Hey everyone - first time poster!

Today marks one year of having an IRA. I’ve reached my yearly max contributions, and now I’ve moved my 401k to my Vanguard since I changed jobs this month. I feel like I should be investing this money, but I don’t know a thing about investing! Do you all have any advice? Thanks in advance.

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AutoModerator t1_j28mf9k wrote on December 30, 2022 at 1:01 PM

#1,178,907

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BouncyEgg t1_j28mvda wrote on December 30, 2022 at 1:06 PM

#1,178,998

Read the Investing section of the PF Wiki:

https://www.reddit.com/r/personalfinance/wiki/index#wiki_investing

Alternatively, pick a Vanguard Target Date Index fund corresponding to your anticipated year of retirement.

kveggie1 t1_j28o6va wrote on December 30, 2022 at 1:18 PM

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Start with buying a TDF and start reading/learning by exploring the wike (bottom right of the screen). There is a lot to learn, but hey it is your money.

MountainStoneMist t1_j28rsy5 wrote on December 30, 2022 at 1:51 PM

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Research a single target retirement fund:

https://investor.vanguard.com/investment-products/mutual-funds/target-retirement-funds

topo-nico OP t1_j28tj5t wrote on December 30, 2022 at 2:05 PM

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Replying to BouncyEgg (#1,178,998)

ugh bless you

TheSytch t1_j28ul0g wrote on December 30, 2022 at 2:13 PM

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I once had money sitting in an IRA for about a year before officially investing it, so I feel you! I just did not understand the process, so I just let it sit there.

I would start here if I were you. JL Collins has some great stuff on investing. The Money Guy Show on YouTube is also another great source for free investing content.

Generally with IRAs, since the money cannot normally be touched until 59 1/2 years old without penalties, a lot of people invest in low-cost index funds in these long term investing accounts.

Good luck!

MissAnth t1_j28v4o1 wrote on December 30, 2022 at 2:17 PM

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A low cost mutual fund. And luckily, you are at the right company to do that. Consider VFIAX

ChiSquare1963 t1_j292yqm wrote on December 30, 2022 at 3:15 PM

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Target date funds are designed for people who don’t know how to invest their retirement money. They are well-diversified. They are automatically re-balanced on a regular basis. The asset allocation automatically adjusts as you get closer to retirement. You pick the fund closest to year you turn 65, then just put money in regularly.

If you want to learn more, look into three fund portfolios and index funds. They aren’t necessary if you have a target date fund, but some people like to be a bit more involved with their money.

FYI, I did three fund portfolio until a few years ago, when I switched to target date fund.