New member, and advice seeker..

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
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Bankroll
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Location: Snohomish County

New member, and advice seeker..

Post by Bankroll » Fri Nov 08, 2019 1:25 pm

...I am a late starter in the investing game, except for a a few stocks purchased 20 years ago in a TD Ameritrade account. Also, I did try a brokerage firm a couple of years ago, but was not happy with their performance, after fees, and taxes.
This week I opened a Vanguard account, and would like to invest $22K, (that has been sitting in a bank savings account), in an ETF. I am looking for fairly good returns,(growth), at this time. I have more funds available to invest, after I gain more knowledge. The larger investment would probably be in a lower risk fund. I am 67 years old, single, and have no debt. Mortage paid off, and no loans, etc.

Any idea's? Thank you in advance.

Jack FFR1846
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Re: New member, and advice seeker..

Post by Jack FFR1846 » Fri Nov 08, 2019 2:34 pm

Look through the target date funds. They're very hands off and are low cost. Kinda set them and forget them till you want to withdraw.
Bogle: Smart Beta is stupid

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Wiggums
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Re: New member, and advice seeker..

Post by Wiggums » Fri Nov 08, 2019 2:40 pm

You can invest in Vanguards total market index ETF such as VTI

https://investor.vanguard.com/etf/profile/VTI

HomeStretch
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Re: New member, and advice seeker..

Post by HomeStretch » Fri Nov 08, 2019 3:02 pm

+1 to VTI if you want to invest in U.S. equities.

If you haven’t already reviewed the BH wiki, there is a great “Getting Started” page here:
https://www.bogleheads.org/wiki/Getting_started

chevca
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Re: New member, and advice seeker..

Post by chevca » Fri Nov 08, 2019 3:06 pm

Bankroll wrote:
Fri Nov 08, 2019 1:25 pm
This week I opened a Vanguard account, and would like to invest $22K, (that has been sitting in a bank savings account), in an ETF. I am looking for fairly good returns,(growth), at this time. I have more funds available to invest, after I gain more knowledge. The larger investment would probably be in a lower risk fund. I am 67 years old, single, and have no debt. Mortage paid off, and no loans, etc.
Let is sit in a money market fund, gain the knowledge to develop a plan for your money, and then invest it all according to plan. There's no rush to get this $22k invested at this point, nor chase growth with it.

Good job with no debt and no mortgage! That certainly helps with the finances.

deikel
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Re: New member, and advice seeker..

Post by deikel » Fri Nov 08, 2019 3:10 pm

Bankroll wrote:
Fri Nov 08, 2019 1:25 pm
...I am a late starter in the investing game, except for a a few stocks purchased 20 years ago in a TD Ameritrade account. Also, I did try a brokerage firm a couple of years ago, but was not happy with their performance, after fees, and taxes.
This week I opened a Vanguard account, and would like to invest $22K, (that has been sitting in a bank savings account), in an ETF. I am looking for fairly good returns,(growth), at this time. I have more funds available to invest, after I gain more knowledge. The larger investment would probably be in a lower risk fund. I am 67 years old, single, and have no debt. Mortage paid off, and no loans, etc.

Any idea's? Thank you in advance.
Out of curiosity, how did the single stocks from 20 years ago do ? in average gain per year ? more then 8% average ?
Everything you read in this post is my personal opinion. If you disagree with this disclaimer, please un-read the text immediately and destroy any copy or remembrance of it.

Topic Author
Bankroll
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Joined: Fri Nov 08, 2019 1:07 pm
Location: Snohomish County

Re: New member, and advice seeker..

Post by Bankroll » Fri Nov 08, 2019 3:42 pm

deikel wrote:
Fri Nov 08, 2019 3:10 pm

Out of curiosity, how did the single stocks from 20 years ago do ? in average gain per year ? more then 8% average ?
In April 1999,I bought 40 shares of Microsoft for $3,775, and now it is 80 shares(split), worth $11,638. The last 2-1/2 years it really took off.

snailderby
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Re: New member, and advice seeker..

Post by snailderby » Fri Nov 08, 2019 4:04 pm

Welcome to the forum!

1. What's your investment horizon? If you're still working, how much longer do you plan to work?

2. The target-date funds that Jack FFR1846 recommended are a good option if you have all or most of your investments in tax-advantaged accounts (like IRAs or 401(k)s). If you have a substantial portion of your assets in taxable accounts, you may want to consider the three-fund portfolio, so you can place different funds in different accounts for greater tax efficiency.

3. If you reformat your post using this template, you may get more helpful responses.

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David Jay
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Re: New member, and advice seeker..

Post by David Jay » Fri Nov 08, 2019 4:10 pm

What is your goal for these funds? This makes a big difference.

If you are saving for a spending goal the timeframe is important. Anything under 2 years should be in stable, liquid assets. Anything under 5 years likely should not be in equities.

If you are saving for the unknown and perhaps legacy then a more aggressive plan is in order.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

Topic Author
Bankroll
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Re: New member, and advice seeker..

Post by Bankroll » Fri Nov 08, 2019 4:35 pm

"What is your goal for these funds? This makes a big difference."


These funds are more of a primer, to build confidence, and knowledge before making larger investments. I have a small pension, social security, and low overhead. I am still self employed, though reduced hours, I can't see myself not working to some degree for at least 10-12 more years.

So for now, the goal of these funds,($22K), would be to see what kind of returns I could make in 5 + years. Risk factor of 3-4.

Topic Author
Bankroll
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Joined: Fri Nov 08, 2019 1:07 pm
Location: Snohomish County

Re: New member, and advice seeker..

Post by Bankroll » Sat Nov 09, 2019 5:07 pm

Wiggums wrote:
Fri Nov 08, 2019 2:40 pm
You can invest in Vanguards total market index ETF such as VTI

https://investor.vanguard.com/etf/profile/VTI
I am leaning towards the VTI as a primary fun at 70%, and as a secondary high risk ETF like VGT,(info tech) or VXF (extended market)
Those secondary choices are high risk, so 30%. 70/30.

Any thoughts? I'm looking for higher returns.

Topic Author
Bankroll
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Joined: Fri Nov 08, 2019 1:07 pm
Location: Snohomish County

Finally made a move...

Post by Bankroll » Tue Nov 12, 2019 4:07 pm

... the more I read, (mostly Bogleheads, wiki, Morning star,and some John Bogle interviews. I realized not only my lack of knowledge, but also my carelessness in thought. But sitting on the sidelines is also careless.
Today I made my first fund purchases with Vanguard.
1). VTSAX , $6,000
2). VBTLX , $4,000
3). Cash , $12,000 That will be used for additional fund purchases in the next few weeks.

chevca
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Re: New member, and advice seeker..

Post by chevca » Tue Nov 12, 2019 4:52 pm

Bankroll wrote:
Sat Nov 09, 2019 5:07 pm
Wiggums wrote:
Fri Nov 08, 2019 2:40 pm
You can invest in Vanguards total market index ETF such as VTI

https://investor.vanguard.com/etf/profile/VTI
I am leaning towards the VTI as a primary fun at 70%, and as a secondary high risk ETF like VGT,(info tech) or VXF (extended market)
Those secondary choices are high risk, so 30%. 70/30.

Any thoughts? I'm looking for higher returns.
You ever hear about Warren Buffett's bet with a hedge fund manager? Look it up if you haven't. You might be surprised how simple and easy it is to get "higher returns".

Olemiss540
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Re: New member, and advice seeker..

Post by Olemiss540 » Tue Nov 12, 2019 7:54 pm

Bankroll,

Stick around and keep reading. You need to get comfortable enough that if the market drops 30% next month, you still know you made a good decision with your nest egg. Staying diverse and splitting your available funds into equities and bonds will ensure a long term course that will average market returns over the long run! Dont try to beat the market, BE THE MARKET.

"Testing the waters" with 22k sure sounds more like gambling or speculation. Your investment is BOUND to go down, but over the long run will grow with the economy just like it has over the last century. The worst thing that could happen is your investment drops on the initial 22k and you decide that investing is a horrible decision while your nest egg erodes due to inflation.
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.

Topic Author
Bankroll
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Joined: Fri Nov 08, 2019 1:07 pm
Location: Snohomish County

Re: New member, and advice seeker..

Post by Bankroll » Tue Nov 12, 2019 10:45 pm

Olemiss540 wrote:
Tue Nov 12, 2019 7:54 pm
Testing the waters" with 22k sure sounds more like gambling or speculation.
"Testing the waters", and talking about picking high risk funds, was not a realistic way to look at investing. As you can see, I took a more conservative initial route, with a 60/40, and cash AA. The $22K was just sitting in a bank savings account. I also have $228K parked in a money market account, but don't feel comfortable investing any of that at this time with all the talk of a market downturn.

You ever hear about Warren Buffett's bet with a hedge fund manager? Look it up if you haven't. You might be surprised how simple and easy it is to get "higher returns".

I have heard of it now. :happy . I read up on it, also. Thanks.

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