Thread: Financial News
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Old January 5, 2021, 07:26 AM
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zman zman is offline
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Join Date: January 20, 2005
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Originally Posted by iDumb
This is the best thing I read in this thread. A 40 PERCENT SAVING RATE that will be auto invested in market will separate you from your peers in coming years. Unless you have other investment plans like properties business u can't go wrong long term.

Now ur asset allocation looks a little edgy lol . This is what I do though my asset allocation also needs review and I never quiet get it right but one thing I will never change is maxing my contributions and more. Half of the battle is here and then not choose a safe fund that don't move because u are afraid to lose money . I am 100 percent stocks

In my 401k/403b(across various accounts )
Vanguard funds passive (majority - negligible fees ) :
sp500 index
Mid cap
Small cap
Total market
Vanguard international fund

Active core (high fees) :
-US large cap growth fund.
- An active international advantage portfolio.

There is no year that I will ever contribute less than max. 19.5k a year pre tax .

Then I max roth every year (6k). First thing I did this Jan 1st. This is where I currently choose individual stocks. But probably will switch it to broader index as it gets significantly larger because successfully beating market takes a lot of time spent researching and keeping upto date. And it WILL get large (with some luck ) before u know it.

After this I have taxable brokerage account that I keep cash to jump in market for any opportunities which has my individual picks . I do my trades here ... I also do a weekly purchase of SPY in one of them to balance things out. Then I also allocate some to FOMO stuff like cryptocurrency ..IPOs.

In early years of low income I also did 40 percent for couple of years .. Now I am probably at about 20 percent but striving to make it higher.

I think more than the correct asset allocation ..getting the savings rate high to put in market will be the biggest challenge.

And do not worry about market downturn . It's good for u if you are starting . Why would u wanna buy stocks at high price... U want the market to be low and flat for some time while u accumulate (this is how u have to think otherwise u will pull out when u see red ).... After u accumulate sizeable amount that's when u want market to appreciate .

10 percent of a million in a year is so much better than 80 percent of 30k over a year.

If income is not that high ... I would still try to aim a saving percentage which you are doing and then distribute however u want among 401k/roth/brokerage/hail mary.

Turtle wins races. I can guarantee u will look back and say why tf I didn't do more.
this is so true. I'm the hare that's trying to catch up to the inner turtle and finally has it in sight. This post has the best financial advice one could give
Few things inspire us to soar quite like being really f***ed if we don't
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