Stay-at-home mom looking to invest

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Topic Author
toughnewinvestor
Posts: 2
Joined: Thu Oct 23, 2014 2:29 pm

Stay-at-home mom looking to invest

Post by toughnewinvestor »

I need some help on investing my IRAs and Roth IRA. I have been investing off and on. No success with individual stocks and as a result of that most of our IRAs are in cash. I am looking for ways to invest in mutual funds/bonds. I have heard that indexing is the best way to be invested in the market.

Questions:
1. Is it ok to invest in total stock market index fund and s&p 500 index fund? I don't understand if that is the right way to invest. If I invest in s&p 500 and total market index fund, won't I be basically investing in the same stocks?

2. I have around $100k in IRAs and $25k in Roth IRA. Please suggest some ways to invest.

I have school going kids and I am worried about funds for their college education. Please advise.
placeholder
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Joined: Tue Aug 06, 2013 12:43 pm

Re: Stay-at-home mom looking to invest

Post by placeholder »

It will help us if you provide more information using the guidelines here:
http://www.bogleheads.org/forum/viewtop ... f=1&t=6212
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retiredjg
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Re: Stay-at-home mom looking to invest

Post by retiredjg »

Yes, investing in the total stock market and the 500 index at the same time has a lot of overlap and the two funds perform almost identically. However, there are times when it works best that way because only a 500 index is available in a 401k or other work plan.

You need to post a lot more information to get your questions answered. But before that, why don't you start here. http://www.bogleheads.org/wiki/Getting_started
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BL
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Re: Stay-at-home mom looking to invest

Post by BL »

Here is a short 16-page book with suggested reading written by a Boglehead, William Bernstein:
http://www.etf.com/docs/IfYouCan.pdf
If You Can: How Millennials can get rich slowly

Read some of the suggested books here. I liked Boglehead's Guide to Investing, also their guide to retirement.
The Wiki is full of useful material. Search for the 3-fund portfolio, and a long thread here in the forum. You could use just 3 funds and do very well, or you could use one fund, such as a Life Strategy fund with your choice of stocks/bonds mix.
You will get good suggestions if you post in the suggested format and it will also help you get a good picture of your situation.

The total stock market is about the same as 4 parts S&P 500 and 1 part Extended market so the first covers both. (S&P was around first and is in many 401ks, otherwise it is not necessary.) You will want to look for low-cost index funds that cover total markets. Vanguard has almost only low-cost funds, with no fees or extra costs (if you get statements by e-mail), so that is the benchmark for me. (No pushy or "nice" salespeople trying to sell me something that makes money for them, and takes away from what I could be making.)

Unless you do some reading, you may just try something suggested for awhile, and sell out at the worst possible time. It really is important to make a plan that you can live with long-term.
Grt2bOutdoors
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Location: New York

Re: Stay-at-home mom looking to invest

Post by Grt2bOutdoors »

+1 on BL's suggestion.
Recommend you visit Rickferri.com blog and download his free book, Serious Money. Also, for a more in depth look at asset allocation, pick up a copy of All About Asset Allocation written by Rick from your local library. The best investment you can make to secure your future is to spend a few hours reading before designing your Investment Policy Statement and Asset Allocation plan.
After doing that, come back and ask any and all questions you may have - see my link by signature about asking questions format.

Welcome to the forum!
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
Topic Author
toughnewinvestor
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Joined: Thu Oct 23, 2014 2:29 pm

Re: Stay-at-home mom looking to invest

Post by toughnewinvestor »

Thanks everyone. As you all might have figured out, I am new to this forum. I will format my question based on the guidelines provided.
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ruralavalon
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Location: Illinois

Re: Stay-at-home mom looking to invest

Post by ruralavalon »

toughnewinvestor wrote:Thanks everyone. As you all might have figured out, I am new to this forum. I will format my question based on the guidelines provided.
Welcome to the forum :) .

No need for apologies.

There is enormous overlap between the Total Stock Market and S&P 500 funds, so you won't want to use both.

You might look at our wiki for the articles "Getting Started" and "Bogleheads' investment philosophy".
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
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