Help with investing

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new000
Posts: 19
Joined: Wed May 03, 2017 12:50 pm

Help with investing

Post by new000 » Fri May 19, 2017 8:23 am

Hello
I have about 50k in Santander MMA which i do not intend to use in next 5 years and looking for tips on investing.I have my brokerage, roll over IRA and IRA account with Fidelity.
Any suggestions?

Thanks in advance for your assistance.

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TomP10
Posts: 133
Joined: Tue Mar 18, 2014 4:13 am

Re: Help with investing

Post by TomP10 » Fri May 19, 2017 8:47 am

Not enough information.

Read this post and provide the suggested info.
"It is remarkable how much long term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent." -- Charlie Munger

EHEngineer
Posts: 613
Joined: Sat Feb 28, 2015 4:35 pm

Re: Help with investing

Post by EHEngineer » Fri May 19, 2017 9:03 am

new000 wrote:Hello
I have about 50k in Santander MMA which i do not intend to use in next 5 years and looking for tips on investing.I have my brokerage, roll over IRA and IRA account with Fidelity.
Any suggestions?

Thanks in advance for your assistance.
Hi new000,

Welcome to Bogleheads.

I am going to disagree with TomP10. I don't think you need to follow the "asking portfolio questions" format, because it doesn't seem like this $50,000 is for your retirement. It would be helpful if you can tell us what the money is for, and when it will be spent.

If it is just a buildup of savings that has no intended purpose, and you have only a 5 year horizon, i would suggest a CD. 5 years isn't very long, and not long enough to take stock market risk, in my opinion.

If you really want to invest in stocks, put 80% in a CD and 20% in a broad index fund like vanguard total stock market index, VTI. You may also consider selling the VTI if you experience a healthy increase at any point in those 5 years (20%+???), then take the money and buy an appropiate length CD to finish out the 5 year period.

Good luck.

Edit to add: you can search for CD rates at http://www.depositaccounts.com
Or, you can ... decline to let me, a stranger on the Internet, egg you on to an exercise in time-wasting, and you could say "I'm probably OK and I don't care about it that much." -Nisiprius

pkcrafter
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Re: Help with investing

Post by pkcrafter » Fri May 19, 2017 9:48 am

I have about 50k in Santander MMA which i do not intend to use in next 5 years
The needed information is, when do you need the 50k? Certainly you don't want money you need in 5 years in the market. Beyond that depends on time to needing the money.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

new000
Posts: 19
Joined: Wed May 03, 2017 12:50 pm

Re: Help with investing

Post by new000 » Fri May 19, 2017 2:04 pm

Hi new000,

Welcome to Bogleheads.

I am going to disagree with TomP10. I don't think you need to follow the "asking portfolio questions" format, because it doesn't seem like this $50,000 is for your retirement. It would be helpful if you can tell us what the money is for, and when it will be spent.
it is savings amount that i have in MMA, i do not intend to use it at all but just to be on safer side i was thinking to lock down for about 5 years at minimum.

If it is just a buildup of savings that has no intended purpose, and you have only a 5 year horizon, i would suggest a CD. 5 years isn't very long, and not long enough to take stock market risk, in my opinion.

If you really want to invest in stocks, put 80% in a CD and 20% in a broad index fund like vanguard total stock market index, VTI. You may also consider selling the VTI if you experience a healthy increase at any point in those 5 years (20%+???), then take the money and buy an appropiate length CD to finish out the 5 year period. great idea, thank you so much

Good luck.

Edit to add: you can search for CD rates at http://www.depositaccounts.com[/quote]

new000
Posts: 19
Joined: Wed May 03, 2017 12:50 pm

Re: Help with investing

Post by new000 » Fri May 19, 2017 2:06 pm

pkcrafter wrote:
I have about 50k in Santander MMA which i do not intend to use in next 5 years
The needed information is, when do you need the 50k? Certainly you don't want money you need in 5 years in the market. Beyond that depends on time to needing the money.

Paul
I do not intend to use the money atleast in next 5 years

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ruralavalon
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Location: Illinois

Re: Help with investing

Post by ruralavalon » Fri May 19, 2017 2:34 pm

new000 wrote:Hello
I have about 50k in Santander MMA which i do not intend to use in next 5 years and looking for tips on investing.I have my brokerage, roll over IRA and IRA account with Fidelity.
Any suggestions?
new000 wrote: it is savings amount that i have in MMA, i do not intend to use it at all but just to be on safer side i was thinking to lock down for about 5 years at minimum.
Is this an emergency fund which you are holding to pay unanticipated expenses that may arise?

Or is this money that you want to invest for an indefinite time (longer than 5 years) for an undecided purpose? Or for some specific purpose, like purchase of a home?

Or is this money that you may be investing longer-term for purposes like retirement?

Time frame and purpose do make a big difference on how you could invest this money.

. . . . .

By the way, another source for available rates for savings accounts and CDs is http://www.bankrate.com .

If this is not an emergency fund, and is not to be used for 5-10 years, you could consider a good fairly conservative balanced fund such as -- Vanguard Balanced Index Fund, Vanguard LifeStrategy Moderate Growth Fund, or Vanguard LifeStrategy Conservative Growth Fund.

If longer-term than that, then perhaps a more aggressive balanced Fund such as -- Vanguard Wellington Fund, Vanguard LifeStrategy Growth Fund, or some combination of funds and CDs
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