How I'm Investing for Retirement

Retirement investing doesn't need to be difficult or scary, in fact, it can be pretty simple. In this video, we'll discuss what retirement accounts I have, what funds I'm invested in, and what percentage each of those funds is.

Retirement accounts that I have:

Roth IRA - Funded with after-tax dollars and all withdrawals are tax-free after the age of 59 1/2.

401 - Funded with pre-tax dollars through your employer. All withdrawals are subject to income tax but your employer may offer contribution matching.

Thrift Savings Plan - Similar to a 401k, but is provided for US government employees and members of the military.

Funds that I'm invested in:

FSKAX - Total Stock Market Index Fund - 9.58% of my portfolio.
FXAIX - S&P 500 Index Fund - 54.66% of my portfolio.
FSPSX - International Stock Index Fund - 8.85% of my portfolio.
FSSNX - Small Cap Stock Index Fund - 20.07% of my portfolio.
FSNAX - US Bond Index Fund - 6.84% of my portfolio.

I like investing in index funds because they have low fees. The S&P 500 Index Fund is approximately 50 times less expensive than most actively managed mutual funds. The S&P 500 Index Fund also out-performed 91% of actively managed mutual funds over a 15 year period. This method of investing also requires very little time. I spend approximately 1 hour per year checking on my retirement accounts.

If you would like to read more about this and other topics, check out my website at https://workingclassfinances.com/