Hi everyone, I’m an E3 in the Navy with around a year time in service. I’m currently in a longer pipeline so I won’t be picking up E4 for at least 9 months but I receive a few hundred extra a month in special pays. I’ve read the FAQ and the flow charts but I still feel clueless about saving and investing.
Currently (since I joined) I put 5% into my TSP. In addition to that I have an individual account and a Roth IRA with Fidelity. Every month (started this last month) I put $300 into my Individual investment account and $600 into my Roth IRA. My biggest issue is I transfer this money over to fidelity so I’m not spending it on food or regular expenses, but I don’t know where to invest it.
My Roth account obviously I won’t touch until I retire but for the individual investing account I’m thinking I might use that money in the future for a car or a house etc. Right now the individual account has around $6,000 in it and my Roth IRA has around $7,000 saved.
On top of that I also have a general savings account with my bank where I try to keep at least $1,000 for an emergency fund. It was closer to $8,000 but I bought a car so I’m trying to build that back up with the remainder of my paycheck that I don’t spend each month.
I live in the barracks so my only real bills are car insurance (around $130/ month) and wifi($40).
Am I saving enough/ where should I be investing my money to see short term gains (the next few years) for my individual account and longer term gains for my Roth?
Am I saving enough?
byu/Exact-Implement-1925 inMilitaryFinance
Posted by Exact-Implement-1925
2 Comments
When will you be buying a car or home? Short term expenses are usually best saved for in cash if you need the money by X date.
Do you have an emergency fund set up?
Personally, I would put more in retirement accounts than after tax brokerage but we might have different goals.
I don’t know exactly what you gross, but it look like you’re saving a decent percentage of your income.
I would lessen the brokerage account and bump up TSP.
Within fidelity, most people (myself included) suggest broad market index fund like FSKAX.
You’re doing very well for where you’re at