Need help in investing $5,500 in vanguard
-
- Posts: 63
- Joined: Mon Sep 01, 2014 3:41 pm
Need help in investing $5,500 in vanguard
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,
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,
Re: Need help in investing $5,500 in vanguard
Keep it simple... put it in the same target date fund.
Re: Need help in investing $5,500 in vanguard
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.
You can always move things around later in the Roth though without issue.
Re: Need help in investing $5,500 in vanguard
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.
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
Re: Need help in investing $5,500 in vanguard
ooh multiple choice (copy/paste): 5) Put it in the target date funds along with the other 16K.
Re: Need help in investing $5,500 in vanguard
Target Date Fund
Simple
Simple
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
- StormShadow
- Posts: 1005
- Joined: Thu Feb 09, 2012 5:20 pm
Re: Need help in investing $5,500 in vanguard
+1 Target fund.
Re: Need help in investing $5,500 in vanguard
Target date fund.
Amateur investors are not cool-headed logicians.
Re: Need help in investing $5,500 in vanguard
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