Author Topic: Newbie Help?  (Read 1108 times)

Orvell

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Newbie Help?
« on: November 03, 2015, 12:14:55 PM »
Hey folks.
So I'm hella new at this game. I've been stockpiling cash (stupidly, I know) and am ready to take the plunge into investing, but am sorta... at a loss in terms of what to *actually* do.
I know I need to set up an IRA and max it out.
But I have another hunk of cash I probably don't want just sitting in a bank account either.
Any recommendations (via Vanguard, as I just registered there yesterday) on what the heck to do?

Basics:
I have 5.5K earmarked for an IRA this year
I have at least 20K I'm comfortable investing. I have more than that in cash, but I feel the need (mentally) to wade in rather than dive. I don't make a ton, this is all from frugal living, so I'm a little protective of my nest egg (even though I know logically I'm the one hurting it!)

Any and all advice welcome.
Thanks in advance!

Radagast

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Re: Newbie Help?
« Reply #1 on: November 03, 2015, 06:56:01 PM »
You have several options:
1) Go all in, using a well diversified portfolio, thus less prone to crashing. For example, one of Vanguard's balanced funds. Moderate growth is a good one, or make your own portfolio. This is best if you are uneasy.
2) Go all in 100% stocks, especially if you are going to be making regular contributions in the future. This will feel risky, but historically has been the option that usually ended with the most money.
3) Make small regular purchases, for example $1,000-$2,000 per month to get your feet wet slowly. It feels less risky, but has not historically done as well as 2) in most cases. However, it does as well as or better than 2) about 40% of the time.

MDM

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Re: Newbie Help?
« Reply #2 on: November 03, 2015, 10:22:48 PM »
...new at this game.  Any recommendations (via Vanguard, as I just registered there yesterday) on what the heck to do?
One choice that might fit your situation is VTTSX.  Other choices are also defensible, but that is one of the simpler ones.