How would you invest 200k Right now?

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Topic Author
Scooterd
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Joined: Wed Jul 21, 2021 2:30 pm

How would you invest 200k Right now?

Post by Scooterd »

I am new to this forum. I am interested in an 80 20 % portfolio. If I had 205k ( cash)to invest what would be a good allocation and funds.

Emergency Fund: I have five months in my emergency fund

Debt: I have no debt. I am a renter

Tax Filing Status: Single

Tax Rate: Federal 22 % NJ 6.37

Residence New Jersey

Desired allocation 80 % stock 20 % bonds

The total size of the portfolio is $ 288,000

Current retirement assets

Cash: 205,000

Roth: Schwab

10,000 dollars

Baba 49.44 %
Facebook 49.56 %

Taxable Account
$73,363.61
ATT 1.9 %
APPL 14.3%
CMCSA 2.2 %
XOM 4.1 %
Dis 4.75 %

Cash 205,000


I am 55 I will have a pension and social security that will equal 5200 a month
Last edited by Scooterd on Sat Jul 24, 2021 2:33 pm, edited 4 times in total.
jebmke
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Re: How would you invest 200k Right now?

Post by jebmke »

Vanguard Total Stock Index and either the total Bond index or the Intermediate Bond Index. If this is in a taxable account and your tax rate is high, I might substitute the Intermediate Tax Exempt Bond fund for the other two.
When you discover that you are riding a dead horse, the best strategy is to dismount.
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David Jay
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Re: How would you invest 200k Right now?

Post by David Jay »

Welcome to the forum!
Scooterd wrote: Wed Jul 21, 2021 2:35 pm ...what would be a good allocation and funds.
Similar to what the first poster said:
1. Will these be in tax-advantaged accounts or in taxable accounts?
2. Do you have other retirement accounts (401K, IRA, 457, 403B, etc)? There are ways to optimize taxation with multiple account types.
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
Scooterd
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Re: How would you invest 200k Right now?

Post by Scooterd »

I have a pension in 5 years, social security 12 years, and this money. I have a Roth IRA too
Topic Author
Scooterd
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Re: How would you invest 200k Right now?

Post by Scooterd »

Sorry taxable account.
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ruralavalon
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Re: How would you invest 200k Right now?

Post by ruralavalon »

Welcome to the forum :) .


Scooterd wrote: Wed Jul 21, 2021 2:35 pm I am new to this forum. I was interested in an 80 20 % portfolio. If I had 200k to invest what would be a good allocation and funds.
Scooterd wrote: Wed Jul 21, 2021 3:35 pm I have a pension in 5 years, social security 12 years, and this money. I have a Roth IRA too
Scooterd wrote: Wed Jul 21, 2021 3:35 pm Sorry taxable account.
It would be best if you provide more information using this format: Asking Portfolio Questions.

Please simply add this to your original post using the edit button (the pencil icon near the upper right corner of your post), it helps a lot if all of your information is in one place.

In general in a taxable account it is better to use only very tax-efficient stock index funds or stock index exchange traded funds (ETFs). Wiki article "Tax-efficient Fund Placement", link. Examples include (1) Vanguard Total Stock Market Index Fund (VTSAX) or the ETF share class (VTI), and (2) Vanguard Total International Stock Index Fund (VTIAX) or the ETF share class (VXUS).

In general it's better to hold your fixed income (bond) allocation in a tax-advantaged account such as your 401k, if a good credit quality bond fund with a low expense ratio or a Stable Value Fund paying good interest is offered.

In general it is best to make maximum annual contributions to all available tax-advantaged accounts as a priority ahead of investing in a taxable brokerage account. Wiki article "Prioritizing Investments", link.

It's often best to coordinate investments among all accounts treating all accounts together as a single unified, rather than treat each account separately. It is not necessary to hold all elements of the desired asset allocation in every account.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
JC Denton
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Re: How would you invest 200k Right now?

Post by JC Denton »

80% Total world Stock 20% TIPS
N.Y.Cab
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Re: How would you invest 200k Right now?

Post by N.Y.Cab »

1/3 Total Stock Market Index, 1/3 Total International Stock Index and 1/3 Wellesley would be my pick for 80:20.
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celia
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Re: How would you invest 200k Right now?

Post by celia »

It would depend on what you already own, the kind(s) of tax-advantaged accounts you have access to, your desired AA, and your goals.

What would be best for you would likely be different than for me or anyone else posting here.
A dollar in Roth is worth more than a dollar in a taxable account. A dollar in taxable is worth more than a dollar in a tax-deferred account.
JBTX
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Re: How would you invest 200k Right now?

Post by JBTX »

Are you still working? What tax bracket are you in? Is this $200k for future retirement, or to hold you over until pension? Do you have access to a 401k or 403b? To get the best answer it would be helpful to list your details as described in the recommended format. Those details may materially change the answers you get.

asking portfolio questions
Last edited by JBTX on Wed Jul 21, 2021 9:30 pm, edited 1 time in total.
Destiple
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Re: How would you invest 200k Right now?

Post by Destiple »

Scooterd wrote: Wed Jul 21, 2021 2:35 pm I am new to this forum. I was interested in an 80 20 % portfolio. If I had 200k to invest what would be a good allocation and funds.
How long do you plan to keep this invested ? Are you going to be withdrawing from it ?
Destiple
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Re: How would you invest 200k Right now?

Post by Destiple »

JC Denton wrote: Wed Jul 21, 2021 4:27 pm 80% Total world Stock 20% TIPS
How long would you hold the TIPS?
Trader Joe
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Re: How would you invest 200k Right now?

Post by Trader Joe »

"How would you invest 200k Right now?"

I would take that money right now and invest 100% in VTSAX.
JC Denton
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Re: How would you invest 200k Right now?

Post by JC Denton »

Destiple wrote: Wed Jul 21, 2021 9:29 pm
JC Denton wrote: Wed Jul 21, 2021 4:27 pm 80% Total world Stock 20% TIPS
How long would you hold the TIPS?
For 15 years. Frankly, I have no idea if it is a good investment, it just makes me feel like I won’t lose my savings to inflation which I probably will.
DB2
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Re: How would you invest 200k Right now?

Post by DB2 »

N.Y.Cab wrote: Wed Jul 21, 2021 5:03 pm 1/3 Total Stock Market Index, 1/3 Total International Stock Index and 1/3 Wellesley would be my pick for 80:20.
That is a very interesting approach!
Destiple
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Re: How would you invest 200k Right now?

Post by Destiple »

N.Y.Cab wrote: Wed Jul 21, 2021 5:03 pm 1/3 Total Stock Market Index, 1/3 Total International Stock Index and 1/3 Wellesley would be my pick for 80:20.
Which Wellesley fund is that ?
WhiteMaxima
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Re: How would you invest 200k Right now?

Post by WhiteMaxima »

Lump sum into VSTAX , VTI or VT and forget it. Throw monthly statement into trash can. Turn off TV and news. 20-30 years when you are ready to retire, open your Vanguard statement. That's what Jack Bogle told us to do.
Topic Author
Scooterd
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Joined: Wed Jul 21, 2021 2:30 pm

Re: How would you invest 200k Right now?

Post by Scooterd »

So you recommend 160 k in VSTAX and 40 k in one of the bond funds and forget about it for 10 years when I retire?

My pension will be about 40 k a year and social security 2 k a month so I'm really looking for 200 k to grow over the next decade. When I contribute monthly or quarterly do I follow same ruke? For example if I add 3 k a quarter should I put 2 400 in index and 600 in bond fund.
Topic Author
Scooterd
Posts: 7
Joined: Wed Jul 21, 2021 2:30 pm

Re: How would you invest 200k Right now?

Post by Scooterd »

So you recommend 160 k in VSTAX and 40 k in one of the bond funds and forget about it for 10 years when I retire?

My pension will be about 40 k a year and social security 2 k a month so I'm really looking for 200 k to grow over the next decade. When I contribute monthly or quarterly do I follow same ruke? For example if I add 3 k a quarter should I put 2 400 in index and 600 in bond fund.
wootwoot
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Re: How would you invest 200k Right now?

Post by wootwoot »

Vtsax and chill
pasadena
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Re: How would you invest 200k Right now?

Post by pasadena »

Scooterd wrote: Thu Jul 22, 2021 9:18 pm So you recommend 160 k in VSTAX and 40 k in one of the bond funds and forget about it for 10 years when I retire?

My pension will be about 40 k a year and social security 2 k a month so I'm really looking for 200 k to grow over the next decade. When I contribute monthly or quarterly do I follow same ruke? For example if I add 3 k a quarter should I put 2 400 in index and 600 in bond fund.
That's basically it. But the devil being in the details... what's your tax bracket (fed and state)? What do you have in your Roth IRA?
Topic Author
Scooterd
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Re: How would you invest 200k Right now?

Post by Scooterd »

I have 10 k in a Roth. I have 72 k in a regular account. I have individual stocks worth 72 K. That portfolio has Att apple Comcast ExxonMobil and Disney. My tax bracket is federal 22 % state 6.3 7 %.

When I retire in 10 years I will have a pension and social security that will pay approximately 5400 hundred a month. I want the two hundred k to help me build wealth over the next 10 years then live off all three sources of income.

Again I am a novice so I am scared to put it all in one fund but I do want to be aggressive. Also is there an advantage to waiting until the market corrects
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ruralavalon
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Re: How would you invest 200k Right now?

Post by ruralavalon »

Scooterd wrote: Wed Jul 21, 2021 2:35 pm I am new to this forum. I was interested in an 80 20 % portfolio. If I had 200k to invest what would be a good allocation and funds.
Scooterd wrote: Wed Jul 21, 2021 3:35 pm I have a pension in 5 years, social security 12 years, and this money. I have a Roth IRA too
Scooterd wrote: Wed Jul 21, 2021 3:35 pm Sorry taxable account.
Scooterd wrote: Thu Jul 22, 2021 9:18 pm So you recommend 160 k in VSTAX and 40 k in one of the bond funds and forget about it for 10 years when I retire?

My pension will be about 40 k a year and social security 2 k a month so I'm really looking for 200 k to grow over the next decade. When I contribute monthly or quarterly do I follow same ruke? For example if I add 3 k a quarter should I put 2 400 in index and 600 in bond fund.
Scooterd wrote: Fri Jul 23, 2021 9:25 am I have 10 k in a Roth. I have 72 k in a regular account. I have individual stocks worth 72 K. That portfolio has Att apple Comcast ExxonMobil and Disney. My tax bracket is federal 22 % state 6.3 7 %.

When I retire in 10 years I will have a pension and social security that will pay approximately 5400 hundred a month. I want the two hundred k to help me build wealth over the next 10 years then live off all three sources of income.

Again I am a novice so I am scared to put it all in one fund but I do want to be aggressive. Also is there an advantage to waiting until the market corrects
Seriously, it would be best if you provide more information using this format: Asking Portfolio Questions.

Incomplete information will lead to poor suggestions and a bad decision for you.

Please simply add this to your original post using the edit button (the pencil icon In the upper right corner of your post), it helps a lot if all of your information is in one place rather than scattered around in several different posts.

Here are calculators you can use to assess the range of possible outcomes at different levels of contributions:
1) www.firecalc.com; and
2) www.i-orp.com.

The most important investing decision you can make is to establish a high rate of contributions. Forum discussion, link.

So far you have said nothing about your annual rate of contributions.

Is there a plan offered at work such as a 401k, 403b, 457b, SIMPLE IRA, SEP IRA or TSP? If so is there an employer match offered? Do you make contributions, and if so how much? What funds are offered in the plan? Please give fund names, tickers and expense ratios.

At your tax rate ("federal 22 % state 6.3 7 %") It is very important to make good use of all available tax-advantaged accounts.

It is often important to coordinate investments among all accounts treating all accounts together as a single unified portfolio, rather than treat each account separately.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
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galawdawg
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Re: How would you invest 200k Right now?

Post by galawdawg »

Welcome to Bogleheads!

As others have suggested, for informed guidance it is preferred that you post in this format: Asking Portfolio Questions. Otherwise, the responses you receive may be less than ideal and may even recommend unwise approaches.

Take, for example, one of the considerations that you haven't mentioned: Is that $200k currently invested? If so, that makes posting in the Asking Portfolio Questions format even more important as changing how that $200k is currently invested would likely result in tax liability, possibly significant tax liability, since you mention that it will be in a taxable account. That consideration, if it exists, should be addressed.
Vanguard User
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Re: How would you invest 200k Right now?

Post by Vanguard User »

In my situation VTSAX and chill.
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Moondawg
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Re: How would you invest 200k Right now?

Post by Moondawg »

I would look at my IPS and then allocate accordingly.
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