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Advice on moving my $10K CD to vanguard account and VOO fund

Posted on 2/11/20 at 8:01 pm
Posted by Tiger In the Swamp
Louisiana
Member since May 2014
841 posts
Posted on 2/11/20 at 8:01 pm
I’m mid 30s and have a 401K through work that’s doing pretty good; $300K. I also have $50K of my employers stock that I contribute $10K to each year to grow for kids college, weddings, etc.

2 years ago I took $40K cash from my savings and set it up for CD laddering. I have $10K 2 years, $10K 3 years and $20K 4 years. The first one matures late March. All are around 2-3%.

My plan is to open a vanguard account online and put the first $10K in VOO or another recommended fund. Then do the same as the others mature each year. Is this a sound investment plan? I would plan to leave them in for 20+ years as this isn’t my emergency fund.

Also, I’m a little nervous about the vanguard website. Scared I’m on some knockout website that I’d be transferring my money to who knows where.

Let me have it money board. Tell me the pros and cons and any kind of advice or criticism will be well received.

Thanks for your time.
Posted by Oenophile Brah
The Edge of Sanity
Member since Jan 2013
7540 posts
Posted on 2/11/20 at 8:16 pm to
quote:

Is this a sound investment plan?

I'm not sure what the "plan" is. You're moving $40k of savings into the market. You said you still have an emergency fund so what's the worry?
Posted by bod312
Member since Jul 2015
846 posts
Posted on 2/11/20 at 8:24 pm to
quote:

I'm not sure what the "plan" is. You're moving $40k of savings into the market. You said you still have an emergency fund so what's the worry?


Maybe the worry is still losing money?

To the OP, my recommendation would be to open a Roth IRA. If you are over the income limit then I would do a backdoor Roth IRA. After funding your Roth for the year then I would look to invest the rest in a brokerage account and as most recommend, an index fund matching the S&P or a total market index fund.
Posted by Oenophile Brah
The Edge of Sanity
Member since Jan 2013
7540 posts
Posted on 2/11/20 at 8:48 pm to
quote:

y recommendation would be to open a Roth IRA

He has $400k investible, I would think he's heard of a roth.

Posted by TorchtheFlyingTiger
1st coast
Member since Jan 2008
2133 posts
Posted on 2/11/20 at 11:38 pm to
OP mentioned other investments but not Roth and is uncomfortable w Vanguard website. I wouldn't assume they already do Roth. If married you can fund 2 Roth and get the entire $10k in. That's what I'd do.
Posted by TorchtheFlyingTiger
1st coast
Member since Jan 2008
2133 posts
Posted on 2/11/20 at 11:44 pm to
I'd also move some out of the employer stock to fully fund both Roths. That's a large chunk of your wealth to have consolidated in a single stock. Your livelihood is already tied to the company's success. I wouldn't want so many eggs in the same corporate basket.
Posted by TheWiz
Third World, LA
Member since Aug 2007
11679 posts
Posted on 2/12/20 at 5:47 am to
It's $6k/each for a total of $12k.
Posted by TorchtheFlyingTiger
1st coast
Member since Jan 2008
2133 posts
Posted on 2/12/20 at 7:22 am to
Or make 2019 Roth contributions until April 15 2020 then 2020 contribution for $24k total.
Posted by tigerstripes
Loranger, LA
Member since Aug 2006
798 posts
Posted on 2/12/20 at 6:06 pm to
look into the Ava Maria "Rising Dividend Fund" check fees and performance over the past 5 yrs or so....
Posted by TigerintheNO
New Orleans
Member since Jan 2004
41208 posts
Posted on 2/12/20 at 6:29 pm to
quote:

look into the Ava Maria "Rising Dividend Fund" check fees and performance over the past 5 yrs or so...


AVEDX
yield 1.17%
expense ratio .94%

5 years ago the stock was at 17.75 now @ 18.78
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