If I had 100k

OldShooter said:
I have $100k. It is part of my AA and invested accordingly. There is no such thing as an "extra" $100k.
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Agreed. I would put it in VWENX, where most of our money sits now.
 
Slim11 said:
You all have to realize that while I Fired, I had no idea what that was 2 years ago. I have only been on this site or looking for investment advice 1 year ago? I don't know terms and didn't work twords fire. I saved, and saved and invested by myself for years and my job merged and cut my pay. So I retired at 49 with a little money and a giod pension. After that I got an inheradance , unexpectedly. So forgive me if I don't know terms, and some investment stuff that you all followed for years. I kinda was forced fired, but was prepared for it.
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So before you do anything, invest your time in learning a bit more. You've got the resources here to study and understand the best way for you, for now.

For many of us it just means layering on extra funds into existing investments, but you don't seem to have many, so you would do well to increase your education there.
 
VTSAX or FXAIX and chill.

Those are US market index funds, at Vanguard and Fidelity, respectively. They perform about how the stock market does, they're considered the simplest, most efficient way to have your gains (and losses) match the market.
 
I’d put the $100,000 into JAAA paying 6.43%, as a holding place until we purchase a home for two family members who will be moving from Florida to near us in a few years. They will need a small home that is accessible for a wheelchair.
 
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I agree with Audreyh1. Since you are retired, you should keep your overall AA approximately the same - no big changes. If you have brokered CD’s coming due at Fidelity, the money will go into your default Money Market fund, which is currently paying 4.59% and has been slowly dropping since the last Fed rate cut two weeks ago. You don’t have to do anything right now. You could reinvest in 6 month or 12 month CD, which are paying 4.40 and 4.10%.

In my opinion, one of the hardest things to do is stay the course and not change your investments based on what the market is doing.
 
Slim11 said:
I am hoping you mean real estate? But your response is less then helpful, but glad your having fun with it. 100k dosen't buy a lot of dirt land now a days.
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Trust me on this one. When street says to buy dirt/land he practices what he preaches!
 
When it comes to investing: What is obvious and logical to one person is absurd and dumb to another. This is simply because everyone has a different risk appetite and mental makeup. So the right questions to ask are: What is my financial goal and horizon (time period)? Which investments makes sense to me so I can sleep well at night and not panic when a given investment invariably tanks in price momentarily?

Generally, risky investments have a larger returns over time. Here is my understanding of risk vs reward progression of various investments (YMMV): CD -> Bond -> Equity -> Residential RE -> Land -> Commercial RE -> Private business -> Private Equity-> VC -> <List I don't know>

Factors that impact investment selection: Asset base (Networth), Burn rate (spending), Current earned income saving rate, Time when you plan to stop working, mental makeup, etc. e.g. A larger net worth and a smaller burn rate can allow you be more risky and earn more from investments. But on the flip side, the same risk can wipe you out if you have a small net worth and a large spending. It is actually counter intuitive. There is something to be said about why "rich gets richer" or "it takes money to make money".

In my younger days, I used to ask questions like these, chased a next shiny thing, and lost a lot of money in the process. Now a days, all our investments are diversified (according to a pre-defined asset allocation) in equity, RE, land, and private equity. We have a small burn rate and inter-generational time horizon so we can be risky and skip bonds/CDs all together. YMMV.
 
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Depends on your financial situation and age. For me, I'd put $10,000 in checking to BTD. I'd put $30,000 in treasuries. I'd put $30,000 in Vanguard Tax Managed mutual fund and $30,000 in S&P 500 mutual fund.
 
I would buy passively managed index fund. Something like already suggested FXAIX. Assuming these are taxable money.
FSLEX mentioned earlier here is fine but it underperform S&P500 in a long run and it has higher expense ratio.
 
Aerides said:
So before you do anything, invest your time in learning a bit more. You've got the resources here to study and understand the best way for you, for now.

For many of us it just means layering on extra funds into existing investments, but you don't seem to have many, so you would do well to increase your education there.
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I do have a lot of different investments, but I really never strayed to far from safe. I am thinking I am holding too much in CDs ( and cash). So right now it's like 50% stock ( 20 % of that in the snp) and 50 in cds. I am 51 and think I need some more growth funds. I may just split it up into a few funds, provided I dont own them allready.
 
I would buy VTI/VXUS/BND according to my AA. My investing is boring.

Now if I could just blow it, I would by a 4runner with some really nice add-ons. Then things would not be so boring.
 
If this was money needed for my retirement, I would invest according to my plan and asset allocation, which is about 70/30.
If it truly was "fun" money, I would probably gift to my kids, send some to my chosen charities, take a great trip and maybe put a little aside for more fun later!
 
Most of it will probably go to the kido when they are older. A new toy would be nice, but not needed now. And at 50, I have k own idea what will be needed in the future.
 
Slim11 said:
Don't know what part of my AA is? Sorry. Self learned and don't know the acronyms. It's extra as it's coming due from CDs. So its capital that isn't invested. To me that's extra?
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I've been on the forum for 10 years and there are always new acronyms to learn. This is from an old thread in the E-R FAQs Sticky Threads-a list of acronyms!

* Acronyms, abbreviations and Slang Frequently Used on the Forum *

Standard Acronyms and Abbreviations You May Find on the Forum This list will only grow if you submit acronyms you use or that need defining. I will up date this message, adding new acronyms as they are submitted to the list. It is always better to use the full words, but we know how much...
www.early-retirement.org www.early-retirement.org
 
Stocks are historically very expensive by some measures, including S&P Shiller P/E (price divided by average of prior 10 years earnings is currently 37.38) and S&P 500 Price to Book value (currently 5.21 which is the highest it's been for at least 25 years).

Not to say stocks can't get even more expensive, they absolutely can. However it's not an ideal time to put new money to work from a valuation standpoint.

So my vote would be to either leave it parked in money market for another 6 to 12 months or leave half in money market and put the other half in BND.

And regarding buying O (Realty Income) it is a real estate investment trust, so beware of tax treatment. REIT investors receive dividends taxed as ordinary income at their marginal tax rates rather than taxed at qualified dividend rates.
 
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Slim11 said:
I do have a lot of different investments, but I really never strayed to far from safe. I am thinking I am holding too much in CDs ( and cash). So right now it's like 50% stock ( 20 % of that in the snp) and 50 in cds. I am 51 and think I need some more growth funds. I may just split it up into a few funds, provided I dont own them allready.
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@Slim11, I apologize for the terseness of my post #14. I didn't realize where you were on your investing journey.

First point, amplified, is that money is fungible. Dollar bills don't come marked with where they came from. So it doesn't matter a whit whether that $100K came to you because some CDs matured or it fell from the sky one day. Like it or not, it is part of your investment portfolio and you should manage it the same way you manage your other investments. The example that Richard Thaler (who basically invented behavioral finance) is "house money" at a casino. A gambler comes in with a stake, proceeds to win a bit, then puts the stake in his pocket and proceeds to gamble with the gains. The gains are "house money" and he is willing to be more aggressive as a result. Richard Thaler on house money: " ... the fact that some of your money has been made recently should not diminish the sense of loss if that money goes up in smoke."

Second point, reacting to your post, is that you should not charge off simultaneously in all directions just because you have this $100K. Specifically, buying a bunch of actively managed funds is very unlikely to produce a good result. We have about 60 years of history that shows this. Before you make another investing move, I strongly suggest that you read this book: "The Coffee House Investor" by Bill Schultheis Amazon.com (This is Bill's first book; read it before reading his second one.) Bill also sells advisory services but IMO the book is really enough.
 
I’m still in the experimental phase for my fixed income allocation. I would do buy-write ITM calls that expire in about a month on a few favorite stocks and ETFs that seem fairly safe.. more recently WMT and XLE, which I wouldn’t mind owning if they don’t get called. I’m okay with 12-13% returns. SPY and VTI too but I’d get lower returns.
 
OldShooter said:
@Slim11, I apologize for the terseness of my post #14. I didn't realize where you were on your investing journey.

First point, amplified, is that money is fungible. Dollar bills don't come marked with where they came from. So it doesn't matter a whit whether that $100K came to you because some CDs matured or it fell from the sky one day. Like it or not, it is part of your investment portfolio and you should manage it the same way you manage your other investments. The example that Richard Thaler (who basically invented behavioral finance) is "house money" at a casino. A gambler comes in with a stake, proceeds to win a bit, then puts the stake in his pocket and proceeds to gamble with the gains. The gains are "house money" and he is willing to be more aggressive as a result. Richard Thaler on house money: " ... the fact that some of your money has been made recently should not diminish the sense of loss if that money goes up in smoke."

Second point, reacting to your post, is that you should not charge off simultaneously in all directions just because you have this $100K. Specifically, buying a bunch of actively managed funds is very unlikely to produce a good result. We have about 60 years of history that shows this. Before you make another investing move, I strongly suggest that you read this book: "The Coffee House Investor" by Bill Schultheis Amazon.com (This is Bill's first book; read it before reading his second one.) Bill also sells advisory services but IMO the book is really enough.
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I get it. The main thing is I really dont have a plan, or not a set one that I would call thought out. So, it takes time. If say I had a million in CDs and 1 million in stocks am I holding too much cash? And I do think the market may not make great gains, but I really dont see it slowing anytime soon. Especially since most people are only offered matching 401 ks at work. Every 2 weeks people are adding money to the market, because they only have mutual funds or etfs in the compony plans to invest in. I think going forward we will see diffrent trends for the markets making the past obsolete.
 
Clearly you need to figure out your long term financial goals/priorities and from that a plan. Otherwise it’s pretty much impossible to make reasonably optimal investing decisions. This is not something just to play by ear. You certainly have plenty of time to park funds in short-term safe investments while developing such a plan.
 
Your right. I really dont have a plan. The only plan is I may need to draw down some of the money in 6 , 8 years for collage and a new vehical. My pension kinda of covers the expenses and will continue to do that for a bit. I guess because I didn't need it now, I look at it differently.
 
Slim11 said:
Your right. I really dont have a plan. The only plan is I may need to draw down some of the money in 6 , 8 years for collage and a new vehical. My pension kinda of covers the expenses and will continue to do that for a bit. I guess because I didn't need it now, I look at it differently.
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You may just turn over 100% or 75% over to Fidelity instead of just 25% since you said that they have been outperforming your own. Obviously, with CDs, it will typically lag the stock market.
 
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