How to invest 100K?

[akaykay]

Hi all,

Ok, so let's say you have 100K to invest today? Let's disregard paying off mortgage at this time because it will be paid off in <7 years and interest rate is low anyways. And let's say for example you're already maxing out 401k, Roth IRA, and HSA.

How would you invest that 100k, and specifically how to invest it in Vanguard?

Thanks for any input in advance

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[Lnsean]

Hi all,

Ok, so let's say you have 100K to invest today? Let's disregard paying off mortgage at this time because it will be paid off in <7 years and interest rate is low anyways. And let's say for example you're already maxing out 401k, Roth IRA, and HSA.

How would you invest that 100k, and specifically how to invest it in Vanguard?

Thanks for any input in advance

Max out your roth contribution each and every year. Put everything in tech index and watch Elon Musk and Jeff Bezos take over the worlddddddddddddddddd.

 

[confettiflyer]

60% S&P 500 fund (VOO, VFIAX)
15% Int'l ex-US (VEU, VFWAX)
15% Extended market (VXD, VEXAX)
10% Small cap (value) index (for tilting, VB/VSMAX, VBR/VSIAX)

Or

Split that final 10% as 5% small cap tilting and 5% REIT, or a full 10% REIT.

Or

Reduce S&P 500 exposure by 10% and move it to international (or emerging markets, if you're feeling gutsy)


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[akaykay]

Max out your roth contribution each and every year. Put everything in tech index and watch Elon Musk and Jeff Bezos take over the worlddddddddddddddddd.

Maxing out Roth is only $5500/yr. I might put some in tech industry but not all...remember the tech bubble

 

[Rouelle]

Are you a Nigerian prince planning to move to this country and needing some help with bringing the money?

 

[pezdispenser]

Just put it in Vanguard Total Stock Market Index (VTSAX) and continue to dollar cost average into it. If you want to pick stocks or buy a REIT fund, do that in your Roth IRA first because they are generally tax inefficient.

 

[Charcoales]

100% into general stock market fund (the top 500 companies for example). Don't try to beat the market, computers and ai already have squeezed out any benefit of that.

 

[BMBiology]

How about investing in yourself?

How much money do you really need when you are 65?


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[lord999]

How about investing in yourself?

How much money do you really need when you are 65?


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Or how much will money be worth in 65. I hope to need very little that is market based by that point in life.

 

[confettiflyer]

How about investing in yourself?

How much money do you really need when you are 65?


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Agreed. You are your best asset. Take care of yourself now, and

a) you'll be healthy enough to work well into your 70's (per diem, I hope), which

b) reduces the amount of money you need to save, and

c) allows you to fully enjoy today, tomorrow, and days beyond (more money now to enjoy and not save, more money available to you later).

Or

d) if investing in yourself means investing in a passive income stream for later, all of the above apply except a.

Bmb had a better post about self-care a year or two ago.


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[Dred Pirate]

vanguard 2040 retirement plan

 

[WVUPharm2007]

I'mconsidering moving to Mexico or Costa Rica. You can legitimately live off of $2000/month very comfortably on a nice, safe beach town. If you roll down there with $2mil+ in your savings, you'll live like a king.

Of course, I won't retire for at least 15-20 years, as many as 30 years...so who knows. Mexico could have an economic renaissance and prices could spike.

-----

With investing for retirement, it isn't that complicated. Max out your tax-advantaged opportunities. Put them in DIVERSIFIED low cost indexes. Avoid the weird niche ETFs.

 

[Charcoales]

I'mconsidering moving to Mexico or Costa Rica. You can legitimately live off of $2000/month very comfortably on a nice, safe beach town. If you roll down there with $2mil+ in your savings, you'll live like a king.

Of course, I won't retire for at least 15-20 years, as many as 30 years...so who knows. Mexico could have an economic renaissance and prices could spike.

-----

With investing for retirement, it isn't that complicated. Max out your tax-advantaged opportunities. Put them in DIVERSIFIED low cost indexes. Avoid the weird niche ETFs.

I don't plan on ever retiring (health permitting I hope). I already feel like I have way too much free time working 32 hrs a week compared to the 80 hours during the school + work + extracurricular days.

 

[owlegrad]

I'mconsidering moving to Mexico or Costa Rica. You can legitimately live off of $2000/month very comfortably on a nice, safe beach town. If you roll down there with $2mil+ in your savings, you'll live like a king.

Of course, I won't retire for at least 15-20 years, as many as 30 years...so who knows. Mexico could have an economic renaissance and prices could spike.

-----

With investing for retirement, it isn't that complicated. Max out your tax-advantaged opportunities. Put them in DIVERSIFIED low cost indexes. Avoid the weird niche ETFs.

I saw a beautiful 4/5 island house for like 250k in Nicaragua. I couldn't believe it. I assume the house is haunted or something because it just didn't make any sense at all.

 

[confettiflyer]

I saw a beautiful 4/5 island house for like 250k in Nicaragua. I couldn't believe it. I assume the house is haunted or something because it just didn't make any sense at all.

Can foreigners own there? I know in MX you can't.

I own land overseas so I guess if push ever came to shove I can just build a little house and call it a day.

But I'd be bored to tears...I'd probably open a smoothie bar + pharmacy out of boredom.


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[owlegrad]

Can foreigners own there? I know in MX you can't.

I own land overseas so I guess if push ever came to shove I can just build a little house and call it a day.

But I'd be bored to tears...I'd probably open a smoothie bar + pharmacy out of boredom.


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Not sure.

 

[Gombrich12]

When will you need this money? Are you planning on retiring early? Have you ever lost over $10,000 on an investment and how did you react? How much money do you currently have in other assets?

 

[ExpressMaiL]

Personally I have done private oncology startups. Results TBD haha.

 

[SpartanWolverine]

Not in Rite Aid.
Reddit user bets $100k in his retirement account on the RiteAid merger. Proceeds to crash and burn as Merger is cancelled. • r/bestof

 

[confettiflyer]

Why own land overseas ? Just curious - spouse if finishing medical residency soon and we are looking into property/renting for passive income streams. Also potential to buy land in an area we think will become popular very soon

Inherited, and I'm not white, so if orange haired mr. small hands goes hitler on us, I have some place to go to before his followers throw me into a labor/internment camp.

But I'd probably try to get to Canada first.





Ya know I wrote that to be funny but now that I read it, it's an actual legitimate bug out plan given the state of things.


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[confettiflyer]

I'll try to find that article about Silicon Valley billionaires buying land and citizenship in New Zealand for some of the reasons related to above.


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[MrBonita]

60% S&P 500 fund (VOO, VFIAX)
15% Int'l ex-US (VEU, VFWAX)
15% Extended market (VXD, VEXAX)
10% Small cap (value) index (for tilting, VB/VSMAX, VBR/VSIAX)

Or

Split that final 10% as 5% small cap tilting and 5% REIT, or a full 10% REIT.

Or

Reduce S&P 500 exposure by 10% and move it to international (or emerging markets, if you're feeling gutsy)


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Add VTI along with some VOO. Get a Merril Lynch Account for free trades with a account higher than 50k

 

[confettiflyer]

Add VTI along with some VOO. Get a Merril Lynch Account for free trades with a account higher than 50k

Nah stick to a Vanguard account, VG funds are free and stock trades cost $$ thus dissuading you from trading with your sober money.

I use Robinhood for my fun stock chasing account (fee free from the first dollar).


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[waiter]

Buy UVXY calls?

 

[lord999]

I'mconsidering moving to Mexico or Costa Rica. You can legitimately live off of $2000/month very comfortably on a nice, safe beach town. If you roll down there with $2mil+ in your savings, you'll live like a king.

Of course, I won't retire for at least 15-20 years, as many as 30 years...so who knows. Mexico could have an economic renaissance and prices could spike.

-----

With investing for retirement, it isn't that complicated. Max out your tax-advantaged opportunities. Put them in DIVERSIFIED low cost indexes. Avoid the weird niche ETFs.

About moving out of the country (or into the country):No, because with that much money, it seems to work out that you'll be scammed or kidnapped out of it. We're actually dealing with several cases right now where the idiot CSRS retiree signed away their pension to some scam company for some token consideration, and we can't do anything about it as the contract was entered legally in a foreign country. Might as well stay here. Think about it this way, look how many of us are very, very underemployed. Finances are a relative matter, not an absolute unless there is hyperinflation. The analogy I use is that people who decide to retire to the country end up coming back into the city so much anyway that they end up moving back after 5 years due to services. We have somewhere between 800-1200 military retirees that are $3M+ in Mexico who do live in those gated communities, and many many more who live in some land cooperative down there with E-5 retirements who make it a community. It's a lifestyle difference. You actually don't want to have too much $ down there.

Everything else though, it's that simple and I'd take that advice if I were staying in the States.

Some other considerations would be finding a spouse who actively contributes to the household (if they do not work, they need to "work" as a homemaker and not as a trophy), getting all the plastic surgery you and your spouse need (it doesn't get cheaper as medical inflation has outstripped other inflation), and satisfying the things that $ can buy as it's gonna buy less in the future. (Except "human services" of course, because people are going to be worth much less in about a decade.)

 

[Phart]

Bet it all on red

 

[Another Second Opinion]

50% VTI, 25% VXUS, 15% VNQ, 10% BND

 

[Apotheker2015]

Not sure.

Foreigners seek new lives in Nicaragua

 

[waiter]

Buy UVXY calls?

I would have been correct. Too late now?

 

[5minites2016]

I would buy a house less than $100k and rent it out. There are places that you can purchase a house less than $100k. I did just that and my business grows to multiple properties.