Thanks in advance for any guidance! I am 52 years old and hoping to understand if there is something I can do to help me “catch up” since I just started with a vanguard roth IRA about 3 years ago which I do max out. I have a 9 month emergency fund saved and another 10000 in a savings account which I would like to invest for retirement. I can also invest about $500 a month moving forward for non-Roth IRA accounts. I know you recommend index funds and also dividends but which is the best for my late in life situation?
You story is inspiring, keep up the good (financial) work!
There aren’t really any shortcuts for starting later in life, but it sounds like you’re off to a great start with your IRA, emergency fund and savings. Now is just time to try to hammer it and throw as much as possible into your investment accounts.
I think a good approach would be a target date index fund based on your age. Take your birth year, plus 65, round up to the nearest 5 and invest in the target date index fund of that year. Here’s an article on why:
And of course, I think my course would be super helpful to give you confidence on investing moving forward!
Jeremy, appreciate you taking the time to answer my question and I will definitely check out your course offerings! I did have a follow up question, if you don’t mind…my employer’s 401K has a general range of fee % of .65 to 1.70, which, if I understand correctly, are high. My question is with such high fee expense should the goal still be to max out that 401K before investing in an index fund? Or should I just contribute up to the employer match and then invest in a low expense index fund?
What you just said.
Also refer to Jeremy’s Yellow Note: https://www.instagram.com/p/CJ3mPD_rIL7/