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Message
Small Windfall Incoming - how to invest
Posted on 3/27/24 at 10:07 am
Posted on 3/27/24 at 10:07 am
I am set to receive a decent chunk of money next week.
I've already maxed out my IRA and HSA contributions for the year, and do not have a 401k. I have 2 pre-teen kids and will add 10k to each of their college fund savings accounts, and I have set aside a good bit for estimated taxes. I owe about $100k on my house at 3.5%- not really interested in paying it off. I have more than enough to do that now but I am making more in the market with that money.
After all of that I will have about $200k left. I have a brokerage account with mostly VOO & VUG that has done very well. Do I just keep adding to those positions, or is there something else at play for this sum of money?
I've already maxed out my IRA and HSA contributions for the year, and do not have a 401k. I have 2 pre-teen kids and will add 10k to each of their college fund savings accounts, and I have set aside a good bit for estimated taxes. I owe about $100k on my house at 3.5%- not really interested in paying it off. I have more than enough to do that now but I am making more in the market with that money.
After all of that I will have about $200k left. I have a brokerage account with mostly VOO & VUG that has done very well. Do I just keep adding to those positions, or is there something else at play for this sum of money?
7
Posted on 3/27/24 at 10:32 am to slinger1317
I always feel bad when I read posts like this because it usually means somebody died but it gets called a “windfall”
I hope you at least visited great uncle Lenny towards the end
I hope you at least visited great uncle Lenny towards the end
Posted on 3/27/24 at 10:38 am to slinger1317
based on your post it sounds like you have a pretty solid finance knowledge foundation. May want to consider setting aside 20k or so in high yield savings account for emergencies if you don't have savings currently. Otherwise can't go wrong with VUG and VOO as long as you can stomach watching it drop 30% without pulling it out.
Posted on 3/27/24 at 12:14 pm to slinger1317
Are the college savings in 529s?
If you've maxed all tax advantaged, VOO and VUG or another low expense ratio index fund is what I'd as well.
Maybe set a bit aside to spend on an experience or purchase that would be good to celebrate/remember the person or event.
If you've maxed all tax advantaged, VOO and VUG or another low expense ratio index fund is what I'd as well.
Maybe set a bit aside to spend on an experience or purchase that would be good to celebrate/remember the person or event.
Posted on 3/27/24 at 12:43 pm to slinger1317
Given you sound fairly buttoned up financially, couple ideas to consider:
-Accrue for any probable future need/want (vehicles, kids cars, home renovations, boat etc)
-Upgrade broken or breaking shite you may not otherwise - Grill, Hobby toys/equipment/tools
-Take family on an epic vacation
-Max wife's IRA, Gift $ to your kids to open and fund ROTH IRAs
-Dump the rest into taxable brokerage account - VTI or comparable
-Accrue for any probable future need/want (vehicles, kids cars, home renovations, boat etc)
-Upgrade broken or breaking shite you may not otherwise - Grill, Hobby toys/equipment/tools
-Take family on an epic vacation
-Max wife's IRA, Gift $ to your kids to open and fund ROTH IRAs
-Dump the rest into taxable brokerage account - VTI or comparable
Posted on 3/27/24 at 1:00 pm to slinger1317
BTC. do it.
Posted on 3/27/24 at 1:22 pm to slinger1317
Thanks for the replies. I think I’m going to beef up my liquid savings account a bit- might be buying the wife a vehicle before the end of the year. The rest won’t be needed in the short term.
I’ve been eying a good dividend fund, so I may go that route for some of it and put the bulk of it into the index fund.
I’ve been eying a good dividend fund, so I may go that route for some of it and put the bulk of it into the index fund.
Posted on 3/27/24 at 2:15 pm to slinger1317
quote:
Thanks for the replies. I think I’m going to beef up my liquid savings account a bit- might be buying the wife a vehicle before the end of the year. The rest won’t be needed in the short term.
I’ve been eying a good dividend fund, so I may go that route for some of it and put the bulk of it into the index fund.
Might also want to consider a laddered short term muni/CD/Treasury portfolio
Posted on 3/27/24 at 2:31 pm to whodatigahbait
quote:
short term muni/CD/Treasury portfolio
I've looked some CD's but honestly the rates I can get on a High Yield MM account are so close I have gone that route for most of my non invested savings.
I am interested in Muni/Treasury bonds- but I don't know much about them. I did buy some of the Series I bonds a few years ago when the rates were good, but haven't bought any since cashing them out in 2023.
Posted on 3/27/24 at 3:46 pm to slinger1317
Based on your situation being pretty good. I’d personally earmark 10% of that as a hedge against market correction.
Posted on 3/27/24 at 10:57 pm to slinger1317
Why dividend funds? Unless you need the dividends you're just buying an asset that creates more taxable events and lags growth.
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