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Personal Investments • How much is "too much" money to have in a money market fund through a broker like Vanguard

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There are many excellent very diversified index funds with very low expense ratios offered in your employer's 401k plan. So I suggest larger contributions, don't limit yourself to just enough to get the employer match.

I suggest making the maximum annual employee contribution if possible, and as a priority over any additional contributions to the taxable brokerage account.

The maximum annual employee contribution is $23k. The employer match does not count toward the employee maximum, it's extra.

You could continue using the Fidelity Freedom Index 2055 Fund (FFLDX) ER 0.08% in your 401k account. Or if you want to use individual funds then consider a combination of
1) Fidelity 500 Index Fund (FXAIX) ER 0.015%;
2) Fidelity Total International Stock Index Fund (FTIHX) ER 0.06%; and
3) Vanguard Intermediate-term Treasury Fund (VFIUX) ER 0.10%.
I think the maximum this year is 23,000 which would be about half of my salary. If I do that, I don't think I'll be able to save up enough to actually afford to live on my own next year. That would mean I would increase my 6% into my 401k each paycheck to about 50. Is that really feasible you think? I have no debt currently, car paid off. Living is taken care of because i'm still living here, but things like phone and food I pay for, but next year that could go up drastically if I move out which I plan to. But even a run down apartment now is about a thousand a month. I guess I'll look into that and see how it feels

Statistics: Posted by Randyman — Wed Jun 05, 2024 9:11 pm — Replies 18 — Views 3803



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