Quick question opened a solo traditional 401k had 12k in vanguard money market planning on adding a little bit more by year end. What sort of vanguard index you guys recommend if I am planning on long term and only checking it once a year. Fyi I am 30y with no debt only started maxing out Roth IRA 2017/2018 w target date vanguard.

Just buy the same target date fund in your 401k too.

Looking for some quick thoughts. I currently have 15k cash sitting in a Roth IRA. Think about 13K of that was contributions. Overall the Roth IRA has little to do with our overall retirement plans as household income is about to triple with new job that has pension + 401k type plan. I’m considering cashing out the Roth contributions in a year or two when we buy a house, but may end up deciding not to. In the meantime, would it seem reasonable to stick the 15k in something like Vanguard VASIX so I can be earning something on it? I don’t care if the economy tanks next year and i lose a little, but would be ticked if have a big downturn and lose 5k+ compared to just letting it sit in cash until we decide about if we need for house.

VASIX is nearly 80% bonds. If VASIX lost 38% in a year or two, then the investing world has much bigger problems.

That said, try Vanguard Prime Money Market Fund (VMMXX) if you don't want to lose anything in a 1-2 year time frame. The yield is close to VASIX.

Then again if Vanguard prime money market breaks the bucks then the investing world will have fallen to complete chaos. That's more of a theoretical though, just stick it in prime money market.

Vanguard Prime Money Market Fund (VMMXX) pays less than an Ally savings account.

Fidelity offers zero-fee index funds now.

How can they afford to do that and what's the catch?

Get your money on their platform where they offer paid advisors/mutual funds

No? Ally is paying 1.9% and VMMXX is ~2.1% and will move higher this month with another rake hike. Either is obviously fine.

Hmm, went to buy the VMMXX and my Merrill Edge Roth IRA account said I can’t buy it in this account type. Once I can use a phone I’ll call them to clarify, but is there some similar Merrill/BOA fund they are going to want me to buy instead or something?

Does Fidelity charge a fee to buy the fund?

Vanguard is free to buy Vanguard ETFs and the fees are like 3 or 4 basis points.

I saw the post and assumed that you were at Vanguard.

Call Merrill Edge and see if you can change your sweep account to a money market fund. Most brokers leave it as a deposit at affiliated banks, instead of a money market.

Merrill Edge turned the sweep to money market option completely off for new customers, btw. But you might be grandfathered in to old terms of service. See WSJ article

Piggybacking on this.... I have a little under 10k in a Roth and want to use the money for a house down payment in 1-3 years. I think the market is going to tank no question. Any solid investments that won’t get crushed if the market is crushed that might yield 2-4% a year. I don’t mind losing if market runs well bc I have a 401k that is invested. I’m 30 in half a year so retirement is not something I’m even remotely worried about now and buying a house is #1 on my priority list. Also I’m going to be making 30-40k more than I am now in 3-4 years due to job pay progressions. Just wondering what I should do.

I kinda wanna take an aggro approach and buy short funds / (though about trading the vix) with my Roth but seems a little too risky and will set my mind in a spin if I punt off a few k.

Ally Bank has a 14 month CD for 2.85%. There are probably higher yielding CD's available if you want to take the time to search.

Was this a prior rate?

At Ally, I see a 12-month CD at 2.75% (no minimum), and an 18-month CD at 2.70% (more than $25k).

Also I don't see a 14-month CD?

New investor here!

I have already realized some mistakes I made but please please please give me advice on the future.

I am very young. Early 20’s have a FT job with a 401k (contributing the max) and I opened a Roth IRA thru fidelity which I maxed out for the year as well In September of this year

For the fidelity account I invested 3k in a target date fund, 1k in an S&p index fund

500/500/500 in a millennial account, mid cap index fund and small cap index fund

I think my problem was I invested the whole amount at one time right before the market started to go down

I realize I’m 2019 I will invest small amounts at regular intervals

Do these funds sound appropriate or should I just contribute it all to a target date fund?

I play on buying a house in the next 1-2 years and current have no debt. I have enough saved in a regular savings account for 20% more on a house and emergency fund money left over

ALL thoughts and advice is appreciated[/QUOTE]

If you are capping out your 401k and a Roth in your early 20's, you are WAAAAY ahead of the game. Congrats.

Just put it all in a target date fund (assuming a good one with low fees). Keep it simple.

Haha that’s what everyone says which I really appreciate!

One of my best friends really got me into it as he went to school in finance and started in his teens.

I feel like I should have started even earlier after talking to him!!

I know the market is down now and has been since I started investing but it really means nothing at all to me at this period of my life.

I just reinvest the dividends as well (obvioously)

I use the FDKVX target date one the expense ratio is 0.75

Maybe eventually I’ll just change to the index fund version with a lower fee ? Like 0.015 or something

that fee is way to high. read up on basic 3 fund portfolio's and invest in index funds to get the lower fees. with the way you're saving that will equate to hundreds of thousands of dollars over the course of 60 years

Right!

I figured id probably change next year to the index version(FDKLX) where the fee is 0.14

Where like 60% is domestic funds, 30% international 10% bonds

The mutual fund I’m in right now is FDKVX

Thoughts?

That seems fine for a fee.

One thing you might want to consider depending on your risk tolerance is going all equity right now. You have a longggg time until you can access that money and you’ll get a much higher return. Especially since you’re so young.

Hell i just turned 27 and my portfolio is like 95% equity, 5% crypto

Should I just do 100% crypto? Haha totally kidding.

I have a very high risk tolerance but just wondering where I should put the full 5500 next year for my Roth

Limit is 6k next year, highest risk assets should be in your Roth since they’re tax free

Definitely change that as soon as you can. No reason to pay half a percent in fees for no reason.

For .14%, I would put everything into that and not mess with managing a three fund portfolio. At .75%, I'd probably mess with that.

You may be limited by whatever is allowed in your 401k too.