year

Yeah, but Tesla would have given you $800k. -Admiral Obvious

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