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!
Quote from: heybro 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!
What kind of savings do you have? If you don't have substantial savings, it might be worthwhile to start saving money too.
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!
How are your yearly expenses only $10k, that's impressive - I think.