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Posted: 11/30/2005 5:01:01 PM EDT
Invest $100,000?

You have no debt.
Living expenses are very low.
Income is middle class.
Assets less than 50 grand, all paid for.
45 years old.
Link Posted: 11/30/2005 5:39:17 PM EDT
If I had a extra 100k for a 15yr time horizon tax free. 25kVanguardhealthcare,25kvanguardenergy(those are there minimums) 12.5kVGEmerging mtk index fund,12.5kS&P500,10krussell2000,10kwilshire5000 or their 2800 small & midcap fund(Iforgetthename),5kVGginnemae or MMkt....last 2 depending on your tolerance.This avoids all but a .5% service fee on a few of the funds.
Link Posted: 11/30/2005 6:33:40 PM EDT
[Last Edit: 11/30/2005 6:46:42 PM EDT by captainpooby]

Originally Posted By mags:
If I had a extra 100k for a 15yr time horizon tax free. 25kVanguardhealthcare,25kvanguardenergy(those are there minimums) 12.5kVGEmerging mtk index fund,12.5kS&P500,10krussell2000,10kwilshire5000 or their 2800 small & midcap fund(Iforgetthename),5kVGginnemae or MMkt....last 2 depending on your tolerance.This avoids all but a .5% service fee on a few of the funds.



That's 90K. Few questions:

All funds and all VG. Why and why?

What kind of return could be expected on those?

Indexes are supposedly safe investments. Are the ones in red riskier?


(goes off to check VG fund performance)


ETA: Energy looks really good. Why not precious metals and mining as well?
Link Posted: 12/1/2005 7:47:41 PM EDT
[Last Edit: 12/1/2005 7:49:24 PM EDT by geegee]

Originally Posted By captainpooby:

Originally Posted By mags:
If I had a extra 100k for a 15yr time horizon tax free. 25kVanguardhealthcare,25kvanguardenergy(those are there minimums) 12.5kVGEmerging mtk index fund,12.5kS&P500,10krussell2000,10kwilshire5000 or their 2800 small & midcap fund(Iforgetthename),5kVGginnemae or MMkt....last 2 depending on your tolerance.This avoids all but a .5% service fee on a few of the funds.



That's 90K. Few questions:

All funds and all VG. Why and why?

What kind of return could be expected on those?

Indexes are supposedly safe investments. Are the ones in red riskier?


(goes off to check VG fund performance)


ETA: Energy looks really good. Why not precious metals and mining as well?


Be careful here. Indexes got a reputation as safe investments during the late 90's when the markets were averaging around 25% per year, for five years in a row. I doubt that I'll ever see a five year run like that again in my lifetime. Because of those returns, a blind monkey could invest in any old index fund and make money. That really was more reflective of the fact that say, the S&P 500 Index (representing the broad market), went up and gained nearly as much (an index fund will almost always gain less, due to internal expenses).

Anyway, the points to consider are these: Say you do invest in the S&P 500 Fund, the market gains 20% and the average stock growth fund gains 15%. Would you be satisfied with an 18% return? I would think so, since it would be an historically high return, and you outperformed the majority of stock funds out there.

What about in a down year however, if you're still in the same index fund? The fund loses 15%, the market loses 20%, and the average growth fund drops 28%, then how do you feel? The fact of the matter is that you've managed to outperform both the market at large plus the majority of growth stock funds. Unfortunately, you're also seeing your account drop by 15%. That's what too many people don't understand when they see that a certain fund or manager (index or otherwise) has managed to "ouperform" it's peers. That manager or fund did in fact do just that, but that doesn't mean they posted a positive return.

I'm not trying to dissuade you from index investing, as I'm a believer in it (although not for 100% of a person's portfolio), but I bring this up rather to point out what to some is not so obvious.
Link Posted: 12/1/2005 7:57:22 PM EDT
[Last Edit: 12/1/2005 8:00:57 PM EDT by FNBrowning]

Originally Posted By captainpooby:
You have no debt.
Assets less than 50 grand, all paid for.
45 years old.


Assets < 50 grand and yet no debt. . . Does this mean no home ownership and thus no mortgage? Are you renting at age 45?

As to investment choices,
Vanguard Funds =
Link Posted: 12/1/2005 8:03:15 PM EDT
[Last Edit: 12/1/2005 8:03:52 PM EDT by tdogg77]
Go pro, if you're a novice investor ( Edward Jones, Schwab, etc.). I would put 30k in something moderately high-risk, the rest in stability. Bonds are hot right now.
Link Posted: 12/2/2005 3:11:28 AM EDT
whatever you do, invest within a Roth $4K a year if you dont have one.
Link Posted: 12/5/2005 2:57:56 PM EDT
[Last Edit: 12/6/2005 3:28:54 PM EDT by mags]

Originally Posted By captainpooby:

Originally Posted By mags:
If I had a extra 100k for a 15yr time horizon tax free. 25kVanguardhealthcare,25kvanguardenergy(those are there minimums) 12.5kVGEmerging mtk index fund,12.5kS&P500,10krussell2000,10kwilshire5000 or their 2800 small & midcap fund(Iforgetthename),5kVGginnemae or MMkt....last 2 depending on your tolerance.This avoids all but a .5% service fee on a few of the funds.



That's 90K. Few questions:

All funds and all VG. Why and why?

What kind of return could be expected on those?

Indexes are supposedly safe investments. Are the ones in red riskier?


(goes off to check VG fund performance)


ETA: Energy looks really good. Why not precious metals and mining as well?

You would be surprised@ the entrance fee%,annual%,and withdrawals% most mutualfunds have. I've been w/VG since the mkt. downturn in the mid-80s.The ones in red are actually more stable(except the fund I OWN I CANT REMEMBER THE NAME OF, the mid-smallcap 2800 fund(rolleyes).Energy is in the VGEnergy fund. Indexes less than 10k get charged a extra 10bux a year@VG.If you miss their emerging Mkts index fund now @$16ish IMO you'll regret it.I've just no experiance in metals or mining so ........I do not know....the extra 10k can go with your gut,...FUN...or more investing in same. Im sure you know your risk tolerance. ETA: MOST "FUNDS" rarely beat there index brenchmarks in a 15/20 yr time horizon,AND they cost MORE!....thats less 4U. ETA: the one I forgot was #0114=Stratigic Equity fund...it encompasses mid/small caps.
Link Posted: 12/18/2005 8:06:56 AM EDT
How about a REIT Fund?

(Real Estate Income Trust)

Cohen & Steers Quality Income Trust (Ticker Symbol "RQI") currently pays a monthly
dividend equaling about 8.4% by investing in the stocks of companies whose income is derived from (rent to):

Medical/Dental Buildings

Retail Stores

Apartment Buildings

Office Buildings

I would put no more than 10-15% of my assets in this fund, spread over the next 3-5 years....

Good luck (I'm 44 years old also.)
Link Posted: 12/18/2005 8:08:13 AM EDT
ETA 8.4% A YEAR, NOT PER MONTH! (OOPS)
Link Posted: 12/20/2005 8:50:48 AM EDT
Hire a financial advisor unless you want to dedicate several hours everyday to watch the markets, etc. And even if you do, then it becomes work!
Link Posted: 12/31/2005 6:31:16 AM EDT
[Last Edit: 12/31/2005 6:36:10 AM EDT by ColtRifle]

Originally Posted By mags:


You would be surprised@ the entrance fee%,annual%,and withdrawals% most mutualfunds have. I've been w/VG since the mkt. downturn in the mid-80s.The ones in red are actually more stable(except the fund I OWN I CANT REMEMBER THE NAME OF, the mid-smallcap 2800 fund(rolleyes).Energy is in the VGEnergy fund. Indexes less than 10k get charged a extra 10bux a year@VG.If you miss their emerging Mkts index fund now @$16ish IMO you'll regret it.I've just no experiance in metals or mining so ........I do not know....the extra 10k can go with your gut,...FUN...or more investing in same. Im sure you know your risk tolerance. ETA: MOST "FUNDS" rarely beat there index brenchmarks in a 15/20 yr time horizon,AND they cost MORE!....thats less 4U. ETA: the one I forgot was #0114=Stratigic Equity fund...it encompasses mid/small caps.




Tell me more about Vanguard's emerging markets fund. I have their Star Fund at the moment but am interested in expanding into a little higher risk fund with a better return. I could place $3000 in the emerging markets fund. As of today it's $19.07.
Link Posted: 12/31/2005 6:44:42 AM EDT
[Last Edit: 12/31/2005 6:45:48 AM EDT by wildearp]
In many real estate markets, you could buy a house, live in it, and sell it at retirement, and easily double your money.

I have done this twice. By accident...... I think I will do it on purpose next time.
Link Posted: 1/5/2006 8:28:20 PM EDT
In addition to my Thrift Savings and Miltary pension I also have another idea for my retirement.

How about investing the 100K in a lakefront lot if you can find it. If you can find a lake that is delveloping in the next few years buy it. If the land is buildable and not a wetland or somthing you can expect to double your money quickly. This is due to developers and people building. In my state there is alot of lakes where this is possible. My dad bought a cottage and has made over 60,000 on its value in the last 4 years. he bought it for about 80K. Not many places can offer that ROI.

If you get a cottage real cheap and fix it up yourself you can make a killing. If you continue to make money and invest it you will find yourself not having to finance anymore. Now you can really make some cash.

My .02 cents.
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