I donate 20% post tax. I also set a spending limit for myself ot 2k USD per month. Besides that I save everything.
With that savings
I max out my retirement account savings each year (5500 USD in the US). That all goes into an index fund
Rest of my savings mostly goes into index funds unless I have one off exciting investment opportunities (eg if my startup is raising a round. They were last year and I invested 10k)
The savings is basically earmarked for “giving me financial security and doing some good in the world later in life”. I don’t know if I will donate a large portion of it later, invest in a company I think will do good or give me a great return, finance any ventures I start myself. Maybe I would use it to pay for a house or something, but I would have to think very hard about that. My 2k per month spending cap is to prevent myself from having lifestyle creep so if I was to make a big purchase I would need to make sure I wasn’t just indulging in luxury because I have money lying around.
I just invest in s and p 500, and in vanguards recommended retirement account. I don’t try to take into account hoe much good or bad they do, partially out of skepticism of the counterfactual impact of impact investing, and partly out of inertia. If anyone knows of ea-principled work on this I’d be happy to change my approach
Good questions! Curious how other EAs do this too
I donate 20% post tax. I also set a spending limit for myself ot 2k USD per month. Besides that I save everything.
With that savings I max out my retirement account savings each year (5500 USD in the US). That all goes into an index fund Rest of my savings mostly goes into index funds unless I have one off exciting investment opportunities (eg if my startup is raising a round. They were last year and I invested 10k)
The savings is basically earmarked for “giving me financial security and doing some good in the world later in life”. I don’t know if I will donate a large portion of it later, invest in a company I think will do good or give me a great return, finance any ventures I start myself. Maybe I would use it to pay for a house or something, but I would have to think very hard about that. My 2k per month spending cap is to prevent myself from having lifestyle creep so if I was to make a big purchase I would need to make sure I wasn’t just indulging in luxury because I have money lying around.
Thanks for sharing!
How do you choose index funds? Do you try to take into account how much good or bad they do through their investments?
I just invest in s and p 500, and in vanguards recommended retirement account. I don’t try to take into account hoe much good or bad they do, partially out of skepticism of the counterfactual impact of impact investing, and partly out of inertia. If anyone knows of ea-principled work on this I’d be happy to change my approach