Gerbil Wheel
Recycles dryer sheets
- Joined
- May 1, 2010
- Messages
- 83
I am age 42, own a rental home (8 yrs. left on the note), currently rent where I live now, have approx. $115k in a Roth IRA, $70k in a traditional IRA (80% equity index/20% bond index combined) and $7k in current employer’s 401(k). I am in the 28% marginal federal tax bracket.
I also have some “chicken money” that I have been skittish to invest (now up to $75k thanks to a recent gift) …but I want to get it invested now. I am adding about $1,500 per month to this.
IMO pessimism is your friend…the current doom and gloom environment tells me that this is a good time to invest.
I am the kind of person that dislikes complexity. When I do investment research, I tend to get choice overload and analysis paralysis. I often end up winging it using indexing, which I am doing in my IRAs (and about to do again here!).
I want things to run (as close as possible) on autopilot so I don’t have to make frequent decisions about changing investments. Some people say the “set it and forget it” days are over, that we are in a new environment…but people also used to talk about the “new economy” in the late 90s, so I think pessimism and optimism can each run to extremes.
I don’t want to pay an advisor 1% of my money…well, not yet anyway, not until later in my accumulation phase, when with several hundred thousand dollars I can expect (?) to get better service as a larger client and at which time I will be less inclined to self-manage my investments.
I am thinking about dropping $5,000 into each of these iShares ETFs ($60,000 total) on a market dip. No dollar cost averaging, just doing it. I can buy these commission-free with Fidelity, where I have my accounts. This is money I could keep in these investments for 5 to 8 years. I will keep about $15-$20k in emergency fund at all times.
What do you think about this investment strategy?
Also do you think about paying a fee-only advisor for their insight as an alternative to this?
Equity
IWV – Russell 3000
IWB – Russell 1000
ACWX – MSCI All World Ex-US
EFA – MSCI Euro, Austrl, Far East
IJH – Mid-Cap 400
IJR – Small-Cap 600
Fixed Income
AGG – Barclay’s Aggregate Bond
IGOV – International Treasury
TIP – Barclay’s TIPs
SHV – Barclay’s ST Treasury
ICF – Cohen & Steer’s Realty Majors (REITs)
HYG – High Yield Corporate Bond
Thanks
Gerbil Wheel
I also have some “chicken money” that I have been skittish to invest (now up to $75k thanks to a recent gift) …but I want to get it invested now. I am adding about $1,500 per month to this.
IMO pessimism is your friend…the current doom and gloom environment tells me that this is a good time to invest.
I am the kind of person that dislikes complexity. When I do investment research, I tend to get choice overload and analysis paralysis. I often end up winging it using indexing, which I am doing in my IRAs (and about to do again here!).
I want things to run (as close as possible) on autopilot so I don’t have to make frequent decisions about changing investments. Some people say the “set it and forget it” days are over, that we are in a new environment…but people also used to talk about the “new economy” in the late 90s, so I think pessimism and optimism can each run to extremes.
I don’t want to pay an advisor 1% of my money…well, not yet anyway, not until later in my accumulation phase, when with several hundred thousand dollars I can expect (?) to get better service as a larger client and at which time I will be less inclined to self-manage my investments.
I am thinking about dropping $5,000 into each of these iShares ETFs ($60,000 total) on a market dip. No dollar cost averaging, just doing it. I can buy these commission-free with Fidelity, where I have my accounts. This is money I could keep in these investments for 5 to 8 years. I will keep about $15-$20k in emergency fund at all times.
What do you think about this investment strategy?
Also do you think about paying a fee-only advisor for their insight as an alternative to this?
Equity
IWV – Russell 3000
IWB – Russell 1000
ACWX – MSCI All World Ex-US
EFA – MSCI Euro, Austrl, Far East
IJH – Mid-Cap 400
IJR – Small-Cap 600
Fixed Income
AGG – Barclay’s Aggregate Bond
IGOV – International Treasury
TIP – Barclay’s TIPs
SHV – Barclay’s ST Treasury
ICF – Cohen & Steer’s Realty Majors (REITs)
HYG – High Yield Corporate Bond
Thanks
Gerbil Wheel