On H1B, working for Deloitte ( no great 401K) plan, looking to invest. Any ideas? Has any one used professional financial advisors ? If not, how should I go about this?

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Looking at your title, I am assuming you are fairly young and very little investment assets so making some suggestions based on that -

1. No point in going to an investment advisor. If you are truly interested and invested in your financial future you can read and be a DIY. I would say hold off till you are closer to a $1M in assets

2. Find out what the Deloitte 401k match is and you should absolutely put that money away into the 401k plan to get the match. That’s your money that you are leaving on the table.

Let’s assume you are at $100k and Deloitte matches 50% upto 6% of what you put in. So if you put in $6000 they will put in $3000.

You are also missing out on the tax benefit. Your 401k contribution comes out of your pre-tax income. so assuming a 20% tax rate you save $1200 dollars in taxes on your $6k contribution

But keep in mind your 401k investment is locked in till you are 59 and half. Withdraw before that and you pay a 10% penalty + taxes.

Your investing choices are a target date fund that’s close to your retirement age. So if you are 25, invest in a 2055 fund or if you are 30, invest in a 2050 fund etc. etc.

3. Open a Roth 401k or Roth IRA and put in additional money. The investing rule is 100 - your age should be in stocks. So if you are 25, put 75% stocks and 25% bonds; if you are 30 years olds it’s 70-30, etc.

4. If you haven’t already, Go to your local public library with your DL and proof of address like a mail or a utility bill and get a library card. You can then browse and all their books and magazines and even use an app like Libby or Zinio.

Read the past 6-9 issues of Money magazines and Kiplingers finance. Both these magazines publish their top rated funds/etfs looking at performance, fees, Morningstar analyst ratings, etc. You can’t go wrong if you pick one of those. They usually have some suggestions on recommended portfolios based on age and risk profile, goals, etc.

Good luck and feel free to ask more questions.

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Absolutely. Feel free to DM me.

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