Just graduate college

TurtleCat
TurtleCat

Just graduate college
Have a savings
Want to invest $5k of it in Vanguard
Don't know what
Can someone tell me SPECIFICALLY what to do with it? Not just like "oh do a mutual fund" - I mean Explicit as shit.

I want something that'll grow and help 20 years down the line.

I know it isn't much, but it's something I can think about and maybe watch grow while I pay off college debt for the next 6-8 years.

All urls found in this thread:

investopedia.com/terms/d/dollarcostaveraging.asp.
bogleheads.org/wiki/Getting_started

StonedTime
StonedTime

I'm 22 btw
Owe $36k in Student Loans
Just started a job, make 35k a year
No judgement old I'm trying
Preferably want an investment I can add pocket change to occasionally

CouchChiller
CouchChiller

No, here, I'm gonna help you beat the index.

You've got 5k right?

KMPH 1.5k
BVX 1.5k
SKLN 1k
CERU 1k

You'll be on Pluto before Monday.

FastChef
FastChef

I'm tempted!

But I'm not really trying to go to the moon this week. I just want something that will almost reliability grow for 15-20 years. Will this work for that?

StrangeWizard
StrangeWizard

What's with the drop of all those pharmaceutical corporations stocks?

TreeEater
TreeEater

How do you get a medium risk Vanguard?
Do you need a lot of money to get it going?
Do I do w mutual fund or ETF?
I just want to give someone my money and get 7%

RumChicken
RumChicken

Dear fucking god no. Pay debnts you'll get better return probably than market if you don't know what you're doing. Get a broker, VIG VOO VNQ SCHD. 25% in each.

TechHater
TechHater

They're pieces of fucking garbage with failed catalysts

Stark_Naked
Stark_Naked

Are those stocks?

Lunatick
Lunatick

Exchange traded market index funds. Yes basically stocks.

idontknow
idontknow

Go long on oil stocks.

Lord_Tryzalot
Lord_Tryzalot

open ira, vsagx, done

PackManBrainlure
PackManBrainlure

If your time horizon is age 65 do this

Lord_Tryzalot
Lord_Tryzalot

So these are each groups of stocks?
Would this be good to sit on for 20 years?
Is this an Index? Mutual Fund?
Can I start with 5k?
What should the breakdown be?

viagrandad
viagrandad

They are mutual funds which are similar to stocks, only you can buy parts of a share, using all your money. (Stocks only allow you to buy whole shares).

Do your own research when it comes to mutual funds. Everyone has a different tolerance for risk and there will be some with any mutual fund or stock. I am invested in VDIGX and VIIX.

Note: Most Vanguard funds have a $3,000 minimum investment

MPmaster
MPmaster

Thanks man!! That's great info. Screen capped and taking that advice . Going to make an account right when I get off work.

It's my 4th day of working a 8-5 and I'm already exausted of it. Hopefully this will give me hope again.

Soft_member
Soft_member

Or use it to pay down your debt

Deadlyinx
Deadlyinx

Wait until you get 10k and put it all in
Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX). Expense ratio of 0.05%!

Flameblow
Flameblow

I'm already giving the bastards 500/mo

BlogWobbles
BlogWobbles

Forever poor

takes2long
takes2long

I meant VIIIX not VIIX.

No problem, I was in the same boat about 8 months ago. Better to start early

Gigastrength
Gigastrength

Keep the 5k as an emergency fund. Contribute to your 401k up to the employer match. I'm assuming you just started the job and are single. Therefore you agi is likely half of 35k. You get a tax credit for retirement contributions so if you're under 18500 for the year the gooberment will give you a tax credit of 50% of your contribution, not employer. If you're over 18500, you'll get 20%

Find the fund in your 401k that mimics the total us stock market and stick it in there.

Every other penny, pay off your debt and live like a slave for 1.5 years until it's gone.

I have just maximized your return with the least effort. Market may go down btw but you'll get matches an tax benefits.

If no employer 401k match, Roth Ira is best. Still get the tax credit from contribution. You make a low income so your write off would be low if you did a traditional Ira. I only said do 401k because of employer match if there is one

Carnalpleasure
Carnalpleasure

For Roth contribution do about 25 bucks a week. You won't miss it.

To get the tax credit look up retirement savings contributions credit on irs.gov. next year you'll make too much so you should try to get the credit this year.

All other advice is literally and mathematically inferior for a given amount of guarantee and risk. Investment vehicles may vary but ignore everyone else's shit advice unless it aligns with mine.

Source. 29 years old. Had 90k student debt. No fancy tax credits. 209k net worth. Green text is for poor fans not on mobile.

RumChicken
RumChicken

You can open a Roth through any brokerage. Vanguard. Td ameritrade. Fidelity etc. Just go on a website and hit sign up and choose Roth. Then you can look for a symbol to buy total market index etfs. Look for the lowest fee as its all the same shit.

Your biggest gain in all of this though will be to pay down debt faster.

StonedTime
StonedTime

one particularly nice thing about vanguard mutual funds is that you can set up automatic investments from your bank account.

afaik you can't directly automate buy orders for ETFs. you can automate withdrawals from your bank into a settlement account but then you might forget to buy the ETFs.

regardless of etfs vs mutual funds i would definitely automate the investing process. it'll help your money grow faster than you think because you dont have to think.

also investopedia.com/terms/d/dollarcostaveraging.asp. investopedia is your best friend for learning about investing

BinaryMan
BinaryMan

what career did you go into? i got into an ivy league but didnt go b/c would have graduated with 80k in debt.
i know i could have paid it off moderately quickly b/c im going into CS but at the same time why pay that much for college

DeathDog
DeathDog

this is ok but don't wait.
1) open a roth IRA on vanguard.com
2) fund your new roth IRA with the max contribution of $5,500
3) buy 80% VTI (this is the ETF version of VTSAX) and 20% BND
4) keep contributing the max $5,500/yr to your roth IRA
5) when you have enough in there, switch your investments up a bit (like says) to get a better expense ratio

in the meantime, educate yourself: bogleheads.org/wiki/Getting_started

Fuzzy_Logic
Fuzzy_Logic

this is good advice.

get your free money from any 401k matching, fund your roth IRA investing in low fee etf or indexes, pay down your debt like a madman while living on beans and rice.

you'll be ahead of the game.

Evil_kitten
Evil_kitten

This statue is in Virginia Beach. You live there too?

Need_TLC
Need_TLC

Dave Ramsay be gone

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