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Hope to make this short, I'm a hourly contract worker with no access to 401k and no 401k balance to speak of. That situation may change in 6 months.
I maxed out my Roth IRA contribution for the year already, of which contains one Vanguard Target Retirement Fund 2045 held at Vanguard of course.
I have in my savings $30,000 I'm willing to invest (already have no debt/loans, have 1 year emergency safety net) and was looking for the best way to do so.
I don't mind risk in terms of asset allocation, I plan to buy and hold for at least a year, probably a lot longer, and most likely will not freak out and sell if the market spazzes out in the short term.
However, I do not want to spend a lot of time rebalancing, diversifying, or generally spending a lot of time analyzing specific stocks, hence my Target Retirement Fund selection for my Roth.
Based on the above, what would you suggest I do with my monies? I was thinking of picking 1 or 2 index stocks and calling it a day, but I'm a little fuzzy on tax-efficiency strategy on taxable accounts and whether I should go Vanguard ETFs, Indexes, or Mutual Funds again.
I'll probably call a Vanguard Associate to confirm, just interested in your guys' thoughts 
 
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IMO $30,000 is enough money that it's worth using a financial advisor to manage you investments.
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On August 27 2013 09:07 deathly rat wrote:
IMO $30,000 is enough money that it's worth using a financial advisor to manage you investments.
I used a reputable adviser and "lost" a significant amount of money in 2012-2013 because my "balanced" portfolio apparently had a shitload of basic materials which went down recently. Odds are it'll come back up, but until then, I'm down a significant amount of money. Most of my investments are considered "safe" too, and yet...
TRUST NO ONE. SCARY WORLD and stuff. Circumstances made me have money that I couldn't possibly manage myself because I don't know how to deal with this stuff - I trusted somebody else, and shit hit the fan. I guess I was unlucky  .
Cheerz
Edit: I didn't have a choice really.
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Hi again Djzapz. Are you just trolling me to argue against everything I post on TL?
Edit: Yes, all investments carry a degree of risk. Investments are likely to go down as well as up, but over longer periods of time it has been shown that it is more profitable to have these kind of investments than it is to keep your money in the bank.
With a significant amount of money, like your lifetime savings, you don't mess about with something you don't understand. This is why you employ a financial adviser.
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On August 27 2013 09:23 deathly rat wrote:
Hi again Djzapz. Are you just trolling me to argue against everything I post on TL?
No, I think it's alarming that you chose to take this personally. Lock your doors. I don't even remember reading your posts btw, don't worry. I don't even know who you are, nor do I care.
But in fact you're pretty much right. You have to deal with professionals if you don't know what you're doing. That said there is no guarantee, especially if you choose to go with risky investments right now. I don't know if you guys have been looking around but not so many are optimistic about the economy right now.
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I know you said you don't want to spend a 'lot' of time reading and analyzing stuff, but gold is definitely something to watch this year. A lot of very smart people believe that its price will settle very soon then start climbing again, and will climb very, very high. There's a good reason China is importing tonnes of gold recently.
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Hong Kong9179 Posts
internet people are not your financial advisors.
The above line is provided for education and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. It is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. It is general in nature and is not specific to you or anyone else. YOU SHOULD NOT MAKE ANY DECISION, FINANCIAL, INVESTMENTS, TRADING OR OTHERWISE, BASED ON ANY OF THE INFORMATION PRESENTED ON THIS POST WITHOUT UNDERTAKING INDEPENDENT DUE DILIGENCE AND CONSULTATION WITH A PROFESSIONAL BROKER OR COMPETENT FINANCIAL ADVISOR. You understand that you are using any and all Information available in this post AT YOUR OWN RISK. The trading of stocks, futures, commodities, index futures or any other securities has potential rewards, and it also has potential risks involved. Trading may not be suitable for everyone. Anyone wishing to invest should seek his or her own independent financial or professional advice.
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Team liquid is not the place to ask for this kind of advice. That being said do you want something really safe (like cd safe)? Do you want a high risk high reward type of thing, or do you want something in the middle. There are tons of possible investments out there, and you should talk to a financial advisor, even if you want to manage your own money you should listen to whats out there from somewhere other than a Internet forum.
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Don't worry, I've been doing my DD. As I stated above, I'm just interested to see if people's suggestions have corresponded to what I've been reading and studying up on. I'm not going to just randomly take people's advice lol, was just curious.
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Baa?21248 Posts
Talk to a financial adviser and have him summarize the risk/return/volatility of the indexes you're considering.
Sounds to me like you're mainly looking for somewhere to store your money for a decently long period of time with no real need to access it and are just looking to get something back, so yeah, probably go for some sort of ETF and spare the trouble of looking at individual stocks.
No real insight here you seem to have most of the basics down, the specifics just come down to you talking to someone who knows more about your situation/applicable tax codes in your area.
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bet against artosis on pinnaclesports.com
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Put all your money into pork bellies.
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Baa?21248 Posts
On August 27 2013 10:26 ninazerg wrote:
Put all your money into pork bellies.
they delisted pork bellies on CME in 2011 rip
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Having just rebalanced by portfolios (taxable investment, 401k, rother ira, 529 plan) I went mostly with dividend stuff for the tax-sheltered and individual stocks. Yea, I get lazy sometimes and buy index ETFS like QQQ or SPY when I don't really want to do any research, but so far this year, it has been pretty hard to not pick a good stock. As for specific advice, I've recently been long organic food - mostly because employers are starting to require health checks to qualify for insurance, etc etc. For your situation, I'd just buy some index funds on a pull back (maybe hope Syria bombs the market for a day or two) then buy a few index funds.
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Some combination of VTSAX and VTIAX.
From your initial post, you probably know about that already. That said, if you need to use the money in the next 5-10 years, possibly for a downpayment on a house, you're going to want to mix in some bonds as well. Using your Roth for that is not advisable.
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On August 27 2013 09:23 deathly rat wrote:
you don't mess about with something you don't understand. This is why you employ a financial adviser.
you think financial advisers know anything about it either? their hoodoo is working then
the whole market is fucked, it's nothing but one big QE bubble. put your cash under your mattress if you don't wanna get sucked into the pyramid scheme. when it crashes it ain't gonna be no 30k investor getting their money back
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how old are ya?
Also I would look into stocks of companies in the S&P 500, look for something that you believe in
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On August 27 2013 09:39 Salazarz wrote:
I know you said you don't want to spend a 'lot' of time reading and analyzing stuff, but gold is definitely something to watch this year. A lot of very smart people believe that its price will settle very soon then start climbing again, and will climb very, very high. There's a good reason China is importing tonnes of gold recently.
Alot of people are predicting a big crash in the market within the next couple years, if/when that happens gold (and many other any raw materials probably) will skyrocket. Definitely +1 for this advice.
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Tesla Motors... invest in that company.
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EPT
