No experience investing - $125,000 to play with-vanguard VTSX?

[joeva_1289]

Hello all you magnificent vagabonds! I am new to investing and I have $125k in my checking account. I am currently contributing 5% toward my 401K, and my company matches 100% of the first 6%. I’m guessing my first order of business is to increase my 401k contribution, but what about the $125k I already have that’s just sitting there wasting away?

How much would you all recommend I put in a VTSAX account? I don’t really need much liquid cash on hand, though there is a pretty small chance I may buy a home. But I also feel comfortable having liquid cash on hand, just in case...well, in case of anything (i.e. buying a house, starting a business, buying into a stock).

Perhaps there is a better option, but if there is I don’t know it. Saving for the long haul. Any advice for a newbie is appreciated!

[achvfi]

Vagabonds :) That may sound like a compliment around here.

Checkout the following thread, it will guide you which accounts to invest for long term.
https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1333153/#msg1333153

Also yes, investing in VTSAX in one fell swoop is a fine idea. It just takes your emotions out of the picture.

[bloodaxe]

Open an IRA and max that if you haven't already.

[EvenSteven]

+1 to following the investment order. After using that 125K to establish an emergency fund that makes you comfortable, I would plow the rest of it into tax advantaged accounts. Once you are all set on which accounts that money is going to, you can then decide on what a reasonable and comfortable asset allocation (ratio of stocks and bonds) would be for you.

Using broadly diversified low cost index funds, anywhere from 50%-100% stocks is reasonable, and anywhere from 0%-50% of your stocks being international is reasonable.

[cool7hand]

I suspect I'm in the minority here, but we use Ray Dalio's All Seasons (aka All Weather) Portfolio. It's a low volatility portfolio. Give it a google and see if it fits your risk tolerance and goals.

[joeva_1289]

Thank you all for your reply’s. I’ve been trying for two weeks to respond, but the info you have to put in to post is silly. Do you really have to put in the CAPTCHA and answer two security questions every time you want to do reply to a post? I’ve never seen that on an online site or forum. Some of them I simply don’t know the answer to or where to find the info. Sorry for the rant!

[Segare]

Captha's are hard sometimes.
I wonder if it goes away after a certain number of post?

[Accrual]

Thank you all for your reply’s. I’ve been trying for two weeks to respond, but the info you have to put in to post is silly. Do you really have to put in the CAPTCHA and answer two security questions every time you want to do reply to a post? I’ve never seen that on an online site or forum. Some of them I simply don’t know the answer to or where to find the info. Sorry for the rant!

It does go away after a certain amount of posts.