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Personal Finance 1w
I just created a Robinhood account and have opened a Roth IRA which currently has a whopping $1 in it. Robinhood gave me about $5 in gift stock and I put it into NVIDIA. I have a little over $2,000 in a savings account at my bank. What now?
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Anonymous 1w

Start taking a cut of your regular income and investing it in your IRA or if you put some of your savings in that qualify based on how much you’ve earned. Then I’d put some into common ETFs like VOO and then you can also invest some in individual companies but I’d look at their history and see how they’ve performed in the past if that’s what you choose to do. If you can max it out by the end of the year even better.

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Anonymous 1w

Buy $Sofi before 10/28

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Anonymous 5d

I def didn’t read all the comments but you can try to max out by tax day April 15 not December 31. But just keep on adding and I would say keep the 2k in an HYSA as emergency savings

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Anonymous replying to -> #1 1w

No chance I can max it out by the need of the year. I make about $1200 per month after taxes lol. Full transparency: I’m kinda financially illiterate. How does investing with an IRA even work? A friend gave me a list of 3 ETFs to invest in with percentages (70% VOO, 20% VTI, 10% QQQM) but I don’t really know what to do with that

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Anonymous replying to -> OP 1w

By the end of the year*

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Anonymous replying to -> OP 1w

Figure out how much of that you need to live on for housing, food, etc. There’s the 50-30-20 rule that says 50% of income should go towards needs, 30% wants, and 20% savings. You want to build up an emergency fund in a HYSA with close to a 4% APY and put the rest in retirement I.e. your IRA. I’d suggest maybe 80% of the saving into the IRA and 20% into the emergency fund. The emergency fund is strictly used if an unexpected and unavoidable costs comes up and you need money for it.

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Anonymous replying to -> #1 1w

With your IRA account you should be able to deposit money into it and then use that money and invest into those ETFs. I’m not familiar with Robinhood platform but you can probably use a YouTube video that shows you how to invest on it.

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Anonymous replying to -> #2 1w

Why

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Anonymous replying to -> #1 1w

How and where do I open a HYSA? I always hear people talk about them but they seem too good to be true. I just do everything through Bank of America

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Anonymous replying to -> OP 1w

You can Google HYSA, nerd wallet probably has some recommendations. You wanna look at the requirements if they have a minimum deposit or any stipulations if you close an account. Then you just deposit money, i think most people say to keep about 6-8 months worth of living expenses in there or a year to be very conservative.

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Anonymous replying to -> OP 1w

BoA has a HYSA but it’s not as good as if you open a Merrill HYSA. (BoA owns Merrill)

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