Authors – Hardik, Bradley
Introduction
Georgia Tech sets us up to build world class tech and innovate, but the curriculum ignores a very important part of life: managing the money we are going to make. When we enter industry, we are suddenly faced with signing bonuses, salary negotiations, and complex benefits packages, and are suddenly responsible for managing much larger amounts of money. Despite this, most students graduate from college without knowing the basics of investing, compounding, or how to choose the right funds/investments.
A very important aspect of investmenting is retirement accounts, and the process of saving for retirement. This GTHow will bridge that gap and deliver a student focused roadmap on investing fundamentals, asset types, and retirement planning. More specifically, we will address the different types of accounts (e.g. all of the different IRA options), and how students or employees at Georgia Tech can get started with these strategies. We also intend to show why starting early matters, and how it can lead to very large differences in outcomes over large periods of time. Note that while this is a guide to investment strategies, it is not financial advice; we are not here to suggest what to invest in, but instead how to invest for the future.
Step 1: Open the Right Brokerage or Retirement Account
Step 2: Capture Your Full Employer 401(k) Match (The Free Money Rule)
Step 3: Understand Compounding and the Rule of 72
Step 4: Choose Between Traditional and Roth Accounts
Step 5: Build a Portfolio Using Low-Cost Index Funds and ETFs
Step 6: Automate Your Contributions and Pay Yourself First
Step 7: Rebalance Annually and Stay Consistent Through Market Volatility
Additional Resources for Further Reading
https://www.fidelity.com/learning-center/smart-money/what-is-an-ira
https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator
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