Need help in investing $5,500 in vanguard

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
skinhealer
Posts: 63
Joined: Mon Sep 01, 2014 3:41 pm

Need help in investing $5,500 in vanguard

Post by skinhealer »

I have $5500 in a Roth IRA brokerage. I had done a back door Roth recently and need help in investing. I already have 16K but all of that is invested in the target date fund in vanguard.

Goal: Long term will not be touching the money until i retire which is about 25-30yrs. Want to buy something and forget about it or put it in cruise control.

I was thinking of putting the money in one of the following:

1) Vanguard 500 ETF VOO with an expense ratio of 0.05%
2) Vanguard High Dividend Yield ETF (VYM) with an expense ration of 0.10%
3) Buy some dividend stocks ( PG, 3M, ATT, CP, exxon, walmart etc).
4) Any other option from you all.
5) Put it in the target date funds along with the other 16K.

Need help in choosing where to invest this money.

Thank you,
Twins Fan
Posts: 2775
Joined: Fri Mar 08, 2013 12:02 pm

Re: Need help in investing $5,500 in vanguard

Post by Twins Fan »

Keep it simple... put it in the same target date fund.
Twins Fan
Posts: 2775
Joined: Fri Mar 08, 2013 12:02 pm

Re: Need help in investing $5,500 in vanguard

Post by Twins Fan »

Although, if you're dong backdoor Roth you likely have a higher income. Your other accounts will probably soon outgrow the Roth and then...

You can always move things around later in the Roth though without issue.
User avatar
David Jay
Posts: 14569
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: Need help in investing $5,500 in vanguard

Post by David Jay »

A Target Retirement fund provides excellent diversification across the total stock and bond markets, domestic and international.

Stay with TR until you have at least enough to buy all Admiral funds in a 3-fund or 4-fund portfolio.
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius
IPer
Posts: 1639
Joined: Sun Jul 28, 2013 8:51 pm

Re: Need help in investing $5,500 in vanguard

Post by IPer »

ooh multiple choice (copy/paste): 5) Put it in the target date funds along with the other 16K.
Read the Wiki Wiki !
User avatar
Toons
Posts: 14459
Joined: Fri Nov 21, 2008 9:20 am
Location: Hills of Tennessee

Re: Need help in investing $5,500 in vanguard

Post by Toons »

Target Date Fund
Simple :happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
User avatar
StormShadow
Posts: 1005
Joined: Thu Feb 09, 2012 5:20 pm

Re: Need help in investing $5,500 in vanguard

Post by StormShadow »

+1 Target fund.
kkhanmd
Posts: 91
Joined: Tue Sep 09, 2014 8:01 pm

Re: Need help in investing $5,500 in vanguard

Post by kkhanmd »

REITS
mcraepat9
Posts: 1827
Joined: Thu Jul 16, 2015 11:46 am

Re: Need help in investing $5,500 in vanguard

Post by mcraepat9 »

Target date fund.
Amateur investors are not cool-headed logicians.
red5
Posts: 798
Joined: Sun Apr 01, 2012 4:42 pm

Re: Need help in investing $5,500 in vanguard

Post by red5 »

#5...
beezar
Posts: 21
Joined: Mon Jan 11, 2016 8:30 am

Re: Need help in investing $5,500 in vanguard

Post by beezar »

I vote for Total Stock Market Index (admiral shares if you already have money in the Roth, or convert to Admiral shares when you can add more money), but look at it periodically (I know you said set it and forget it, but you can still look at it every 5-10 years, right?) With that timeline, you can get the most returns vs. a Target fund IMHO, plus you have diversification in your other fund
Post Reply