Alright, so I’m somewhat new to investing. Like so many during the pandemic, I’ve been taking account of my finances and thinking of ways to do better with it. I’ve made other posts here, so I won’t totally recap everything. I have a good stable job that pays me very, very well, I own a house (well, a mortgage, but still), I have no other debt, and a LOT of cash in the bank because I’m generally very good at saving money.
So, after some conversations here, I made a few changes. First, I started maxing out my 401k. By the end of this year I’ll have put in the legal maximum amount to it. Then I opened a Roth IRA and put in $6,000 for the 2019 contribution. I’m slowing moving that $6k into index funds, I did a lot of research and picked a diverse group of them that I like, and I’m trying to DCA mostly because in my non-expert opinion I expect this year’s volatility to offer some cool opportunities to grab shares at lower prices so I don’t want to throw it all in right away.
On top of that I opened a Robinhood account, and I’ve been putting some additional money into there, almost $1,000. Still investing in those same index funds there.
I’m wondering if the Robinhood account is the right away to go, especially since I’m investing in index funds. Those will have good rates of return (or so I’ve read), but only over the long term. I’m 31 right now, so maybe it would be better to stop investing in Robinhood and instead put all my investing money into the Roth IRA. I can still contribute another $6,000 for the 2020 contribution.
Otherwise, any other investing/wealth growth suggestions would be appreciated. Thanks.
