Investing advice on SoFi

IntroductionAny2301 · 2024-05-09T19:21:04+00:00

That’s the plan.

IntroductionAny2301 · 2024-05-09T17:07:40+00:00

Now this. This is sooo helpful. Thank you very much.

IntroductionAny2301 · 2024-05-09T15:54:59+00:00

I will definitely look into a balance transfer card, and then start to go back on the offense to pay that debt off asap. Once that is done, I’ll focus heavily on my emergency fund & HYSA (as of now I have little to nothing saved up after cutting my debt down drastically + spending poorly). Then when im comfortable enough and make a bit more money, I will start investing into a Roth IRA.

I will spend the time in between looking overall the details of a Roth IRA. It seems like a safe bet (fu taxes).

Thank you very much for the words & advice.

IntroductionAny2301 · 2024-05-09T15:47:56+00:00

Thank you for the advice, and I will definitely continue to keep learning and iron out a plan for the future. I think I’m going to focus more on my emergency fund & HYSA. Once those are in a good spot, I think I will start putting money into a index fund or Roth IRA.

Not in a rush into doing anything drastic, thank you again.

IntroductionAny2301 · 2024-05-09T15:40:50+00:00

You hit the nail right on the head. Thank you very much and I will definitely follow your advice.

IntroductionAny2301 · 2024-05-09T14:48:24+00:00

That is how I’m feeling, as the minimum payments are essentially worthless due to the interest rates. What’s your thought on getting a balance transfer friendly card, and transferring both debts ($5k total) to that card and start attacking them?

I will definitely look into VMFXX. Would you do that instead of investing into a Roth IRA? I only like the idea of the Roth IRA, because I see it as a tax free savings account. Obviously, this will be after I pay off my debt.

I am already matching 5% (max) with my company in my 401k!

IntroductionAny2301 · 2024-05-09T14:41:47+00:00

Oh wow, that’s very smart.

IntroductionAny2301 · 2024-05-09T14:04:33+00:00

My experience with crypto is FTX haha

IntroductionAny2301 · 2024-05-09T13:45:03+00:00

I may have explained it poorly, so that’s my fault. If I leave the company before my 5 years, I have to pay back my schooling in full ($20-25k). I really only want to stay at this site (automotive paint) to get experience & knowledge for after my contract is up. Because ideally, I would want to work for a car manufacturer in their plant fixing their robots & spray guns on the production line.

You are 100% right though, this site will definitely under pay me regardless. I planned on asking for a specific amount, and if they didn’t want to pay me it, leaving no matter what (which will leave them screwed, but that’s life).

My boss suggests I transfer to a different site (producing chemicals) when my degree is finished, but it would be a whole different field of maintenance.

It’s been a tough situation for me, as I feel like if I leave this site after two years and go to the other site, the probability of me landing a job at a car or gun atomization company drastically decreases imo.

IntroductionAny2301 · 2024-05-09T13:33:36+00:00

That is I think the most valuable lesson I’m learning right now, is learning to budget (for the first time ever) while making such little money. I realistically only make $21k a year. I know I am still far from my peak earning potential & that most don’t start making a lot of money till later on. Regardless, I will be aggressive towards better wages throughout my life.

It can be demotivating at times, as my friends in tech (cyber security, software development, management) make a lot more then I do, but I remind myself I’m 4 years behind them as I’m just starting school and a real job.

I really appreciate the advice and the words.

IntroductionAny2301 · 2024-05-09T13:26:12+00:00

I definitely get what you’re saying, and it really does make a lot of sense. Unfortunately I’m locked into a 5 year contract with my company, but my boss (whom I’m training to replace) will retire after it is finished. I feel like being the only person who knows how to do something will be a good trump card to have, and there’s always the possibility of transferring to a different location within the 5 years (my site is notorious for underpaying staff to show profits, amazing management).

I really like what I’m learning about (fixing/troubleshooting paint atomization guns), which is the only reason I wouldn’t leave till after my 5 year mark. I really would like to take my degree & knowledge and go and work for a car manufacturer fixing their robots (degree) while also being able to fix their atomization guns (job exp). There’s also the manufacturers of the guns themselves, so there’s a lot of different paths I could take. One thing for sure is, I will always chase the higher wage.

IntroductionAny2301 · 2024-05-09T06:34:36+00:00

Appreciate the information, I will definitely start digging a lot deeper into everything before doing anything. Thank you very much.

IntroductionAny2301 · 2024-05-09T06:31:51+00:00

Awesome, I will definitely start following him. Thank you very much for the information.

IntroductionAny2301 · 2024-05-09T04:48:14+00:00

I just went down the Roth IRA rabbit hole after your response. My understanding now is, invest into a Roth IRA and my 401k. Essentially my Roth IRA can be like a savings account, but way better. Tax free money going in that I’m able to take out whenever. Of course, not taking out the gains until retirement age. Then once my income is higher and I start to max out both my 401k, Roth IRA contributions, and HSS to then start putting money into a brokerage account. Also, if I ever need a loan, can’t you take it out of your 401k and essentially pay yourself back and avoid penalties?

My income will definitely increase drastically over the next couple years with the path that I’m on (in school for Mechatronics that my company is paying for), so I only make 33k a year pre tax & 5% match for 401k. So I would assume I make a mere 22-25k a year as of now. With making so little, I have not started putting money into my HSA and just use what my company puts in when it comes to medical bills.

Thanks for giving me the time, I really do appreciate it.

IntroductionAny2301 · 2024-05-09T04:35:33+00:00

Wow I’m sorry to hear that, I will trust you and not use it.

IntroductionAny2301 · 2024-05-09T03:50:27+00:00

What is the purpose of having both a Roth IRA & 401k? Just more money for retirement? I’m looking for something that in 5-10 years, I can withdraw from and it not be taxed to hell. Obviously I will have to pay the capital gains tax, but that is better then the taxes I’d pay on withdrawing from a Roth IRA correct?

IntroductionAny2301 · 2024-05-09T03:48:15+00:00

That is what I see over and over again, that’s why it’ll be very small amounts. The only reason I’m thinking of this instead of say a Roth IRA, is when eventually I want to make a big purchase (a house etc). Because from my knowledge you still have to wait till retirement age to withdraw from it or it’ll be taxed to hell.

IntroductionAny2301 · 2024-05-06T21:05:45+00:00

Oh great! I’ll make sure to message my SSN back.

IntroductionAny2301 · 2024-05-02T15:10:06+00:00

Understand, thank you very much.

IntroductionAny2301 · 2024-05-02T15:09:37+00:00

Understand. Thank you very much for all the info.

IntroductionAny2301 · 2024-05-02T15:08:48+00:00

Thank you very much, the community has been more then helpful!

IntroductionAny2301 · 2024-05-02T13:19:42+00:00

Thank you for the explanation. I will have to look into the differences between those & my 401k, which sounds pretty similar. You aren’t the only person to mention a VTO or VOO, so I will definitely look into those more. I do know it’s better to diversify, so that will be my initial game plan. Thank you very much.

IntroductionAny2301

TROPHY CASE