Want to take the fast lane!

[azfi20]

Ok everyone, I'm ready to open up my Vanguard account. Is it ok to start investing now or shall I wait? I was told by a few friends in the business to wait as right now is not a good time. Thoughts on investing $1000 per month into my VTSMX? I would be fully funding my 401k and my 5% SPP as well.

 

[Meadbh]

The best time to invest is when you have the money.

 

[azfi20]

The best time to invest is when you have the money.

That is sound advice, I will go by that. Do you feel $1000 a month is too aggressive for an index fund or shall I be adding more of those funds into my savings?

Or shall I diversify with $700 VTSMX and $300 VGTSX.

 

[haha]

That is sound advice, I will go by that. Do you feel $1000 a month is too aggressive for an index fund or shall I be adding more of those funds into my savings?

Or shall I diversify with $700 VTSMX and $300 VGTSX.

Do whatever you like. There are many valid answers to your question, but they often differ, Though not here, this is the home of invariant asset allocation and no timing.

If you ask a priest whether you should sin, what answer would you expect?

Ha

 

[azfi20]

Do whatever you like. There are many valid answers to your question, but they often differ, Though not here, this is the home of invariant asset allocation and no timing.

If you ask a priest whether you should sin, what answer would you expect?

Ha

Can you please elaborate? Thanks!!

 

[haha]

Can you please elaborate? Thanks!!

Practically the entire Fire and Money section elaborates this. It is a matter of judgment, perhaps I am wrong.

Ha

 

[jerome len]

In my opinion you can never start too soon or invest too much. Remember, however, it the market tubes, keep investing. Consider a market going down a chance to buy stocks cheap. When the market goes back up you really win. Good luck.

 

[mrfeh]

That is sound advice, I will go by that. Do you feel $1000 a month is too aggressive for an index fund or shall I be adding more of those funds into my savings?

Or shall I diversify with $700 VTSMX and $300 VGTSX.

Please read this:

Bogleheads® investing start-up kit - Bogleheads

I suggest you also join that forum. Lots of experienced, knowledgeable people to help you.

 

[bo_knows]

In my opinion you can never start too soon or invest too much. Remember, however, it the market tubes, keep investing. Consider a market going down a chance to buy stocks cheap. When the market goes back up you really win. Good luck.

In Bogleheads speak: "Stay the course."

 

[RunningBum]

Not sure if it's in our booklist or not but I just finished Amazon.com: Can I Retire? How Much Money You Need to Retire and How to Manage Your Retirement Savings, Explained in 100 Pages or Less eBook: Mike Piper: Books . A lot of sound info that I really agree with. It was a freebie Kindle download a month or two ago.

I'm in the camp for VTSMX over individual stocks, and going ahead with investing a monthly sum now. VTSMX is pretty tax efficient and dividends at 15% aren't such a bad thing. I'm not a market timer so I believe in keeping my money invested and investing new money immediately. I've seen too many times when the good times kept rolling and I'd have missed out on upswings waiting for a dip to buy in on. However, if you decide you'd rather try to buy in only at more opportune times, that's your business.

I've gone both ways when I had ESPP shares. The thing is, you're already reliant on the company for your job, plus the stock options, so keeping ESPP shares really put you at risk if the company does fall on hard times. Continue staying enrolled in the ESPP, but consider selling as soon as you get them for the quick 15% (maybe more, depending on how they are set up and if the stock went up during the holding period) return. I rode my company's stock to FI, then lost over half of my net worth when it tanked. And this was also a solid Fortune 100 company. Diversification is a good thing. Hold it if you like, but understand the risks you are taking.

I wouldn't advise a second job unless it's something you'd really like to do. Some might like bartending, for example, or maybe you can do some independent contracting as long as it doesn't conflict with your primary employer. However, you might find that focusing on doing well at one job will get you promotions, bonuses, and more stock options and increase your wealth more easily than a second job will. Plus you'll probably maintain your sanity and not burn out.

 

[Burnsie]

AZFI20, I think you are in an incredible position for your age and well on your way to FI very early in life. Just keep on learning, seeking your goal and staying the course.

However I don't think you are truly in the fast lane. For you to be in that type of situation you need to develop an invention, start a business, write a very successful novel, etc. Something that can get you millions of dollars in a few years. Much easier said than done. There is a book called The Millionaire's Fastlane that presents this situation.

 

[RockyMtn]

Ok everyone, I'm ready to open up my Vanguard account. Is it ok to start investing now or shall I wait? I was told by a few friends in the business to wait as right now is not a good time. Thoughts on investing $1000 per month into my VTSMX? I would be fully funding my 401k and my 5% SPP as well.

The only way to get to the fast lane is to get on the road to begin with! Put the money to work and forget what anyone else says!

 

[Midpack]

That is sound advice, I will go by that. Do you feel $1000 a month is too aggressive for an index fund or shall I be adding more of those funds into my savings?

Or shall I diversify with $700 VTSMX and $300 VGTSX.

Do whatever you like. There are many valid answers to your question, but they often differ, Though not here, this is the home of invariant asset allocation and no timing.

Can you please elaborate? Thanks!!

If you read The Four Pillars, you should be armed with these answers yourself. What did you learn about asset allocation and the various asset classes from that read? About investing vs speculation/gambling?

You have the income & saving discipline well established, congrats. Now you need to understand investing - that does not mean asking others wholesale what to do, while there is a predominant IPS here, there is still no one universal right answer. You need to be comfortable in your understanding of asset allocation, asset classes, risk vs reward, your risk tolerance, etc. AND the have the discipline to stick to your plan when the market overreacts to the downside and the upside, as it most certainly will periodically. Most people fail on the discipline and let their emotions override their heads - understandably if they don't have a solid foundation in the above.

There is no silver bullet, here or anywhere else.

With your credentials, there is no reason you can't cultivate the investment savvy needed to manage your own portfolio, and the Four Pillars is a great foundation IMO. Best of luck...you're way ahead of me at your age and I was still able to retire on a "fast track."