So you've saved up your Emergency Fund and you have paid off your debts...
Now it is time to start piling money into investments so that you can reach your Freedom Figure.
It is this pile of money that you will use to sustain yourself through the rest of your life.
As a result, this is quite an important thing to feel confident about. The rule of thumb is that for every $10,000 of annual spending, you need about $250,000 of investments. That ratio puts you within the range of a safe 4% withdrawal rate from your account(s).
This is the only challenge for a newer investor, as you need to become slightly educated about these options so that you can make informed choices, but its really not that hard. Luckily, Vanguard makes it easy for you.
Click on this button on their homepage to see all the different kinds of accounts and what each is for.
As a result, this is quite an important thing to feel confident about. The rule of thumb is that for every $10,000 of annual spending, you need about $250,000 of investments. That ratio puts you within the range of a safe 4% withdrawal rate from your account(s).
What kind of accounts exist? What do I need?
This is the only challenge for a newer investor, as you need to become slightly educated about these options so that you can make informed choices, but its really not that hard. Luckily, Vanguard makes it easy for you. Click on this button on their homepage to see all the different kinds of accounts and what each is for.
First, take stock of what you might already have? Do you have an old 401(k), 403(b), or 457 account from an old job. Those can be rolled over into your new account(s).
Second, what is your plan? If you are planning to reach your Freedom Figure earlier than what the rules that the government has set for tax-free or tax-deferred withdrawals say, you may need to consider regular taxable account(s) too. Those have no rules or penalties about when you can access your money.
Once you have gone through the steps to open your account, the rest is simple. You buy shares of VTI and just keep piling money into it until your account reaches the value you need in order to retire, your Freedom Figure.
That ticker symbol's all you need, the Vanguard Total Stock Market Index. Low fees are a huge advantage that Vanguard offers and it makes a tremendous difference to the performance, and eventual value, of your investment account(s). That's it, period.
That's it.
There's no big secret.
It's not hard.
Vanguard does a good job of making it easy for you to do business with them. I whole-heartedly recommend them.
If you want to make even more money the fine folks at RB Research will tell you when to buy and sell VTI. Look at the bottom of each of the posts on their Facebook page.
If you want to make even more money the fine folks at RB Research will tell you when to buy and sell VTI. Look at the bottom of each of the posts on their Facebook page.
