Assuming I have a time horizon >10 years.

Edit: thanks for all the replies!!

  • KombatWombat@lemmy.world
    link
    fedilink
    arrow-up
    2
    ·
    7 hours ago

    Yes, and actually with low amounts of money to work with you can make your contributions very efficient. To best spend save for retirement, choose the first option from this list that applies to you (and if you are able to save more later, go down the list after exhausting each option):

    • 401k up to maximum company match
    • pay off high-interest (>4%) debt
    • IRA up to the contribution limit
    • investment-type HSA up to the limit
    • max out 401k contribution
    • personal investment account without tax advantage

    For most people, it’s recommended to use a traditional 401k and a Roth IRA, but it varies by situation. As for what to invest in, I would recommend a popular low cost ETF or index fund, like Vanguard or SPY. You can also look into ESGs if you want to do good with your money, but your expected earnings may be lower. I’m in ETHO and TICRX.

    You might check out fire@lemmy.ml or personalfinance@lemmy.ml if you have questions about getting started.