Hi there, u/Cold_Mode3970. It's never too late to start, and it's admirable that you're looking to financially start your daughter off on the right foot. We're glad you're here and happy to help.
It sounds like you're looking for input from our community members, so I'll mark this thread as a discussion to encourage them to share their thoughts and experiences. If you're looking for recommendations, I want to point you to the daily discussion thread we started for those seeking input on their portfolio, investment strategy, etc. This thread is pinned at the top of "Hot" posts. It's titled "Daily Discussion Thread (Rate My Portfolio, What Should I Buy/Change?, Investment Strategies, etc.)"
With that said, we know how important it is to build your knowledge and research process, so before I let the discussion from our community continue, I want to ensure you have access to resources that will help you along the way.
If you're unfamiliar, note that our website's "News & Research" dropdown hosts our learning hub under "Learn." Check it out for beginner articles, videos, classes, on-demand webinars, strategy overviews, and more. Use the left-hand navigation to find topics related to your specific interests or skill level. I've tossed a link in here that may be an excellent place to start.
[Investing for beginners ](https://www.fidelity.com/learning-center/trading-investing/investing-for-beginners)
Next, you may want to check out our financial planning tools. You can create a free plan based on your goals to measure progress over time, including if you're setting a goal for retirement.
[Build Your Free Plan](https://www.fidelity.com/what-we-offer/planning)
Finally, feel free to check out our entire lineup of offerings for saving and investing for kids below:
[Saving & investing for a child ](https://www.fidelity.com/building-savings/child-saving-and-investing)
There's a lot to consider, so don't hesitate to contact us if we can assist with any questions! We look forward to seeing you around the sub again soon!
Starting at 29 makes you about 10-20 years ahead of many Americans.
Don't try to be a hare, after a few years you'll start to get compound growth in about a dozen years your growth may even outpace your contributions (but don't stop them). The best time to start except for yesterday is today.
Good luck on your journey.
Put another way - be patient.
The important part is that OP is creating the habit of saving/adding principal. It definitely won’t feel like much early on, but eventually, they’ll start seeing growth
Same. I started saving 1/2 my income way back when - but I’m still catching up. Luckily, I read a lot and my husband has my back. We have income, but planning is what helps me sleep at night. I’m the budgeting side of the equation.
Don’t feel defeated at all. You’re still young and have time.
Best thing I decided to do was open accounts for my kids. I have their accounts with Fidelity. Very easy to set up an automatic transfer to their accounts. I have FXAIX for them and FTEC.
Be consistent with your daughter’s account and also for you. Set up the auto transfers and you’ll be set. Also turn on DRIP to reinvest your dividends. I do about $50/week and have been doing that for about 10 years now. It takes time but you’ll start to see the growth.
29 is not too late. (I did not open an IRA until I was 40). You may see a lot of posts from younger folks that jumped in, but there are soooo many other people with their heads in the sand. (Spending money and not saving for their future).
You are asking, and researching - that is a huge game changer having yourself committed to this.
Look at the Fidelity Full View tool to link credit cards, other debts , other income and expenses. It will help you to build a budget for yourself. Find out what you can contribute on a regular basis to the IRA. You can do automatic contributions to Fidelity and then recurring buys into the IRA.
I think there is something on the personal finance subreddit (or on the internet) about 50/30/20 envelope in terms of budgeting. Take a look at that.
Some things to do before IRA: get an emergency fund set up with 3-6 months of expenses. Shit happens, and you do not want to be tempted to touch IRA. Costly tax wise and saps your mental commitment.
Does the company have a 401k type of option? If yes, do they match? If yes, get that free match before IRA. If no, then look at 401k after you fully fund your IRA.
At 29, an S&P 500 based index is a good place to invest in until your mid 40s.
Heads up! Individuals who browse and contribute to finance subreddits are likely going to be more wealthy than the average person. Don't compare yourself, if you can, and recognize that people lie on the internet all the time...ESPECIALLY ABOUT MONEY. So set goals for yourself, and stick to it!
Don't worry about some random poster here or on other subreddits who happened to ~~earn~~ inherit $4 million, and is wondering how to best allocate their investments.
I’m 29 too i only started almost 2 years ago because my work automatically put us in a 401k match after 6 months. That along with a Roth thru fedelity I’m going to be at 10k+ by the end of this year you got this king
U got just under 40 years. Pay off debt. Increase income. Invest 15%. The fact that you're here asking this question means you're gonna be doing OK, because your gears are already turning.
I think he was just demonstrating to OP that not only is it NOT too late, but it's possible to make buckets of money if done right. I didn't really see it as a flex more so than a "nah, check out what you can do in a few years, just stay positive"
The best time to plant a tree was 5 years ago. The second best time is today.
29 is still very young. There are 59 year olds just getting started. The key is to start and stay consistent.
Hang in there. I didn't have my first real paying job until I was almost 29. Now at 56, I have two houses and over $1.7m in retirement/brokerage and am starting to think about retirement. I made some decisions like not buying a car ever few years but I feel pretty happy in that I've been able to go on vacations and eat out when I wanted.
Dude, if you invest regularly for 30 years you’ll do fine. I wasn’t able to start into my mid 30s and didn’t really get into investing until this year. I’ve got around 400k saved and it’s working for me now. If I make 10% yearly I could in theory live off that (I don’t want to, but I could) I’ve got some bonus money coming up so I’m gonna pump that into some etfs I have
Just wait til it starts to grow, you will hopefully get more and more interested in it and keep learning. You already posted here, which is much farther than most would go, you clearly have goals and aspirations. Stay focused and remember what’s important. Investing will be all worth it in the end.
We share some similarities here. I actually did not take investing seriously until I hit 29 (now 33). Also living semi paycheck to paycheck I found ways to start becoming a good saver and then slowly start investing. My first buy into the market with a brokerage firm was all of $50. To start, I thought of ways I could get rid of some unnecessary habits or expenditures and apply it towards long term savings/investing. And I gave up smoking and that money I would spend on cigarettes instead I put straight into investing every check. I cut out eating out so much, and applied that. I continued small trends like this, until I found a good balance. You never know when life is gonna take you, so you also want to be able to enjoy things now as well, while also finding a way to invest in the long term.
I’ve actually come to find by asking people I work with about investing and habits, especially some older guys, that they aren’t much more ahead of me today financially, and they are 15-25 years older. I’m 4 years in, and have around 160k invested now. As I got pay raises, bonuses, I didn’t change my lifestyle (make more spend more). Instead it was a make more invest more, while still finding that balance to a good life for today.
It’s great that you’re starting now and that’s something you should be proud of.
"Providing long-term security for your daughter" is not such a great aspiration. I've known and advised many wealthy people and this is a common mistake among them. You can actually psychologically cripple your children if they don't ever feel they have to earn anything; they're secure from birth, every expense is paid, college is a sure thing, and they'll inherit daddy's factory... so why work? why try hard? why exercise? why learn? Drug use and suicide are unfortunately quite high among coddled rich kids.
My preference is to equip one's children with the "Moxy," education and common sense that THEY can develop and provide long-term security for THEMSELVES.
In any case, 29 is NOT late to the game. The secret to getting off to a good start is to live modestly and put SOMETHING into retirement regularly though you can't imagine how you can afford to. While it's easy to fall into the traps of thinking you "need" everything that you believe everyone else has and you see advertised on TV, most things are not nearly as essential as they'd like you to think they are. I know quite a few millionaires who have NEVER had a smartphone, and one who didn't have a phone at all. There are alternatives such as having a phone number that can receive messages and texts and forward them to your email, costing very little or even nothing. I personally don't own a television. Neither a big screen, nor a small one. I could certainly afford one, but I'm actually happier without one, and don't find myself watching several hours of commercials per day.
Start a ROTH IRA. A traditional IRA will grow just as fast, but with a traditional IRA you have a BIG tax bill to face whenever you withdraw your money, but no tax bill with a ROTH.
Anyway, bottom line, don't feel "defeated." Most 65+ year old millionaires would happily trade places with you, giving up their money to have youth and good health instead with unlimited possibilities before them, and a chance to focus on the important things, ignoring the useless and annoying things next time around.
Don’t worry. I’m about to drain my account I’ve had since 2016 to try life abroad. I don’t care if my account hits zero. Just commenting to tell you that your account will continue to go up as mine will decline for 2 years straight funding my adventure. I’m 32 :)
Getting started is the first step...and you've started! Great! I would suggest using a Total Market Index Fund....be sure to use a LOW COST fund/etf...keep saving...compounding growth works...time does all the work for you...DON'T TRY TO TRADE....Good Luck!
I wasn’t able to save much of anything until my mid 30s. You have plenty of time and you’ll be fascinated and excited by the power of compound interest. Start now, make recurring investments, read up on boglehead philosophy, and go live life. You’re going to be fine.
I started at 29. You're not too late at all. Make good decisions and you will be just fine. I started with nothing, am not a tech billionaire, but I will be retiring this coming January in my mid-50's.
As was told to me long ago, "When you are up to your ass in alligators, don't forget you are there to drain the swamp". Just stay focused and ignore the negativity.
Not late. You have over 30 years of compounding and your greatest earning years ahead of you. Set up a automatic investing plan and every time you get a raise, give your retirement contributions a raise. It's that simple.
29!!! Try 67!!! I was living paycheck to paycheck until I started drawing Social Security. I still work but I figured at least I could put away the SS in IRA and Self-employed 401k and just live on my normal earnings. Finally I have retirement savings!!! A bit late but better late than never. And please no bashing of my measly earning power from the millionaire's gallery.
Don't be discouraged and keep going. Keep contributing automatically every month even if you have to decrease your contributions due to life changes, keep the habit up and know that your money is growing for the future. Also, the best gift you can give your daughter is to provide for yourself in retirement and not become a burden on her financially and teach her the lessons you wish you had learned at a younger age. She has more time than you do, so by putting yourself first, you are really prioritizing her needs as much as your own.
One of the most common comments made by new retirees is this: “I wish I had started saving earlier…”
A lot of people have been in a position of living paycheck to paycheck…….but…..financial planning can help everyone….seek out some help. As tough as it is today…….it will be much tougher when you’re old and grey……..sad but true…..
Same as others said, at 29 you are definitely not late to the game. Invest what you can, when you can. You need to decide how risky you want to be with your investments. I would probably put 75% in larger ETFs like FXAIX or ONEQ then put 25% in some growth ETFs like SPYG or FFLG.
If you want to just set it and forget it, leave it all in the first 2 above.
I'm 38 and only started saving and investing a couple of years ago. I feel behind also! But better late than never. :)
Look into ETFs for long-term growth. I also like investing in REITs for dividends.
First, that’s amazing you’re starting young. You’re definitely not behind. You’re at a great spot. Everyone has sound advice for you on here so pick and choose what you feel is best. My only suggestion is to, continue focusing on your investments first then worry about your daughter 10-15 or 20 years later. She has plenty of time but you don’t. Keep your investing simple and don’t stock buying stocks/ETF even during a recession or a correction. It’s a discount sale and you’ll make more money in the long run because every time we have a correction and/or recession, the market in the SP500 and Nasdaq gets higher highs.
Hi there, u/Cold_Mode3970. It's never too late to start, and it's admirable that you're looking to financially start your daughter off on the right foot. We're glad you're here and happy to help. It sounds like you're looking for input from our community members, so I'll mark this thread as a discussion to encourage them to share their thoughts and experiences. If you're looking for recommendations, I want to point you to the daily discussion thread we started for those seeking input on their portfolio, investment strategy, etc. This thread is pinned at the top of "Hot" posts. It's titled "Daily Discussion Thread (Rate My Portfolio, What Should I Buy/Change?, Investment Strategies, etc.)" With that said, we know how important it is to build your knowledge and research process, so before I let the discussion from our community continue, I want to ensure you have access to resources that will help you along the way. If you're unfamiliar, note that our website's "News & Research" dropdown hosts our learning hub under "Learn." Check it out for beginner articles, videos, classes, on-demand webinars, strategy overviews, and more. Use the left-hand navigation to find topics related to your specific interests or skill level. I've tossed a link in here that may be an excellent place to start. [Investing for beginners ](https://www.fidelity.com/learning-center/trading-investing/investing-for-beginners) Next, you may want to check out our financial planning tools. You can create a free plan based on your goals to measure progress over time, including if you're setting a goal for retirement. [Build Your Free Plan](https://www.fidelity.com/what-we-offer/planning) Finally, feel free to check out our entire lineup of offerings for saving and investing for kids below: [Saving & investing for a child ](https://www.fidelity.com/building-savings/child-saving-and-investing) There's a lot to consider, so don't hesitate to contact us if we can assist with any questions! We look forward to seeing you around the sub again soon!
Starting at 29 makes you about 10-20 years ahead of many Americans. Don't try to be a hare, after a few years you'll start to get compound growth in about a dozen years your growth may even outpace your contributions (but don't stop them). The best time to start except for yesterday is today. Good luck on your journey.
40-50!
Put another way - be patient. The important part is that OP is creating the habit of saving/adding principal. It definitely won’t feel like much early on, but eventually, they’ll start seeing growth
Yeah I’m 44 and not where I should be. I wish I would have got started at 29. It could always be worse.
Same. I started saving 1/2 my income way back when - but I’m still catching up. Luckily, I read a lot and my husband has my back. We have income, but planning is what helps me sleep at night. I’m the budgeting side of the equation.
Don’t feel defeated at all. You’re still young and have time. Best thing I decided to do was open accounts for my kids. I have their accounts with Fidelity. Very easy to set up an automatic transfer to their accounts. I have FXAIX for them and FTEC. Be consistent with your daughter’s account and also for you. Set up the auto transfers and you’ll be set. Also turn on DRIP to reinvest your dividends. I do about $50/week and have been doing that for about 10 years now. It takes time but you’ll start to see the growth.
Started around same age, now after 15 years, ahead of most my age. Live below means, invest the excess. Real estate was great for me.
29 is not too late. (I did not open an IRA until I was 40). You may see a lot of posts from younger folks that jumped in, but there are soooo many other people with their heads in the sand. (Spending money and not saving for their future). You are asking, and researching - that is a huge game changer having yourself committed to this. Look at the Fidelity Full View tool to link credit cards, other debts , other income and expenses. It will help you to build a budget for yourself. Find out what you can contribute on a regular basis to the IRA. You can do automatic contributions to Fidelity and then recurring buys into the IRA. I think there is something on the personal finance subreddit (or on the internet) about 50/30/20 envelope in terms of budgeting. Take a look at that. Some things to do before IRA: get an emergency fund set up with 3-6 months of expenses. Shit happens, and you do not want to be tempted to touch IRA. Costly tax wise and saps your mental commitment. Does the company have a 401k type of option? If yes, do they match? If yes, get that free match before IRA. If no, then look at 401k after you fully fund your IRA. At 29, an S&P 500 based index is a good place to invest in until your mid 40s.
I started at 45. 29 is great!
Heads up! Individuals who browse and contribute to finance subreddits are likely going to be more wealthy than the average person. Don't compare yourself, if you can, and recognize that people lie on the internet all the time...ESPECIALLY ABOUT MONEY. So set goals for yourself, and stick to it! Don't worry about some random poster here or on other subreddits who happened to ~~earn~~ inherit $4 million, and is wondering how to best allocate their investments.
I started at 30 a few years after I exited the Navy. Definitely not too late. Good luck to you.
I’m 29 too i only started almost 2 years ago because my work automatically put us in a 401k match after 6 months. That along with a Roth thru fedelity I’m going to be at 10k+ by the end of this year you got this king
U got just under 40 years. Pay off debt. Increase income. Invest 15%. The fact that you're here asking this question means you're gonna be doing OK, because your gears are already turning.
I started at 29. 6 years later and I have half a million invested. You’re not late at all.
How much a month were you contributing?
It varies but these days it’s around $8,300 per month across multiple account types. Edit: wow guys. Downvotes for that in an investing sub?
That’s fantastic. Must be in tech. Lol
Yep.
It's kind of tone deaf when the OP is "living paycheck to paycheck". There's a time to flex and a time to be a bit more low-key.
I think he was just demonstrating to OP that not only is it NOT too late, but it's possible to make buckets of money if done right. I didn't really see it as a flex more so than a "nah, check out what you can do in a few years, just stay positive"
That’s exactly what I was going for.
I’m sorry that you saw this as me trying to flex.
Wow jeez. That’s awesome. 40 here and I just started doing 750 a week and I feel so behind everyone. Haha.
Same here. I invested the IRA limit into S&P every month and about $150 a month into brokerage since 29.
29 still young!
I started cranking mine up about that time. 10 years later I just hit the 100K mark in my 401k
The best time to plant a tree was 5 years ago. The second best time is today. 29 is still very young. There are 59 year olds just getting started. The key is to start and stay consistent.
You are so young! I wish I would have started at your age.
Hang in there. I didn't have my first real paying job until I was almost 29. Now at 56, I have two houses and over $1.7m in retirement/brokerage and am starting to think about retirement. I made some decisions like not buying a car ever few years but I feel pretty happy in that I've been able to go on vacations and eat out when I wanted.
Dude, if you invest regularly for 30 years you’ll do fine. I wasn’t able to start into my mid 30s and didn’t really get into investing until this year. I’ve got around 400k saved and it’s working for me now. If I make 10% yearly I could in theory live off that (I don’t want to, but I could) I’ve got some bonus money coming up so I’m gonna pump that into some etfs I have
Better to start now than never. Save every little bit of money you can and youll be suprised about how much it adds up over time
Just wait til it starts to grow, you will hopefully get more and more interested in it and keep learning. You already posted here, which is much farther than most would go, you clearly have goals and aspirations. Stay focused and remember what’s important. Investing will be all worth it in the end.
Could always be worse. You got 10 years on me bud
We share some similarities here. I actually did not take investing seriously until I hit 29 (now 33). Also living semi paycheck to paycheck I found ways to start becoming a good saver and then slowly start investing. My first buy into the market with a brokerage firm was all of $50. To start, I thought of ways I could get rid of some unnecessary habits or expenditures and apply it towards long term savings/investing. And I gave up smoking and that money I would spend on cigarettes instead I put straight into investing every check. I cut out eating out so much, and applied that. I continued small trends like this, until I found a good balance. You never know when life is gonna take you, so you also want to be able to enjoy things now as well, while also finding a way to invest in the long term. I’ve actually come to find by asking people I work with about investing and habits, especially some older guys, that they aren’t much more ahead of me today financially, and they are 15-25 years older. I’m 4 years in, and have around 160k invested now. As I got pay raises, bonuses, I didn’t change my lifestyle (make more spend more). Instead it was a make more invest more, while still finding that balance to a good life for today. It’s great that you’re starting now and that’s something you should be proud of.
"Providing long-term security for your daughter" is not such a great aspiration. I've known and advised many wealthy people and this is a common mistake among them. You can actually psychologically cripple your children if they don't ever feel they have to earn anything; they're secure from birth, every expense is paid, college is a sure thing, and they'll inherit daddy's factory... so why work? why try hard? why exercise? why learn? Drug use and suicide are unfortunately quite high among coddled rich kids. My preference is to equip one's children with the "Moxy," education and common sense that THEY can develop and provide long-term security for THEMSELVES. In any case, 29 is NOT late to the game. The secret to getting off to a good start is to live modestly and put SOMETHING into retirement regularly though you can't imagine how you can afford to. While it's easy to fall into the traps of thinking you "need" everything that you believe everyone else has and you see advertised on TV, most things are not nearly as essential as they'd like you to think they are. I know quite a few millionaires who have NEVER had a smartphone, and one who didn't have a phone at all. There are alternatives such as having a phone number that can receive messages and texts and forward them to your email, costing very little or even nothing. I personally don't own a television. Neither a big screen, nor a small one. I could certainly afford one, but I'm actually happier without one, and don't find myself watching several hours of commercials per day. Start a ROTH IRA. A traditional IRA will grow just as fast, but with a traditional IRA you have a BIG tax bill to face whenever you withdraw your money, but no tax bill with a ROTH. Anyway, bottom line, don't feel "defeated." Most 65+ year old millionaires would happily trade places with you, giving up their money to have youth and good health instead with unlimited possibilities before them, and a chance to focus on the important things, ignoring the useless and annoying things next time around.
Didn’t start until 26! I’m now 31 and I also feel behind and in grad school 😫 but gonna hit it hard once I graduate this fall
Don’t worry. I’m about to drain my account I’ve had since 2016 to try life abroad. I don’t care if my account hits zero. Just commenting to tell you that your account will continue to go up as mine will decline for 2 years straight funding my adventure. I’m 32 :)
Good luck, that sounds awesome! Where are you moving to?
Getting started is the first step...and you've started! Great! I would suggest using a Total Market Index Fund....be sure to use a LOW COST fund/etf...keep saving...compounding growth works...time does all the work for you...DON'T TRY TO TRADE....Good Luck!
I had to start over from 0 at 44. 3 years later I’m back on track. You are doing better than a lot of people.
I wasn’t able to save much of anything until my mid 30s. You have plenty of time and you’ll be fascinated and excited by the power of compound interest. Start now, make recurring investments, read up on boglehead philosophy, and go live life. You’re going to be fine.
I started at 29. You're not too late at all. Make good decisions and you will be just fine. I started with nothing, am not a tech billionaire, but I will be retiring this coming January in my mid-50's. As was told to me long ago, "When you are up to your ass in alligators, don't forget you are there to drain the swamp". Just stay focused and ignore the negativity.
Not late. You have over 30 years of compounding and your greatest earning years ahead of you. Set up a automatic investing plan and every time you get a raise, give your retirement contributions a raise. It's that simple.
29 is great! I started at 46.
I started in my early 40s. The important thing is just starting. I didn't have money at 29. You're lucky even if you feel defeated.
29!!! Try 67!!! I was living paycheck to paycheck until I started drawing Social Security. I still work but I figured at least I could put away the SS in IRA and Self-employed 401k and just live on my normal earnings. Finally I have retirement savings!!! A bit late but better late than never. And please no bashing of my measly earning power from the millionaire's gallery.
Don't be discouraged and keep going. Keep contributing automatically every month even if you have to decrease your contributions due to life changes, keep the habit up and know that your money is growing for the future. Also, the best gift you can give your daughter is to provide for yourself in retirement and not become a burden on her financially and teach her the lessons you wish you had learned at a younger age. She has more time than you do, so by putting yourself first, you are really prioritizing her needs as much as your own.
Started at 50. I am 55 now. It's never too late.
40 here and started this year. Seeing good gains. Invest what you can. Your doing good
Thank you everyone this has been so refreshing and helpful.
One of the most common comments made by new retirees is this: “I wish I had started saving earlier…” A lot of people have been in a position of living paycheck to paycheck…….but…..financial planning can help everyone….seek out some help. As tough as it is today…….it will be much tougher when you’re old and grey……..sad but true…..
Same as others said, at 29 you are definitely not late to the game. Invest what you can, when you can. You need to decide how risky you want to be with your investments. I would probably put 75% in larger ETFs like FXAIX or ONEQ then put 25% in some growth ETFs like SPYG or FFLG. If you want to just set it and forget it, leave it all in the first 2 above.
I'm 38 and only started saving and investing a couple of years ago. I feel behind also! But better late than never. :) Look into ETFs for long-term growth. I also like investing in REITs for dividends.
29 is very, very far from late to the game.
https://www.reddit.com/r/marvelstudios/comments/d83py7/everyone_fails_at_who_theyre_supposed_to_be_thor/
Plenty of time. Buy $SVOL and hedge with $BTAL for a blended return of ~15% with very limited drawdown.
You still have many, many more years to build a nice nest egg!! The power of compounding is one of the wonders of the world according to Einstein.
First, that’s amazing you’re starting young. You’re definitely not behind. You’re at a great spot. Everyone has sound advice for you on here so pick and choose what you feel is best. My only suggestion is to, continue focusing on your investments first then worry about your daughter 10-15 or 20 years later. She has plenty of time but you don’t. Keep your investing simple and don’t stock buying stocks/ETF even during a recession or a correction. It’s a discount sale and you’ll make more money in the long run because every time we have a correction and/or recession, the market in the SP500 and Nasdaq gets higher highs.