I'm 22 and just got my first full-time job out of college at the start of 2017, which pays $75,000. I am living at home so I don't have many expenses. I don't own a car, and my employer pays for my public transportation pass.
I have an account with TIAA-CREF through my employer, where I have a 403(b) and a pension. I am contributing the maximum for my Roth 403(b) so that by the end of this year it'll reach $18,000. I am also contributing 5% into my pension and my employer contributes 10%. The problem is I have no idea how to pick a fund that will aggressively invest my money. Of course I know it should be a fund with more stocks, but there are so many to choose from! Also, does anyone have any experience with TIAA? Are they high or low fees, good or bad?
Second, I want to set up a Roth IRA and contribute $5.5k into that but don't know how to go about it. I know I have to open a new account... Should I stick with TIAA (all in the same place) go with someone else (maybe TIAA isn't my best choice)? I keep reading index funds match the performance of mutual funds but have less fees. Can someone suggest where I should open my account?
Third, I am building an emergency fund - should I set a goal of a certain amount (like $10k) and then put my money elsewhere? Otherwise, I would just be letting the bank account rise... I was thinking either a house downpayment fund (I live in a very high COL area) or investing in stocks. On top of this, I am paying off $8.5k in student loans. The interest rate is roughly 6%. My goal is to have this paid off in around 12 months.
I would appreciate any advice on direction or strategy, and where to put my money...Which fund do I choose from, where should I open my Roth IRA, what do I do after I've hit my emergency fund goal, paid off my student loans, and contributed max towards retirement?
Thanks!
Submitted March 06, 2017 at 08:47AM by armoguy94 http://ift.tt/2mvQ3h8
