Within a Schwab account you can have several subaccounts -- one for your IRA, one for cash, a checking account, an investing account.
This is what your investing account should look like in the future: https://milliondollarwayfinancecourse.blogspot.com/2024/09/best-cash-management-accounts-september.html.
Once you have the various accounts set up you can move the move from one account to anther with one simple click.
For now, I would recommend, you put the bulk of the money into a Schwab ETF, (either SCHD, SCHB, or SCHG). But put the rest into the checking account for quick access.
So, your Schwab account would have a:
- a checking account;
- an IRA;
- and, a brokerage account.
The Schwab account lets you do that all by yourself but if you have questions, call Schwab directly, or talk to me at your convenience this weekend. There is no hurry.
I have found the checking account really, really useful. I doubt you use checks very much so you may not need this but it makes your cash readily available. Again, we can discuss.
Don't spend a lot of time on this now, you have too many other things to do, but once you have everything in place, I think you will find it very rewarding and very, very interesting.
For initial investments, even inside an IRA, the most recommended vehicle right now is an ETF. There are thousands of ETFs, but Schwab ETFs are really highly recommended.
- SCHB: broad group of US Fortune 500 companies focused more on growth; probably as close as you can get to a “QQQ-like” ETF.
- SCHG: growth group of US Fortune 500 companies. Probably the best of the three for a young investor.
- SCHD: focused on dividend-paying companies. Won't appreciate much but pay a nice dividend, but geared for those who need income and probably older individuals nearing retirement.
That's a start.
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