Tired of working blue collar guys how do i into rich? Company i work for matches 11% on 401k how do i into 401k?
>>1086731
Put in as much as they match. That's easy retirement money.
Rearrange your finances so you are frugal without being cheap. Save until you have 6 months emergency fund. After that, split your extra money into investments and savings.
The split between investments/savings should depend on your age and health.
Assuming you are young healthy, save 25% and put 75% into investments.
The breakdown of your investments should be (assuming young and healthy), 40% mutual funds. 40% stocks (don't stock pick, just get an ETF like VTI), and 20% bonds.
Look up any terms you don't understand on investopedia.
>>1086755
Thanks for the informative reply and yeah i am young and healthy..how much is 6 months emergency fund like 6k? As far as mutual funds and such is all that through my 401k provider or a different broker
>>1086755
>telling people to go near bonds in this environment
>arbitrary allocation between mf and etf, of which ones like VTI are completely interchangeable with their mutual fund counterpart
The rest of your advice is only half terrible so I guess you get a C-
>>1086759
Depends on your personal situation. Factor in rent and food, and any other bills or debts you have.
>>1086760
>taking everything literally
The allocations are a general guideline for investment considering his situation.
Sure, VTI and its mf counterpart are basically the same. But its about what investment instruments he should be looking into. Simply, I'm not going to tell him to go all in on VTI right now, that's worse than telling him to put some money into bonds.
>>1086759
If you do a 6 month emergency fund should have enough so if you suddenly stop working, you should still be able to live, but not like a king.
Things like rent, utilities, basic food and possibly car are things you want to take into account. You should also add money to cover any medical expenses too.
>>1086731
Rob senior citizens
Put 11% in your 401k
Investing into your own earning potential would be probably the fastest way to make money in your case.
Some blue collar work pays good, for example start your own plumbing company and work a lot.
Or then get an education like anesthesiologist and make big bucks too.
