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MN | Invest in 401k upto $19k a year but at a min to get company match. Do the Roth 401 option on some (after tax dollars) if your 22 should be cheaper tax today then In the future. If looking to build wealth to use before retirement then do the brokerage thing. I would try to get in a index fund that mirrors the sp500. The ETF are cheap to trade. The target date fund seem to have poorer returns and higher cost compared to a sp500 index. Companys 401 plans have small list of options so you do your best. The market goes up and the market goes down. The feds have proven they will prop the market up no matter what. I would say the stock market fir the last 15 years has been the best place to accumulate wealth. I have avg 12% over that time period with a buy and never sell position. If interest rates go up like in 80s then one would pull out of market and take a very secure position. Next 15 no one knows. But since stock markets inception it is up significantly. Time is on your side. If you have low cost of living. And this needs to be your goal then you can invest in a brokerage account on top of the 401. Do not put cash in the bank and lose 3-9% whatever inflation is going forward. Just keep enough for 6 mons of bills. I hope you understand the time value of money. Most people do not but you should save the most early in your career. Get a good base. Delay those initial purchase of vehicles vacations toys till later. Investing 10k a year for the next 10 years then no contribution for the next 30 years on a 6% roi (avg market return adjust for inflation) after that makes $750k in today’s money. Vs investing 5000$ for the next 40 years every year produces about the same result. Your contribution of 100k or 200k Many people position them selfs by save nothing early in life then hammer on it towards the end.
Edited by CraneND 10/14/2021 21:45
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Where does a young guy start investing money?
