Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Greetings from a 29 y/o male living in the Bay Area. Intro & 1st question!!
Old 11-12-2015, 11:13 AM   #1
Confused about dryer sheets
 
Join Date: Nov 2015
Location: Bay Area
Posts: 8
Greetings from a 29 y/o male living in the Bay Area. Intro & 1st question!!

Howdy all!

I'm an underpaid urban planner (working on changing this!) who currently resides in the Bay Area. Originally from Miami, I recently moved here from Denver. I'm a single 29 year old male with no debts! I have a master's degree in planning, and am very excited about this career. I do however want to become FI, so that I'm never dependent on an employer-overlord. After $7,000 has sat in my savings account for a year and a half, I want to invest some of it. Thus enters how I stumble across FI and long-term investing! I've been doing as much reading and listening as possible (MMM, Merriman, Mad Fientist, r/financialindependence, Root of Good, JHCollins, JD Roth, as well as various other off shoots) and have embraced fruaglity, saving, and living within my means. However, I have not yet invested my money and begun to purchase into the magical power of compounding. As for my financial information here are the details:

  • Income: $48k (pre-tax), $30k (post-tax)
  • Debt: $0
  • Monthly Expenses: $1,800 - $2,200 (depending on climbing trips taken)
  • Savings: $7.1 k ($3.5-$4k to remain as an emergency fund)
  • 401k: $1k (soon to be $4.9k once an old DC account is rolled over)
  • Pension: $2.1k
  • Net Worth: ~$15.5k
Now, I'm pretty close to opening a brokerage account with Vanguard, and have a vision for a stock fund portfolio (VFINX, VLACX, NAESX, VISVX, VEIEX, VGSIX) but am beginning to realize that will be an upfront investment of atleast $15k... So, since I have $3k at my disposal to invest I'm wondering what a good, first investment into the index fund market might be? Should I be looking at something like Vanguard Target Retirement 2060 (as it's more aggressive)? Can I invest this $3k into ETFs and build a more diverse portfolio within my current financial constraints? I really look forward to hearing what sort of advice, comments, and input you fine folks have!


Cheers,


FIREmillenial

P.s. I'm definitely more adverse to the "Lazy Portfolio" stance.
__________________

__________________
firemilllenial is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-12-2015, 12:21 PM   #2
Full time employment: Posting here.
 
Join Date: Apr 2015
Posts: 903
Personally, I prefer mutual funds to ETFs.

I'm actually in your shoes right now with regards to starting a taxable brokerage account. Since there will be tax consequences in a taxable account if you sell and buy a different fund, I'm inclined to go with something you plan on holding for a long time even if it doesn't quite match your desired AA at the moment. A good starter would be VTSMX/VTI or VFINX/VOO.

Now if this is in a tax advantaged account (tax deferred or Roth), by all means, go ahead with whatever AA you desire now.
__________________

__________________
hnzw_rui is offline   Reply With Quote
Old 11-12-2015, 01:45 PM   #3
Confused about dryer sheets
 
Join Date: Nov 2015
Location: Bay Area
Posts: 8
Quote:
Originally Posted by hnzw_rui View Post
Personally, I prefer mutual funds to ETFs.

I'm actually in your shoes right now with regards to starting a taxable brokerage account. Since there will be tax consequences in a taxable account if you sell and buy a different fund, I'm inclined to go with something you plan on holding for a long time even if it doesn't quite match your desired AA at the moment. A good starter would be VTSMX/VTI or VFINX/VOO.

Now if this is in a tax advantaged account (tax deferred or Roth), by all means, go ahead with whatever AA you desire now.
Cool! Thanks for stopping by. I'll be keeping my eye on VTSMX and VFINX over the next few weeks :-D
__________________
firemilllenial is offline   Reply With Quote
Old 11-12-2015, 04:25 PM   #4
Moderator
MBAustin's Avatar
 
Join Date: Jul 2010
Posts: 4,166
Welcome, firemillenial, and congratulations on getting off to such a good financial start!

I posted this link yesterday in another thread but you might not find it there - since you like reading on financial matters, you might want to check out some of these classic books for new investors:

https://assetbuilder.com/knowledge-c...vice-investors

My suggestion would be to keep it very simple to start with, such as the target date fund or something similar. Happy investing!
__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
MBAustin is offline   Reply With Quote
Old 11-12-2015, 11:26 PM   #5
Confused about dryer sheets
 
Join Date: Nov 2015
Location: Bay Area
Posts: 8
Quote:
Originally Posted by MBAustin View Post
Welcome, firemillenial, and congratulations on getting off to such a good financial start!

I posted this link yesterday in another thread but you might not find it there - since you like reading on financial matters, you might want to check out some of these classic books for new investors:

https://assetbuilder.com/knowledge-c...vice-investors

My suggestion would be to keep it very simple to start with, such as the target date fund or something similar. Happy investing!
Thanks, MBAustin. As of today, I'm the proud owner of $1k in VTTSX! I'd like to grow this to $10k and then invest it in VTSAX sometime down the road!!
__________________
firemilllenial is offline   Reply With Quote
Old 11-13-2015, 11:57 AM   #6
Moderator
MBAustin's Avatar
 
Join Date: Jul 2010
Posts: 4,166
Good for you, firemillenial! Keep it up!
__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
MBAustin is offline   Reply With Quote
Old 11-13-2015, 04:26 PM   #7
Thinks s/he gets paid by the post
robnplunder's Avatar
 
Join Date: Nov 2013
Location: Bay Area
Posts: 2,124
My suggestion is go with an aggressive index mutual fund, something like Nadaq 100. Once you have more, you can add another mutual fund for diversification. Keep adding to the fund regardless of how the market does.

If I followed my own suggestion at age 30, I could have retired 5 years ago instead of doing OMY.
__________________
Pura Vida
robnplunder is offline   Reply With Quote
Old 11-13-2015, 04:51 PM   #8
Confused about dryer sheets
 
Join Date: Nov 2015
Location: Bay Area
Posts: 8
Quote:
Originally Posted by robnplunder View Post
My suggestion is go with an aggressive index mutual fund, something like Nadaq 100. Once you have more, you can add another mutual fund for diversification. Keep adding to the fund regardless of how the market does.

If I followed my own suggestion at age 30, I could have retired 5 years ago instead of doing OMY.
OK, if you could go back in time and had $6k ($3.5 of which is EF, so $2.5 available for investing) in savings, and a Vanguard account (one which you'd like to remain with one brokerage firm), what would you advise to yourself? Would you add another investment to a taxable individual account?

Keep in mind, you just made your first ever investment in VTTSX just a day prior.

Cheers!
__________________
firemilllenial is offline   Reply With Quote
Old 11-13-2015, 05:10 PM   #9
Thinks s/he gets paid by the post
robnplunder's Avatar
 
Join Date: Nov 2013
Location: Bay Area
Posts: 2,124
Quote:
Originally Posted by firemilllenial View Post
OK, if you could go back in time and had $6k ($3.5 of which is EF, so $2.5 available for investing) in savings, and a Vanguard account (one which you'd like to remain with one brokerage firm), what would you advise to yourself? Would you add another investment to a taxable individual account?

Keep in mind, you just made your first ever investment in VTTSX just a day prior.

Cheers!

I would move it to a Vanguard mutual fund that invests in Nasdaq 100 (or similar) or biotech. That's what 'I' would have done.
__________________
Pura Vida
robnplunder is offline   Reply With Quote
Old 11-13-2015, 05:14 PM   #10
Confused about dryer sheets
 
Join Date: Nov 2015
Location: Bay Area
Posts: 8
Quote:
Originally Posted by robnplunder View Post
I would move it to a Vanguard mutual fund that invests in Nasdaq 100 (or similar) or biotech. That's what 'I' would have done.
Great, thanks for replying. I'm always willing to listen to what those ahead of any path would've done at the stage which I am in currently!
__________________
firemilllenial is offline   Reply With Quote
Old 11-13-2015, 05:20 PM   #11
Full time employment: Posting here.
 
Join Date: Apr 2015
Posts: 903
Quote:
Originally Posted by robnplunder View Post
I would move it to a Vanguard mutual fund that invests in Nasdaq 100 (or similar) or biotech. That's what 'I' would have done.
VHT is nice. Too bad I didn't have funds in my sweep account when it hit $120 or I would've bought more.
__________________
hnzw_rui is offline   Reply With Quote
Old 11-13-2015, 05:22 PM   #12
Confused about dryer sheets
 
Join Date: Nov 2015
Location: Bay Area
Posts: 8
Quote:
Originally Posted by hnzw_rui View Post
VHT is nice. Too bad I didn't have funds in my sweep account when it hit $120 or I would've bought more.
I'm still pretty unfamiliar with ETFs, and still need to do some further reading on them, and evaluate if they align with what I think I know. Of course, I still have tons of reading to do!
__________________
firemilllenial is offline   Reply With Quote
Old 11-13-2015, 05:32 PM   #13
Full time employment: Posting here.
 
Join Date: Apr 2015
Posts: 903
VHT is Vanguard's healthcare ETF. Personally targeting using it as my health/long term care insurance fund (kind of a hedge against crazy high medical inflation ). Not really part of my AA so I'm using no more than 5% of new contributions towards it.
__________________

__________________
hnzw_rui is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Noticed more people holding signs "need work or food" rayinpenn Other topics 3 05-03-2015 03:51 PM
Greetings from the Bay Area, hoping to FIRE by mid-2030s 2035 FIRE and Money 46 01-12-2012 11:40 PM
More from the grown male acting like a 1st grade boy. newguy88 Other topics 1 01-17-2008 08:58 AM
Bay Area Members--Lend me Your Wisdom JPatrick Other topics 9 02-24-2006 04:22 PM
Moving to the Bay Area? Spanky Other topics 59 02-20-2006 02:31 PM

 

 
All times are GMT -6. The time now is 06:54 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.