I, 20m, have been very interested in the idea of investing since I was about 16. Got a job making a little over 6 figures, paid off all debt, and now looking to increase my investments. Looked into employer 401K, but you have to be 21 before you can start contributing. Opened up a Roth IRA through Fidelity in August where I now have $4,100 contributed and plan to max out this month for tax year 2025.
My only form of investments sit in the Roth IRA. Roth IRA current investment include; FXAIX (81.79%), FSKAX (12%), FSMAX (1.94%), SCHD (1.61%), and FREL (1.46%). Is my current set up good? Recommendations? Where do you do your research and get your information for future investments (my current just comes from Reddit)? What other accounts should I open (Individual Brokerage, Health Savings Account, etc.)?
Any and all help is encouraged… I am just trying to set myself up correctly and minimize any mistakes.
New to Investing! Tips + Suggestions?
byu/Dapper_Mycologist241 inpersonalfinance
Posted by Dapper_Mycologist241
2 Comments
https://www.reddit.com/r/personalfinance/wiki/commontopics
You’re winning purely based on how young you are and that you’re getting started early. Great job! Once able, I would recommend contributing to 401k up to company match and then maxing ROTH IRA.
For now, keep going on the ROTH! Good funds, but FXAIX and FSKAX have a ton of overlap. The same 10 stocks make up 39.18% and 34.56% of the holdings respectively. So both aren’t really necessary. You can pick one and DCA into it. FSMAX is mid to small cap so that’s good to have a stake in because it historically does well long term. I personally dropped SCHD this year because I want to focus on growth stocks while I’m still young and have a long time until retirement. Not going to speak on FREL too much. I personally don’t have any real estate indexes but I’m not gonna say it’s a terrible idea.
My main suggestions are to pick either FXAIX or FSKAX as your main holding, not both. And then supplement with the others based on your goals. I would also suggest adding some international based funds as well to give you exposer to other markets outside the US. I buy VXUS
Main thing at your age is to be consistent! You’re in a great spot!