Index fund or bank

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Superduper
Posts: 3
Joined: Tue Feb 13, 2018 12:55 pm

Index fund or bank

Post by Superduper » Tue Feb 13, 2018 1:17 pm

First post her, my english is not good but I have a question. I have about 100 000 $ in index fund and about 137 000 $ in the bank. 37000 $ of the money in the bank can not be touched but the rest can, 100 000 $. I am 40 years old no debt, own an appartment. I Wonder if I should take the 100 000 from the bank and buy index fund for the money. Want to work for about 10 years from now, and only work occasional after 50.

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Pajamas
Posts: 6015
Joined: Sun Jun 03, 2012 6:32 pm

Re: Index fund or bank

Post by Pajamas » Tue Feb 13, 2018 1:25 pm

The general answer to your question is probably yes, but you don't give much context. Start here:

https://www.bogleheads.org/wiki/Getting_started

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Sandtrap
Posts: 5101
Joined: Sat Nov 26, 2016 6:32 pm
Location: HawaiišŸ˜€ Northern AZ.šŸ˜³ Retired.

Re: Index fund or bank

Post by Sandtrap » Tue Feb 13, 2018 1:27 pm

Welcome :D
It is hard to give good suggestions without knowing the rest of your financial picture.
This is the format to post. You can edit your original post.
Asking Portfolio Questions
https://www.bogleheads.org/forum/viewt ... =1&t=6212

Age?
Income?
Debts?
etc.

The general sequence (greatly simplified) would be.

3-6 months income/expenses in the bank, high yield account, etc. for protection of principal.
"X" ?? amount in intermediate term savings with security of principal for future expenditures. (CD's, etc)
"Y"?? long term investment savings for retirement.

As for allocation. You are talking about 100% in equities. If the market fell would you be prepared to lose 50% of it?
Depends on your age and financial picture.

Read this:
Asset Allocation (what is right for you?)
https://www.bogleheads.org/wiki/Asset_allocation

Suggested Reading List
https://www.bogleheads.org/RecommendedReading.php
Forum Library of Investing Advice with links
https://www.bogleheads.org/wiki/Main_Page

Outstanding write up on the 64/40 allocation by Bernstein.
http://web.archive.org/web/20061214061 ... in6040.pdf
R. Ferri on Bernstein's 60/40
http://www.etf.com/sections/index-inve ... nopaging=1

Free Reading: "If You Can" by Bernstein
https://www.google.com/url?sa=t&rct=j& ... -SB3S580I5

j :D

Superduper
Posts: 3
Joined: Tue Feb 13, 2018 12:55 pm

Re: Index fund or bank

Post by Superduper » Wed Feb 14, 2018 12:05 pm

Thanks for the helping very interesting reading. I have made upp my mind. My work is safe, I have no debt and save about 25000 $ a year, about 60-70% off What I earn after tax each year. With that in mind 100 % stocks is stupid, I will most likely have no more than 50 % in stocks. Or maybee my age in bonds, the rest 60% in stocks.

Superduper
Posts: 3
Joined: Tue Feb 13, 2018 12:55 pm

Re: Index fund or bank

Post by Superduper » Wed Feb 14, 2018 12:09 pm

In the USA there is one major advantage, in Norway there is taxes on everything off coarse its also posetiv in some ways but there is also taxes on fortune.

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