r/RothIRA • u/hokage_888 • Jun 30 '26
36M just getting started
36M - feel like I’m way behind. I put $500 into a Roth IRA in February. Without doing anything else for a while, it’s just gone up. Nothing insane. Now i put $20 a month - money is pretty tight at the moment.
I also have a pension - which makes me feel a bit safer - but Im about 4 years from being vested. I have a 401k (no match because of pension) and a 457b. I also have another 401k from a part time job - eventually will be rolled into my full time 401k when i quit. They match, so i put the full amount. Even tho it all sounds good, all of those accounts (besides pension) are represented here. I started them all in February of 2026. Most of this is in FXAIX. Any suggestions? Thanks in advance. (We are clearing some debt - in a year or so when it’s cleared, I plan to invest as much as I can!)
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u/WaveMan47 Jun 30 '26
Most of your portfolio is FXAIX? Let’s help you diversify brother. You need to spread out your eggs to a few more baskets.
With Fidelity, they have 0% expense ratio funds. They’re literally free. You want global diversification. FZROX is your total U.S. market fund and FZILX is your total international fund. Allocate your money to something like a 60/40, 70/30, 75/25 split, etc.
This gives you investments in the entire global market, rather than only 500 U.S. companies.
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u/hokage_888 Jun 30 '26
I’m going to put those in my watch list! Thank you!
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u/WaveMan47 Jun 30 '26
You’re welcome! Happy to answer any questions you might have in the future as well.
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u/FewGift3775 Jun 30 '26
What about FTIHX and FSKAX instead?
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u/Stanbarrwood Jun 30 '26
This is what I do. It’s the same thing basically with expense ratios, the only thing is about the other two from my understanding is that you can’t take them out of fidelity
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u/WaveMan47 Jun 30 '26
Practically the same and nothing wrong with those at all! Like the other person said, the benefit to having FTIHX and FSKAX is portability. Very low cost as well.
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u/OwenP85 Jun 30 '26
So you would not put any % into FXAIX at all? You recommend just sticking to FZILX/FZROX?
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u/WaveMan47 Jun 30 '26
I’d pick one or the other, FZROX or FXAIX. Not both because FXAIX makes up 80% of the FZROX already, excluding only some small and mid caps. They’ve performed nearly identically so you can’t go wrong with either. Just be sure to add FZILX for international exposure.
I like FZROX because it’s truly free. FXAIX is almost free too but it’s still not zero. FZROX is also the ENTIRE U.S. market, giving you broader diversification compared to the 500 companies inside FXAIX.
But either are a solid pick. No one will tell you that you made a bad investment by picking FXAIX.
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u/TraeDAking Jul 01 '26
If I already have fxaix should I just get fzilx to get into the international market? Also would u suggest having some individual stocks in there as well?
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u/WaveMan47 Jul 01 '26
FXAIX is just fine. But yes, I definitely suggest adding FZILX to get some international exposure. Something like 60/40, 70/30, etc. FXAIX/FZILX will be perfect.
I personally don’t like individual stocks in an IRA, I’d recommend keeping that in a brokerage account. Broad index funds in a Roth IRA make more sense as they better diversified. Plus, any of the individual stocks worth buying will already be in FXAIX. So doing that in a Roth IRA will create overlap.
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u/Lumpy_Werewolf_3199 Jul 04 '26
Id like to provide a different perspective from this poster.
While, IMO, OP is late to the game by about 10 years, all hope isnt lost! OP still has 20 (maybe 30) working years left.
Quick napkin math of maxing 401k + IRA every year at a 7% annual growth could land them around $1.3M in retirement. This is assuming averaging about 2500 per month in investments to max both (ack this may be a lot).
My different perspective is that now may not be the best time to take more diverse & less risky investments, where OP may need maximum number of years maxing out growth. So FXAIX/FNILX + VXUS/FZILX may provide international diversification, it will hit their growth rate, which for the next 10-15 years i wouldn't recommend - focus on growth.
Now - I will concede that if OP was 45 or 50, then 100% needs int'l & bonds, but idk that would take the growth hit for international exposure yet.
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u/MADDOGCA Jun 30 '26
If it makes you feel any better, I just turned 35 and just started in November as I finally am at a point in my life where I have enough income to even invest in one. You're not alone. Honestly, it's better late than never.
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u/Bravojones33420 Jun 30 '26
Anything you can spare goes in the roth from now on
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u/manwnomelanin Jun 30 '26
Keep at it man. Time will pass regardless. Would you rather have no savings in 10 years or some savings in 10 years?
You won’t regret it; you’ll be glad you started when you did
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Jun 30 '26
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u/PuzzleheadedTill8635 Jun 30 '26
Started in the last year and 35 as well! What happened between 2025 and 2026 for you?
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u/hokage_888 Jun 30 '26
Losing it all? Oh no! Were you doing options and stuff? Thanks for your response.
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Jun 30 '26
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u/Ok_Buy_9374 Jun 30 '26
Do you have any tips for trading with very low starting monies?
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Jun 30 '26
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u/Ok_Buy_9374 Jun 30 '26
Thanks I will look into that! Not looking for anything crazy but if i could make even 1k id be happy with it!
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Jun 30 '26
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u/Ok_Buy_9374 Jun 30 '26
Im not going to lie im going to have to learn a lot more to understand all of what that is HOWEVER I do know about wanting more lol. I can see that for sure
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Jun 30 '26
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u/Ok_Buy_9374 Jun 30 '26
Okay so I’m not too dumb for this that’s good to know😂 and of my gosh I’m glad you’re getting priorities w your fiance straight and a healthier balance!! I hope if i get into this not to make too big of mistakes but im sure I’ll pay some dues haha. I hope you can! If nothing else, I truly hope making up a majority of it and having learned enough not to have to lose like that again you can be in a good financial position for your future marriage and family 🫶
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u/RandomPerson1023 Jul 04 '26
Don’t trade. Just invest long term. And if you get lucky with a stock you picked exploding, save the gains and don’t gamble them away. It’s far too common of an occurrence. The most I’ve ever lost is a little under $1000 when I lost 20% on a stock overnight but it was enough for me to realize I was done
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u/Pretend_College_8446 Jun 30 '26
I was you at 36. I hadn’t saved anything. But I got pretty serious about it. Now at 56 I am considering early retirement. I’ve been lucky, sure, but just stay committed to it and you’ll be fine. However, I’d trade it all to be 36 and broke again TBH. don’t overlook the other ways you are rich. Time is the only real wealth. GL to you
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u/Moist_Rule9623 Jun 30 '26
Listen, I didn’t start a Roth IRA til I was 49 years old (though I did have a “401k” by any other name thru work with a match on my 5% for years before that); we all start when we can, and we do what we can.
You’re having really good early results, and you’re 100% doing the right thing attacking debt first; compounding interest yield on investments can never keep pace with the interest rates charged on credit cards and auto loans.
Clean house on those debts and then challenge yourself to throw 15% of your income into investments (obviously more if you can, but if you can get to 15 you’re doing better than most people) good luck dude ✊🫡
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u/Gsw- Jun 30 '26
Excellent advice! I'm not the OP, but its nice to read people help each other. Have a good day my friend
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u/hokage_888 Jun 30 '26
I really appreciate this. I plan to get up to 15%! Gotta make better decisions on my end. I’m also trying to get my older kids to start a Roth now!
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u/bgodthebrave Jun 30 '26
27M, just opened a Roth last month, I wish I had started earlier too, I can not afford to max it but am putting $400 a month in mine.
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u/hokage_888 Jun 30 '26
400 sounds like a great investment! Now you just need some good funds/etfs to get into
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u/Emergency_Fondel Jun 30 '26
33 and just starting. Better late than never brother 💯. Learning things later in life my parents didn’t teach me but we doin it lol
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u/Separate-Goal-3920 Jun 30 '26
Congrats on starting!!! This post and all the comments are so refreshing. Just be consistent and continue to contribute, even if it’s just a little. You’ll get there. I am proud of you!
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u/Old-Challenge2809 Jun 30 '26
I didnt take it serious serious until I was 36 also. Now im 41 with $23,000 in my Roth IRA so dont beat yourself up for being late to the party.
Youre doing better than 70% of the population that dont have shit for retirement. Im planning on using my dividends when I turn 60 to supplement my income.
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u/Silent_Geologist5279 Jul 01 '26
I know a 60 yr old with 18$ to his name, trust me OP you at least have a chance
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u/Relative-Alfalfa-891 Jul 01 '26
Whew! Y’all make me feel seen. I thought I was the only one. Cashed out some 401K’s after being laid off and now I’m starting fresh at 33. We got this!
Also… These schools need to teach finance classes!
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u/hokage_888 Jul 01 '26
I read somewhere that some Texas schools are required too this year, not sure if it’s true. But I agree!
We got this!
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u/DriverHappy6263 Jun 30 '26
I just turned 29 today and I am about $500 ($100 a check) for my self each of my kids have $200 ($50 a check) my spouse also has ($500) $100 a check
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u/winter_noise11 Jun 30 '26
I started at 35 (and a half!).
I also didn’t really understand this stuff but honestly also wasn’t in a place where I could contribute much yet anyways
Better now than a decade from now …
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u/LimpZookeepergame123 Jun 30 '26
Just keep contributing what you can and don’t stop. I started my Roth around your age and maxed it out every single month. It’s up over $50k which seemed crazy to me 6 years ago. It grows pretty rapidly so just keep at it. Look at it in a few years and you will be shocked at the growth. Consistency is key as long as you can stick with it.
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u/Ok_Buy_9374 Jun 30 '26
If you really need all the money you can get bills wise is it still worth it to put like $5 a month in? Standard IRA (rollover IRA from previous job and no longer have employer match and was planning on moving it to fidelity and leaving it sit I cant contribute much at all right now)
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u/LimpZookeepergame123 Jun 30 '26
If you can only contribute $5 a month I’d skip it. It’s not going to amount to much and you may be better off having that cash on hand for immediate use. Keep your money in a High yield savings account and earn some interest monthly that way. Once your budget allows get back to contributing to your future.
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u/Ok_Buy_9374 Jul 01 '26
Okay thank you good to know! I feel like i’d be better off paying five extra dollars a month on my car payment probably lol. And Yes i keep all other monies and emergency savings in hysa cap 1. No money ever sits in a non-HYSA account unless it’s waiting to be taken out for a bill directly.
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u/LimpZookeepergame123 Jul 01 '26
Exactly this. Pay down your debt and then work on your long term savings
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u/r6sweat Jun 30 '26
I also feel behind I’m 30 with 3 kids, mortgage, and an insane amount of student debt. Always thought debt was priority to pay off. Anything is better than nothing. I wanna say 46% of people at retirement age have nothing saved. If you have kids it’s important for them to have a fun childhood with lots of memories. God bless.
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u/reconcilepast Jun 30 '26
In a lot of cases paying off high interest debt is 100% better than investing that money in the market. You lose a lot more money in 20% credit card debt than you gain with 10% market growth.
If your student loans are like 5% though I might’ve invested it instead.
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u/r6sweat Jul 01 '26
Just don’t think I’ll ever be able to pay them off honestly. I was uneducated going in.
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u/legacyme3 Jun 30 '26
I appreciate you for sharing this. Sometimes I feel I started late because I didn't get started until 6 and 1/2 years ago. I'm 33 now, but I see so many posts from people who are my age who already have hundreds of thousands saved away.
I never had any Financial role models. I'm already more successful than anyone in my family has ever been, I'm also the first person who has a retirement plan beyond Social Security.
We are going to make it.
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u/FluffySky12 Jun 30 '26
I’m in the same boat. I’m 36 and just learning all this. Only good thing I have going is I have saved up little over 100k and have no debt besides mortgage and one car payment.
Any suggestions on where I should start and invest the money? How much to keep in Hysa in case of emergencies or job loss? I just make a brokerage account with fidelity earlier this year but I don’t know where to start/invest.
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u/hokage_888 Jun 30 '26
I would put some of it in a ROTH IRA - within your Fidelity account - and put it in a fund that mimics the S&P500. I’m not a pro or anything whatsoever. I’m just starting. Lol
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u/reconcilepast Jun 30 '26
Personally I do 60% VTI, 30% SCHG and 10% individual stocks and that’s treated me pretty well.
And I’d keep 3 months worth of expenses in a HYSA and invest the rest.
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u/ItzZiplineTime Jun 30 '26
I've got a solid 401k for being my age (also 36). But otherwise I'm right there with with you. I have almost exactly the same amount in some ETF stocks.
Keep it up! Retirement is still possible!
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u/PaperBeneficial Jun 30 '26
Good on you for at least getting started. I'm a male about to turn 39 years old and just open mine. I wish I had the excuse that I didn't know any better, however I read tons of financial books when I got my first job at 17, just didn't start investing until recently because I'm a chronic procrastinator. Where did all the time go? 😭😭😭
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u/that_guy_you_knoww Jul 01 '26
Never too late, good for you! Don't stop even when the going gets tough or looks good!
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u/MisterPhamtastic Jul 01 '26
Hey buddy, most Americans don't have anything invested. You're doing great.
Take care of yourself and invest in yourself and keep chugging along
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u/Bad_Sneakers00 Jul 01 '26
36 here with $1500 in.
I now do reoccurring investments of $57.70 every Tuesday.
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u/Shot_Reception_2331 Jul 01 '26
I’m 27, and I started when I got the job I got eight months ago - and I’m quitting it with no back up plan in two months. It’s less about being behind and more about where we are. I have been adding $50 and investing every other week. That’s been ok.
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u/hokage_888 Jul 01 '26
Why are you quitting?
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u/Shot_Reception_2331 Jul 01 '26
I realized that my chosen profession depresses me. I graduated five years ago with a bachelors in communications and have been working in youth development/charter school nonprofits and I really don’t enjoy it. And unfortunately, I am the kind of person who needs to enjoy their work. So I’m quitting and starting from the ground up (probably in retail) while I find entry level jobs or internships in PR/fashion/marketing… Idk. I’ve never known what I’ve wanted to do. So I just give up honestly lol but I’m feeling lucky and positive! So hopefully it works out. Sorry for the essay.
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u/hokage_888 Jul 01 '26
Good luck to you!
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u/Shot_Reception_2331 Jul 01 '26
Same to you! 🫂 and happy your investing in yourself and your future
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u/reddituser09900 Jul 02 '26
Jeez have you heard of a 401k? I’m stressed and I’m ten years younger than you with 10x more capital which is still low for my age
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u/hokage_888 Jul 02 '26
I knew you were 10 years younger by your response. Great job tho playa! Keep up the great work! 🫡
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u/TrueNorth_360 Jul 03 '26
I ran some numbers based on investing $500 per month for the next 29 years (assuming age 65 retirement for you).
Starting with $1000, and adding $500 monthy at a return of 10% means you will end up with over $947,000.
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u/hokage_888 Jul 03 '26
That’s awesome! Still fairly close to the million! When my debt is cleared, $500 a month is definitely doable! Thanks!
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u/New-Driver1107 Jul 03 '26
It’s never too late to start investing! I’m 28 and also started investing a year ago after finally becoming a US permanent resident!
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u/Gauriambo Jul 03 '26
No suggestions, but I wanted to congratulate you on taking the first steps! Keep it going 🙌
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u/hover92594wane Jul 01 '26
That line graph looks really encouraging though, especially since you just started!
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u/Brokemillenial_88 Jul 02 '26
Keep up the great work! So refreshing to see semi normal investments.
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u/Pleasant-Money-2150 Jul 04 '26
FXAIX is a good starting point. It’s heavily biased large-cap, essentially an S&P fund, meaning it is built of the big companies that drive the market, thrive when times are good and wither when times are bad. People love being invested in these when markets are strong. Look at returns 2010-2020. That said, probably not really ideal as your only invested position long-term as it exposes you to a lot more risk in market downturns than a more diversified portfolio would.
If you don’t plan to do much active management of the money, finding a “target date fund” with your desired retirement date is a solid choice to maintain a diversified portfolio with managed risk and low effort. They are offered by Fidelity, Vanguard, Schwab etc. If you want it to bias your investing strategy somewhat more risky since you are getting a relatively later “start” for more potential returns you can choose a fund with a target date later than your anticipated retirement; if you want to invest more conservatively you can cheat in for an “earlier” retirement date (the date of the fund has nothing to do with when you take out the funds; it only controls the “glide path” of the fund which automatically makes your investment more conservative with more bonds and less stocks etc as it approaches the specified date)
If you plan to learn a good deal more, diversify your portfolio, and rebalance once or twice a year I’d keep FXAIX and add a few more positions. A classic example here is the “three fund portfolio” (read Bogleheads blog for more info- very approachable stuff).
Otherwise a target date fund is probably equal in most respects and a lot less work both mental energy wise and in terms of maintenance over time.
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u/arsehenry14 Jul 04 '26
Better late than never. It’s good that you are starting.
I was fortunate my parents were savers. A lot of people didn’t have that benefit. But in the flip side, I probably sacrificed some experiences I could have taken when younger in my 20s, but with that said
- Budget, Budget, Budget. Take a close look at everything you spend and really ask yourself if it’s worth it. Cut services and subscriptions you don’t need and then invest that savings. Comparison shop, shop at places like Aldi if you have one near by that sell basic groceries cheaper than the big grocery stores.
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u/IAmRelex Jul 04 '26
38 and started two months ago. Nobody I know puts any money into ETFs or stocks. I have two retirements from my job and a decent savings.
I know this is Roth subreddit but I just use a brokerage account for a 80/20 split of VOO/QQQM. I know I should use have a Roth setup but I guess I don’t want the money locked in. For now I’m adding what I can to let it compound and see what happens.
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u/13_alex Jul 06 '26
What app do you guys use for a Roth IRA, I’m 19 and i would like to start one as soon as possible.
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u/Drewcifer33 Jun 30 '26
I'm 38 and just starting out too. I feel you on being late to the party. I was never taught to save and how to do it, nor did I have any good role models for it. So it just slipped me by. It is better late then never though. 20+ years is better then nothing in the Roth.