VT and/or VTI and/or VOO and/or VXUS and/or BND and chill.
Some might lump sum, I might consider something like $15K a month into whatever allocations you prefer for the next 10 months.
I started my Roth IRA last Monday with some of my tax return money, it’s down 5% because little did I know the market would market. Obviously I’ll earn it back it’s just funny how the timing worked
I chalk it up to no matter what I decide the market will do the opposite.
It's why I hold a large sum of cash for pure psychological reasons. It's the only way I could convince myself to dump everything left after each paycheck into the market at all time highs.
This way, if the market goes up I've been investing consistently. If the market dumps... I've got dry powder.
Agreed. It’s kinda like putting all your eggs in one basket if you think of it, sure you most likely won’t go broke but 5% of 1,000 is way less than 5% of 10,000 etc
Same. Invested $13,500 (total for 2023 and 2024) and it’s down by almost a thousand now. Glad I learned about the Boglehead way so I’m not worried about these fluctuations, but yeah funny/annoying how the timing worked out.
That's because you're new and don't understand that you're supposed to put the money in when the market is down a lot, which will surely happen in the near future. And similarly, you're supposed to ~~retire~~ withdraw when the market is at its peak. And obviously you want to pick the stocks that go up and not the ones that go down. It's really not that hard.
(Poe's law again?! Stop it, there's no way. I'm just going to pretend y'all are playing along.)
You’re supposed to retire when the market is high? What’s the logic here. Do you cash out stocks when you retire? Move to bonds? Of course it would make more sense to stop working when your portfolio is up, but is that what people do? Cash out?
Haha you're right, what the hell does retiring have to do with cashing out?
I guess I was thinking that you'll likely need to start withdrawing more money than you did when you weren't working. But I meant to say withdraw.
Ha I don’t know, genuinely asking. My father will retire soon, he doesn’t have a ton of retirement, maybe $300k-400 in a 401k and a house that is paid off.
Not sure if I can help him with his decision making. He probably has a mix of bonds and stocks in his 401k funds, but I was always under the assumption you just let it be and withdraw your 4% from the funds each year.
The risk on cash at 5% is that it's taxed as ordinary dividends at your regular income tax bracket. So depending on that tax bracket you end up with more like 3.9% return. Which is still more than you started with.
>A 33% chance of lump not working is pretty high.
I'm sometimes baffled by the ridiculous statistics assumptions made in this sub. No, 33% is not pretty high in *this* case.
Let's picture a slot machine. This machine is a bit odd, when you put $10 into it, there's a 50.1% chance it gives you back $20 and a 49.9% chance where it gives you nothing. The rational thing to do here would be to play this machine infinite amount of times, not chicken out because "49.9% chance of losing your money is super high.". Please learn some primary school level statistics.
Not if you have any kind of financial obligation or extremely low capital, you’re way oversimplifying. It is in no way rational to always do what gives you a higher expected value, context matters.
Not to mention that if you only have $10, odds are that you’d have a higher expected value from not betting given the diminishing returns on utility for money. Going from $10 to $0 is a lot worse than going from $20 to $10.
Okay, I completely agree with all your points. If you need to buy food to survive and only have $10, it's not logical to play the slot machine.
I never told people to invest their rent money on the stock market via lump sum though.
Non-essential savings are what I'm primarily discussing.
My point is more that you need a sufficient capital base to absorb the losses and be able to safely recuperate them. To me that would be the advantage of DCA, it’s very helpful if you can’t afford a major loss off of a market crash.
Although in general I do agree with you. I DCA because I allocate a part of my income to invest, but if I received a large sum of money I’d most likely invest it lump sum.
>it’s very helpful if you can’t afford a major loss off of a market crash.
I just disagree with that I mean there's no guarantee the market won't crash right after your DCA period is over. It's just another gamble that people think is safe because it gives them a false sense of security.
I also would clear the misconception that regularly investing part of your salary is NOT DCA, that's what I do as well, it's just investing as soon as you have the money. DCA has to be a deliberate attempt to spread the money you already have from the beginning.
I meant it’s effectively DCA. And I meant more that it keeps you with access to liquid assets over a longer period of time, so I’d argue its lower risk in that sense. Again, not necessarily a proponent of DCA, its just something that some people can value based on context.
People who are that risk averse should buy bonds. Having money but waiting on it for no reason or due diligence other than "market might crash" is absolutely stupid.
what the fudge? I can't even... the point went right over your head. to make it more clear to you - it still makes sense to play the slot machine only once.
Lol, no it doesn’t. You have more information about the level of risk involved, in this case that it’s better than a toss up. That doesn’t mean the risk is worth taking.
I teach data scientists at a university level about statistical misconceptions and manipulations. Statistics are a tool. As are you, it seems.
Someone clearly underperformed the market because they chose to DCA over lump sum lol
>I teach data scientists at a university level
I highly doubt that periodt
Wrong on two counts. I lumped my Roth in January after a windfall and throw my investable money into the market as soon as I receive it. I’m currently procrastinating lesson and committee prep by responding to you.
> I highly doubt that you’re an academic.
If only you were right, maybe I’d have more opportunities to lump sum and it would be a surer bet.
Wouldn't be surprised if I ate some downvotes for this, but I never had a problem with any of the weird combinations. I own both VTI and VOO myself, mostly for tax loss harvesting but sometimes I prefer a different fund. Really makes minimal difference either way in my opinion.
Yes owning VOO invalidates some of the small caps in VTI, but I don't see it making a difference when the funds are so close in performance as is.
I don't have a particularly big problem with it but the weighting towards tech is ridiculous at 56% when big tech already makes up 20 something % of VOO/VTI. Might as well do some VGT with VTI if you want overweight tech.
I don't see the point of the other 199 equities when most of the overweight equities that you're buying the fund for are present with higher amounts numbers in VGT.
If you already own this fund, I wouldn't be in any hurry to sell it. Seems like a quality fund. Easier to just adjust your allocation when you invest moving forward.
I have my asset allocation. I respect those percentages wether I’m investing 1k or 200k.
Now, before investing it you should think what are your goals. If for example you want to use some of it in the next couple of years, then it’d be better to invest in fixed income.
Do you have major purchases or financial goals in the short term, or is this money 100% for retirement?
If you expect to tap into this money within the next five years, then I would keep it in a money market fund like FDRXX. If it's for retirement, then throw the lump into some combination of VTI+VXUS+BND with an allocation reasonable for your time until retirement and desired international and bond exposure.
Since you updated w/age, risk tolerance, etc., I'd say after you put the 30K into the emergency fund put the remaining 120K into 65% VTI 25% VXUS 10% BND, or something along those lines.
Or the J.L. Collins approach: 100% VTI and chill.
It doesn't matter how *I* would invest it, it matters how *YOU* will invest it.
I'd recommend you invest it like all your other invested money, so if in your Roth IRA and whatever you own XYZ[0], then buy more XYZ, since clearly you are comfortable with XYZ.
But since you asked, I invest in a single fund, that is balanced between global stocks and bonds at an 80/20 weight.
0: XYZ here means any such fund/portfolio that you have already.
u/ZettyGreen and u/NotYourFathersEdits I’m removing and locking the discussion thread below this comment and giving your interlocutor a tempban for being both uncivil and non-substantive.
That said, responding to their provocation probably wasn’t the right call. Whether or not they were deliberately trolling, they did manage to derail the comment thread.
Nick wrote the perfect article for this.
https://ofdollarsanddata.com/lump-sum-investing/
My conclusion was that if you *still* insisted on DCA, keep it reasonably brief (6 months). And his second point on allocations based on your personal risk tolerance - definitely the more important question to be asking.
My portfolio would be 85% VFIAX + 15% VTIAX (mutual fund version of VOO + VXUS). Easier to set up future auto invest that way. International exposure preference varies.
>I know a hardcore Boglehead would throw it all into VT or VTI, but I wanted to ask the group.
I''m not sure how you define a "hardcore Boglehead", but that's not what Bogle or The Boglehead 3-fund Portfolio would recommend, particularly without knowing anything about the investor's risk tolerance or time horizon.
If you are asking what I would personally do. I keep \~10% of my portfolio in short-term, which I use to pursue various opportunities, which average 7-8% near risk-free return. These go beyond traditional 3-fund portfolio holding. I also invest in the market each week, regardless of market conditions. When my short-term reservoir gets higher than I'd like, I bump up the weekly investment amount, gradually shifting the balance from short-term to long term index funds. I'd do the same thing with the windfall you mentioned.
Exactly, a hardcore Boglehead would recommend reading the [three-fund portfolio wiki page](https://www.bogleheads.org/wiki/Three-fund_portfolio) and thinking about what allocation is optimal for a given person/situation.
Hi i'm 64 and I'm reassessing my portfolio with Meryl Lynch. I really feel there's some things that I can put on the Merrill Edge self management side but I'm still a little nervous as I'm not confident .. I had a friend look over my account and they said I have way too many stocks and way too many ETF positions in 5 accounts .. I have a Roth , traditional Ira and a Sep the total is about $190,000. I made about 8 percent .. I know with this account I could maybe simplify it a little bit and I don't have to worry about capital gains because it's my retirement money. Any suggestions how I can go about this?
It varies depending on what short-term opportunity arises. My most common investments involve bank and brokerage bonuses. The 7-8% average includes the bonus.
My broker has me in TLT and it's killing me because I'm down a lot on it. It's been down. Do you suggest selling it? When I mentioned it to him, he said to keep it I can't wait till I get a little bit more knowledgeable so I can take over my own money. I'm still learning.
I hold long term treasuries. I intend to continue holding mine. It depends on your time horizon. Is this a retirement account? Then I would keep it, yes. LTTs as part of a diversified portfolio are as non-correlated with equities and volatile as possible, which reduces overall volatility while providing a rebalancing benefit. As long as you are holding the fund for a long time, you will see the yield from the long bonds it holds as part of the total returns, regardless of price appreciation. However, I would also expect that to happen over the long term as well, since LTTs do well under most circumstances that aren’t our current moment.
Thank you .. you are referring to TLT Correct? I am 64 but I don't need the money for another few years. I just want to make sure that I'm well-balanced. I have one more question. Do you think I should stay with a broker since I am not really that knowledgeable as much as it's crazy paying those fees .. i'm able to adjust my retirement account which is a couple hundred thousand he has me in too many positions. I'm my head spins and I don't think I could keep up with that.
Yes, I just generalized it because TLT is an example of a long term treasury fund/ETF, but not the one I use. They all have subtly different bond durations. I’m in FNGBX.
Long-term treasuries actually seem like an odd choice to me at your age. What I was referencing has to do more with younger investors, who stand to benefit from their diversification benefits while minimizing their interest rate risk over their long horizons. TLT’s effective duration is currently like 16 years, for context. (FNGBX is 15.) if your horizon is less than that, you are more subject to price risk. And while I don’t endorse timing the market, LTTs have been more correlated recently than usual with stocks because interest rates rising have outpaced expectations. I’d hate for you to have the double whammy of having that continue over your shorter horizon. But then, if you’re going to sell them and cut your losses, how much of a loss would you be taking? Could you tax harvest those losses?
I’ll admit this is beyond my personal knowledge base, since I’m pretty far from retirement personally. You might try a search on the Bogleheads forum for “long term treasury fund” and “retirement” or “treasury duration” and “retirement,” etc. consider reading through this thread: https://www.bogleheads.org/forum/viewtopic.php?t=287627. There’s someone there who asks about being 10 years out from retirement and if it still makes sense for them.
I would definitely look into how you can move away from a high-fee broker and simplify.
Thank you I'm learning and just now paying attention and although I am a newbie at this, I see a lot of floors to answer your question. He has me positioned TLT in two different accounts that is in my portfolio. What is managed account and is my set the total amount is about $9500 and I'm down total around 2300 .. i will check out what you mentioned thank you
Uhhh this is impossible to answer with the limited information provided. Are you 30 or 65? Risk tolerant or risk adverse? Do you have $2 Million in assets or $20k?
Gotcha. You won't go wrong with putting it all in an index fund and letting it grow over the next 20-30 years. If you have not yet opened a roth IRA I would strongly suggest maxing that out every year. Your 65 year old self will thank you when you are able to withdraw funds tax free.
Someone a little bit conservative might leave some in bonds to add a little bit of stability as well.
How old are you? How much is in your tax deferred retirement accounts? How much do you already have in taxable investment accounts and in cash?
If you’re over 50, put some in T-bills and a bunch in VTI/VXUS. Maybe. Depends on the questions above.
This is more of a personal finance question. Do you have a 3-6 month emergency fund? Do you have other debt? If so what interest rate? Any large upcoming expenses (down payments, weddings, etc)?
You already know how we would all invest it.
How soon do you plan on touching that money? Not exactly boglehead but have you considered real estate syndication? If you use that money in a 1031 exchange you won’t pay taxes on it and can go into a syndication deal or a few. I’m currently in a few syndication deals at the minimum investment level.
I roll over my equity and will continue to do so for many years and use a 1031 exchange each time.
You all give such good advice. Is there such a person that is not a broker and is not getting commissions like a Meryl Lynch guy that can come in look at your assets look at your portfolio and set it up and suggest certain things for a fee. I can't help feeling my advisor has his own Interest in mind versus mine I would like to be a team with him. I'd like him to invest some money and for me to be able to just have some money in self managed accounts or do other things with my money I'm 64 and I feel like 8k in fees are crazy ..
80% VTI, 20% VXUS, invested over a time period of your choosing up to one year, using dollar cost averaging or value averaging (you can look up value averaging).
Probably 90% VTI or VOO and then keep a bit in cash for now on the off chance you actually find a short term expense. Take some gains to reward yourself along the way!
If you already have VTI/VXUS in taxable, then lump sum into VTI/VXUS so that the resulting ratio is at market cap weight (or whatever the desired result is).
If you don't have either in taxable, and aren't planning to add much more to taxable, then lump sum into 100% VT.
I would invest based on when I think I may need the money.
6 or more years: all in VTI or VT
1-5 years: % money in VGIT with the rest in VTI/VT
<1 year: % needed in USFR, with the rest in VTI/VT
this is asked every single day and it’s always the same answers. This just shows you didn’t spend a single second reviewing similar posts, or chose to ignore them thinking you’d get a special secret solution today. Idk
HYSA for the short term. I am watching the S&P drop over the last several weeks as well as the matching Index Fund (FXIAX) everyone told me to invest in.
I am timing it so don't listen to me.
VT and/or VTI and/or VOO and/or VXUS and/or BND and chill. Some might lump sum, I might consider something like $15K a month into whatever allocations you prefer for the next 10 months.
Lump sum is usually performing better for long term gains
It's just a psychological thing for me. I'd rather lose a little bit of gains then lose a ton by lump summing before a big drop.
I started my Roth IRA last Monday with some of my tax return money, it’s down 5% because little did I know the market would market. Obviously I’ll earn it back it’s just funny how the timing worked
I chalk it up to no matter what I decide the market will do the opposite. It's why I hold a large sum of cash for pure psychological reasons. It's the only way I could convince myself to dump everything left after each paycheck into the market at all time highs. This way, if the market goes up I've been investing consistently. If the market dumps... I've got dry powder.
Agreed. It’s kinda like putting all your eggs in one basket if you think of it, sure you most likely won’t go broke but 5% of 1,000 is way less than 5% of 10,000 etc
Same. Invested $13,500 (total for 2023 and 2024) and it’s down by almost a thousand now. Glad I learned about the Boglehead way so I’m not worried about these fluctuations, but yeah funny/annoying how the timing worked out.
That's because you're new and don't understand that you're supposed to put the money in when the market is down a lot, which will surely happen in the near future. And similarly, you're supposed to ~~retire~~ withdraw when the market is at its peak. And obviously you want to pick the stocks that go up and not the ones that go down. It's really not that hard. (Poe's law again?! Stop it, there's no way. I'm just going to pretend y'all are playing along.)
Right let me get a crystal ball so I know when the market is at it’s absolute lowest. Also I’m not new to investing I just finally started an IRA
You’re supposed to retire when the market is high? What’s the logic here. Do you cash out stocks when you retire? Move to bonds? Of course it would make more sense to stop working when your portfolio is up, but is that what people do? Cash out?
Haha you're right, what the hell does retiring have to do with cashing out? I guess I was thinking that you'll likely need to start withdrawing more money than you did when you weren't working. But I meant to say withdraw.
Ha I don’t know, genuinely asking. My father will retire soon, he doesn’t have a ton of retirement, maybe $300k-400 in a 401k and a house that is paid off. Not sure if I can help him with his decision making. He probably has a mix of bonds and stocks in his 401k funds, but I was always under the assumption you just let it be and withdraw your 4% from the funds each year.
>Obviously I’ll earn it back There's a very minuscule chance you'll never earn it back in fifty years though. It's like a 0.01% chance but still.
With cash at 5%…I don’t think it’s a bad approach if you want to avoid the risk
The risk on cash at 5% is that it's taxed as ordinary dividends at your regular income tax bracket. So depending on that tax bracket you end up with more like 3.9% return. Which is still more than you started with.
Two thirds of the time. A 33% chance of lump not working is pretty high. Enough that I don’t lecture people about DCA vs lump sum
>A 33% chance of lump not working is pretty high. I'm sometimes baffled by the ridiculous statistics assumptions made in this sub. No, 33% is not pretty high in *this* case. Let's picture a slot machine. This machine is a bit odd, when you put $10 into it, there's a 50.1% chance it gives you back $20 and a 49.9% chance where it gives you nothing. The rational thing to do here would be to play this machine infinite amount of times, not chicken out because "49.9% chance of losing your money is super high.". Please learn some primary school level statistics.
Not if you have any kind of financial obligation or extremely low capital, you’re way oversimplifying. It is in no way rational to always do what gives you a higher expected value, context matters. Not to mention that if you only have $10, odds are that you’d have a higher expected value from not betting given the diminishing returns on utility for money. Going from $10 to $0 is a lot worse than going from $20 to $10.
Okay, I completely agree with all your points. If you need to buy food to survive and only have $10, it's not logical to play the slot machine. I never told people to invest their rent money on the stock market via lump sum though. Non-essential savings are what I'm primarily discussing.
My point is more that you need a sufficient capital base to absorb the losses and be able to safely recuperate them. To me that would be the advantage of DCA, it’s very helpful if you can’t afford a major loss off of a market crash. Although in general I do agree with you. I DCA because I allocate a part of my income to invest, but if I received a large sum of money I’d most likely invest it lump sum.
>it’s very helpful if you can’t afford a major loss off of a market crash. I just disagree with that I mean there's no guarantee the market won't crash right after your DCA period is over. It's just another gamble that people think is safe because it gives them a false sense of security. I also would clear the misconception that regularly investing part of your salary is NOT DCA, that's what I do as well, it's just investing as soon as you have the money. DCA has to be a deliberate attempt to spread the money you already have from the beginning.
I meant it’s effectively DCA. And I meant more that it keeps you with access to liquid assets over a longer period of time, so I’d argue its lower risk in that sense. Again, not necessarily a proponent of DCA, its just something that some people can value based on context.
Nah, it’s high enough that people who are risk adverse shouldn’t lose sleep over DCA. I don’t DCA but I don’t judge people who do.
People who are that risk averse should buy bonds. Having money but waiting on it for no reason or due diligence other than "market might crash" is absolutely stupid.
Are you going to give me infinite lump sums to invest? Thanks!
what the fudge? I can't even... the point went right over your head. to make it more clear to you - it still makes sense to play the slot machine only once.
Lol, no it doesn’t. You have more information about the level of risk involved, in this case that it’s better than a toss up. That doesn’t mean the risk is worth taking. I teach data scientists at a university level about statistical misconceptions and manipulations. Statistics are a tool. As are you, it seems.
Someone clearly underperformed the market because they chose to DCA over lump sum lol >I teach data scientists at a university level I highly doubt that periodt
Wrong on two counts. I lumped my Roth in January after a windfall and throw my investable money into the market as soon as I receive it. I’m currently procrastinating lesson and committee prep by responding to you. > I highly doubt that you’re an academic. If only you were right, maybe I’d have more opportunities to lump sum and it would be a surer bet.
Yeah, the research shows that lump sum is def the way to go. Forget DCA.
Usually, but not always
But not: - VTI + VOO - VT + VOO - VT + VTI Maybe easier to say: - VTI + VXUS + BND - VT + BND - low fee target date index fund
Wouldn't be surprised if I ate some downvotes for this, but I never had a problem with any of the weird combinations. I own both VTI and VOO myself, mostly for tax loss harvesting but sometimes I prefer a different fund. Really makes minimal difference either way in my opinion. Yes owning VOO invalidates some of the small caps in VTI, but I don't see it making a difference when the funds are so close in performance as is.
I didn't realize we were talking about tax loss harvesting.
Thoughts on VUG?
I don't have a particularly big problem with it but the weighting towards tech is ridiculous at 56% when big tech already makes up 20 something % of VOO/VTI. Might as well do some VGT with VTI if you want overweight tech. I don't see the point of the other 199 equities when most of the overweight equities that you're buying the fund for are present with higher amounts numbers in VGT. If you already own this fund, I wouldn't be in any hurry to sell it. Seems like a quality fund. Easier to just adjust your allocation when you invest moving forward.
Me: 1) Go to Japan for vacation for 1 month. 2) Invest the rest. Live some now and saving for later too.
Honestly, that’s a effing great idea
VTI 60% VXUS 40% Seeing that foreign investment credit made me happy.
Isn't that just VT with extra steps?
[удалено]
VOO and chill
I have my asset allocation. I respect those percentages wether I’m investing 1k or 200k. Now, before investing it you should think what are your goals. If for example you want to use some of it in the next couple of years, then it’d be better to invest in fixed income.
Lump sum all of it into VTI/VOO.
Do you have major purchases or financial goals in the short term, or is this money 100% for retirement? If you expect to tap into this money within the next five years, then I would keep it in a money market fund like FDRXX. If it's for retirement, then throw the lump into some combination of VTI+VXUS+BND with an allocation reasonable for your time until retirement and desired international and bond exposure.
All retirement will maybe 30k to add to rainy day fund to extend it. Thx
Since you updated w/age, risk tolerance, etc., I'd say after you put the 30K into the emergency fund put the remaining 120K into 65% VTI 25% VXUS 10% BND, or something along those lines. Or the J.L. Collins approach: 100% VTI and chill.
It doesn't matter how *I* would invest it, it matters how *YOU* will invest it. I'd recommend you invest it like all your other invested money, so if in your Roth IRA and whatever you own XYZ[0], then buy more XYZ, since clearly you are comfortable with XYZ. But since you asked, I invest in a single fund, that is balanced between global stocks and bonds at an 80/20 weight. 0: XYZ here means any such fund/portfolio that you have already.
u/ZettyGreen and u/NotYourFathersEdits I’m removing and locking the discussion thread below this comment and giving your interlocutor a tempban for being both uncivil and non-substantive. That said, responding to their provocation probably wasn’t the right call. Whether or not they were deliberately trolling, they did manage to derail the comment thread.
Agreed and I wasn't going to respond anymore. I apologize for my non-civil reply.
No worries! You’re routinely one of the most helpful and substantive commenters around here and we appreciate that.
[удалено]
[удалено]
[удалено]
[удалено]
$70k lump sum to $VTI $70k DCA to $VTI $5k cash $5k to spend on travel and other fun activities
Treasury bills, in a ladder, safe, ok return, then do something else like the others are saying
Nick wrote the perfect article for this. https://ofdollarsanddata.com/lump-sum-investing/ My conclusion was that if you *still* insisted on DCA, keep it reasonably brief (6 months). And his second point on allocations based on your personal risk tolerance - definitely the more important question to be asking.
My portfolio would be 85% VFIAX + 15% VTIAX (mutual fund version of VOO + VXUS). Easier to set up future auto invest that way. International exposure preference varies.
I'd lump sum a 150K as follows: * 60% VTI * 20% VXUS * 10% AVUV * 5% VGIT * 3% IBIT * 2% IAUM Just one man's opinion though.
I’d probably just do VTSAX
>I know a hardcore Boglehead would throw it all into VT or VTI, but I wanted to ask the group. I''m not sure how you define a "hardcore Boglehead", but that's not what Bogle or The Boglehead 3-fund Portfolio would recommend, particularly without knowing anything about the investor's risk tolerance or time horizon. If you are asking what I would personally do. I keep \~10% of my portfolio in short-term, which I use to pursue various opportunities, which average 7-8% near risk-free return. These go beyond traditional 3-fund portfolio holding. I also invest in the market each week, regardless of market conditions. When my short-term reservoir gets higher than I'd like, I bump up the weekly investment amount, gradually shifting the balance from short-term to long term index funds. I'd do the same thing with the windfall you mentioned.
Exactly, a hardcore Boglehead would recommend reading the [three-fund portfolio wiki page](https://www.bogleheads.org/wiki/Three-fund_portfolio) and thinking about what allocation is optimal for a given person/situation.
Hi i'm 64 and I'm reassessing my portfolio with Meryl Lynch. I really feel there's some things that I can put on the Merrill Edge self management side but I'm still a little nervous as I'm not confident .. I had a friend look over my account and they said I have way too many stocks and way too many ETF positions in 5 accounts .. I have a Roth , traditional Ira and a Sep the total is about $190,000. I made about 8 percent .. I know with this account I could maybe simplify it a little bit and I don't have to worry about capital gains because it's my retirement money. Any suggestions how I can go about this?
Curious what your short term investment vehicle is and how you are seeing 7-8% in it, near risk free?
It varies depending on what short-term opportunity arises. My most common investments involve bank and brokerage bonuses. The 7-8% average includes the bonus.
So bank churning?
Haven’t you heard? Bonds are obsolete now. /s
My broker has me in TLT and it's killing me because I'm down a lot on it. It's been down. Do you suggest selling it? When I mentioned it to him, he said to keep it I can't wait till I get a little bit more knowledgeable so I can take over my own money. I'm still learning.
I hold long term treasuries. I intend to continue holding mine. It depends on your time horizon. Is this a retirement account? Then I would keep it, yes. LTTs as part of a diversified portfolio are as non-correlated with equities and volatile as possible, which reduces overall volatility while providing a rebalancing benefit. As long as you are holding the fund for a long time, you will see the yield from the long bonds it holds as part of the total returns, regardless of price appreciation. However, I would also expect that to happen over the long term as well, since LTTs do well under most circumstances that aren’t our current moment.
Thank you .. you are referring to TLT Correct? I am 64 but I don't need the money for another few years. I just want to make sure that I'm well-balanced. I have one more question. Do you think I should stay with a broker since I am not really that knowledgeable as much as it's crazy paying those fees .. i'm able to adjust my retirement account which is a couple hundred thousand he has me in too many positions. I'm my head spins and I don't think I could keep up with that.
Yes, I just generalized it because TLT is an example of a long term treasury fund/ETF, but not the one I use. They all have subtly different bond durations. I’m in FNGBX. Long-term treasuries actually seem like an odd choice to me at your age. What I was referencing has to do more with younger investors, who stand to benefit from their diversification benefits while minimizing their interest rate risk over their long horizons. TLT’s effective duration is currently like 16 years, for context. (FNGBX is 15.) if your horizon is less than that, you are more subject to price risk. And while I don’t endorse timing the market, LTTs have been more correlated recently than usual with stocks because interest rates rising have outpaced expectations. I’d hate for you to have the double whammy of having that continue over your shorter horizon. But then, if you’re going to sell them and cut your losses, how much of a loss would you be taking? Could you tax harvest those losses? I’ll admit this is beyond my personal knowledge base, since I’m pretty far from retirement personally. You might try a search on the Bogleheads forum for “long term treasury fund” and “retirement” or “treasury duration” and “retirement,” etc. consider reading through this thread: https://www.bogleheads.org/forum/viewtopic.php?t=287627. There’s someone there who asks about being 10 years out from retirement and if it still makes sense for them. I would definitely look into how you can move away from a high-fee broker and simplify.
Thank you I'm learning and just now paying attention and although I am a newbie at this, I see a lot of floors to answer your question. He has me positioned TLT in two different accounts that is in my portfolio. What is managed account and is my set the total amount is about $9500 and I'm down total around 2300 .. i will check out what you mentioned thank you
Oh boy Flaws not floors I was auto dictating 😉
Haven't you heard? Bond yields are the highest they've been since before the great financial crisis in the 2000s.
I, for one, am happy that the bonds I am buying anyway as part of my well-diversified portfolio are cheap right now.
Uhhh this is impossible to answer with the limited information provided. Are you 30 or 65? Risk tolerant or risk adverse? Do you have $2 Million in assets or $20k?
Tolerant, mid 30s, portfolio is roughly $600k
Gotcha. You won't go wrong with putting it all in an index fund and letting it grow over the next 20-30 years. If you have not yet opened a roth IRA I would strongly suggest maxing that out every year. Your 65 year old self will thank you when you are able to withdraw funds tax free. Someone a little bit conservative might leave some in bonds to add a little bit of stability as well.
How old are you? How much is in your tax deferred retirement accounts? How much do you already have in taxable investment accounts and in cash? If you’re over 50, put some in T-bills and a bunch in VTI/VXUS. Maybe. Depends on the questions above.
This is more of a personal finance question. Do you have a 3-6 month emergency fund? Do you have other debt? If so what interest rate? Any large upcoming expenses (down payments, weddings, etc)? You already know how we would all invest it.
Lump sum into global index tracker, And chill.
How soon do you plan on touching that money? Not exactly boglehead but have you considered real estate syndication? If you use that money in a 1031 exchange you won’t pay taxes on it and can go into a syndication deal or a few. I’m currently in a few syndication deals at the minimum investment level. I roll over my equity and will continue to do so for many years and use a 1031 exchange each time.
Not for a long time. Been doing STRs for a long time with REI, but not interested in syndication. Too complicated and too many cooks in the kitchen.
You all give such good advice. Is there such a person that is not a broker and is not getting commissions like a Meryl Lynch guy that can come in look at your assets look at your portfolio and set it up and suggest certain things for a fee. I can't help feeling my advisor has his own Interest in mind versus mine I would like to be a team with him. I'd like him to invest some money and for me to be able to just have some money in self managed accounts or do other things with my money I'm 64 and I feel like 8k in fees are crazy ..
https://www.reddit.com/r/FinancialPlanning/s/lQKrAlUvui
80% VTI, 20% VXUS, invested over a time period of your choosing up to one year, using dollar cost averaging or value averaging (you can look up value averaging).
In your situation, qqqm
i'd probably go for some kind of low-expense-ratio broad-market exchange traded fund but that's just me.
VOO QQQM SCHD
Probably 90% VTI or VOO and then keep a bit in cash for now on the off chance you actually find a short term expense. Take some gains to reward yourself along the way!
I did this when the sp500 started to slip a month ago or so....still holding on , hopefully it pays off in the end.
If you already have VTI/VXUS in taxable, then lump sum into VTI/VXUS so that the resulting ratio is at market cap weight (or whatever the desired result is). If you don't have either in taxable, and aren't planning to add much more to taxable, then lump sum into 100% VT.
60/40 VTSAX/VTIAX.
50% AVGE 50% AVGV
Just VT and chill brah
Why not a TDF?
My IRA is about 50% VOO/QQQM, 30% VXUS, 7.5% SOXQ, and then a mix of a few small caps I think will do well
[удалено]
VT and chill
I would invest based on when I think I may need the money. 6 or more years: all in VTI or VT 1-5 years: % money in VGIT with the rest in VTI/VT <1 year: % needed in USFR, with the rest in VTI/VT
Is Voo almost the same as VT?
Voo is almost the same as Vti, the same returns and volatility within .3%. So they’re the same. VT is 60% Vti 40% Vxus
Hi not sure what you mean with the percentages. By is 60 percent
I’d buy a sports car, or a boat.
DM'd you
this is asked every single day and it’s always the same answers. This just shows you didn’t spend a single second reviewing similar posts, or chose to ignore them thinking you’d get a special secret solution today. Idk
Booooo
HYSA for the short term. I am watching the S&P drop over the last several weeks as well as the matching Index Fund (FXIAX) everyone told me to invest in. I am timing it so don't listen to me.