Notes on personal finance that I've learned from friends and books.

Here is the list of books I recommend to read if you want learn about personal finance and investing. Highly recommend to start from A Random Walk down Wall Street. It's a great book for beginners that introduces the main concepts of investing and personal finance.

Emergency Fund

• Vanguard Prime Money Market Fund* is a great option for your emergency stash.
• New Jersey Tax-Exempt Money Market (VNJXX) ($3,000 minimum) (0.16% ER)

Saving Accounts

• In general not a good choice because you lose money upon yearly inflation.
• Has less than 1% annual return
• Maybe good just simply for safety net
• Maybe money market funds can replace the saving accounts

Vanguard

• American investment management company based in Malvern, Pennsylvania with over $4 trillion in assets under management.
• Vanguard Index Fund that has 0.1% - 0.2% fee and ~9% annual return, but after inflation it comes down to 3.5% - 4%.
• There is no commission fee on Vanguard. Funds charge you an expense ratio
• Long term investment 20–30 years
• Total World Stock Index Fund
• Vanguard Total Stock Mkt Idx Inv (VTSMX)
• Vanguard Growth Index Fund Inv (VIGRX)
• Vanguard Growth and Income Inv (VQNPX)
• Vanguard Large­Cap Index Fund Inv (VLACX)
• Vanguard 500 Index Fund Inv (VFINX)

If you need your money in a year or less (short term investment), you better stick with low-risk investments that are easy to access, like money market funds or savings accounts.

Saving for house down payment

• Intermediate term bonds
• maybe 60% bonds and 40% stocks (mostly depends on the risk you're willing to take)
• Vanguard Total Bond Market Index ($3,000 minimum) 60%
• Vanguard Total Stock Market Index - 40%

Savings tips

• Save as much as possible on 401K plan. Max it out.