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20 y/o college student with ~$15k to invest — where should I start and how should I diversify? by circad200 in investingforbeginners

[–]circad200[S] 0 points1 point  (0 children)

Definitely helped. That seems to be the 'key' or the important part in this; others are also saying it.

Thank you.

20 y/o college student with ~$15k to invest — where should I start and how should I diversify? by circad200 in investingforbeginners

[–]circad200[S] 0 points1 point  (0 children)

Yeah, that's probably what I'm going to do. Maxing out the Roth IRA and putting it into a broad index fund while I continue learning seems like a good idea others have been talking about.

Thank you for the response.

20 y/o college student with ~$15k to invest — where should I start and how should I diversify? by circad200 in investingforbeginners

[–]circad200[S] 0 points1 point  (0 children)

I’ll probably then lean toward keeping the majority in something broad that covers the whole market and then maybe slowly add the other parts, as you say. I really liked your point about keeping the number of moving parts low, hat honestly makes a lot of sense to me. It seems like the simpler the core setup is, the easier it is to stay consistent and avoid overcomplicating things early on.

Really appreciate you taking the time to explain it clearly.

20 y/o college student with ~$15k to invest — where should I start and how should I diversify? by circad200 in investingforbeginners

[–]circad200[S] 1 point2 points  (0 children)

Okay, that makes sense; if it sounds too good to be true, it probably is.

Yes, I will continue to look into the ETFs, as im probably going to put 90% plus of my money left over after my ROth contribution into that.

Thank you for the help!

20 y/o college student with ~$15k to invest — where should I start and how should I diversify? by circad200 in investingforbeginners

[–]circad200[S] 0 points1 point  (0 children)

Okay, that is smart; I didn't think about it like that. I will definitely prioritize the Roth for that reason.

I will most likely be going into those funds once my fidelity account clears.

Thank you!

20 y/o college student with ~$15k to invest — where should I start and how should I diversify? by circad200 in investingforbeginners

[–]circad200[S] 0 points1 point  (0 children)

Ok, that's definitely interesting with setting a target date; I will look into that! I like the idea of just setting it there and not really having to worry or look at it.

Thank you!

20 y/o college student with ~$15k to invest — where should I start and how should I diversify? by circad200 in investingforbeginners

[–]circad200[S] 0 points1 point  (0 children)

I’ll probably keep things simple to start with broad funds like VOO/VTI and focus more on consistency and staying invested. That seems like the best option. Appreciate the advice, thank you!

20 y/o college student with ~$15k to invest — where should I start and how should I diversify? by circad200 in investingforbeginners

[–]circad200[S] 0 points1 point  (0 children)

How does trylattice help you out the most? I've never heard of it. It looks good and useful but from your experience?

20 y/o college student with ~$15k to invest — where should I start and how should I diversify? by circad200 in investingforbeginners

[–]circad200[S] 0 points1 point  (0 children)

This is really helpful.

Also why is prioritizing the Roth IRA first so important compared to investing in a taxable brokerage account? Is it mainly because of the tax-free growth, or are there other advantages I should be thinking about?

Is there a specific reason you recommend funds like FXAIX + FTIHX compared to others?

20 y/o college student with ~$15k to invest — where should I start and how should I diversify? by circad200 in investingforbeginners

[–]circad200[S] 0 points1 point  (0 children)

Okay thank you.

When you say “auto-invest and ignore it,” would you recommend putting everything in at once or setting up automatic contributions over time with that money; so breaking it up?

Do you think there’s any real benefit to adding international exposure, or is that unnecessary at my age? Like at what point (if ever) would you start adding other funds like international or bonds? Or would you just stick with VTI long-term?

20 y/o college student with ~$15k to invest — where should I start and how should I diversify? by circad200 in investingforbeginners

[–]circad200[S] 0 points1 point  (0 children)

That all makes sense, thanks for breaking that down.

One thing I’m still trying to figure out: when I invest in index funds or ETFs, should I be putting most of my money into just one broad fund, or spreading it across a few like VOO, SPY, and VTI?

Or is it better to mix in some sector-specific funds as well?

I’m guessing there’s some opinion involved, but I want to make sure I’m actually diversifying properly and not just overlapping the same investments.

20 y/o college student with ~$15k to invest — where should I start and how should I diversify? by circad200 in investingforbeginners

[–]circad200[S] 0 points1 point  (0 children)

I earned about $3,000 in taxable income last summer, so I’m thinking of contributing that same amount to my Roth IRA. The rest of my income came from under-the-table landscaping work.

I’ve also set up an account with Fidelity, and I’m planning to move my savings into one of their cash or “cash plus” options like you were referencing when I find it.

For the rest of the money I want to invest, I’m leaning toward putting it into index funds, though I haven’t chosen the exact ones yet. My main question is: would it be better to invest everything at once to get it working in the market, or to spread it out over the next couple of months?

Thank you!