Having just received a modest inheritance, I am trying to figure out how to invest it to benefit me in the long run. I have a HYSA with some emergency funds and just paid off my car. I am 22 years old, so I am willing to tolerate some risk, but I will only be able to contribute about $150 every month going forward.
From my research, this is the plan I am considering:
1. Open Fidelity Roth IRA and immediately max my contribution for the year. Allocate 70% FXAIX, 30% FZILX
2. Put the rest in a Fidelity brokerage account and allocate 60% VTI, 40% VXUS.
Allocation and taxes are the parts that I want to make sure I am understanding correctly. My thinking is that because of my age, avoiding bonds will maximize long term growth, and it is better to stick with Fidelity index funds in Roth and ETFs in brokerage. Right? FXAIX/FZILX in Roth to avoid capital gains each year, and ETFs in brokerage to again minimize annual taxes. My gross income is below 50,000, so should taxes be a concern for me at this point?
I am trying hard to learn to be smart with finances since my parents weren't, but it feels overwhelming. Is this a good plan, and do I have proper reasoning behind it?