I finally made an account today after 8 months of researching and reading this sub because - although I'm grateful for the in-depth information available to me - I've become so overwhelmed by my options that I'm scared to make a move. I have had zero guidance as I have no family and have taken care of myself since high school. I've taught myself everything I know and it's been hard for me to reach where I am now.
About me:
- 29 year old female living in Southern California
- No debt
- Annual income: $72,000
- Savings: $11,000 (including $4,200 emergency fund)
- Living expenses (rent + bills): $1,400/mo
- ROTH 401k Contribution: 10% (employer now matches 3%) Right now I have $40,000 in the Vanguard account but because of my employer, I'm automatically enrolled in Vanguard Target Retirement 2055 Inv (VFFVX) and when I tried to contact Vanguard for advice, they said my company doesn't pay for that and they couldn't help me.
I have paid off my student loans and I have $11,000 sitting in a Wells Fargo Savings Account that I've been contributing to since I turned 15, it includes my emergency fund, and I think I should move a chunk of my savings to an account where I'll at least make some money from interest rates.
I am so lost and overwhelmed by my options. I've done so much research and reading and I can't decide whether or not I should open my own IRA, invest in a CD or move my savings to a Money Market Account. Then more recently I started wondering if I should instead invest in bonds. I've talked to my financially savvy friends and each person is doing something different or had a lot more money to invest. I also spent weeks researching the stock market but the more I learn the more confused I become.
I am approaching 30 and panicking about the fact I feel completely financially illiterate despite the amount of time I've spent researching and reading. I thought about hiring a financial adviser and have talked to a few who said they want to meet but I feel silly because I really only have $7,000 to move around after subtracting an emergency fund. I don't know if it's smart to pay someone to help me.
I guess my question(s) are:
- Should I move my emergency fund to an account other than my Wells Fargo Savings account?
- What's the smartest thing I can do with my $7,000? (Should I spread the money out?)
- Should I just hire a financial adviser or is that a waste?
- I recently got a higher paying job and have started to save $500 per month in the Wells Fargo Savings Account. What should I do with the additional $500 per month moving forward? (I mean where should I put it?)
My goals:
- Invest in something long term to reap benefits of compound interest (save for retirement)
- Simultaneously invest in something where I can reap benefits (dividends etc.) in the short term so I can have some spending money toward traveling & attending friend's weddings & baby showers.
I know there is a lot of advice out there and on /r/presonalfinance so I have waited months before posting to ask for help but I really need guidance. I've read about compound interest and I'm so eager to start investing but my fear of making the wrong decision has me paralyzed.
Thank you in advance for any input.
Submitted March 30, 2018 at 05:35PM by Reasonable_Cat https://ift.tt/2J9lshE
