A young friend has asked me for some help getting started with investing and I would love to get some recommendations and advice from the group here.
She is not interested in learning a lot about finance or the market and initially asked me about finding an advisor to do this for her (which I shot down). Her risk tolerance is fairly high and she really wants to invest her money and then ignore it, though she's willing to login and rebalance once a year and whenever she has extra money to add.
She is mid-20s, single, debt free, has a job and an emergency fund, and is not planning any major purchases or marriage any time soon. I would say her annual gross income is about $65K.
She has:
- 401(k) at Fidelity with $7.5K that was started about 6 months ago. This money has been in cash up to now. Adding $1K per month plus a small annual profit sharing contribution from the employer. There's no regular employer match. It seems like she can invest this in anything Fidelity offers. We did a screen-share last night, and I could see that it acts like a regular brokerage account, not like the Fidelity NetBenefits accounts with limited fund choices that I was more familiar with when working.
- Roth IRA at Vanguard with $22K split between VIMAX (mid-cap) and VTTSX (target 2060 fund). Don't know if she plans to contribute this year since she's focusing on putting money in the 401(k) now.
- $15K to invest in a taxable account at Vanguard.
So, what would you suggest she do with these accounts?
She is not interested in learning a lot about finance or the market and initially asked me about finding an advisor to do this for her (which I shot down). Her risk tolerance is fairly high and she really wants to invest her money and then ignore it, though she's willing to login and rebalance once a year and whenever she has extra money to add.
She is mid-20s, single, debt free, has a job and an emergency fund, and is not planning any major purchases or marriage any time soon. I would say her annual gross income is about $65K.
She has:
- 401(k) at Fidelity with $7.5K that was started about 6 months ago. This money has been in cash up to now. Adding $1K per month plus a small annual profit sharing contribution from the employer. There's no regular employer match. It seems like she can invest this in anything Fidelity offers. We did a screen-share last night, and I could see that it acts like a regular brokerage account, not like the Fidelity NetBenefits accounts with limited fund choices that I was more familiar with when working.
- Roth IRA at Vanguard with $22K split between VIMAX (mid-cap) and VTTSX (target 2060 fund). Don't know if she plans to contribute this year since she's focusing on putting money in the 401(k) now.
- $15K to invest in a taxable account at Vanguard.
So, what would you suggest she do with these accounts?