- I'm 24 years old.
- I'm currently maxing out my 401k with 50% employer match up to the IRS maximum. My 401k is currently 100% allocated in an S&P 500 index fund.
- I have an emergency savings fund of $10k in an Ally Savings account.
- I'm making $157k pre-tax annual income as a software engineer in Silicon Valley.
- My risk tolerance is on the high end. I would not sell from a diversified total market index fund even after losing 60% of my value. During an economic crisis, the worst thing that I could imagine doing would be to tilt 20% toward bonds, but I would never sell.
- I'm paying $1300/month in rent and may want to buy a house in 4-6 years since prices seem to be going up with little chance of going down.
I was thinking about allocating 100% in VTSAX for the first 4-6 years of my career, and then buying up to 20% in bonds after that.
- Given what you know about me, do you see anything wrong with investing nothing in bonds right now?
- If you think I should also invest in bonds during this time frame, is there any advantage in having a moderate tilt toward Vanguard's California municipal bonds fund given my income tax bracket and California's high state taxes? Or should I just stick with the Total Bond Market fund?
Submitted May 26, 2017 at 08:21AM by foodhype http://ift.tt/2qmBmf4
