I just graduated college, and I’m feeling behind because I haven’t invested anything yet at 22. I’ve done some research on my own, but the more I look into it, the more I realize how complicated investing really is.
Right now, I’m leaning toward ETFs. From what I understand, they work like stocks where I can buy and sell anytime, but they also offer their own diversification. I don’t plan on taking the money out anytime soon, but I’d like to have the option if I need it. VOO seems to be a popular and reliable choice. I signed up with Robinhood and Fidelity, but I’m not sure which one I should use. I’d love some opinions on that.
So, my plan so far is to invest this $7k into an ETF or a few ETFs, then keep adding to it each month. Is that a good starting point for investing? I’m just worried I’m not making the best decisions for my future. Also, do I really need multiple ETFs if they already cover the whole market? Any recommended ETFs?
If you put your Roth into VOO every year starting now, you could be a millionaire by the time you retire. When you start making enough to max out your 401k, put that into a VOO equivalent. Don’t overthink it, you’ve got plenty of time!
Do you have an emergency fund in place? You might want to keep some of that $7k in a savings account just in case. Last thing you want is to invest it and then need it when the market drops.
Ari said:
Do you have an emergency fund in place? You might want to keep some of that $7k in a savings account just in case. Last thing you want is to invest it and then need it when the market drops.
Not really an emergency fund yet. $7k isn’t all my cash, though, I still have some extra in my checking account and it’ll keep growing as I work.
VOO and VTI are great choices to start with. I’d also look into VGT if you’re interested in tech growth. SCHD is solid for dividends. Do your own research, though. Happy investing!
Do your own research, but my monthly split is 50% VOO (S&P 500), 25% SCHG (large cap growth), and 25% VT (global). VT is basically 50% VOO, but I can’t bring myself to invest only internationally after how poorly it’s done the past decade. Check out AVUV (small cap value) as well—I’m planning to pick it up soon and hold it for a while.