Smartest Move with "House Money" in IRA?

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guwop
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Smartest Move with "House Money" in IRA?

Post by guwop » Tue Jan 14, 2020 3:22 pm

I recently sold some stock options I had in my IRA for a nice gain (luckily it's in a Roth).

Currently, this (cash) is the only position in the account. It's not a large amount, however I'd like to take advantage of the gain I harvested and put this money to work long term.

Would appreciate any and all suggestions on what to do with this "house money" in my Roth IRA. My first instinct (given past financial mistakes) is to leave it as cash until some sort of investment opportunity arises in the future.

Would it be wise to park it into a money market fund for the time being? I would like to allocate a certain % of my portfolio to REITs (which I've read are best held in Roth IRA accounts). Since the account is at Fidelity, are there any REITs that I should be starting off with?

retired@50
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Re: Smartest Move with "House Money" in IRA?

Post by retired@50 » Tue Jan 14, 2020 3:29 pm

guwop wrote:
Tue Jan 14, 2020 3:22 pm
I recently sold some stock options I had in my IRA for a nice gain (luckily it's in a Roth).

Currently, this (cash) is the only position in the account. It's not a large amount, however I'd like to take advantage of the gain I harvested and put this money to work long term.

Would appreciate any and all suggestions on what to do with this "house money" in my Roth IRA. My first instinct (given past financial mistakes) is to leave it as cash until some sort of investment opportunity arises in the future.

Would it be wise to park it into a money market fund for the time being?
I wouldn't look at it as house money. It's your money, regardless of how you came by it.

Your post seems to indicate two very different paths for the money, hold as cash, or put the money to work long term.

I'd advise you put it into a total stock market fund like VTSAX and set the dividends to re-invest.

Regards,
Boggle - a game from Parker Brothers. Bogle - investor, founder of Vanguard.

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Wiggums
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Re: Smartest Move with "House Money" in IRA?

Post by Wiggums » Tue Jan 14, 2020 3:34 pm

I’m not sure why you would park this money that was just in the market. I would invest it per your asset allocation. For me, that means VTSAX.

What does “house money” mean? Are you literally saving for a house or does this mean something else?

Jack FFR1846
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Re: Smartest Move with "House Money" in IRA?

Post by Jack FFR1846 » Tue Jan 14, 2020 3:37 pm

Uh.....do you have an IPS? Read the wiki if you don't know what that is. If I had money.....from wherever....in any amount, I'd have already put in the buy order. A 3 fund is not difficult to add to, nor should this decision be difficult to answer.
Bogle: Smart Beta is stupid

AlwaysaQ
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Re: Smartest Move with "House Money" in IRA?

Post by AlwaysaQ » Tue Jan 14, 2020 3:47 pm

For a Roth IRA at Fidelity use FSKAX or FZROX for Total US Stock Market or check for a REIT Index fund if you want REITS.

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