Where to invest $100,000 this week

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jealkon
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Joined: Mon Apr 21, 2008 4:24 pm

Where to invest $100,000 this week

Post by jealkon »

Looking for advice on where/how to invest $100,000 that is not earmarked for anything other than investing
Wife and I both 57 and both working. We contribute max to our IRA’s, & she contributes max to her 401k. I just went back to work after being unemployed for a year and as soon as I am allowed to invest in my 401k I will. Until I was layed off, I too maxed out my 401k contributions.
Have approx. $30,000 invested in Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) and invest about $150 per month into it from a Wells Fargo Mortgage Backed Security that will mature by the end of the year and we have 1 year living expenses in cash and no debt other than car ($15,000 for 2 years @ 0.9%)
To get an idea of our investing style, both IRA’s are in Vanguard LifeStrategy Moderate Growth Fund (VSMGX), her 401k is in Vanguard Target Retirement 2020 Fund (VTWNX) and mine is in Vanguard Target Retirement 2035 because the fee is only 0.085%.
We are willing to take some risk with this investment, so what say you?
The Wizard
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Re: Where to invest $100,000 this week

Post by The Wizard »

Put the $100k into some mix of VG stock index funds in your taxable account. Then adjust your tax sheltered accounts to have more bond funds...
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livesoft
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Re: Where to invest $100,000 this week

Post by livesoft »

Invest according to your asset allocation specified in your Investing Policy Statement. Don't have an IPS? Get one.
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Zabar
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Re: Where to invest $100,000 this week

Post by Zabar »

livesoft wrote:Invest according to your asset allocation specified in your Investing Policy Statement. Don't have an IPS? Get one.
+1. And why would "this week" be different from last week or next month? That's why youneed the IPS.
Fallible
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Re: Where to invest $100,000 this week

Post by Fallible »

Zabar wrote:
livesoft wrote:Invest according to your asset allocation specified in your Investing Policy Statement. Don't have an IPS? Get one.
+1. And why would "this week" be different from last week or next month? That's why youneed the IPS.
Agree with both.

OP, I also hope you'll explain what you mean by being "willing to take some risk with this investment." Do you have a particular investment in mind? All investing is risky, so you really are talking about additional risk. How have you determined you can take on more risk?
"Yes, investing is simple. But it is not easy, for it requires discipline, patience, steadfastness, and that most uncommon of all gifts, common sense." ~Jack Bogle
IPer
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Re: Where to invest $100,000 this week

Post by IPer »

jealkon wrote:Looking for advice on where/how to invest $100,000 that is not earmarked for anything other than investing
Wife and I both 57 and both working. We contribute max to our IRA’s, & she contributes max to her 401k. I just went back to work after being unemployed for a year and as soon as I am allowed to invest in my 401k I will. Until I was layed off, I too maxed out my 401k contributions.
Have approx. $30,000 invested in Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) and invest about $150 per month into it from a Wells Fargo Mortgage Backed Security that will mature by the end of the year and we have 1 year living expenses in cash and no debt other than car ($15,000 for 2 years @ 0.9%)
To get an idea of our investing style, both IRA’s are in Vanguard LifeStrategy Moderate Growth Fund (VSMGX), her 401k is in Vanguard Target Retirement 2020 Fund (VTWNX) and mine is in Vanguard Target Retirement 2035 because the fee is only 0.085%.
We are willing to take some risk with this investment, so what say you?
This can only make sense if you state your desired Asset Allocation and how much total you have in your IRA accounts vs that $30K in VTIAX and vs the $100K
For example if your desired AA is moderate and you have $800K in your combined IRA accounts then that $100K looks a lot different then if your combined IRAs are
$45K! I would say at your age if your combined IRAs are under $200K and your primarily in the Target funds above then either put it there or do some bond tilts or something
conservative depending on your style. Otherwise if that $100K represents 10% of your entire holdings then you could either use it to "balance" or do a few small slices or whatever else you find attractive depending on your IPS.
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Topic Author
jealkon
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Re: Where to invest $100,000 this week

Post by jealkon »

Zabar wrote:
livesoft wrote:Invest according to your asset allocation specified in your Investing Policy Statement. Don't have an IPS? Get one.
+1. And why would "this week" be different from last week or next month? That's why youneed the IPS.
This week is different because we decided not to purchase another home. So we're now looking to invest the money for the long haul
Topic Author
jealkon
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Re: Where to invest $100,000 this week

Post by jealkon »

rkatz0 wrote:
jealkon wrote:Looking for advice on where/how to invest $100,000 that is not earmarked for anything other than investing
Wife and I both 57 and both working. We contribute max to our IRA’s, & she contributes max to her 401k. I just went back to work after being unemployed for a year and as soon as I am allowed to invest in my 401k I will. Until I was layed off, I too maxed out my 401k contributions.
Have approx. $30,000 invested in Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) and invest about $150 per month into it from a Wells Fargo Mortgage Backed Security that will mature by the end of the year and we have 1 year living expenses in cash and no debt other than car ($15,000 for 2 years @ 0.9%)
To get an idea of our investing style, both IRA’s are in Vanguard LifeStrategy Moderate Growth Fund (VSMGX), her 401k is in Vanguard Target Retirement 2020 Fund (VTWNX) and mine is in Vanguard Target Retirement 2035 because the fee is only 0.085%.
We are willing to take some risk with this investment, so what say you?
This can only make sense if you state your desired Asset Allocation and how much total you have in your IRA accounts vs that $30K in VTIAX and vs the $100K
For example if your desired AA is moderate and you have $800K in your combined IRA accounts then that $100K looks a lot different then if your combined IRAs are
$45K! I would say at your age if your combined IRAs are under $200K and your primarily in the Target funds above then either put it there or do some bond tilts or something
conservative depending on your style. Otherwise if that $100K represents 10% of your entire holdings then you could either use it to "balance" or do a few small slices or whatever else you find attractive depending on your IPS.
Our retirement portfolio is around $1.2m and we're maintaining an asset allocation of about 70/30 stocks and probably will continue with this allocation.
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Zapped
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Re: Where to invest $100,000 this week

Post by Zapped »

When you joined Bogleheads in 2008 you presented a very nice summary of your investment status based on the forum's Asking Portfolio Questions guidelines. You didn't ask here for a critique of your portfolio nor did you update that six-year-old data, so you're very likely to continue to hear the "invest according to your IPS". I can only assume that, like most of us, you're pretty happy with the returns on your investments since 2008.

If you want to update your investment status and ask about changes to your investing plan, you know you're free to do that & it would probably get more constructive replies. Since you've been here for over six years you're probably aware of the fate of any thread with a subject like "What should I do with $XXXXX right now?" ;)
- Jim in Austin, TX
Topic Author
jealkon
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Re: Where to invest $100,000 this week

Post by jealkon »

Zapped wrote:When you joined Bogleheads in 2008 you presented a very nice summary of your investment status based on the forum's Asking Portfolio Questions guidelines. You didn't ask here for a critique of your portfolio nor did you update that six-year-old data, so you're very likely to continue to hear the "invest according to your IPS". I can only assume that, like most of us, you're pretty happy with the returns on your investments since 2008.

If you want to update your investment status and ask about changes to your investing plan, you know you're free to do that & it would probably get more constructive replies. Since you've been here for over six years you're probably aware of the fate of any thread with a subject like "What should I do with $XXXXX right now?" ;)
Jim - thanks for the response. Yes, we are fine with our current portfolio allocations, just wondering and looking for thoughts on what to do with this money.
livesoft
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Re: Where to invest $100,000 this week

Post by livesoft »

I'm wondering what you think of my previous suggestion? Don't like it? Like it, but looking for something more exotic? Something completely different?
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Topic Author
jealkon
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Re: Where to invest $100,000 this week

Post by jealkon »

livesoft wrote:I'm wondering what you think of my previous suggestion? Don't like it? Like it, but looking for something more exotic? Something completely different?
I do have a loosely defined IPS - and for the most part we have adhered to it, IE - Contribute 25% to 401k, max IRA contributions, accumulate $1m before 55 and retire at 60 (which is still in the planning stage but we are on track for this event) Our investments have been evaluated and are re-evaluated every 6 months, and we're happy with the returns. I sometimes get into paralysis by analysis and decided to reach out to the community for their advice.
harikaried
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Re: Where to invest $100,000 this week

Post by harikaried »

What would you do if you spent $100 less (on say food/gas) last month and now have $100 to save/invest?
daave
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Re: Where to invest $100,000 this week

Post by daave »

jealkon wrote:Looking for advice on where/how to invest $100,000 that is not earmarked for anything other than investing
jealkon wrote:Our retirement portfolio is around $1.2m and we're maintaining an asset allocation of about 70/30 stocks and probably will continue with this allocation.
If you're happy with 70/30 and want to stick with it, using a simple 3 fund portfolio, then the answer is:

Change your 1.2m in tax-sheltered which is presently $840K stocks $360K bonds to $810K stocks and $390K bonds, and buy only stock with the $100K. Then you will still be 70/30, ($910K stock and $390K bonds), placed efficiently per principles of tax-efficient fund placement.

You'll also need to decide what portion of your stocks you want in international (that can come first from the taxable side).

Edit: from re-reading, I see that not necessarily all 1.2 million are in tax-advantaged accounts. In any case, sample principle applies, stick you to your asset allocation and concentrate your bond holdings in tax-sheltered accounts. For equities, use broad, low-turnover, index funds.
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corner559
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Re: Where to invest $100,000 this week

Post by corner559 »

I also agree with other replies to just go with your IPS. I came into several hundred thousand dollars when I sold real estate, and I just bought funds based on my asset allocation. I would do the same again if I hit the lottery, for example.
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