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re: Just opened my first Roth IRA, now what?
Posted on 7/13/19 at 2:47 pm to bluestem75
Posted on 7/13/19 at 2:47 pm to bluestem75
quote:
Diversify your products so your retirement earnings aren’t 100% reliant on the stock market. I just diversified from stocks, IRA, and Roth (all market based) to selling some of my stocks and buying shares in REITs, transferring a rollover IRA to an annuity, and purchasing a $100k Universal Life policy (which I will contribute at the max to give me an additional $130k to pull income from at retirement).
I learned all of this through a buddy of mine who owns his own investment business. I suggest you find a broker you can trust and build a relationship with who can educate you similarly on all the different products out there that can help you diversify your investments.
I have no idea how old you are or when your planned retirement date is, but most advisors I've dealt with suggest rebalancing from being heavy in equity products at a younger age to a more balanced stock/bond mix as one ages. As for using insurance products as investment vehicles, I'm aware that there are higher net worth individuals who can effectively use them for tax purposes and estate planning, etc. But for the average person, once you realize the fees (including higher premiums for the life insurance portion of the policy) vs. performance long term, *most* people are much better off buying term life for estate planning (if needed) and choosing equity/bond products and/or real property for their investments. You'll pay less for the insurance and the long term performance of even an index fund will beat the universal life policy. Once income becomes a concern, you'd simply allocate more of your portfolio to appropriate income producing products.
Not trying to shoot down your plan, but here's an article on why I feel the way that I do:
Why Universal Life Insurance is a Bad Investment
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Posted on 7/13/19 at 3:10 pm to TimeOutdoors
If you’re worried about investing all at one time, then having a sudden market crash, then you can space investment over a period of time, say 6 months or 1 year, putting in an even fraction every month
Posted on 7/13/19 at 3:26 pm to Ingeniero
Vanguard target date funds are perfectly fine for most people. They are well balanced and have low fees.
That’s not to say, that couldn’t earn more. You could. If you don’t know much right now (or don’t feel like researching too much), they are fine options.
That’s not to say, that couldn’t earn more. You could. If you don’t know much right now (or don’t feel like researching too much), they are fine options.
This post was edited on 7/13/19 at 3:28 pm
Posted on 7/14/19 at 9:52 am to ljhog
quote:
Where did you open your Roth??
Online through Vanguard. I'll probably drop all $6,000 in VTSAX as a few here have advised. I know we're at a high right now, but my goal is (early) retirement in 30ish years from now. If the market isn't higher at that point then we've got much bigger problems than my Roth.
Posted on 7/14/19 at 3:27 pm to Ingeniero
quote:
I know this is kind of rapid fire questions but I really appreciate any help I get.
First I would peruse this:
VGD successful investing
I'm a contrarian, growth can't lead the markets forever. Look at IJS, or VBR, VTV, VYM, or VYMI. Or, if you think the market is likely to contract the Vanguard global minimum volatility fund, VMVFX. VMVFX would get you more to mid-cap exposure and global equity exposure. Just don't become Mikey P, Jr and invest/sell on hunches or a bad case of the "feels".
Posted on 7/16/19 at 9:48 am to Ingeniero
Just want to tack onto this question as i am in a VERY similar position.
I just put 6000 in to max my contribution but i also want to start auto-investing.
However, I'm confused as a i cant contribute monthly if already hit the max. Do i just need to set a reminder to start auto investments come January 1?
I just put 6000 in to max my contribution but i also want to start auto-investing.
However, I'm confused as a i cant contribute monthly if already hit the max. Do i just need to set a reminder to start auto investments come January 1?
Posted on 7/16/19 at 6:07 pm to bluestem75
Holy shite you got played son. Universal life? Annuity?
I agree on REITS as I’m a RE guy.
I agree on REITS as I’m a RE guy.
Posted on 7/16/19 at 6:51 pm to bluestem75
quote:you call that a "buddy"?
I learned all of this through a buddy of mine who owns his own investment business.
Posted on 7/16/19 at 10:32 pm to Ingeniero
You’ll be fine.
Don’t overthink it.
In general, consider a small cap index, a large cap index, an international equity fund, and a real estate fund.
I don’t think you have to have a bond fund when you are young.
Don’t overthink it.
In general, consider a small cap index, a large cap index, an international equity fund, and a real estate fund.
I don’t think you have to have a bond fund when you are young.
Posted on 7/17/19 at 10:17 am to castorinho
quote:
quote:
I learned all of this through a buddy of mine who owns his own investment business.
you call that a "buddy"?
i know right? 
Posted on 7/17/19 at 1:48 pm to Ingeniero
I've done well through the years with Winsor
Posted on 7/18/19 at 10:56 am to GeauxPack81
quote:
25 years old with just $6,000, I'd probably just stick it all in a target date fund
I remember someone on here recently saying target date funds were no good and money grew in there at the same rate as a savings accout
Posted on 10/24/19 at 9:31 am to Fat Bastard
Bastard,
I might sound like a dumbass with this post, but I have just been dragging my feet on fricking around with my Roth IRA.
So I just contributed another 5 grand to my general settlement fund. 5 grand was already in there from last year.
When this recent 5 grand clears, I plan on putting all of what is in the settlement fund into one of the funds that you listed.
Am I doing this right?
And yall don't make fun of me if I am doing this all wrong. I am pretty dumb when it comes to this stuff. Just trying to patch together info I read here and other places, and make it make sense to me. Thanks!
I might sound like a dumbass with this post, but I have just been dragging my feet on fricking around with my Roth IRA.
So I just contributed another 5 grand to my general settlement fund. 5 grand was already in there from last year.
When this recent 5 grand clears, I plan on putting all of what is in the settlement fund into one of the funds that you listed.
Am I doing this right?
And yall don't make fun of me if I am doing this all wrong. I am pretty dumb when it comes to this stuff. Just trying to patch together info I read here and other places, and make it make sense to me. Thanks!
Posted on 10/24/19 at 9:38 am to Ingeniero
quote:
What are admiral shares and can I/should I use those?
Admiral shares offer lower fees compared to the standard Investor Share-class Vanguard funds.
To qualify for Admiral Shares, investors in most index funds and tax-managed funds must maintain a minimum investment of $10,000.
For actively managed funds, an investor must have at least $50,000 invested.
For sector-specific index funds, an investor qualifies for Admiral Shares with an investment of $100,000 or more.
Posted on 10/24/19 at 10:02 am to Funky Tide 8
Yes!! The money you put into that settlement money market fund counted as your contribution for that year. You repeated that step this year. Now you can put all that money into whatever you want of your choosing. Correct. You are doing it right.
This post was edited on 10/24/19 at 10:03 am
Posted on 10/24/19 at 10:24 am to Fat Bastard
I'm 36 and have my Roth and Traditional IRA in a target date fund with Vanguard. Would it make sense at my age to go to VTSAX? If so how do I do that?
This post was edited on 10/24/19 at 10:25 am
Posted on 10/24/19 at 10:35 am to Phate
It’s cheaper. What’s your current bond allocation? 10%?
If you want to change it, literally just go into the buy/sell page and “exchange” funds
If you want to change it, literally just go into the buy/sell page and “exchange” funds
Posted on 10/24/19 at 10:46 am to jimbeam
quote:
What’s your current bond allocation? 10%?
Yeah 90% stock and 10% bond
My current fund is VFIFX.
Posted on 10/24/19 at 10:49 am to Ingeniero
quote:These kinds of questions demonstrate that you're NOT actually a complete beginner. Good start.
Put $6,000 in to hit the maximum contribution. I have 2-3 days before it clears to think about this, so I wanted to get the money board's advice. I'm a complete beginner. What funds do I pick? What about target date vs this "3 fund portfolio" I've heard mentioned? I'm through Vanguard, so what would the 3 funds be if I go that route? I'm 25, should I go 80-20 stocks-bonds or something else? What are admiral shares and can I/should I use those?
I like VTI.
Posted on 10/24/19 at 11:16 am to Phate
quote:I think so. Sell your target date fund and buy VTSAX. It's that simple.
I'm 36 and have my Roth and Traditional IRA in a target date fund with Vanguard. Would it make sense at my age to go to VTSAX? If so how do I do that?
Edit: Didn't even realize this thread was a bump
This post was edited on 10/24/19 at 11:21 am
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