Author Topic: Investment strategy for 2021  (Read 1280 times)

davef

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  • Age: 38
  • Location: Wilsonville, OR
Investment strategy for 2021
« on: December 28, 2020, 05:35:44 PM »
Here is my situation.
I'm 38 father of 2, nowhere close to any kind of retirement so I am somewhat tolerant of risk
I plan to invest 3,000 per month in 2021 in my brokerage account and I could use some advice in how to invest it.
I also plan to fund both Roth IRAs and the kids college savings funds around March/ bonus tax return time.

Current investments
401k (options limited)
FXAIX Fidelity 500 index fund $123,100
FSMAX Market index fund $28,535
RGAGX AF Growth fund $79,945
DODGX managed stock $10,100
AVFIX Small cap $4,996
DISVX Intl Small cap $3,653

College savings fund (4 year old)
NH 500 index funx $13,648
NH Intl Index fund $4,216
NH Total market index $8,297

College savings fund (2 year old)
2036 Target fund $10,209

Roth Ira Unlimited
FNILX zero cost index $6,881
FSKAX Low cost index $28,954
FSPHX Health care $11,864
FBSOX Bio tech $6752
Amazon $9851

UMTA
FSKAX Total Market index $14,143

MDM

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Re: Investment strategy for 2021
« Reply #1 on: December 29, 2020, 08:01:27 AM »
Investment Order and tax-efficient fund placement might be worthwhile reads.

cool7hand

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Re: Investment strategy for 2021
« Reply #2 on: December 29, 2020, 04:12:00 PM »
I often share the success we've had using Ray Dalio's All Seasons (aka All Weather) Portfolio. Give it a Google.

davef

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  • Age: 38
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Re: Investment strategy for 2021
« Reply #3 on: January 01, 2021, 02:58:23 PM »
Thank you.
I've been following the investment order except since I don't plan to FIRE, I'm skipping the max 401k. I am only contributing to the match because If I ever retire, ill still have income from my business, so I'll likely never be in a lower tax bracket than I am in now. (22%)
The tax efficient fund placement is interesting. It looks like I have been unknowingly doing that pretty well. But as far as diversification, I'm pretty much all in stocks.
My take always appear to be this:
If I am going to add money in a taxable brokerage account this year I should invest it in index funds for tax efficiency, however, Since I already have so much in index funds in my 401k I should sell some of that (maybe 50k) and put it in bonds to diversify

MDM

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Re: Investment strategy for 2021
« Reply #4 on: January 01, 2021, 04:12:55 PM »
Thank you.
I've been following the investment order except since I don't plan to FIRE, I'm skipping the max 401k.
If you don't think traditional contributions are appropriate for you, does your 401k have a Roth option?