Author Topic: Need Advice  (Read 895 times)

dalekeener

  • 5 O'Clock Shadow
  • *
  • Posts: 32
Need Advice
« on: August 19, 2015, 10:53:59 AM »
Have a "windfall sorta" of 32k and need to invest it for the next 10 years min.  Will be adding around $400/month to it each month.  No debt except house (96k) will be paid off before I retire (54 years old) Maxing out my IRA into three funds (BCOSX, HFQAX, PONDX).

 Need some suggestions on the best way to allocate these new funds (32k plus the extra $400/m) into a taxable account at Schwab.....There are a lot of smarter than me people on this forum and I realized I need some help....I tend to overthink things. Any suggestions would be helpful.

Thanks,
Dale

EricP

  • Bristles
  • ***
  • Posts: 477
Re: Need Advice
« Reply #1 on: August 19, 2015, 11:04:23 AM »
For starters I would get out of those funds ASAP.  Especially HFQAX.  It's got a 5.75% front load fee and a >1% Expense Ratio.  All of them are more expensive than similar funds at Vanguard. 

So, I'd tell you to get rid of those funds and move the money to Vanguard.  Then I'd take this money and invest it in some Vanguard Funds as well.  I'd recommend putting your IRA funds in a Target Retirement Fund for now until you learn more about lazy three fund portfolios and then put this money in the LifeStrategy Growth Fund until you read up a little more.

Cwadda

  • Handlebar Stache
  • *****
  • Posts: 2180
  • Age: 24
Re: Need Advice
« Reply #2 on: August 19, 2015, 11:13:31 AM »
Are you maxing your 401(k), Roth/Traditional IRA, and HSA as well? Do those before a taxable.

EricP

  • Bristles
  • ***
  • Posts: 477
Re: Need Advice
« Reply #3 on: August 19, 2015, 11:16:38 AM »
Are you maxing your 401(k), Roth/Traditional IRA, and HSA as well? Do those before a taxable.

Yes forgot to mention this.  You should temporarily up your 401k contributions and live off this money so you can "launder" it into a tax sheltered account.