Search found 7 matches

by chapt203
Tue Jun 27, 2017 8:27 pm
Forum: Personal Investments
Topic: Investing Plan
Replies: 12
Views: 2304

Re: Investing Plan

Hello all,
Thanks everyone for the insight. Just wanted to bump this thread and see if anyone could provide some further guidance.

Thanks,
Anthony
by chapt203
Tue Jun 27, 2017 1:34 pm
Forum: Personal Investments
Topic: Investing Plan
Replies: 12
Views: 2304

Re: Investing Plan

The links you provided are very helpful. Definitely an interesting result that much more often than not, putting money in now is better than scaling in. I understand the results, I just can't imagine putting all of this money in now and having the market crash in the near term, which is why I am considering scaling in. I think it's more of a mental thing for me. Scaling it in is fine if that makes you more comfortable. The best plan is always the one you will stick with. Always. Consider too though that even if US stocks are currently too high, there doesn't need to be a big crash to correct prices. Low returns of 2-3% + inflation over time would be disappointing to many, but would return valuations to a more historic average. There might ...
by chapt203
Mon Jun 26, 2017 10:51 pm
Forum: Personal Investments
Topic: Investing Plan
Replies: 12
Views: 2304

Re: Investing Plan

Welcome to the forum :) . It's always great to see someone starting young, and getting it right using very diversified, low expense ratio index funds. . . . . . A little more information will be helpful. Do you also have an emergency fund? What is your tax bracket, both federal and state? (This will help determine how to invest your $300k cash in the savings accounts with good tax efficiency.) Do you have any debt? If so what types types, amounts and interest rates? (This will help to suggest what to do with your $300k cash in savings accounts. Sometimes paying off higher interest debt is your best "investment".) What portion of the $250k cash is in your 401k, and what portion in your IRA? Do you have multiple 401ks and multiple ...
by chapt203
Mon Jun 26, 2017 10:47 pm
Forum: Personal Investments
Topic: Investing Plan
Replies: 12
Views: 2304

Re: Investing Plan

Welcome to the forum, Additionally, I have approximately $250K in cash in 401k's / IRA's and $300K in cash in savings accounts. If anyone could provide guidance as to how to invest this money into the market it would be very much appreciated. I want to use the Boglehead approach going forward and steadily invest money into low cost index funds over time. However, I'm not sure how to get this money into the market. Putting it all into the market at once is a little scary to me. No. 1 You should not hold cash in a 401k. No. 2 What is your overall target asset allocation? No. 3 Consider all accounts as one portfolio No. 4 You need to create an emergency fund with some of the cash that's not in the 401k Total World Stock index holds 45% intern...
by chapt203
Mon Jun 26, 2017 10:30 pm
Forum: Personal Investments
Topic: Investing Plan
Replies: 12
Views: 2304

Re: Investing Plan

However, I'm not sure how to get this money into the market. Putting it all into the market at once is a little scary to me. Yeah, it is scary for such a big amount. But you are 33 and will probably live to 83. I would be afraid of running out of money, but not afraid of a crash. Equities will recover from a crash. Just be-careful when you retire that you have enough in safe assets so you don't have to sell out of equities that have crashed in order to meet your living expenses. You can't enjoy their recovery that way. Anyway, putting it in now is likely the best. http://www.schwab.com/public/schwab/nn/articles/Does-Market-Timing-Work Also, your suggested investment is very diversified. International equities are not at the highs that US o...
by chapt203
Mon Jun 26, 2017 10:20 pm
Forum: Personal Investments
Topic: Investing Plan
Replies: 12
Views: 2304

Re: Investing Plan

I would say just go with VTWIX. It's much easier, and the .06 difference won't matter much in the long run. As far as the splits go, the wiki ( https://www.bogleheads.org/wiki/Approximating_total_stock_market ) suggests you can approximate the total US market with 81% VIIIX to 19% VEMPX. Assuming the international part of VTWIX is equivalent to VG's Total International Stock Index, emerging markets make up 19% of the total, so that would put developed at 81%. To make things really neat and tidy, you could just do 40% each of VIIIX and VDIPX, and 10% each of VEMPX and VEMIX. Although technically, VTWIX is not split exactly 50/50. It's 52.7% US / 47.3% International. Which brings me back to my original point: just put it all into VTWIX and s...
by chapt203
Sun Jun 25, 2017 9:11 pm
Forum: Personal Investments
Topic: Investing Plan
Replies: 12
Views: 2304

Investing Plan

Bogleheads: I am 33 years old and hoping to get back on track with my investments. I have been reading the forum for a little while, but this is my first post. My 401K is with Vanguard and offers the following funds: Bond Funds BR US TIPS Index NL W Fidelity Intermediate Trs Bd Idx Inv (FIBIX) Vanguard Total Bond Mkt Ix Ist Pls (VBMPX) Domestic Stock Funds Vanguard Ext Mkt Index Inst Plus (VEMPX) Vanguard Inst Index Fund Inst Plus (VIIIX) International Stock Funds Vanguard Dev Mkt Index Inst Plus (VDIPX) Vanguard Emerging Mkts Stk Ix Inst (VEMIX) Vanguard Total World Stock Idx Ist (VTWIX) For my stock market allocation, I was considering two different options: Option A Put 50% of my allocation into VIIIX, 10% into VEMPX, 32% into VDIPX, and...