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  1. #1

    Starting out with investing in stock market

    Hello everyone.

    My wife and I are finally at the point where we can start investing. We should've started in our 20s but had different mindset at that point.(drinking and traveling) we are now in our mid 30s and kicking ourselves. We've have been contributing to our 401 k though each for the last 9 years. We currently have a mortgage and 1 car loan now. All other finances are in place. We charge most bills to our credit card to maximize our airline points and pay the bill off completely at the end of the month.

    I don't really understand how mutual funds, index funds, compounding etc works. So I'm currently researching those info. Base on reading others post, I KNOW that getting a financial advisor is not the way to go.(Thanks Disneysteve)

    We have about 1 year worth of EF. Should we keep the 1 year or about 6 months?

    Also we have about 8-10k to start investing. But not sure what to invest into.
    All I know is I probably want to start off agressive. But not sure at our age. Any input would be helpful. What mutual or index fund would you guys start off with?
    Or a combination of international or domestic?

    Should I split it and also do a 529 for my kid?

    Sorry for all the question since I'm a noob regarding this. Please be nice.

    Hope everyone is having a great day.

  2. #2
    if you qualify for a roth I would recommend investing there first.

    target fund or a lifestrategy fund would be good, but maybe not for a taxable investing account (tax purposes).

    you would want something that is 90:10 or 80:20 (Stocks:bonds) if you want to be aggressive.

    If this is taxable then you would want to pick a Total US Stock fund (VTI or VTSAX if vanguard) and maybe a Total international fund if that's your thing.

    ensure your bond investments are in your retirement accounts (tax favorable).

  3. #3
    I'll answer with lots of questions .

    What % of income is going into the 401k?
    How is that money being invested?

    Do you qualify for Roth contributions?

    How old is your child?

    Is there any reason you feel you need a 1-year EF? Unstable job? Self-employed?

    What is the intended purpose for this 10K and what is the timeline for when you expect to need it?

  4. #4
    Thanks for your reply jluke.

    I will research more about Roth.

    Not to sound stupid...can you explain what is taxable or not taxable? I figure I would pay taxes for any gains when I retire. Is that what you're talking about?

  5. #5
    Your questions to my questions helps me with things that I might've not even thought about. So ask away.

    I believe my wife and I are contributing 6 or 8%. It's what my company matches. I believe it's being invested in "WF target"???
    I would have to check later to be exact.

    My son is 7 month old.

    No, my wife and I both have stable jobs. We just figured we needed to save 1 year since we have a mortgage and unexpected things happen.

    The intent is first retirement and also for college. I would like also to continue to add $200 a month following the initial 10 k investment.

    I figure we do qualify for a Roth. I would have to see what the requirements are. But don't see why not.

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