what to do with 100k ?? new to this

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Joel S
Posts: 3
Joined: Fri Jan 11, 2013 11:12 am

what to do with 100k ?? new to this

Post by Joel S » Fri Jan 11, 2013 12:14 pm

hello, first post here, head spinning from all the reading from the last few weeks. Guess i am motivated to do something, just not sure what and how. hope i get this post right, or close anyways.

emergency funds, yes
debt, mortgage only, say 4.3% 240k no CC or other debt
tax filing is married jointly
tax rate state is 7.05 fed is 25%
state is Minnesota
my age is 43
asset allocation, unsure (60/40?)
international allocation, unsure (25%?)

my current portfolio is mid 5's
no 401k available to me, my wife has (vanguard retirement year currently, lifestratagy growth better?? )

current assets are
us bank traditional ira about 22k, 3 templeton funds, fkgrx (34%) fhalx (39%) teplx (27%) expenses .94, .77, 1.11
prudential roth 8k, surrender charges remaining 680, aa bonds 75% 4 funds. (this was a gift, managed by a family friend, he doesn't return emails or phone calls to me, not sure if i just leave this here or do something about it, might cause family problems)
matthews asia ira matthews korea fund 17.5k makox 1.18%

contributions i contributed nothing for 2012, my wife some on a 401k

story is i received 100k from my fathers passing, and put it in a savings account for the short term, which has become over a year. i have no idea if there will be any more inharatence from his estate or my mother, there could be, in the 6-7 figure range, but there has been no communication for over a year and a half with my mother. all i can plan on is this 100k, since it is in my hand. My father was a cpa and a financial advisor and he always told me not to pay anyone its easy and he didn't like fees. well, finding its not so easy for this auto mechanic.

Anyways, looking at the 3 vanguard for say 60k(?) of the 100, not sure the split. i would like to keep 15k or so in a savings or some quicker access fund if needed. we have a zero balance equity line if needed also for an emergency. (should i have 10-20k for other funds to move around?? stocks, weighted segment, things like that? could be interesting to do, but might be an expensive lesson )

i spoke with a very nice gentleman at us bank about options, he suggested some virtus funds and putnam also. emerging markets, short term bonds, equity spectrum. things like that. i am not opposed to some things out side of the core three, or some additional matthews asia funds. does chasing gains, paying fees turn into a loosing battle usually? not set in stone to keep the usbank ira, could move it do something else with it. (wells fargo , vanguard, somewhere else?)

questions i have, should i setup another roth, backfill the 5k from 2012, and fill 2013 also ?? what goes in here, the bond portion of the 3 funds?? recommend doing this at vanguard ? or are other bond sectors higher yielding ?? then for the rest, do i do admiral shares at vanguard also, or a brokerage house online, wells Fargo for the 50k min account ?? i know that i need to do something, and sooner. sure would hate to pull the trigger and flush it down the drain, but under the mattress doesn't seem to be gaining anything, and i need to have this pick up some gains over the next 10-20 years.

thanks so much for the time.
Last edited by Joel S on Fri Jan 11, 2013 7:27 pm, edited 1 time in total.

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Location: New York

Re: what to do with 100k ?? new to this

Post by Grt2bOutdoors » Fri Jan 11, 2013 1:59 pm

Hello and welcome to the forum!

First - do not feel rushed to do anything sudden. Stand there and do nothing! It is far better to read and understand your options before pulling the trigger and purchasing something that may be the wrong choice for you. May I suggest you either purchase or rent from the library - The Bogleheads Guide to Investing?
Have you viewed the wiki yet? http://www.bogleheads.org/wiki

Check out the Getting Started link to the right: http://www.bogleheads.org/wiki/Getting_Started

Please view our philosphy which includes keeping expenses low: http://www.bogleheads.org/wiki/Boglehea ... philosophy

Of course the nice man at US Bank was happy to help you - if you transact with him, he's going to make a nice commission from you (that will pay for his next vacation, a new car or his kid's college tuition - I'm sure your father did not have that in mind when he left you that inheritance) and less of your dollars will go to work. The fund families he suggested have higher than normal expense ratios and some even charge an upfront sales commission (called a "load") or a deferred sales commission (called a deferred sales charge - typically found in Class B and C and D share classes of a mutual fund). It's like giving me a dollar and I give you back 96 cents upfront - like that deal? Or being told, deposit your dollar today, if you want to cash out before 5 years is up, I'll give you back all your money minus 5% - how's that sound?

Please do not feel rushed to make any decisions, read some of the links I posted above, then come back and ask any and all your questions. You can make a good decision for you and your family's benefit without having to pay someone a fee or commission.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Joel S
Posts: 3
Joined: Fri Jan 11, 2013 11:12 am

Re: what to do with 100k ?? new to this

Post by Joel S » Fri Jan 11, 2013 5:31 pm

Grt2boutdoors, very well put about the nice man, lol. i have read for many hours those links, and will read more this weekend. thanks for the time and the response.
i will try to come up with more specific questions, compared to the general ones i originally asked before.

if anyone can decipher my earlier questions, that would be great, and thanks to everyone for the time,

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Re: what to do with 100k ?? new to this

Post by Rainier » Fri Jan 11, 2013 7:01 pm

Move out of Minnesota! 27.5% tax rate is way too high.
- Bill

Joel S
Posts: 3
Joined: Fri Jan 11, 2013 11:12 am

Re: what to do with 100k ?? new to this

Post by Joel S » Fri Jan 11, 2013 7:28 pm

Rainier wrote:Move out of Minnesota! 27.5% tax rate is way too high.

:oops: corrected

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