What to do when you have Less than 100K ? say just 50k

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ssvincent
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What to do when you have Less than 100K ? say just 50k

Post by ssvincent »

I have the unfortunate position of being in my 30s and having saved up only 50 due to some stupid financial decisions including day trading etc, but i m wiser now.


My question is that since i am at 50k, being in a portfolio with a "buffer" with bonds / commodities doesn't make sense to me because a % losing at this point isnt a big at low level of cash, it would hurt more when i have more than 100K. so does that mean , until i reach 100K, is it wiser to put my money into a single stock say " MSFT" or ADBE or into the S&P or QQQ until i have at least doubled my money , and then switch over to a portfolio theory based investment model ?


what are your thoughts on this strategy where i divide it between <100k and >100k ?
Daryl
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Re: What to do when you have Less than 100K ? say just 50k

Post by Daryl »

If I were in "the unfortunate position of being in my 30s and having saved up only 50[k]", I'd contact my local chapter of Habitat for Humanity and offer to volunteer a couple of times. I'd be interested in hearing from the men / women that regularly serve their community, and the families that are about to receive a new home. Without a doubt, you are doing much, much better than the overwhelming majority of your peers.
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welderwannabe
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Re: What to do when you have Less than 100K ? say just 50k

Post by welderwannabe »

ssvincent wrote: Wed Nov 21, 2018 4:28 am I have the unfortunate position of being in my 30s and having saved up only 50 due to some stupid financial decisions including day trading etc, but i m wiser now.


My question is that since i am at 50k, being in a portfolio with a "buffer" with bonds / commodities doesn't make sense to me because a % losing at this point isnt a big at low level of cash, it would hurt more when i have more than 100K. so does that mean , until i reach 100K, is it wiser to put my money into a single stock say " MSFT" or ADBE or into the S&P or QQQ until i have at least doubled my money , and then switch over to a portfolio theory based investment model ?


what are your thoughts on this strategy where i divide it between <100k and >100k ?
Not sure what you mean. Since you only have 50K losing a percent isn't a big deal? If that is true than the antithesis must be true too. Gaining a percent isn't a big deal either.

The 2, 3, or 4 fund portfolio works just fine at $50K.
I am not an investment professional, but I did stay at a Holiday Inn Express last night.
Grt2bOutdoors
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Re: What to do when you have Less than 100K ? say just 50k

Post by Grt2bOutdoors »

Slow and steady will win the race. Placing $50k on a single stock is no different than going to Vegas to shoot craps. A portfolio could be 100% equity but it will be diversified amongst many different companies, buying one stock with all your assets? Madness, sheer madness.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
FoolMeOnce
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Re: What to do when you have Less than 100K ? say just 50k

Post by FoolMeOnce »

Grt2bOutdoors wrote: Wed Nov 21, 2018 7:28 am Slow and steady will win the race. Placing $50k on a single stock is no different than going to Vegas to shoot craps. A portfolio could be 100% equity but it will be diversified amongst many different companies, buying one stock with all your assets? Madness, sheer madness.
+1

You are indicating that your need and willingness to take equity risk are both high, so set an asset allocation with a high amount of equities, even 100%. But use an index fund; don't gamble it on a single stock.

https://www.bogleheads.org/wiki/Asset_allocation
Mike Scott
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Re: What to do when you have Less than 100K ? say just 50k

Post by Mike Scott »

For simplicity, the three fund portfolio (or two fund or 4 fund or even a single balanced fund) works as well for 50K as a million. This short read is frequently recommended and is all you need to get you started. https://www.etf.com/docs/IfYouCan.pdf
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Re: What to do when you have Less than 100K ? say just 50k

Post by StopIroningShirts »

I'm a reformed amateur trader/tinkerer with my portfolio and I'm now 70%+ index funds and 20% in a few stock holdings that I have big capital gains sitting in. I found out the less I messed with it, the better it performed.

I also regret not just working and earning more money back when I only had $50k invested. The marginal returns of additional income were a lot better than increasing my investment return by 1 or 2% a year.
ahnathan
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Re: What to do when you have Less than 100K ? say just 50k

Post by ahnathan »

OP doesn’t sound reformed if he/she is still trying to find a way to put lump sums into individual stocks.

What is so magic about 100k that doesn’t apply at 50, or 150? It’s strange to me when people post these questions here because it clearly indicates they haven’t looked into what this board is at all.

Do some reading, either the book or the wiki.
Define an investment plan and SIMPLE asset allocation.
Insert money.
Wait 35 years.

Ta-da!


Edited to add: 30s are young. Having any money to invest is good. Get your headspace out of the negative. Assuming you don’t have massive debt, you are in a good position.
Last edited by ahnathan on Wed Nov 21, 2018 7:58 am, edited 1 time in total.
PFInterest
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Re: What to do when you have Less than 100K ? say just 50k

Post by PFInterest »

ssvincent wrote: Wed Nov 21, 2018 4:28 am I have the unfortunate position of being in my 30s and having saved up only 50 due to some stupid financial decisions including day trading etc, but i m wiser now.


My question is that since i am at 50k, being in a portfolio with a "buffer" with bonds / commodities doesn't make sense to me because a % losing at this point isnt a big at low level of cash, it would hurt more when i have more than 100K. so does that mean , until i reach 100K, is it wiser to put my money into a single stock say " MSFT" or ADBE or into the S&P or QQQ until i have at least doubled my money , and then switch over to a portfolio theory based investment model ?


what are your thoughts on this strategy where i divide it between <100k and >100k ?
yes a single stock is surely the best and only way to go.
fulltilt
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Re: What to do when you have Less than 100K ? say just 50k

Post by fulltilt »

ssvincent wrote: Wed Nov 21, 2018 4:28 am I have the unfortunate position of being in my 30s and having saved up only 50 due to some stupid financial decisions including day trading etc, but i m wiser now.


My question is that since i am at 50k, being in a portfolio with a "buffer" with bonds / commodities doesn't make sense to me because a % losing at this point isnt a big at low level of cash, it would hurt more when i have more than 100K. so does that mean , until i reach 100K, is it wiser to put my money into a single stock say " MSFT" or ADBE or into the S&P or QQQ until i have at least doubled my money , and then switch over to a portfolio theory based investment model ?


what are your thoughts on this strategy where i divide it between <100k and >100k ?
Wiser now, but maybe not wise enough.
:wink:

The only strategy I would base on less than 100k or more than 100k would be choosing a target date fund for less than 100k and individual funds for more.

Don’t take uncompensated risk on a single stock.

Take the time to make a solid plan you can use over the long term. What are your investment options at work?
retiredjg
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Re: What to do when you have Less than 100K ? say just 50k

Post by retiredjg »

ssvincent wrote: Wed Nov 21, 2018 4:28 am My question is that since i am at 50k, being in a portfolio with a "buffer" with bonds / commodities doesn't make sense to me because a % losing at this point isnt a big at low level of cash, it would hurt more when i have more than 100K. so does that mean , until i reach 100K, is it wiser to put my money into a single stock say " MSFT" or ADBE or into the S&P or QQQ until i have at least doubled my money , and then switch over to a portfolio theory based investment model ?
No.

It doesn't matter what you start with, make a well balanced reasonable plan, based on your tolerance for risk, and just start buying it.
3funder
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Re: What to do when you have Less than 100K ? say just 50k

Post by 3funder »

FoolMeOnce wrote: Wed Nov 21, 2018 7:39 am
Grt2bOutdoors wrote: Wed Nov 21, 2018 7:28 am Slow and steady will win the race. Placing $50k on a single stock is no different than going to Vegas to shoot craps. A portfolio could be 100% equity but it will be diversified amongst many different companies, buying one stock with all your assets? Madness, sheer madness.
+1

You are indicating that your need and willingness to take equity risk are both high, so set an asset allocation with a high amount of equities, even 100%. But use an index fund; don't gamble it on a single stock.

https://www.bogleheads.org/wiki/Asset_allocation
I agree completely. OP -- you've been given great advice; you'd be wise to heed it.
alex_686
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Re: What to do when you have Less than 100K ? say just 50k

Post by alex_686 »

ssvincent wrote: Wed Nov 21, 2018 4:28 am is it wiser to put my money into a single stock say " MSFT" or ADBE or into the S&P or QQQ until i have at least doubled my money , and then switch over to a portfolio theory based investment model ?
I would echo what everybody else has said, it does not matter if you are at 100k or 50k.

I understand the desire to skew towards 100% equity and risk. I would caution against it. You have the desire to take more risk but maybe not the ability.

In any event, stay away from QQQ or single stocks. I can't think of a single rational reason for the QQQ to exist, and invidual stocks carry way too much risk for you.
Former brokerage operations & mutual fund accountant. I hate risk, which is why I study and embrace it.
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Kenkat
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Re: What to do when you have Less than 100K ? say just 50k

Post by Kenkat »

$50k is still a lot of money. Do not put into a single stock; that’s very risky - you could win big or lose big.

I would start with a simple portfolio - Total Stock Index, Total International Index, Total Bond Index. You could do 60/20/20 or 65/25/10 or even 75/25 if you are feeling aggressive and can handle the swings. But, as you said, it’s a relatviely smaller amount so a 10% swing is only $5,000 and you are hopefully saving 2x or 4x that or better every year.

So, you are correct - the asset allocation is relatively unimportant right now. You are still young at 30s. Crank up your savings rate right now. That’s the key to building wealth in the early years.
columbia
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Re: What to do when you have Less than 100K ? say just 50k

Post by columbia »

If you’re interested in a globally diversified portfolio (which is a personal choice), something like Vanguard Life Strategy Growth (VASGX) is perfect for you. Just keep contributing and think about adding a bond fund to it, sometime in your mid 50s.
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Re: What to do when you have Less than 100K ? say just 50k

Post by Nestegg_User »

PFInterest wrote: Wed Nov 21, 2018 7:54 am
ssvincent wrote: Wed Nov 21, 2018 4:28 am I have the unfortunate position of being in my 30s and having saved up only 50 due to some stupid financial decisions including day trading etc, but i m wiser now.


My question is that since i am at 50k, being in a portfolio with a "buffer" with bonds / commodities doesn't make sense to me because a % losing at this point isnt a big at low level of cash, it would hurt more when i have more than 100K. so does that mean , until i reach 100K, is it wiser to put my money into a single stock say " MSFT" or ADBE or into the S&P or QQQ until i have at least doubled my money , and then switch over to a portfolio theory based investment model ?


what are your thoughts on this strategy where i divide it between <100k and >100k ?
yes a single stock is surely the best and only way to go down lower to $25k.

(edited that for you)

OP
the risk of a single stock is generally not compensated enough, you are better off with a broader index fund and with you being in your 30’s is likely to be one with higher equities (90/10 - 80/20). as others note, your contributions at your age dominate; it’s also hard to understand how you lost 50% trading in individual securities as a day trader (yet, the broader market is essentially level for the year) and still think that that process will achieve better results.
staythecourse
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Re: What to do when you have Less than 100K ? say just 50k

Post by staythecourse »

Apologize as I am sure repeating, but wanted to bump this for other newbie investors. The great thing about investing the bogleheads way is it is scalable for small amount of money AND large amount money. It is great for amounts that will not be added to OR those that are getting regular contributions.

My advice for the OP with the amount he/ she is talking about AND his/ her past decision making mistakes is to choose a balanced fund or lifestyle fund. Find the one that is low cost and fits your level of risk tolerance by its overall stock/ bond % and drop it in and focus on making more money so you can add as much to it as possible.

The interesting thing about investing is SO much of investing is controllable (LBYM, saving, risk via asset allocation, reducing expense ratios, being tax efficient, staying the course, etc...) but the ONE thing in investing that is NOT controllable is returns. It is the one aspect (returns) that can't be controlled yet that seems to be every investors foremost concern.

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle
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Re: What to do when you have Less than 100K ? say just 50k

Post by Dottie57 »

staythecourse wrote: Wed Nov 21, 2018 4:46 pm Apologize as I am sure repeating, but wanted to bump this for other newbie investors. The great thing about investing the bogleheads way is it is scalable for small amount of money AND large amount money. It is great for amounts that will not be added to OR those that are getting regular contributions.

My advice for the OP with the amount he/ she is talking about AND his/ her past decision making mistakes is to choose a balanced fund or lifestyle fund. Find the one that is low cost and fits your level of risk tolerance by its overall stock/ bond % and drop it in and focus on making more money so you can add as much to it as possible.

The interesting thing about investing is SO much of investing is controllable (LBYM, saving, risk via asset allocation, reducing expense ratios, being tax efficient, staying the course, etc...) but the ONE thing in investing that is NOT controllable is returns. It is the one aspect (returns) that can't be controlled yet that seems to be every investors foremost concern.

Good luck.
Listen to the good advice given n post quoted and others. No single stocks. Three or four fund portfolio. Low ER. Consistent additions/contributions. Good luck.
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Phineas J. Whoopee
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Re: What to do when you have Less than 100K ? say just 50k

Post by Phineas J. Whoopee »

Agreeing with other posters about the risks of individual stocks, I'd like to point out that, if you're actively saving, increases in your portfolio value will come mostly from new investments, not from investment returns.

My suggestion is to broadly diversify at low cost, and save, save, save. And invest.

PJW
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Re: What to do when you have Less than 100K ? say just 50k

Post by AerialWombat »

I joined Bogleheads earlier this year with only $12,000 in an IRA.

The advice presented here applies whether you have $50,000 or $500,000 or $5,000,000.
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Re: What to do when you have Less than 100K ? say just 50k

Post by TIAX »

Daryl wrote: Wed Nov 21, 2018 7:07 am If I were in "the unfortunate position of being in my 30s and having saved up only 50[k]", I'd contact my local chapter of Habitat for Humanity and offer to volunteer a couple of times. I'd be interested in hearing from the men / women that regularly serve their community, and the families that are about to receive a new home. Without a doubt, you are doing much, much better than the overwhelming majority of your peers.
Without a doubt, this comment is irrelevant and unhelpful to OP.
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Re: What to do when you have Less than 100K ? say just 50k

Post by TIAX »

ssvincent wrote: Wed Nov 21, 2018 4:28 am I have the unfortunate position of being in my 30s and having saved up only 50 due to some stupid financial decisions including day trading etc, but i m wiser now.


My question is that since i am at 50k, being in a portfolio with a "buffer" with bonds / commodities doesn't make sense to me because a % losing at this point isnt a big at low level of cash, it would hurt more when i have more than 100K. so does that mean , until i reach 100K, is it wiser to put my money into a single stock say " MSFT" or ADBE or into the S&P or QQQ until i have at least doubled my money , and then switch over to a portfolio theory based investment model ?


what are your thoughts on this strategy where i divide it between <100k and >100k ?
So you made "stupid financial decisions including day trading" and you're thinking it's a good idea to put your money into a single stock? Why do you think you should invest differently if you have 50k as opposed to 100k? Start with Getting Started.
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arcticpineapplecorp.
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Re: What to do when you have Less than 100K ? say just 50k

Post by arcticpineapplecorp. »

PFInterest wrote: Wed Nov 21, 2018 7:54 am
ssvincent wrote: Wed Nov 21, 2018 4:28 am I have the unfortunate position of being in my 30s and having saved up only 50 due to some stupid financial decisions including day trading etc, but i m wiser now.


My question is that since i am at 50k, being in a portfolio with a "buffer" with bonds / commodities doesn't make sense to me because a % losing at this point isnt a big at low level of cash, it would hurt more when i have more than 100K. so does that mean , until i reach 100K, is it wiser to put my money into a single stock say " MSFT" or ADBE or into the S&P or QQQ until i have at least doubled my money , and then switch over to a portfolio theory based investment model ?


what are your thoughts on this strategy where i divide it between <100k and >100k ?
yes a single stock is surely the best and only way to go.
just so the OP knows...I believe PFInterest is being sarcastic (it's hard to know sometimes when it's written because tone and/or facial expressions are absent). Do not act on PFInterest's "recommendation".
It's "Stay" the course, not Stray the Course. Buy and Hold works. You should really try it sometime. Get a plan: www.bogleheads.org/wiki/Investment_policy_statement
PFInterest
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Re: What to do when you have Less than 100K ? say just 50k

Post by PFInterest »

arcticpineapplecorp. wrote: Thu Nov 22, 2018 3:11 pm
PFInterest wrote: Wed Nov 21, 2018 7:54 am
ssvincent wrote: Wed Nov 21, 2018 4:28 am I have the unfortunate position of being in my 30s and having saved up only 50 due to some stupid financial decisions including day trading etc, but i m wiser now.


My question is that since i am at 50k, being in a portfolio with a "buffer" with bonds / commodities doesn't make sense to me because a % losing at this point isnt a big at low level of cash, it would hurt more when i have more than 100K. so does that mean , until i reach 100K, is it wiser to put my money into a single stock say " MSFT" or ADBE or into the S&P or QQQ until i have at least doubled my money , and then switch over to a portfolio theory based investment model ?


what are your thoughts on this strategy where i divide it between <100k and >100k ?
yes a single stock is surely the best and only way to go.
just so the OP knows...I believe PFInterest is being sarcastic (it's hard to know sometimes when it's written because tone and/or facial expressions are absent). Do not act on PFInterest's "recommendation".
funny, i thought it was obvious.
but everyone is free to make *mod friendly* not smart decisions
fortyofforty
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Re: What to do when you have Less than 100K ? say just 50k

Post by fortyofforty »

columbia wrote: Wed Nov 21, 2018 8:58 am If you’re interested in a globally diversified portfolio (which is a personal choice), something like Vanguard Life Strategy Growth (VASGX) is perfect for you. Just keep contributing and think about adding a bond fund to it, sometime in your mid 50s.
This is precisely what I'd recommend as well. LifeStrategy Growth. One fund to rule them all. Rebalances for you. You'll own a piece of every stock in the world, more or less. Generally maintains 80% stocks and 20% bonds. You could literally hold that fund for the rest of your life and not have any regrets.
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Re: What to do when you have Less than 100K ? say just 50k

Post by Mr.BB »

It sounds like you still have a day trader mentality; You're looking for the quick return. Stop thinking short-term, think 30 years out. Get a online calculator and figure out if you did monthly deposits for 30 years at an average of 6 to 7% return how much money would you have. I bet it's a lot more than you thought you would have.
"We are what we repeatedly do. Excellence, then, is not an act, but a habit."
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Re: What to do when you have Less than 100K ? say just 50k

Post by Teague »

ssvincent wrote: Wed Nov 21, 2018 4:28 am I have the unfortunate position of being in my 30s and having saved up only 50 due to some stupid financial decisions including day trading etc, but i m wiser now.
What unfortunate position? That's about $90K more than I had in my 30's.
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arcticpineapplecorp.
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Re: What to do when you have Less than 100K ? say just 50k

Post by arcticpineapplecorp. »

PFInterest wrote: Thu Nov 22, 2018 3:36 pm
arcticpineapplecorp. wrote: Thu Nov 22, 2018 3:11 pm
PFInterest wrote: Wed Nov 21, 2018 7:54 am
ssvincent wrote: Wed Nov 21, 2018 4:28 am I have the unfortunate position of being in my 30s and having saved up only 50 due to some stupid financial decisions including day trading etc, but i m wiser now.


My question is that since i am at 50k, being in a portfolio with a "buffer" with bonds / commodities doesn't make sense to me because a % losing at this point isnt a big at low level of cash, it would hurt more when i have more than 100K. so does that mean , until i reach 100K, is it wiser to put my money into a single stock say " MSFT" or ADBE or into the S&P or QQQ until i have at least doubled my money , and then switch over to a portfolio theory based investment model ?


what are your thoughts on this strategy where i divide it between <100k and >100k ?
yes a single stock is surely the best and only way to go.
just so the OP knows...I believe PFInterest is being sarcastic (it's hard to know sometimes when it's written because tone and/or facial expressions are absent). Do not act on PFInterest's "recommendation".
funny, i thought it was obvious.
but everyone is free to make *mod friendly* not smart decisions
it was obvious to you and to me and many others, but because the OP is seriously asking about individual stocks we can't always assume s/he isn't taking advice to own a single stock as a mockery. Otherwise, why would s/he be asking? Unless s/he's just punking us.
It's "Stay" the course, not Stray the Course. Buy and Hold works. You should really try it sometime. Get a plan: www.bogleheads.org/wiki/Investment_policy_statement
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Re: What to do when you have Less than 100K ? say just 50k

Post by stimulacra »

My investing strategy has not differed too much when I had a much smaller portfolio and I don't see it changing significantly if I had a portfolio 10X or 20X of what I have currently. I guess my cash and liquid assets would decline as a percentage of my overall net worth.

The feeling that you are behind financially of where you should be is more of the emotional X-factor that's influencing you to try to come out from behind somehow.

Find an allocation you can sleep with and cut down on your expenses/overhead and figure out ways to increase your savings rate.
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Re: What to do when you have Less than 100K ? say just 50k

Post by willthrill81 »

For now, invest it in anything that you won't worry about. If that's 100% stocks, 100% bonds, a balanced fund, a target date fund, etc., that's fine.

Your #1 priority should be increasing your portfolio through savings. Returns don't matter nearly as much right now in your position as your savings rate. Start stashing away money like a squirrel hoards acorns for the coming winter.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings
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Re: What to do when you have Less than 100K ? say just 50k

Post by Hyperborea »

The best thing you can do for your portfolio is invest in yourself and your career. Leave your $50K invested in something simple as mentioned above (2-4 fund portfolio + a decent emergency fund). Then work to improve your earnings - what do you need to do to get promoted at work, can you do something that brings in a better income? That may mean taking some risk but that is the place that the risk will more likely pay off. That will do more for your portfolio than tinkering with the allocation especially with only $50K.
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Re: What to do when you have Less than 100K ? say just 50k

Post by Arby »

willthrill81 wrote: Thu Nov 22, 2018 11:41 pm For now, invest it in anything that you won't worry about. If that's 100% stocks, 100% bonds, a balanced fund, a target date fund, etc., that's fine.

Your #1 priority should be increasing your portfolio through savings. Returns don't matter nearly as much right now in your position as your savings rate. Start stashing away money like a squirrel hoards acorns for the coming winter.
Agreed.

If you work for a company that has a 401K then suggest you invest to maximize your company's match and fully fund a Roth.

Depending on your income, tax bracket and state of residency you might want to put more into a 401K.
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Re: What to do when you have Less than 100K ? say just 50k

Post by RobLyons »

I would recommend you do nothing at this point. Any decision you make right this moment will probably be suboptimal. You need to change the way you look at investing. It's not a Hail Mary pass, throwing caution to the wind.
Develop the mindset that investing is a slow, boring, long term process in which we don't put all our eggs in one basket.
"Great parenting sets the foundation for a better world"
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Re: What to do when you have Less than 100K ? say just 50k

Post by Sandtrap »

ssvincent wrote: Wed Nov 21, 2018 4:28 am I have the unfortunate position of being in my 30s and having saved up only 50 due to some stupid financial decisions including day trading etc, but i m wiser now.


My question is that since i am at 50k, being in a portfolio with a "buffer" with bonds / commodities doesn't make sense to me because a % losing at this point isnt a big at low level of cash, it would hurt more when i have more than 100K. so does that mean , until i reach 100K, is it wiser to put my money into a single stock say " MSFT" or ADBE or into the S&P or QQQ until i have at least doubled my money , and then switch over to a portfolio theory based investment model ?


what are your thoughts on this strategy where i divide it between <100k and >100k ?
Who not go "Boglehead Conservative" and first build a solid base and invest in instruments of higher volatility after that?
1. Emergency Fund (6 mos income)
2. High Yield Accounts
3. CD ladder, Treasuries (1-3 years income)
etc.
then: 3 fund index portfolio. (after #1-3)
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CyclingDuo
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Re: What to do when you have Less than 100K ? say just 50k

Post by CyclingDuo »

ssvincent wrote: Wed Nov 21, 2018 4:28 am I have the unfortunate position of being in my 30s and having saved up only 50 due to some stupid financial decisions including day trading etc, but i m wiser now.


My question is that since i am at 50k, being in a portfolio with a "buffer" with bonds / commodities doesn't make sense to me because a % losing at this point isnt a big at low level of cash, it would hurt more when i have more than 100K. so does that mean , until i reach 100K, is it wiser to put my money into a single stock say " MSFT" or ADBE or into the S&P or QQQ until i have at least doubled my money , and then switch over to a portfolio theory based investment model ?


what are your thoughts on this strategy where i divide it between <100k and >100k ?
Unless you are willing to spread your $50K between 75 individual stocks at $666.66 each :twisted:, the index fund would be the best route.

Passively managing an individual stock portfolio is always an option, but consider what is involved. You can find a lot of interesting results from studies at the Wiki here:

https://www.bogleheads.org/wiki/Passive ... ual_stocks

Personal Capital utilizes a passively managed portfolio for clients. The formula they use involves 120 individual stocks for larger portfolios. I would assume for smaller portfolios, it is all done with ETF's.
"Save like a pessimist, invest like an optimist." - Morgan Housel
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smarcus3
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Re: What to do when you have Less than 100K ? say just 50k

Post by smarcus3 »

The best time to invest was 10 years ago. The next best is today.

But in all seriousness, you're young with lots of compounding time. You have 30 more years of growth. I have many friends who are in their 30s with debt and those who are 10+ years older with nothing. Plenty if time to invest in low fee ETFs / mutual funds and buckle down. Choose a us total market and an international total market funds such as Fidelitys zeros.
This is my personal opinion. I'm an engineer not a financial advisor.
Walkure
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Re: What to do when you have Less than 100K ? say just 50k

Post by Walkure »

You've already received solid advice on what to do today, so I won't bother repeating it. What concerns me in your post is this line:
ssvincent wrote: Wed Nov 21, 2018 4:28 am losing at this point isnt a big at low level of cash, it would hurt more when i have more than 100K.
It suggests that even if you avoid the pitfalls and do the optimal thing now, you are still ultimately allowing your investment progress to be measured in terms of behavioral rewards. Getting to a big shiny round number gives a shot of dopamine to the trader/gambler mindset, but it doesn't change the fundamentals. Whether it's Dow 36,000, a 200% gain, your first million, or whatever, these "benchmarks" are not going to serve you well. You should learn to set savings goals, reduce costs; the key is to aim for targets that you can control, and don't sweat the stuff you can't.
Second, you may have the need and willingness to take risk now, but if you hit 100k and suddenly lose that perceived need, you may find the willingness evaporate. A realistic, long term goal will help maintain perspective. Losing half of 100k doesn't hurt appreciably more than losing half of 50k - if you define failure as anything less than, say, 25x expenses. This is because returns alone were never going to get you there - age 30 is solidly in the accumulation phase and temporary pullbacks are a boost, not the enemy.
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