Hey all, I’m 21, and I graduated from college in May. I started my first job in San Francisco, California last month where I’m getting paid a base salary of $120,000. My post-tax take-home income is around $84,000.
My biggest expense right now is rent ($3000/month). I get 3 meals a day in the office, so I’m only paying for food/groceries on the weekends. All in, my estimated spend on “needs” is around $3500/month. I have no outstanding debt/other monetary commitments.
Right now, my investment strategy (in order of priority) is as follows:
1. Invest 10% of my pre-tax salary every month in a traditional 401k.
2. \- That’s $1000/month or $12,000/year
3. \- My employer provides a 3% match
4. \- So, all in $15,600 in 401k
5. Invest 20% of my pre-tax salary every month in SGOV (Individual Brokerage Account on Schwab)
6. \- That’s $2000/month or $24,000/year
7. \- I will keep investing in SGOV until I have an emergency fund of $24,000 or more (so until the end of this year).
8. \- I chose SGOV over a HYSA because of CA state tax benefits.
9. Invest the remainder in index funds (currently all in VOO on Schwab)
10. \- Around $500/month or $6000/ year
My question is, is this a good enough/near-optimal plan for someone like me? I have also looked into Roth: both the 401k and the IRA, but I’m not sure what to replace/how to incorporate them in my current investment strategy.
I should also mention that I’m not a US citizen, and there is a 50-50 chance I end up leaving the US sometime in the future. Although I am, for sure, staying here for at least 5 years.
Appreciate all the help, and happy to answer any follow-ups!! Thanks y’all!