How to invest 100K

With all that, you actually NEED some risk in your next investments.

Do you think stock is risky?

Assuming I had a good amount stashed away in a 401(k) and Roth IRA (and would keep contributing to those), I would put the $100k in VASGX and let it sit.

fasdfasddfsa wrote:

Assuming I had a good amount stashed away in a 401(k) and Roth IRA (and would keep contributing to those), I would put the $100k in VASGX and let it sit.

Not a bad idea.

I would do something just a bit different:

VSIAX: $50k

VEMAX: $50k

Maximize your exposure to small value stocks and emerging markets - highest risk/reward points.

Another Lack of Data Point wrote:

fasdfasddfsa wrote:

Assuming I had a good amount stashed away in a 401(k) and Roth IRA (and would keep contributing to those), I would put the $100k in VASGX and let it sit.

Not a bad idea.

I would do something just a bit different:

VSIAX: $50k

VEMAX: $50k

Maximize your exposure to small value stocks and emerging markets - highest risk/reward points.

Good suggestion, too.

check out

https://www.wealthfront.com/our-beliefs

with 100k you can utilize Tax-Loss Harvesting which will yield higher then a typical passive low cost index fund.

you can take a quiz to help understand your risk tolerance.

I woke up in a bad mood. Sorry.

I a little annoyed because lately I'm either getting people who are trying to hurt my business or/and me and I'm getting some advice that isn't great. Whatever. I'm at that point where I know how important it is to think for myself. I'm grateful that I'm at the point where I'm doing something worth talking about and that I have haters. You haven't done anything great until you have haters and copycats.

And it's not that I wouldn't have dated AO. I wasn't leading you on because I would have gone on a date with you. But I just have so many husbands. It's overwhelming to even think of adding another one.

You're just jealous that I didn't consider you

we actually had a scenario like this a few years back. my strategy was to split it into $25k increments, go vanguard and look at the 10 year profiles of several mutual funds and find 4 that opposite earning patterns i.e. when one was on the upswing, one was on the downswing. I put in $25k each into these.

there have been some rough years but it's now doubled.

jealous wrote:

You're just jealous that I didn't consider you

Truth :(

BigToes wrote:

we actually had a scenario like this a few years back. my strategy was to split it into $25k increments, go vanguard and look at the 10 year profiles of several mutual funds and find 4 that opposite earning patterns i.e. when one was on the upswing, one was on the downswing. I put in $25k each into these.

there have been some rough years but it's now doubled.

That sounds very sensible.

zdft67 wrote:

With all that, you actually NEED some risk in your next investments.

Do you think stock is risky?

Back when the tech bubble burst, we lost money on some smaller investments because they were too tech heavy even though they were diversified in various techs. Of course, all tech went down. And then we needed the money a few years later and had to settle for a loss on that. Now we're gun shy of stocks. Mutual funds or a general index fund seem safer, but I'm not sure they would provide as much of a return.

know nothing of investing wrote:

zdft67 wrote:

With all that, you actually NEED some risk in your next investments.

Do you think stock is risky?

Back when the tech bubble burst, we lost money on some smaller investments because they were too tech heavy even though they were diversified in various techs. Of course, all tech went down. And then we needed the money a few years later and had to settle for a loss on that. Now we're gun shy of stocks. Mutual funds or a general index fund seem safer, but I'm not sure they would provide as much of a return.

That's like saying you're afraid of poodles because a pit bull bit you. Not all stocks are created equal. Mutual and index funds invest in...wait for it...stocks! And they're not all created equal either.

just blow it all on hats

I use Wise Banyan, they allocate it based on a risk tolerance quiz, but you can change based on your preference. I'm currently at 90% ETFs, and 10% bonds. They don't charge fees (not even for deposit, transfers), so the only fees are the ETF fees, which vary from 0.1-0.5%.

They use an updated version of modern portfolio theory to allocate based on your risk preference. Information here:

https://wisebanyan.com/faq/investment-overview/wisebanyan-investment-strategy

They're in beta testing right now, so you need to sign up and wait a few weeks.

Give it to me or buy 2 properties and rent them out.

Divide it evenly.

$50K in HKRS

$50K in BLW

Google the Gone Fishin Portfolio. Takes about 15 minutes to set up and you rebalance annually. Nothing else.

passive lazy investor wrote:

check out

https://www.wealthfront.com/our-beliefs

with 100k you can utilize Tax-Loss Harvesting which will yield higher then a typical passive low cost index fund.

you can take a quiz to help understand your risk tolerance.

I second Wealthfront.

I used to do my own investing, but I started earning more money doing other things. Wealthfront was the answer. Just deposit your money and forget about it.

Assuming you have no need for the cash for quite some time, here is what I would do.

Put it in two funds at Vanguard. One should be a US broad based index fund and one a foreign broad based index fund. Probably 2/3rds of it in the US one.

Then, go to your 401K and tweak your allocation there towards bonds a little.

The reason is bonds are relatively tax inefficient, so hold those in your tax-deferred space.

This is in essence what I do. 3-fund portfolio across all retirement money, but get the bonds in the tax deferred part if you can.

You won't make 8-10% with this, but you'll do well taking moderate risk. I'd guess you'll do 5-7% long term.