The Money Mustache Community

Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: fortaleza40 on May 25, 2016, 09:38:43 PM

Title: Advice
Post by: fortaleza40 on May 25, 2016, 09:38:43 PM

The facts: 40 yo/Current total net worth $450K. My plan is to retire now, albeit with a side job earning approximately $500 a month.
-I Still rent.

MMM says simply multiply your expenses by 20 or 25. My expenses are approximately 18-19K per year. So I'm basically there.

My problem is: Where should I invest the $450K? The VTI doesn't pay a dividend..so should I just trust that my 4% withdrawal will be evened out by stock market performance? Currently the SP 500 PE is 24.9 so that's way too high for me to just buy into now.
I still think investing all the $450K is risky. Thoughts? (PS. Please offer specific advice on where I should invest, I'm probably over thinking this, but I need some guidance)

Thanks.

Title: Re: Advice
Post by: sirdoug007 on May 25, 2016, 10:45:41 PM

VTI pays a 1.9% dividend.  Definitely not zero.


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Title: Re: Advice
Post by: woopwoop on May 25, 2016, 10:53:14 PM

Have you been saving that $450k in cash this whole time? I would say just DCA it over the course of a year if you're not happy plunging in all at once.

Title: Re: Advice
Post by: Metric Mouse on May 26, 2016, 01:53:56 AM

If you have 450K and no idea where to invest it, a posting on here is not going to get you very good advice. Seek a professional consultation with the Vanguard Group and they will be able to assist you. Then congrats! You're FI.

Title: Re: Advice
Post by: neo von retorch on May 26, 2016, 08:25:49 AM

Step One: https://www.bogleheads.org/wiki/Investment_policy_statement
Step One (part B): https://personal.vanguard.com/us/funds/tools/recommendation

There is no step two. Invest according to your IPS, and stick to it.