Join Early Retirement Today
Reply
 
Thread Tools Display Modes
55 Divorced Female Investment Advise Needed!
Old 02-04-2016, 02:38 PM   #1
Dryer sheet aficionado
 
Join Date: Apr 2014
Posts: 28
55 Divorced Female Investment Advise Needed!

55 Single divorced Female looking to start investing with 10 year time horizon. $350k cash....small 401k and just started a Roth. No pension and a limited SS history. Given the complex nature of this market....how would you suggest I start to put some of my savings to work given my 10 year horizon. Was thinking of putting 100k to work. Do I dollar cost average over the next 12 months?
As for investments I was thinking of one of the following:
3 Fund Lazy Portfolio
Schwab Intelligent Portfolio
Target 2025 Retirement Fund
Wellington Fund

I was thinking a 40/60 AA. Your thoughts?




Sent from my iPad
macav933 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-04-2016, 02:45 PM   #2
Thinks s/he gets paid by the post
2017ish's Avatar
 
Join Date: Apr 2012
Location: Nashville
Posts: 2,504
Tangent: You say limited SS history. Were you married for 10 years (and, what type of SS history does ex have)? You may be better off than you think, assuming no remarriage on your part.
__________________
OMY * 3 2ish Done 7.28.17
2017ish is offline   Reply With Quote
Old 02-04-2016, 02:55 PM   #3
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,290
Following the KISS principle, 3 fund lazy portfolio with at least a 50/50 AA but since you have 10 years maybe 60/40 or 70/30 if you can leave it alone when volatility rears it's ugly head.

Or the target fund.
__________________
When I was a kid I wanted to be older. This is not what I expected.
Walt34 is offline   Reply With Quote
Old 02-04-2016, 02:58 PM   #4
Thinks s/he gets paid by the post
mpeirce's Avatar
 
Join Date: Feb 2012
Location: Northern Ohio
Posts: 3,181
If you are really not going to touch the money for 10 years I'd be putting almost all of it to work in the market right away. Then, maybe at year 5 start gradually shifting the AA out of stocks.

What makes you consider only "putting to work" less than a third of you assets?

Dollar cost averaging over a year is fine. I'd personally do it in 6 months. That's plenty long.

But then I'm pretty aggressively pro stocks.
mpeirce is offline   Reply With Quote
Old 02-04-2016, 03:04 PM   #5
Dryer sheet aficionado
 
Join Date: Apr 2014
Posts: 28
This volatility scares me if I were to dump all or large sums in at once...thus was thinking DCA over the next 12 months...if things turn really ugly I could always dump more in to shorten that timeline......does that make sense?
macav933 is offline   Reply With Quote
Old 02-04-2016, 03:18 PM   #6
Thinks s/he gets paid by the post
mpeirce's Avatar
 
Join Date: Feb 2012
Location: Northern Ohio
Posts: 3,181
Even if the market tanks this year, you have 10 years to recover and then some.

On the other hand, you do say "volatility scares me", so if you are someone who would panic and sell if the market spikes down, then maybe putting everything into like the Wellington fund (like you mentioned) would be wiser for you.

Also, I'm assuming your "10 year time horizon" means that that after 10 years you will start tapping into it, not spend it all right then. So for most of your money, that horizon if even further off.
mpeirce is offline   Reply With Quote
Old 02-07-2016, 08:33 AM   #7
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,872
Quote:
Originally Posted by 2017ish View Post
Tangent: You say limited SS history. Were you married for 10 years (and, what type of SS history does ex have)? You may be better off than you think, assuming no remarriage on your part.
Yes that was my immediate thought as well. The OP should double check the SS benefit she will get.

With $350k and what sounds like a sensible approach the OP is starting out well.

I would put more than "$100k to work". I would open a Vanguard account and set up a lazy 3 fund portfolio of Total Stock Market, Total Bond Market and Total International. Now is as good a time as any to invest your money. I would also look at using some money to buy real estate if you don't already own a home.
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun is offline   Reply With Quote
Old 02-07-2016, 09:28 AM   #8
gone traveling
 
Join Date: Jun 2015
Location: seattle/dahlonega
Posts: 77
Quote:
Originally Posted by macav933 View Post
This volatility scares me if I were to dump all or large sums in at once...thus was thinking DCA over the next 12 months...if things turn really ugly I could always dump more in to shorten that timeline......does that make sense?
Makes total sense.
Dont listen to the gamblers.
hurricane harry is offline   Reply With Quote
Old 02-07-2016, 09:55 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,204
Quote:
Originally Posted by macav933 View Post
55 Single divorced Female looking to start investing with 10 year time horizon. $350k cash....small 401k and just started a Roth. No pension and a limited SS history. Given the complex nature of this market....how would you suggest I start to put some of my savings to work given my 10 year horizon. Was thinking of putting 100k to work. Do I dollar cost average over the next 12 months?
As for investments I was thinking of one of the following:
3 Fund Lazy Portfolio
Schwab Intelligent Portfolio
Target 2025 Retirement Fund
Wellington Fund

I was thinking a 40/60 AA. Your thoughts?...
A 40/60 AA would be more Wellesley than Wellington. Why put only $100k to work if you have $350k in cash?

In any event, I would value average in whatever you want to invest over a stated period. For example, if you wanted to invest $100k over 10 months, invest $10k to begin. A month later add whatever you need to to bring your balance to $20k.A month later add whatever you need to to bring your balance to $30k. Repeat until the $100k is invested. You'll end up investing more when the markets are relatively lower and less when they are relatively higher. Slightly better than DCA, which would be a simple $10k a month.

On volatility.... just don't look and volatility will not bother you a bit.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56
pb4uski is offline   Reply With Quote
Old 02-07-2016, 12:32 PM   #10
Thinks s/he gets paid by the post
DrRoy's Avatar
 
Join Date: Dec 2015
Location: Michigan
Posts: 4,939
40% of your $350K would be $140K for equities. Not too much for you. I would use 3 lazy index funds, and Vanguard would be a fine place due to low fees, or Fidelity. On the DCA, go with the shortest period you can stand, perhaps 6-10 months.
__________________
"The mountains are calling, and I must go." John Muir
DrRoy is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Just thinking about a new investment plan. Please Advise gbstack FIRE and Money 18 08-25-2013 04:14 PM
51 / Male / Single (Divorced)...and getting closer... Nick59 Hi, I am... 5 09-05-2010 08:46 AM
Int'l Phone cards over the internet? Advise Needed dex Travel Information 12 08-06-2008 03:08 AM
Recently Divorced - Need Advice cpolashenski Young Dreamers 14 06-20-2007 12:17 AM
Divorced women - why? SecondCor521 Other topics 33 04-05-2007 12:35 AM

» Quick Links

 
All times are GMT -6. The time now is 04:27 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.