[USER]

I am 35 and have 0 savings/investments. We’re finally getting ahead and can cover all bills thanks to a new job. I’ve started contributing 5% of my check to a 401k last month.

My job will match 4% of those contributions. Past that I can likely set $50 aside to invest/save a month for now.

What is the best way to get started? I know this isn’t munch but with my families health and other factors I’m just happy to be afloat for now.

Long term I do want to contribute more monthly but I figured I should start now anything’s better than nothing.

I am just not sure where to start/look I know nothing about investments besides what I’ve googled so far.

Anything you would recommend to a late starting beginner?

[Christine]

Don’t fret. 10 years is plenty of time to right ship, 15, enough to get ahead of it. I see post from those who woke up at 50+.

You may feel behind but you are not as bad off as you think.

You can do this. Educate yourself whenever you can

[Tushar]

From what I have read on forums, for low interaction usually S&P500 tracking Index funds are good enough for long term investment.

This is considering past 30 years return that it have been able to deliver about 8% growth annually after inflation.

You can spend more time in understanding balance sheets of individual companies so you can get better return than S&P500 but at $50 pm saving, I’d say invest in yourself to increase your earning as ROI will be better for the moment.

You can hedge by going in with Bonds but at mid 30s, assuming you plan to work for another 30 years, you would have time to bear market correction like 2008.

You can go for taxable brokerage where any income will be charged as capital gain or you roth IRA may work as well where earning will be tax free once you reach 59.5 yrs and account is 5 yrs old.

[Sarah]

Follow the Ramsey Baby Steps 1-5. Since you don’t have any savings, start saving an emergency fund in a HYSA immediately. First goal is to save $1000. Pay off all debt other than your mortgage.

Then, save 3 months worth of expenses in your emergency fund.

Then invest enough into the 401k to get the 4% match. With extra money, max out your Roth.

If you max that out and have money left, return to the 401k to max that out.

[Gerwyn]

Congratulations! You are still a millionaire of time. I wish I can go back to your age. A dollar save now at 35 have a potential to become $20.

Every dollar save at 40 yo at $12 and $4 at 50 yo so get started asap.

[Author]

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