I've recently come to the Boglehead movement (31F) after finding what I've read in The Little Book of Common Sense Investing and The Boglehead Guide to Investing to be compelling. I come from a low-income background and am actively developing financial literacy, so I'm hoping that some of you seasoned Bogleheads can help me apply Bogle's principles to my current financial position.
Here is how I have my money organized, but I'm looking for advice on to rearrange it/prioritize goals moving forward.
Current Savings
- House Downpayment Savings: ~$44k (CD bullet averaging 4.75% APY; set to mature next year when I plan to defend my PhD dissertation and begin a home search; I'm hoping to add to this and have $55k by May 2025).
- Traditional IRA: ~$14k (Betterment Core Portfolio set to 90% Stocks,10% Bonds)
- Three-Fund Portfolio: ~$9k (Fidelity at FKSAX 45%, FTIHX 30%, FXNAX 25%)
- Emergency Fund: ~6k (Betterment Cash Reserve at 4.75% APY)
Income
I currently have an income of about $110k ($30k graduate stipend for teaching 20hrs/week; $80k full-time night job), which I anticipate dipping to $80k next year when I leave teaching. I have only been making a decent income for two years, as I have been on a shoestring graduate student income for most of my adult life.
Debt/Spending
I have $850 in consumer debt and $3.5k in student loan debt (averaging 5.15% interest), which I am actively paying down. I live in NYC, but in a rent-stabilized apartment in Brooklyn. I work to be conscious of my spending habits.
Some General Questions
- Should I be focusing on increasing my emergency fund and destroying debt as my first priority? Or, should I work to build my investment portfolio given I have little consumer debt and 3-months expenses already saved?
- Should I move any accounts to more lucrative account types or consolidate these somehow? (I feel as though I have a lot of "buckets.")
- Should I move my Betterment IRA to a Fidelity IRA?
- Is there something obvious I'm not doing/should be doing?
This is my first post, so I hope this is acceptable!![:happy]( "smile")
Thanks everyone.
Here is how I have my money organized, but I'm looking for advice on to rearrange it/prioritize goals moving forward.
Current Savings
- House Downpayment Savings: ~$44k (CD bullet averaging 4.75% APY; set to mature next year when I plan to defend my PhD dissertation and begin a home search; I'm hoping to add to this and have $55k by May 2025).
- Traditional IRA: ~$14k (Betterment Core Portfolio set to 90% Stocks,10% Bonds)
- Three-Fund Portfolio: ~$9k (Fidelity at FKSAX 45%, FTIHX 30%, FXNAX 25%)
- Emergency Fund: ~6k (Betterment Cash Reserve at 4.75% APY)
Income
I currently have an income of about $110k ($30k graduate stipend for teaching 20hrs/week; $80k full-time night job), which I anticipate dipping to $80k next year when I leave teaching. I have only been making a decent income for two years, as I have been on a shoestring graduate student income for most of my adult life.
Debt/Spending
I have $850 in consumer debt and $3.5k in student loan debt (averaging 5.15% interest), which I am actively paying down. I live in NYC, but in a rent-stabilized apartment in Brooklyn. I work to be conscious of my spending habits.
Some General Questions
- Should I be focusing on increasing my emergency fund and destroying debt as my first priority? Or, should I work to build my investment portfolio given I have little consumer debt and 3-months expenses already saved?
- Should I move any accounts to more lucrative account types or consolidate these somehow? (I feel as though I have a lot of "buckets.")
- Should I move my Betterment IRA to a Fidelity IRA?
- Is there something obvious I'm not doing/should be doing?
This is my first post, so I hope this is acceptable!
Thanks everyone.Statistics: Posted by drdaiquiri — Sat Mar 16, 2024 12:05 am — Replies 2 — Views 414