Investing $80K

[datuck]

Hi all. We've got $80K that we want to invest in either a vguard or fidelity fund. Nothing too volatile. It's just a stash that has no purpose other than as a secondary/emergency amount that we don't the need to access, so more a set it and forget kind of thing... Thoughts?


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[Sojourner]

You say "emergency account", which makes me think you'd want to use it for any large unexpected expenses that might crop up. If that's true, I'd put it in something very safe that would be relatively immune to market drops. Perhaps Vanguard Wellesley (VWINX), which is roughly 70% bonds and 30% equities? If, on the other hand, you don't expect to need to tap into it for a long time and just want to maximize returns, you probably want to consider funds with more of a "large equities" tilt like an S&P500 fund (VFINX) or Vanguard Wellington (VWELX).

These are just some general ideas based on the info provided. Would need to know more specifics about your overall situation and goals to give a more fine-tuned answer.

 

[eta2020]

VTI or SCHB

 

[Sunset]

VTI or SCHB

+1 on the VTI , as long as its not an emergency fund.

If it really is your emergency fund then 2% cashable 5yr CD's so you know the money is all then when needed.

 

[datuck]

Thanks for the advice everyone. We have a cash cushion account in place so this is more like a secondary account that we might need to access not long term, more mid term... I was just wanting to get a general idea of what you smart people thought!


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[folivier]

Take a trip or buy something you've wanted for a long time. You may not get a chance to do so later....

 

[Taxman59]

My sister has an IRA that was from her deferred comp plan. It is about $80k, and she is planning on using part of it in about 5-7 years for a trip to Paris (she is 60 now, so no early withdrawal penalties). The Edward Jones advisor is recommending a portfolio of 22 mutual funds!! The expenses aren't horrible (weighted average of 59bps), but when you add the EJ fee and the "administrative expense" that total 1.44%, the total cost is over 2%! He also is trying to get my BIL to start an IRA with $15 per paycheck. That's $390 of contributions per year with a minimum fee of $10 per month!

I am going to have her set up a Vanguard account for her IRA and buy a single fund (maybe 2). I think that vanguard 500 index (VFIAX) for her IRA, and have BIL just up his contribution to the Deferred Comp plan ($10-15 per paycheck isn't worth the trouble to open another account). Any thoughts?

The next project for them is to look at the life insurance proposals!

 

[travelover]

...........The Edward Jones advisor is recommending a portfolio of 22 mutual funds!! The expenses aren't horrible (weighted average of 59bps), but when you add the EJ fee and the "administrative expense" that total 1.44%, the total cost is over 2%! He also is trying to get my BIL to start an IRA with $15 per paycheck. That's $390 of contributions per year with a minimum fee of $10 per month!............

Well, aren't you the nitpicker. You do realize that Vanguard doesn't even send you a birthday card?

 

[target2019]

Hi all. We've got $80K that we want to invest in either a vguard or fidelity fund. Nothing too volatile. It's just a stash that has no purpose other than as a secondary/emergency amount that we don't the need to access, so more a set it and forget kind of thing... Thoughts?

First thought is to put it into a long term muni. For example we use VNJTX long term NJ. The dividends it throws off are Fed and State tax-free.

 

[perrytime]

looking at almost 7 year performance chart, VMLTX is very stable, 25% total return.
PONDX, pretty stable. 115% return, VWINX, pretty stable, 85% return.
Pondx is my choice.

 

[Beldar]

Take a trip or buy something you've wanted for a long time. You may not get a chance to do so later....

Great idea if the whole amount isn't critical. I can also set up a Go Fund Me account to ease your pain

_B