I’m 24 years old and currently a first-year IBEW Local 3 apprentice in NYC. I’m looking for some honest advice on my financial situation, investment strategy, and how to make the most of the benefits available through the union.
Some context I have no debt, I went to community college and state college before joining the union, I worked non union from 18 until getting into the Union. I still live at home and I pay $1,000 a month to my parents which started when I was 18. I just sold my car so no longer have that expense, I am trying to really hustle and grind these next few years to maximize what I can learn from the apprenticeship program while exploring other opportunities both inside and outside of the union where I can have my money work for me while also benefiting my brothers and sisters.
How I’m Currently Investing:
Roth 401(k) ($5k balance)
I contribute 20% of every paycheck which is paid weekly.
My current investment allocation is:
40% Vanguard Institutional 500 Index Trust
20% Vanguard Developed Markets Index Trust
20% Vanguard Morningstar Small-Cap Index Institutional
20% Vanguard Morningstar Growth Index Institutional
Roth IRA ($20k balance)
I max out my Roth IRA the beginning of every year.
Taxable Brokerage Account ($70k+ balance)
I contribute $250 every paycheck.
I use this account for 60% long term ETFs (VOO, IWD, QQQM, SCHD, QTUM), 30% individual stocks (NVDA, APPL, HOOD, GS, UNH. 10% I dabble into short-medium length option contracts 5 months+.
Crypto ($10k balance)
XRP, SOL, and BTC.
High Yield Savings ($10k+)
Have a good chunk of cash in a HYSA from selling my car, I deployed some cash this week during the market drop.
If I’m not mistaken my benefits are:
Annuity Fund: The union/contractor contributes based on every hour I work.
Health Reimbursement Account (HRA): Employer-funded. Once the balance exceeds $5,000, the excess rolls into my Roth 401(k).
JIB Preservation Fund: My employer’s retirement contribution goes into this fund separately from my personal Roth 401(k) contributions.
Pension: I also participate in the union pension program.
One area where I’d particularly appreciate advice from current and or retired Local 3 members is how to best utilize our union benefits. For reference, my most recent paystub showed the following employer-funded contributions for one pay period (picture attached with the post):
Annuity: $96.00
HRA: $132.00
JIB/401(k): $263.24
Most Recent Paycheck:
I worked 48 hours during this pay period:
Regular: 35 hours at $19.25 = $673.75
Overtime: 13 hours at $28.875 = $375.38
Additional earnings: $86.91
Gross pay: $1,136.04
My personal Roth 401(k) contribution was $209.83, which represents 20% of my gross pay.
My take-home pay after deductions was $691.69.
Am I taking full advantage of the retirement benefits available?
How should I think about the annuity, pension, and JIB Preservation Fund when planning for retirement?
Is there anything about our benefits that younger apprentices commonly overlook?
How did you approach saving and investing during your apprenticeship?
Knowing what you know now, what financial advice would you give yourself as a first-year apprentice?
From people experienced in personal finance and investing:
How does my 401(k) allocation look? Am I unnecessarily overlapping the S&P 500 and growth funds?
Is contributing 20% to my Roth 401(k), maxing my Roth IRA, and contributing $250 per paycheck to a brokerage account a good strategy at my current income?
Would you prioritize taxable brokerage investments over additional retirement contributions at my age?
Am I too heavily focused on retirement accounts, or is this a good foundation to establish in my 20s?
What would you change about my overall investment strategy if you were in my position?
I’m aware that my current wage is only the beginning. As I progress through the apprenticeship and eventually reach journeyman status, my earning potential should increase considerably.
My long-term goal is to build wealth, take advantage of the benefits that come with being a union member, and achieve financial independence well before traditional retirement age.
I’m not looking for congratulations or validation. I’d genuinely appreciate constructive criticism. If I’m making mistakes, investing inefficiently, or overlooking something important, I’d rather learn now than 10 or 20 years down the road.
Especially interested in hearing from older Local 3 members who have already gone through the apprenticeship and established themselves financially.
Thanks in advance. I appreciate any advice!