Investment Advice

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
buz1228
Posts: 1
Joined: Thu Apr 20, 2017 5:46 am

Investment Advice

Postby buz1228 » Thu Apr 20, 2017 6:29 am

Hi Everyone,

This is my first post on here. For the last year I've had approximately 100k under a FA; little did I realize (to my embarrassment) I've been paying an exorbitant fee. Starting next month I plan on taking control of these assets and hope to create a strong ETF portfolio and potentially some individual stocks mixed in.

Stats:
Age: 33

Debt:
12k for school, should have it payed off in the next 2 years.

Retirement Accounts:
54K in target date fund
8.5K FID Growth Co K
11.6K DFA Emerging Markets

Roth IRA:
11K nothing invested at this point

Non-retirement Funds to invest:
140K

Not a home owner, currently renting.

I view the 140k as essentially part of my future retirement.

Please advise what an aggressive well diversified ETF portfolio would look like.
At this point should any of that 140K be invested in bonds?
How should I invest the Roth IRA money versus the non-retirement funds?
Additionally for the retirement accounts are target date funds worthwhile?
Would investing in individual companies like google/amazon/FB be too risky?

I've started to investigate ETFs etc, I just thought it would be helpful getting some opinions, thanks!

User avatar
ruralavalon
Posts: 10476
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Investment Advice

Postby ruralavalon » Thu Apr 20, 2017 11:03 am

Welcome to the forum :) .

buz1228 wrote:Hi Everyone,

This is my first post on here. For the last year I've had approximately 100k under a FA; little did I realize (to my embarrassment) I've been paying an exorbitant fee. Starting next month I plan on taking control of these assets and hope to create a strong ETF portfolio and potentially some individual stocks mixed in.

Stats:
Age: 33

Debt:
12k for school, should have it payed off in the next 2 years.

Retirement Accounts:
54K in target date fund
8.5K FID Growth Co K
11.6K DFA Emerging Markets

Roth IRA:
11K nothing invested at this point

Non-retirement Funds to invest:
140K

Not a home owner, currently renting.

I view the 140k as essentially part of my future retirement.

Please advise what an aggressive well diversified ETF portfolio would look like.
At this point should any of that 140K be invested in bonds?
How should I invest the Roth IRA money versus the non-retirement funds?
Additionally for the retirement accounts are target date funds worthwhile?
Would investing in individual companies like google/amazon/FB be too risky?

I've started to investigate ETFs etc, I just thought it would be helpful getting some opinions, thanks!

Some additional information is necessary.

What is the interest rate on your student debt? Will any of that debt be forgiven?

What is your marginal tax bracket, both federal and state?

Do you have an asset allocation (stock/bond mix) that you think you want to aim for?

What type of accounts are the "retirement accounts"? 401k, 403b, 457, TSP? Old account, or with a current employer?

Does the retirement account with your current employer offer an employer match? If so how much?

What funds are offered in the account with your current employer? Please give fund names, tickers and expense ratios.

How much (in dollars) are you currently contributing annually to each of your accounts?

How much is currently in each account?

You can simply add this to your original post using the edit button, so that all of your information is in one place. Please see the post "asking portfolio questions" for format.

. . . . .

In general I suggest using a three fund type portfolio, something like:
Vanguard Total Stock Market Index Fund;
Vanguard Total International Index Fund; and
Vanguard Total Bond Market Index Fund.

But this all depends on what type of accounts you have and what funds are offered in the work-based accounts.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

alex_686
Posts: 1854
Joined: Mon Feb 09, 2015 2:39 pm

Re: Investment Advice

Postby alex_686 » Thu Apr 20, 2017 11:19 am

3 general points.

Before you think about asset allocation think about your goals and your risk tolerance, both your ability and williness to take risk. Figure this out and everything else should fall into place.

It is generally more tax efficient to have bonds in your tax advantage accounts (a.k.a. retirement accounts) than in your taxable account.

The neutral holdings for emerging markets is around 15%. You have significantly overweighted this asset class. Are you expressing a very high confidence that this sector will outperform over your time horizon? If so that is o.k. Or are you saying that you want to take high risk approach so you are loading up on the highest risk stuff? If so that is not o.k. Going 100% equities with a slight overweight in EM - which I am not a big fan of - might be a better approach for that.


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