Beginner Investment - 24 with 30k Savings - ROTH IRA?

Submitted by Frosty_7130 t3_yhlhn6 in personalfinance

Hi all, just turned 24 this month. I am a true beginner to financial planning an investment, but I want to retire early and start learning more.

I currently make around 48K in a low cost of living state (South Dakota), and also live frugally, yet very comfortably for my lifestyle.

I have about 30K in savings with no debt until student loan repayments restart (in which I plan to qualify for the income based repayment plan, at around 200 a month maximum) so I want to begin my investment journey.

My monthly expenses are around $1,000 max (no debt, I donate plasma for gas and groceries, so $550 rent/utilities is really my only big expense).

I have a 6% employer matched 401k which I maximize contributions to, and just signed up for a Fidelity ROTH IRA yesterday after starting to research options.

I plan to do the max right away - $6,000 into it as a more, “leave it and let it grow” system to begin as I become more financially literate.

Is this a good plan? Should I consider alternatives or options? What should I learn/know and or do?

I will set up a $500 automatic deposit starting in January to max it at $6,000 a year

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InteriorAttack t1_iueg9as wrote

drop 6k in the Roth for this year and 6k for next year. then save the rest as an emergency fund

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Nathzeta t1_iuex9t7 wrote

Solid plan. Don't be one of those people that leaves their money sitting uninvested in the ROTH IRA though. Mentioning this because you said you're a true beginner, and I occasionally see posts where the money sat in their account for 5+ years because they didn't know. FZROX is a decent pick to park your money until you have a better picture for what strategy you want to implement. Also, don't panic sell your positions just because they drop. You're not down until you sell at a loss.

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