It's moronic Monday, your chance to ask any of those lingering questions without...
This comment was posted to reddit on Mar 20, 2017 at 11:47 am and was deleted within 13 minutes.
It's moronic Monday, your chance to ask any of those lingering questions without fear of harassment.
How old are you?
27
Are you employed/making income? How much?
Yes, making approximately $115K annually.
What are your objectives with this money? (buy a house? Retirement savings?)
General wealth accumulation. Planning to buy a house for 250-300K within the next 3-5 years. Other than that I’ll use the funds when I need them (family, kids, etc.) but likely not for another 5+ years.
What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know its 100% safe?)
Medium-high.
What are you current holdings? (Do you already have exposure to specific funds and sectors?)
401K (120K)
International 15%
Large Cap 30%
Small-Cap 10%
Mid-Cap 10%
Vanguard Retirement Blend 25%
Bonds 10%
IRA (40K)
Settlement fund 20%
Dividend funds 5%
Vanguard Energy ETF 15%
REITs 5%
International 7%
Bonds 10%
Individual equities (MU and BABA) 20%
Brokerage (20K)
Settlement fund 50%
Vanguard High-Yield Tax Exempt Muni Bonds 50%
Money Market Savings 1% APY (100K)
Checking / Emergency fund (10K)
Any other assets? House paid off? Cars? Expensive girlfriend? (not really an asset)
Car (20K), paid off. No other major assets
What is your time horizon? Do you need this money next month? Next 20yrs?
I plan to use approximately 60K for a house down payment in the next 2-5 years. The rest of the funds I just want to accumulate wealth. No large expenses planned for the next 5 years.
Any big debts?
Nope! :)
Any other relevant financial information will be useful to give you a proper answer.
I know that I’ll get a hard time for holding cash in my IRA and Brokerage accounts. I’m currently dollar-cost averaging those back into my funds. Also, I'm new to investing, so I bought individual equities as a bit of a trial-run on stock picking. I work in the semiconductor industry and I live in China, so I regularly get news on both of these markets.
My general questions are:
Where and how much of my money market account would you recommend moving over to a brokerage account (my 401K and IRAs are both maxed out)
What investments would you recommend for my brokerage account to be tax efficient and still meet my investing goals?
How would you recommend getting “into” the market with my brokerage account? Some type of ladder or dollar cost averaging plan? For how long? I understand that timing the market is not encouraged. But I think a pullback or correction is in the future, and I don’t feel comfortable dumping most or all of my savings into it at a single point in time. I want to specifically avoid risk in the event of a pullback/correction.
Should I remove some of my exposure to bonds/REITs considering the interest rate hikes?