Author Topic: Where should I put my money?  (Read 1998 times)

coryjj000

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Where should I put my money?
« on: March 09, 2017, 08:02:05 AM »
I am about to be 33 years old and saving $10,600/month to retire in 7 years. I'm considering Betterment for this, but my concern is that I want to allocate the funds properly to have enough that I can withdrawal at a rate that will, at the very least, get me from 40 to 60 and then have an amount in an IRA that will get me from 60 to Dead.

How should I set this up to where I'm not losing any more money than necessary to taxes, fees, etc.?

Additional info:

I currently have...

$39k in an IRA w/ Vanguard.

$30k in emergency funds.

Other money held in a corporation that can be paid out as dividends as needed for investment goals.

Dicey

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Re: Where should I put my money?
« Reply #1 on: March 09, 2017, 08:54:06 AM »
Wait! You have a Vanguard account and you want to open one with Betterment? Isn't that a step backwards? What do you need that Vanguard doesn't have, including lower fees?

Mr Mark

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Re: Where should I put my money?
« Reply #2 on: March 09, 2017, 11:16:00 AM »
Stick 100% into VTSAX done.

Car Jack

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Re: Where should I put my money?
« Reply #3 on: March 09, 2017, 11:41:00 AM »
Look around for sites where people who invest have tried Betterment.  I seem to see most people who get in spend some time there figuring it out, then getting out, telling me that they made very little money and their taxes are now a nightmare.

I don't see a Roth.  Why not do that first.

If you want to play around with tax loss harvesting and all that kind of nonsense that Betterment does for a hefty fee, just open a Schwab or TDAmeritrade account, get the bonus for coming in, and buy/sell ETFs at no fee.  If TDAmeritrade, remember to sign up for free trades of certain ETFs. 

coryjj000

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Re: Where should I put my money?
« Reply #4 on: March 09, 2017, 11:43:58 AM »
Wait! You have a Vanguard account and you want to open one with Betterment? Isn't that a step backwards? What do you need that Vanguard doesn't have, including lower fees?

Not sure... That's why I'm asking. Haha. The tax loss harvesting for the roughly $650,000 I'll have put into non-IRA investments over the next 7 years is what I was finding appealing about Betterment. I've seen online where people are saying that the TLH+ feature alone is worth Betterment's fees. Thoughts?

coryjj000

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Re: Where should I put my money?
« Reply #5 on: March 09, 2017, 11:46:37 AM »
Look around for sites where people who invest have tried Betterment.  I seem to see most people who get in spend some time there figuring it out, then getting out, telling me that they made very little money and their taxes are now a nightmare.

I don't see a Roth.  Why not do that first.

If you want to play around with tax loss harvesting and all that kind of nonsense that Betterment does for a hefty fee, just open a Schwab or TDAmeritrade account, get the bonus for coming in, and buy/sell ETFs at no fee.  If TDAmeritrade, remember to sign up for free trades of certain ETFs.


Thanks for the tips! I'll do more research. I exceed the income limits for a Roth. I have a SEP w/ Vanguard that, now that I'm an employee of my solely owned S-Corp, I plan to covert to a Traditional before funding further.