Author Topic: Where to put an extra $15,000 a year?  (Read 1646 times)

heybro

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Where to put an extra $15,000 a year?
« on: January 14, 2020, 02:15:08 PM »
Dear Financial Samurai,

Quick Question.
37 years old.
$70,000 in Employer IRA - 100% Total Stock
$30,000 in Roth IRA - 100% Total Stock

Condo is paid.  My total yearly expenses are $10,000.

I add $3,000 a year in Employer IRA, $6,000 a year in Roth IRA.

I have $15,000 a year extra.

Where should I put it?

I was thinking a SP500 ETF or 5 year CDs.

Financial goals:  Buy a more expensive place someday (would cost about $25,000).  Start Working part-time 10 years from now: (would cost about $60,000).  Stop working at all ten years from now: (would cost about $100,000).


THANK YOU THANK YOU!

WengerTodd

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Re: Where to put an extra $15,000 a year?
« Reply #1 on: January 14, 2020, 07:11:36 PM »
Dear Financial Samurai,

Quick Question.
37 years old.
$70,000 in Employer IRA - 100% Total Stock
$30,000 in Roth IRA - 100% Total Stock

Condo is paid.  My total yearly expenses are $10,000.

I add $3,000 a year in Employer IRA, $6,000 a year in Roth IRA.

I have $15,000 a year extra.

Where should I put it?

I was thinking a SP500 ETF or 5 year CDs.

Financial goals:  Buy a more expensive place someday (would cost about $25,000).  Start Working part-time 10 years from now: (would cost about $60,000).  Stop working at all ten years from now: (would cost about $100,000).


THANK YOU THANK YOU!


What kind of savings do you have? If you don't have substantial savings, it might be worthwhile to start saving money too.

aILaGend

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Re: Where to put an extra $15,000 a year?
« Reply #2 on: February 22, 2020, 04:44:20 PM »
Hi!

Congrats on the balance sheet! That is awesome.

I would recommend ETFs with an overweight on stocks, say 80% equity vs 20% fixed income. Ideally, diversified geographically, so try adding some Europe and Emerging Markets ETFs.

Also, here is a book on personal portfolio allocation that helped me a lot.

https://www.amazon.com/Unconventional-Success-Fundamental-Approach-Investment-ebook/dp/B000FCKBT8/ref=sr_1_1?crid=3N6M7DBA2D0PI&keywords=david+swensen&qid=1563248160&s=gateway&sprefix=swensse%2Caps%2C256&sr=8-1

Hope it helps!

Irish247

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Re: Where to put an extra $15,000 a year?
« Reply #3 on: June 18, 2020, 10:11:37 AM »
How are your yearly expenses only $10k, that's impressive - I think.