Hi all,
I have about $75k that I have been simply hoarding in EmigrantDirect. And about $40k collecting dust in an IRA. Being that I am 29 years old, I should probably allocate this a little smarter then I am currently doing. I am pretty skilled as far as divying it up into the correct allocations, (probably use either a Bernstein/CoffeeHouse approach) but I'm not sure as to how to go about it.
I am worried that the markets in general are outpacing their value, especially in the US and emerging markets, so I have been leery to simply allocate 100% immediately. But I have felt this way for the past 2 years and I am still sitting on all this cash and ratcheting up the time-risk
So, should I simply take my allocation, and do 1 transaction like tomorrow, and allocate it all into some ETFs? Or do you recommend dividing the amounts into say 1-2 years and incrementally adding to no-transaction-fee no-load mutual funds (at TD Waterhouse, kinda a crappy selection) then after the 100% is invested, sell off the funds, and move it into the ETFs? I do realize that this might be an expensive tax issue to simply sell it, so perhaps more of a slowly phase out the losers into ETFs in the taxable accounts? The tax-free could be flipped immediately as soon as 100%.
Any help greatly appreciated!
Thanks!
Olav
I have about $75k that I have been simply hoarding in EmigrantDirect. And about $40k collecting dust in an IRA. Being that I am 29 years old, I should probably allocate this a little smarter then I am currently doing. I am pretty skilled as far as divying it up into the correct allocations, (probably use either a Bernstein/CoffeeHouse approach) but I'm not sure as to how to go about it.
I am worried that the markets in general are outpacing their value, especially in the US and emerging markets, so I have been leery to simply allocate 100% immediately. But I have felt this way for the past 2 years and I am still sitting on all this cash and ratcheting up the time-risk
So, should I simply take my allocation, and do 1 transaction like tomorrow, and allocate it all into some ETFs? Or do you recommend dividing the amounts into say 1-2 years and incrementally adding to no-transaction-fee no-load mutual funds (at TD Waterhouse, kinda a crappy selection) then after the 100% is invested, sell off the funds, and move it into the ETFs? I do realize that this might be an expensive tax issue to simply sell it, so perhaps more of a slowly phase out the losers into ETFs in the taxable accounts? The tax-free could be flipped immediately as soon as 100%.
Any help greatly appreciated!
Thanks!
Olav