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Investing advice

I

imported_Mike

Lifer
Ive got a decent sized chunk to invest. I did a few searches, read a couple threads. Most seem to advise the Vangard Index Fund, Roth IRA in the Vangard Index Fund. Thats all well and good, but I don't think I want the whole investment in one spot. Are there any other index funds that you'd recommend? Or something else? Liquidity is not an issue, but a return from a CD is too low.
 
If you're young it's ok, but make sure your cash flow situation is ok first, also do you have any employer plans like a 401 where they will match contributions?
 
Originally posted by: CheapArse
Originally posted by: mchammer
Roth IRA=no use money until 59 1/2
Click to expand...

Yea, but its only $4k a year max, I need to invest the rest in something else.(~$27k)
Click to expand...


yeah index funds seem to be a good choice, just spread it all out
 
Originally posted by: mchammer
If you're young it's ok, but make sure your cash flow situation is ok first, also do you have any employer plans like a 401 where they will match contributions?
Click to expand...

Cash flow situation is fine, liquidity isn't an issue. I am young and the 4-5% return from a CD is not what im looking for. I havn't checked out my employers 401k plans yet, Im working retail while I go to college. From my understanding, I think a roth IRA would be a better option. I will have to check it out though.
 
Originally posted by: mchammer
Originally posted by: CheapArse
Originally posted by: mchammer
Roth IRA=no use money until 59 1/2
Click to expand...

Yea, but its only $4k a year max, I need to invest the rest in something else.(~$27k)
Click to expand...

Traditional IRA?
Click to expand...

Im only familiar, if I could even say that, with the Roth IRAs. What is the difference between those and the traditionals?
 
Originally posted by: CheapArse
Originally posted by: mchammer
If you're young it's ok, but make sure your cash flow situation is ok first, also do you have any employer plans like a 401 where they will match contributions?
Click to expand...

Cash flow situation is fine, liquidity isn't an issue. I am young and the 4-5% return from a CD is not what im looking for. I havn't checked out my employers 401k plans yet, Im working retail while I go to college. From my understanding, I think a roth IRA would be a better option. I will have to check it out though.
Click to expand...

how did you save up so much money from working retail and go to college?
 
Originally posted by: CheapArse
Originally posted by: mchammer
Originally posted by: CheapArse
Originally posted by: mchammer
Roth IRA=no use money until 59 1/2
Click to expand...

Yea, but its only $4k a year max, I need to invest the rest in something else.(~$27k)
Click to expand...

Traditional IRA?
Click to expand...

Im only familiar, if I could even say that, with the Roth IRAs. What is the difference between those and the traditionals?
Click to expand...

Well it looks like they both have $4000 limits, beyond that I dont really know the differences. Basically what the tax deductions are and when you can access the money. You could start this year and in a few years you would have it all in there, in the mean time invest it in a taxable account.

The other thing I would consider is perhaps also adding another index fund that captures a wider slice of the market in addition to the S&P 500.

In general though all of this sounds good. Young age+Risk (not crazy though)+Low fees (Index fund)+Low taxes(401 or IRA)=$$$$$ Always remeber, there is no substitute for time. What you invest now is worth much more than investing the same amount in ten years.
 
Originally posted by: mchammer
Originally posted by: CheapArse
Originally posted by: mchammer
Originally posted by: CheapArse
Originally posted by: mchammer
Roth IRA=no use money until 59 1/2
Click to expand...

Yea, but its only $4k a year max, I need to invest the rest in something else.(~$27k)
Click to expand...

Traditional IRA?
Click to expand...

Im only familiar, if I could even say that, with the Roth IRAs. What is the difference between those and the traditionals?
Click to expand...

Well it looks like they both have $4000 limits, beyond that I dont really know the differences. Basically what the tax deductions are and when you can access the money. You could start this year and in a few years you would have it all in there, in the mean time invest it in a taxable account.

The other thing I would consider is perhaps also adding another index fund that captures a wider slice of the market in addition to the S&P 500.

In general though all of this sounds good. Young age+Risk (not crazy though)+Low fees (Index fund)+Low taxes(401 or IRA)=$$$$$ Always remeber, there is no substitute for time. What you invest now is worth much more than investing the same amount in ten years.
Click to expand...

Well, I plan to add $4k a year every year besides the investment Im looking to make. I will look into traditional IRAs and my 401k plan at work, thanks for the advise.
 
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