I've saved up $100k in my first year of work. I also have a Vanguard account. Now what?
June 13, 2012 2:21 PM Subscribe
So, I've saved up $100k in my first year of work, and I just got myself a Vanguard.com account. Now what do I do?
posted by un petit cadeau to work & money (20 answers total) 35 users marked this as a favorite
I've just turned 24 and I've just realized my savings account's gone from $0 to at $100k (and counting) since I left college and started working, almost a year ago now. I don't want that money to just sit there and decay, so I'm reaching out to the green for some advice on this. I have no idea if I'm doing this right.
Despite having read anything and everything with John Bogle's name on it, I still don't know what the heck to do with this money. Most of the advice I've read, both on here and off, seems to be pre-08, but I don't know if that matters. So far, I've opened a Vanguard account and maxed out my Roth IRA, but that's just about it. If it's relevant, my job doesn't offer a 401(k) or anything like that (I think we have a defined benefit plan or something, actually, but I'll have to check). I also don't have any financial obligations or debt beyond a lease on an apartment in SF, if that counts. I have an emergency fund.
Anyway, this is what's on my mind right now, I guess:
1) is it still a reasonable idea to allocate part of my investments into a broad-based index fund or whatchamacallit or two, or into anything involving securities, really? The Bogleheads' wiki recommends investing in a mix of US and international indexes, for example, but specific allocations vary by portfolio.
I'm asking this because I have this fear, but I don't know if it's silly or not, that the markets are going to collapse at any moment and vacuum up all my hard-earned money. Maybe it's because I'm young and lived through 08-09, but that's how I feel. Part of me thinks the market (at least as it exists now) won't be around for much longer, although that's probably silly.
2) can anyone recommend a good financial planner in or around SF with whom I could talk this over with? I guess I'm kind of looking for someone competent who'd be able to assuage my anxieties vis-à-vis my concerns in 1) -- basically, a financial therapist.
Thanks a bunch, green!