Author Topic: where to invest 95k, VTSAX or allocate  (Read 2465 times)

treesner

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where to invest 95k, VTSAX or allocate
« on: February 03, 2017, 01:36:22 PM »
Hey guys i'm 27 and following a synthesis of the early retirement advice i've researched where i'm maxing out 401k, Traditional IRA and have been adding money to VTSAX.
I recently sold a lot of stuff and also have a chunk of money that I saved up before I thought about investing. Wondering how I should best use 95k.. Put it all in the VTSAX or distribute it a bit more and add to something like a VTIAX as I hear a lot of advice from financial advisors to allocate your money. The other thought is to do the backdoor Roth conversion.

Also how would you recommend spreading out that money (which is also growing with pay check) I hear it's better to put int a certain amount every week opposed to putting it all in at once


Heckler

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Re: where to invest 95k, VTSAX or allocate
« Reply #1 on: February 04, 2017, 06:28:19 AM »
https://www.bogleheads.org/wiki/Bogleheads®_investment_philosophy


Know your risk level and diversify accordingly.

Proud Foot

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Re: where to invest 95k, VTSAX or allocate
« Reply #2 on: February 08, 2017, 10:50:17 AM »
Do you have an Investment Policy Statement?   If not I would start by making one.  If you already have one then I would suggest following it. As far as spreading out the money I would suggest putting it all in at once.  But that also depends on your risk tolerance.  If it would make you uncomfortable to put it all in at once then come up with a schedule that you are comfortable with.  As far as which is better, usually a lump sum contribution is better than than putting in a certain amount every week when you have the full amount available at the beginning.

VoteCthulu

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Re: where to invest 95k, VTSAX or allocate
« Reply #3 on: February 08, 2017, 10:54:08 AM »
Broadly speaking, you have 3 options.

Option 1
Educate yourself on investing, write an investment policy statement, and invest according to it. This is what most people on this forum do and suggest.

Option 2
Blindly follow some allocation you read about but don't understand. Don't do this.

Option 3
Invest in a target fund or a broad index fund (like the total market funds you mention) and tune out the barrage of investment news and advice you see on TV and on the web. There is nothing wrong with this option, and you can always switch later, as long as you don't switch to option 2!