Portfolio Build up Comments?

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skseud
Posts: 4
Joined: Wed May 02, 2018 9:35 am

Portfolio Build up Comments?

Post by skseud » Wed May 16, 2018 4:08 pm

Just as a background: No debt. $3,000 in CD's with Marcus by Goldman Sachs, everything else is in the savings account at the moment

I have finally decided what to do with the cash sitting in my savings account:

I am going to max mine and my wife's Roth IRA for this year (2018) - $11,000

I have remaining $12,000 in cash of which I want to invest $10,000 to Vanguard with moderate risk.

Doing this will leave me little over $5,000 in cash for any emergency.

I think the good portfolio for me is 20% Bonds and 80% Stocks.

I am just beginning to invest and I am not quite sure how the stock or bond exchange work in Vanguard either...

What kind of Vanguard Stocks and Bonds should I get or do you guys have different opinions?

22twain
Posts: 1333
Joined: Thu May 10, 2012 5:42 pm

Re: Portfolio Build up Comments?

Post by 22twain » Wed May 16, 2018 4:36 pm

Where do you have your Roth IRAs, and what are they invested in?

The normal philosophy here is to consider all your accounts (except for your emergency fund and/or day-to-day checking account) as a single portfolio. You first decide your asset allocation ("AA"): the overall percentages of domestic stocks, international stocks, and bonds (or other kinds of fixed-income investments). Then you decide how to distribute them across your accounts so as to minimize taxes on interest and dividends.

Therefore, in order to suggest intelligently how to invest the "new" $10,000, we need to know how you've invested the $11,000 that's in the Roths.
My investing princiPLEs do not include absolutely preserving princiPAL.

bloom2708
Posts: 3961
Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: Portfolio Build up Comments?

Post by bloom2708 » Thu May 17, 2018 12:32 pm

$5,000 is a pretty light Emergency Fund.

~6 months of expenses is a good amount to shoot for. It is tough because each dollar can only have one purpose.

Do you have a 401k type plan to do pre-tax contributions? Roth for 2018 is a good plan. You could also use some of your cash to live on and bump up your pre-tax 401k.

To get the best advice, use this format:

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"We are here not to please but to provoke thoughtfulness" Unknown Boglehead

PFInterest
Posts: 1244
Joined: Sun Jan 08, 2017 12:25 pm

Re: Portfolio Build up Comments?

Post by PFInterest » Thu May 17, 2018 12:34 pm

skseud wrote:
Wed May 16, 2018 4:08 pm
Just as a background: No debt. $3,000 in CD's with Marcus by Goldman Sachs, everything else is in the savings account at the moment

I have finally decided what to do with the cash sitting in my savings account:

I am going to max mine and my wife's Roth IRA for this year (2018) - $11,000

I have remaining $12,000 in cash of which I want to invest $10,000 to Vanguard with moderate risk.

Doing this will leave me little over $5,000 in cash for any emergency.

I think the good portfolio for me is 20% Bonds and 80% Stocks.

I am just beginning to invest and I am not quite sure how the stock or bond exchange work in Vanguard either...

What kind of Vanguard Stocks and Bonds should I get or do you guys have different opinions?
why do you think you can go from 100% cash to 80% stocks?

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