Hmmm. All this talk of investments has me curious.
Okay, so I have one more semester of college left (wooo!). As someone just out of college, what should I invest in and how, most importantly once I get my first full time job?
Ooo, a retirement investment question. I love those. The best piece of advice is to save and invest as early as possible thanks to the magic of compound interest.
If you start investing 5k a year, do that for 40 years and get an annual return of 7% you'll have 1.1 million
If you start investing when you are 50 years old, invest 25k for 15 years you'll have 750K
Another important difference is that you only had to save 200k to make that 1.1 million while you had to save 400k to make that 750k
As for what, invest in your 401k up to your company match if you have it. After that, I prefer a Roth IRA at Vanguard. But yea, definitely do the company match since thats free money. Try to fully fund your Roth IRA (5.5k a year max), and then if you have any money, fund the rest of your 401k (thats like a 17.5k a year max)
I recommend Vanguard because their business model is awesome and I like to support that
Vanguard is owned by the funds themselves and, as a result, is owned by the investors in the funds.[2]
I like that a lot better than enriching some wall street dbags. As for the minimums, you can invest in an ETF instead of a mutual fund. Those are basically the same thing, you just buy and sell those differently (total stock market etf and total stock market fund have the same stock in it, you would just buy and sell the thing differently)
