26/M/OH looking for next investment steps after “How to handle $”

Summary

I am a 26 year-old man located in Ohio, USA working in the Information Technology industry. I know little about personal finance. I never had any courses about it in school; my parents do not have the best financial practices; and my friends are generally more focused on paying bills rather than investing in the long-term; so I feel somewhat behind and isolated in these matters. And so, I am extremely grateful for this community. I believe that I have applied the main guidelines in “How to handle $” and would appreciate any further direction or reassurance on my path. I consider myself highly fortunate to have good pay and few expenses, so I want to make sure that I am maximizing this advantage sooner rather than later for my future. Below I have tried to provide a complete picture.

My main goals are to have financial independence and security so that I can be unchained from any job or location, to enjoy life while I am young with good food, travel, and entertainment, and to have a comfortable if not early retirement. I have no specific saving goals other than vacations and perhaps a house of my own eventually.

I am almost entirely invested in target date index funds because that seemed to be the most obvious approach, but I am concerned whether this is the right approach. I have too much money in savings that could be growing elsewhere (at minimum, I could get a higher yield savings account like Ally), but I am unsure whether I should invest it in more of the same. I understand that an HSA can be used as a super retirement account with tax-free money, but I am reluctant to do that because I have few medical bills and intend to keep it that way. I am willing to learn more about investing but given all of the factors and my lack of knowledge I have found it to be overwhelming.

Income

• Salary: $83,350 (2017, paid biweekly)
• Bonus: $10,750 (2016, based on company KPIs)
• I am single and have no plans to marry.

Expenses and Debts

• I have no major expenses or debts as I live with family, work from home, and paid off my car and college.
• Monthly fees: For family ($240), iPhone Upgrade Program ($36.50), Apple Music ($10.50), Netflix ($8.50)
• Yearly fees: Car insurance ($662), Amazon Prime ($105.50), Xbox Live ($30)
• Misc expenses: Gas, oil change, travel, concerts, music festivals, eating out, drinks, supplements, electronics, video games, gifts

Credit

• I never carry a balance and always pay on-time.
• Chase Freedom Credit Card: Opened 2011, $9,600 credit
• Barclaycard Credit Card: Opened 2012, $2,000 credit, only use rarely to keep open for credit age
• Chase Sapphire Reserve Credit Card: Opened 2016, $21,720 credit, will downgrade to Chase Freedom Unlimited in order to avoid yearly fee
• Chase Ultimate Rewards: $2,250 rewards to spend on travel (or less if spent on non-travel)
• TransUnion and Equifax Credit Score: 790

Checking and Savings

• Chase Checking: $2,000
• Capital One 360 Savings: $26,500 @ 0.75% APY

Investment and Retirement

• HealthEquity HSA: $1,000 cash balance, $2,000 invested in Vanguard Target Retirement 2050 Fund Investor Shares VFIFX with 0.16% OER and 0.033% admin fees (Contributing $45/biweekly paycheck)
• Fidelity NetBenefits 401k: $25,100 invested in BlackRock LifePath Index 2055 Fund Q with 0.12% OER (Now contributing 13% Roth, employer matches 50% of first 6%)
• Vanguard Roth IRA: $11,170 invested in Vanguard Target Retirement 2055 Fund Investor Shares VFFVX with 0.16% OER (Recently contributed maximum $5,500 for 2016 and 2017)
• Final Average Total Pay Pension Plan

Submitted by idgfi | #Specialdealer Special Offer Online Shopping Store 2016