Author Topic: investment newbie looking to diversify a bit in Index funds ... suggestion?  (Read 1087 times)

albireo13

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I have been a conservative saver, in the sense of avoiding playing with the markets, etc.  I've stuck with strictly 401K as my main nest egg savings vehicle.

Right now, I'm about 2-3 years off from retirement and in good shape.  Firecalc has me >95% if I factor in SS income.

I'd like to dribble some contributions into some low cost funds.  I've heard much about index funds and Vanguard in particular.
Any recommendations for some funds to look into and consider?

Since I'm 2-3 years away from retirement, the $$ amounts will be limited.  Still, I am interested in doing this.

Thx.


PizzaSteve

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Re: investment newbie looking to diversify a bit in Index funds ... suggestion?
« Reply #1 on: September 16, 2017, 08:08:21 AM »
Can you offer more data (see forum post on how to ask for advice).  What is 401k invested in now? What specifically are your investment options in the 401k?  For beginners, target date funds can work well, as can a market index fund like VTI.  Please tell us more.
« Last Edit: September 17, 2017, 10:25:54 AM by PizzaSteve »

MDM

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Re: investment newbie looking to diversify a bit in Index funds ... suggestion?
« Reply #2 on: September 16, 2017, 02:47:12 PM »
Any recommendations for some funds to look into and consider?
Three-fund portfolio - Bogleheads might be of interest.

Stoic on FIRE

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Re: investment newbie looking to diversify a bit in Index funds ... suggestion?
« Reply #3 on: September 16, 2017, 09:08:26 PM »
I've stuck with strictly 401K as my main nest egg savings vehicle.

Right now, I'm about 2-3 years off from retirement and in good shape.  Firecalc has me >95% if I factor in SS income.

I'd like to dribble some contributions into some low cost funds.  I've heard much about index funds and Vanguard in particular.
Any recommendations for some funds to look into and consider?

Since I'm 2-3 years away from retirement, the $$ amounts will be limited.  Still, I am interested in doing this.

Thx.

From your post, unless you're purposefully trying to obfuscate the amount of money you have or how it's invested my suggestion is you need education first. Making a post saying I have money in a 401k is the equivalent of telling a professional track athlete you wear shoes when you run.

Since you're close to FI and retiring from your job you must become a steward of your resources to ensure they last and are used in accordance with your desires. While you don't need an economics degree or financial planning license you must be educated in how to deploy and use your troops (dollars) efficiently and effectively. Otherwise, there are plenty of non-value added advisors and yourself who will cause havoc amongst your investments.

Two resources should get you the majority of the way there.
  • Either get and read JL Collins', The Simple Path to Wealth, or his Stock Series.
  • The Bogleheads' Guide to Investing, only slightly heavier than above, but significantly more detailed and in-depth.
Once you read through the entirety of one of the above resources you should have a better model of what you want to achieve and how you can achieve what you want.