31m. Just started investing last week and got some positions. I’ll probably add a couple more etf or stocks in this current down turn and add to the ones I have but Am I diverse enough as it is? I make roughly 2k/month working,( about half of that to expenses)my tax bracket is low rn so just trying to build capital to make it worth putting in an IRA. Thanks in advance don’t pull your punches. Not planning to do options either.
Are you planning on day trading? Do you have access to information that other day traders do not? If not, I would put everything into a mutual fund and forget about it. Until you have more money, then I would put that money into the same mutual fund and forget about it.
Or, try buying individual stocks for a year, and see if your layman's picks outperformed a normal mutual fund. If you did not beat the mutual fund, then you have discovered why you should put everything in a mutual fund and forget about it.
Yeah I definitely see what you’re saying but I would like to actively manage my own money. I’ll have a split portfolio so I’ll definitely have a decent amount in a mutual fund of sorts. Are these basically the Schwab money markets I see or do you mean like real mutual funds? They typically have minimum investments im no where near being able to afford.
You said you have $1000/mo in disposable income. The fund minimum on VFIAX is $3000. Do it. ROTH IRA style(after taxes, do not claim a deduction for this in your return) up to the max of $6500/yr. Since you're in a low tax bracket currently and presumably will have higher income and higher taxes later in life you want to pay taxes on this money now, not when you withdraw it. Any excess funds can go towards individual stock picks or in the equivalent ETF VOO (which you already seem familiar with).