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Old 05-17-2017, 06:41 AM   #4276
levbronstein
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Re: The "I have XX money to invest, where should I put it?" Thread

American citizen/Active US military/ making about 40k after taxes/risk tolerance: 8/10
27 years old.

Looking for long term investment 25 years+. I already have about 9k in etfs in a brokerage account that I opened in August 2016. Not sure if I should keep this or not.......

Anyways,

Im wanting to open a retirement account. I'm assuming my best option is a Roth IRA. Assuming I opened a Roth, what are my best index fund options to invest in? Should I go with Vanguard and do a 2055 target fund or should I buy 3 or 4 different funds? Any advice is much appreciated.
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Old 05-17-2017, 08:43 AM   #4277
thorleif
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Re: The "I have XX money to invest, where should I put it?" Thread

Yeah, I'd say Target 2055 in a Roth IRA is the Keep It Simple, Stupid answer.

I'm not sure what options are available as military, but imagine there has got to be some tax advantaged options. Probably even better than our civilian options? I would look to transition your existing 9k into to that, while being cognizant of tax implications.
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Old 05-24-2017, 09:51 AM   #4278
unfrgvn
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Re: The "I have XX money to invest, where should I put it?" Thread

Quote:
Originally Posted by levbronstein View Post
American citizen/Active US military/ making about 40k after taxes/risk tolerance: 8/10
27 years old.

Looking for long term investment 25 years+. I already have about 9k in etfs in a brokerage account that I opened in August 2016. Not sure if I should keep this or not.......

Anyways,

Im wanting to open a retirement account. I'm assuming my best option is a Roth IRA. Assuming I opened a Roth, what are my best index fund options to invest in? Should I go with Vanguard and do a 2055 target fund or should I buy 3 or 4 different funds? Any advice is much appreciated.
As a US service member you have access to the Thrift Savings Plan. Everything I've heard about the TSP is that its the best option out there.
https://www.tsp.gov/index.html
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Old 05-29-2017, 11:34 AM   #4279
Faluzure
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Re: The "I have XX money to invest, where should I put it?" Thread

Country you live in: USA#1
Income: ~87k/year, (~4.8k/month post-tax)
Risk Tolerance: Medium to Med-High for long-term investments, low near-term investments
Timeframe for investment: ~35 years for retirement, ~5 years for a short-term savings (for a house)
Debt: none

Hey guys, I'm looking for two kinds of advice, one for retirement savings and one for shorter-term savings.

First, I want to be a bit smarter about my current retirement plan. Right now I have the following:

401k~31k in various Vanguard funds -- I'm not sure how I'm distributing them is reasonable though (**breakdown below).

IRA~6.5k in a Virtus fund (VRTS GLOBAL EQUITY TREND FUND-A). Basically I opened a Roth IRA about 5 years ago, but have only been putting about $1200/year in it (which from a cursory reading of this thread seems like a mistake and I should be maxing it out?).

ESOP~20k, this is allocated to me by my company, there's not much I can do with this until I retire or leave.

**Vanguard Breakdown
35% Target Retirement 2050 Fund
25% STAR Fund
15% Intermediate-Term Treasury Fund
10% Windsor II Fund
5% U.S. Growth Fund
5% International Growth Fund
5% 500 Index Fund

Does this seem like an okay distribution? Should I prioritize maxing out my IRA before adding more to my 401k? Right now I'm only putting 5% into my 401k because my company only matches 1/4 up to 1% (so it maxes out once I put in 4%).

-------------------
Near term -- right now I'm looking at saving up to buy a house. I live in an area where a reasonable house is going to cost in the neighborhood of 500k. I'm planning to save about 2k/month toward the down payment so it'll take about 4-5 years assuming I put about 100k down. Is there something better I should do than putting the money into a money market account getting about 1%? I have ~10k in one right now.

Thanks!
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Old 05-30-2017, 01:10 AM   #4280
BrianTheMick2
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Re: The "I have XX money to invest, where should I put it?" Thread

Quote:
Originally Posted by Faluzure View Post
Country you live in: USA#1
Income: ~87k/year, (~4.8k/month post-tax)
Risk Tolerance: Medium to Med-High for long-term investments, low near-term investments
Timeframe for investment: ~35 years for retirement, ~5 years for a short-term savings (for a house)
Debt: none

Hey guys, I'm looking for two kinds of advice, one for retirement savings and one for shorter-term savings.

First, I want to be a bit smarter about my current retirement plan. Right now I have the following:

401k~31k in various Vanguard funds -- I'm not sure how I'm distributing them is reasonable though (**breakdown below).

IRA~6.5k in a Virtus fund (VRTS GLOBAL EQUITY TREND FUND-A). Basically I opened a Roth IRA about 5 years ago, but have only been putting about $1200/year in it (which from a cursory reading of this thread seems like a mistake and I should be maxing it out?).

ESOP~20k, this is allocated to me by my company, there's not much I can do with this until I retire or leave.

**Vanguard Breakdown
35% Target Retirement 2050 Fund
25% STAR Fund
15% Intermediate-Term Treasury Fund
10% Windsor II Fund
5% U.S. Growth Fund
5% International Growth Fund
5% 500 Index Fund

Does this seem like an okay distribution? Should I prioritize maxing out my IRA before adding more to my 401k? Right now I'm only putting 5% into my 401k because my company only matches 1/4 up to 1% (so it maxes out once I put in 4%).
Your 401k allocation is fine. It has about a 99.35% correlated to the target retirement fund. Putting additional money into that would be just as fine.

The VGPAX that you have in your IRA sucks monkey balls and you should slap or punch whoever sold it to you. Move your money to someone else.

In general get 401k match, then max IRA, then put any additional retirement into 401k, except...

Quote:
-------------------
Near term -- right now I'm looking at saving up to buy a house. I live in an area where a reasonable house is going to cost in the neighborhood of 500k. I'm planning to save about 2k/month toward the down payment so it'll take about 4-5 years assuming I put about 100k down. Is there something better I should do than putting the money into a money market account getting about 1%? I have ~10k in one right now.

Thanks!
...since you are saving for a down payment, you should direct additional money into that.

4-5 years isn't a very long time, so money market is a good and safe plan.
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Old 05-30-2017, 02:08 AM   #4281
TeflonDawg
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Re: The "I have XX money to invest, where should I put it?" Thread

Quote:
Originally Posted by BrianTheMick2 View Post
Your 401k allocation is fine. It has about a 99.35% correlated to the target retirement fund. Putting additional money into that would be just as fine.

The VGPAX that you have in your IRA sucks monkey balls and you should slap or punch whoever sold it to you. Move your money to someone else.

In general get 401k match, then max IRA, then put any additional retirement into 401k, except...



...since you are saving for a down payment, you should direct additional money into that.

4-5 years isn't a very long time, so money market is a good and safe plan.
What about a 4 or 5 year bond or 4 or 5 one-year bonds? Or BND? Or CD ladders?
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Old 05-30-2017, 02:19 AM   #4282
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Re: The "I have XX money to invest, where should I put it?" Thread

Quote:
Originally Posted by TeflonDawg View Post
What about a 4 or 5 year bond or 4 or 5 one-year bonds? Or BND? Or CD ladders?
The $0.13 difference in EV over 4-5 years might be worth it to a certain type of person, I guess. (some of your choices have counterparty and duration risk)

Last edited by BrianTheMick2; 05-30-2017 at 02:20 AM. Reason: I underestimated the EV by a factor of 10
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Old 05-30-2017, 06:58 AM   #4283
Faluzure
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Re: The "I have XX money to invest, where should I put it?" Thread

Awesome, thanks so much! Will look into moving virtus bull**** to a vanguard fund or something.
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Old 05-30-2017, 08:48 AM   #4284
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Re: The "I have XX money to invest, where should I put it?" Thread

Quote:
Originally Posted by Faluzure View Post
**Vanguard Breakdown
35% Target Retirement 2050 Fund
25% STAR Fund
15% Intermediate-Term Treasury Fund
10% Windsor II Fund
5% U.S. Growth Fund
5% International Growth Fund
5% 500 Index Fund

Does this seem like an okay distribution?
Assuming you don't pay any transaction fees, I'd just move the entire balance into Target Retirement 2050 along with any future contributions. This allocation seems random and it skews you conservatively and towards US stocks. If you did this strategically, then it's all good, but it felt pretty random to me.
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Old 05-30-2017, 09:55 AM   #4285
Faluzure
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Re: The "I have XX money to invest, where should I put it?" Thread

Will do, or at least will move future allocations to the target fund. It was definitely a random allocation wrt domestic and international stocks.
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Old 05-31-2017, 12:33 PM   #4286
Rutledge Smitty
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Re: The "I have XX money to invest, where should I put it?" Thread

PLEASE INCLUDE:

Country you live in: Ohio, United States
Income: $80k salary per year
Risk Tolerance: Medium/High
Timeframe for investment: ??? really unsure (see below)
Debt: None
Any other information you might have that would help us

I currently rent an apartment, but am thinking of purchasing a house within the next few months. 26 years old, single with minimal responsibilities. I have ~$30-40k that I'd be willing to use towards a down payment. Most of that money is tied up in stocks and alt currency right now. Thinking of purchasing a duplex and renting out half of it although I know literally nothing about real estate or renting which makes me hesitant. My biggest thing is I know I do not want to work for the "man" the rest of my life and think I may just be going through a mid-20s crisis with getting into real estate (potential pivot away from the man down the line). Crazy thought doing this or go for it it can't turn out that that bad?
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Old 05-31-2017, 01:03 PM   #4287
rafiki
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Re: The "I have XX money to invest, where should I put it?" Thread

What would you guys say a minimum safe amount of shares traded per day would be? My friend shared this doc his bank gave him for ETF's to invest in. I was shocked to see ones on there with like 2000 shares traded per day. I wouldn't touch that with a 10 foot pole. Then wondered what my cutoff might be.
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Old 06-08-2017, 08:41 AM   #4288
Faluzure
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Re: The "I have XX money to invest, where should I put it?" Thread

Is there any reason not to have all of my Roth ira and 401k in the same vanguard target fund?
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Old 06-08-2017, 11:42 AM   #4289
BrianTheMick2
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Re: The "I have XX money to invest, where should I put it?" Thread

Quote:
Originally Posted by rafiki View Post
What would you guys say a minimum safe amount of shares traded per day would be? My friend shared this doc his bank gave him for ETF's to invest in. I was shocked to see ones on there with like 2000 shares traded per day. I wouldn't touch that with a 10 foot pole. Then wondered what my cutoff might be.
I'd look at the bid/ask spread, bid/ask size and whether there is a big discount/premium from NAV.
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Old 06-08-2017, 11:42 AM   #4290
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Re: The "I have XX money to invest, where should I put it?" Thread

Quote:
Originally Posted by Faluzure View Post
Is there any reason not to have all of my Roth ira and 401k in the same vanguard target fund?
Not really.
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Old 06-08-2017, 12:19 PM   #4291
Faluzure
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Re: The "I have XX money to invest, where should I put it?" Thread

Cool, thanks!
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Old 06-16-2017, 01:39 PM   #4292
FrankyRizzo
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Re: The "I have XX money to invest, where should I put it?" Thread

Where you live: NJ, United States
Income: $70k/yr
Risk Tolerance: Medium/High
Time frame for investment: 5-10 years
Debt: <5k
Amount to invest: $1200 a month

Any other information you might have that would help us:
Rent: $1k/mo
Car: $4k/mo
Contribute to Roth IRA: $458/mo

I am 30 yrs old and am looking into investing into regular stocks and trading. I really dont know much about anything or how to etc where to look. I have looked into cryptocurrency and I just dont really understand it / seems too risky.

I would like to invest about 1-1200 a month at a time right now.

Last edited by FrankyRizzo; 06-16-2017 at 02:02 PM.
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Old 06-16-2017, 03:40 PM   #4293
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Re: The "I have XX money to invest, where should I put it?" Thread

Quote:
Originally Posted by FrankyRizzo View Post
Where you live: NJ, United States
Income: $70k/yr
Risk Tolerance: Medium/High
Time frame for investment: 5-10 years
Debt: <5k
Amount to invest: $1200 a month

Any other information you might have that would help us:
Rent: $1k/mo
Car: $4k/mo
Contribute to Roth IRA: $458/mo

I am 30 yrs old and am looking into investing into regular stocks and trading. I really dont know much about anything or how to etc where to look. I have looked into cryptocurrency and I just dont really understand it / seems too risky.

I would like to invest about 1-1200 a month at a time right now.
i think you meant car is 400/mo not 4k/mo? if its 4k/mo obv sell it.

good you max your roth. also max whatever your employer program offers.

just stick the 1200/mo into a vanguard target fund or total stock mkt index/sp500 index.
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Old 06-20-2017, 02:37 AM   #4294
cafepoker
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Re: The "I have XX money to invest, where should I put it?" Thread

Bitcoin market is very bullish and setting up nice. Invest in bitcoin now it is exploding. They don't inflate like us either.
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Old 06-25-2017, 08:14 PM   #4295
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Re: The "I have XX money to invest, where should I put it?" Thread

Posting this for my partner who recently inherited 100k:

Country you live in: Texas, United States
Income: $110k salary per year
Risk Tolerance: Medium/High
Timeframe for investment: 25-30 years - funds are for retirement
Debt: mortgage, ~295k remaining, we pay an extra $700/mo towards the principal

Any other information you might have that would help us: 401k and Roth already maxed out each year.

What would you suggest as a retirement investment for a person in their low 30s with 100k to invest who is already maxing everything out, full emergency fund, no kids, etc.?

Thanks!
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Old 06-25-2017, 09:30 PM   #4296
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Re: The "I have XX money to invest, where should I put it?" Thread

Don't forget to max HSA if available too. Vanguard target retirement fund, or VTI+VXUS.
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Old 06-25-2017, 09:36 PM   #4297
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Re: The "I have XX money to invest, where should I put it?" Thread

Quote:
Originally Posted by NuklearWinter View Post
Posting this for my partner who recently inherited 100k:

Country you live in: Texas, United States
Income: $110k salary per year
Risk Tolerance: Medium/High
Timeframe for investment: 25-30 years - funds are for retirement
Debt: mortgage, ~295k remaining, we pay an extra $700/mo towards the principal

Any other information you might have that would help us: 401k and Roth already maxed out each year.

What would you suggest as a retirement investment for a person in their low 30s with 100k to invest who is already maxing everything out, full emergency fund, no kids, etc.?

Thanks!
You'll need to invest using a taxable account.

I'd ask how you are investing your 401k/IRA's first. Google 'tax efficient placement' and read up on that. You'll basically put tax inefficient investments into your 401k/IRA and tax efficient into the taxable account.

You can 100% just stick it entirely into something simple like a Target Date Fund, but I'd personally choose to replicate it manually and maybe drop the bond allocation. Compared to a TDF, that gives you more control over allocation, liquidation in retirement, and an opportunity to tax loss harvest.
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