I am 24 years old and make a good living and would like some ideas from you on the best way to start investing. I currently invest 6% into a 401k through my employer. Other than a 401k what is the best thing to do for a new investor
See message 14276.Max your 401K and an IRA or Roth IRA. After that look into a long term buy and hold stock strategy in a taxable brokerage account and/or a tax managed index fund such as those from Vanguard.
Max your 401K and an IRA or Roth IRA. After that look into a long term buy and hold stock strategy in a taxable brokerage account and/or a tax managed index fund such as those from Vanguard. pauleckler,Why do you like the tax managed index fund better? Vanguard's Index 500 fund, VFINX, is so tax efficient that I've never bothered to look much further.Cheers,GW
Jbrowell,Let me second pauleckler's advice, max out your IRA opportunities. Personally, I prefer Vanguard's Index 500 fund, VFINX to the tax managed version.Do read The Fool School's 13 steps. There is a link at the bottom of the homepage. Take your time before deciding what to invest in. At least read the thirteen steps. Then if you just can't wait, call Vanguard, and ask them to send you a prospectus and an application. You could do far worse. Cheers,GW
Definitely go for the Roth IRA. In my opionion it's the ONLY good thing that Congress has done for America in the past 10 years.Don't give a second thought on "paying" taxes on the money you're going to invest. Remember all the "tax free" money you have at the end of it all. At your age, it litterally could be millions, TAX FREE!JLC
GW, agreed that index funds are reasonably tax efficient. There are tax managed funds out there that new investors should consider. I don't have personal experience with them.Paul
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