(no title)
ir77 | 1 year ago
1)start investing the federal maximum pre-tax into your 401K. if you can't do the max, invest at least a minimum of your company's match. if there is no match, try to do at least 5-10K. 1a) put it all into an SP500 fund, or at least never put it into the age 20## type funds. 1b) if your work offers anything else that can be purchased through them such as vacation, insurance, etc., do it all through them as that's typically all pre-tax.
2)if you need a car, never buy a car that's more than 3x your yearly salary. if you can make it 4x even better.
3)don't rush to buy a property, expecially at today's rates. if it does come to a point that you're buying a property don't buy a property, don't go above 4x your yearly salary. i suspect that won't be much at 21 and i suspect the bank advisor will tell you the good news that you're pre-approved for much more, but until you (and your eventual spouse) can meet the 4x level, don't buy a property. 3a) this advise is worth exactly what you've paid for it. there are a gazzilion nuances such as do you need a car if you have a house/condo in a place where you can walk/take bus to work and everywhere else, what are the property taxes? it's one thing to have 2000$ mortgage and it's another to realize that you're paying another 1000$ in taxes before utilities, etc.
4)work-life-balance: it's extremely important to use all your vacation and have overall balance when you can get away from work and recharge.
seattle_spring|1 year ago
Why not? Especially with Fidelity and Vanguard, the expense ratios are often very low, and for a 21 year old the fund is going to be mostly stocks anyway.
giantg2|1 year ago