Author Topic: Savings/investments/bonds Master Thread. (Read 132382 times)

Achas Veachas · « **on:** May 27, 2015, 01:30:58 PM »

I have some savings accounts, totaling just under 20K, that are maturing and looking for advice on how to invest them.

At the time my in-laws took care of the investing so I am clueless about these things. We are looking for a safe long-term investment to maybe use to pay for the kids' weddings (~20 years). Anyone know of a reputable financial advisor to discuss these things with?

bubkiz · « **Reply #1 on:** September 16, 2015, 03:59:45 PM »

Bump.

Looking for the same.

AsherO · « **Reply #2 on:** September 16, 2015, 04:11:34 PM »

Look into (large cap?) mutual funds with low fees.

PETERP · « **Reply #3 on:** September 16, 2015, 07:00:37 PM »

Quote from: AsherO on September 16, 2015, 04:11:34 PM

Look into (large cap?) mutual funds with low fees.

Google John C Bogle at Vanguard to learn about low fee ETF investing .

googwallet · « **Reply #4 on:** December 24, 2015, 07:01:41 PM »

Quote from: Achas Veachas on May 27, 2015, 01:30:58 PM

I have some savings accounts, totaling just under 20K, that are maturing and looking for advice on how to invest them.

I am in a similar place and I'll share my findings. When your dealing with amounts under ~100K it can be very tricky how to go about investing if your not familiar with the offerings and types of investments.

Going to a commissioned based broker was a mistake that I made. I met the guy (they always try to meet you in person sort of like life insurance brokers, because they know that every minute they sit with you means the more money you will give them) and we discussed my plans and goals etc. The end result was the I invested in mutual funds and paid between 4.25 - 6% front load fees to get into those mutual funds when if I had known a little more I could have invested in funds at Vanguard with lower expense ratios for free. I take as my lesson learnt in investing. Never go with commission based financial advisors.

The option of paying someone based on AUM (assets under management) is also not an option since typically, they don't take accounts worth less than 100K.

The only options that remain are 1. Educating yourself and talking to friends who knows these things and 2. Talking to a financial advisors that is paid by the hour, where your best interest is in mind. I don't have any personal experience with the second option.

I did try to educate myself about investing and a great place to start is Vanguard since they have lots of video webinars and other helpful reading.

I would like to use this thread as a place for people to discuss investing ideas (buying securities - not real estate or other investments) and their personal portfolio since I'm sure there is much to learn from other people. If such a thread already exists, please point me to it.

I'll go first:

I have invested in the following:
Mutual Funds
MFS Technology A (MTCAX)
Franklin Strategic Income A (FRSTX)
Franklin High Income A (FHAIX)
Franklin Flex Cap Growth A (FKCGX)
Vanguard International Growth Inv (VWIGX)
Vanguard Health Care Inv (VGHCX)
Vanguard Target Retirement 2055 Inv (VFFVX)
Stocks
CRM
APPL

This first 4 mutual funds (Franklin and MFS) was done with the above commission collecting broker, the other funds I invested in on my own later. I kind of got excited about investing and put a little everywhere without a goal and strategy, which I realize now was a mistake. Since I don't own a home yet, I hope to buy one in the next 4 - 10 years, the money I need for the down payment should be kept in a very conservative holdings, which right now is not the case. I think I need to switch over to bonds over the next few months, at least part of my portfolio.

I'm open if anyone has any ideas for suggestions.

MarkS · « **Reply #5 on:** December 24, 2015, 07:07:04 PM »

Good write up. For someone just saving for kids weddings and retirements, go with Vanguard Target Retirement Funds. You pick a year that you want it to end (Say 2035) and it goes into a fund that invests in many different funds. In the earlier years it takes on a little more risk to accelerate growth and then in the later year it dials down the risk to ensure stability.

Vanguard has the lowest fees out there and these funds are as diversified as you can get so you can dump it all in a fund and forget about it. I personally split my investments between 2 different target funds. One dated for kids weddings and one dated for retirement.

https://investor.vanguard.com/mutual-funds/target-retirement/#/

Shmulie · « **Reply #6 on:** December 24, 2015, 07:29:42 PM »

Quote from: googwallet on December 24, 2015, 07:01:41 PM

Stocks
CRM
APPL

Just wondering why CRM?

Boruch999 · « **Reply #7 on:** December 24, 2015, 07:34:21 PM »

VFINX is Vanguard's S&P 500 index fund. It is low fee. Historically it performs very well. It's about as conservative as you can get with stocks.

googwallet · « **Reply #8 on:** December 24, 2015, 07:39:53 PM »

Quote from: Shmulie on December 24, 2015, 07:29:42 PM

Just wondering why CRM?

I am very familiar with their products and I very much believe in the company.

skyguy918 · « **Reply #9 on:** December 24, 2015, 07:45:10 PM »

Search Future Advisor, either on DDF or the wider web. I'm not touting Future Advisor specifically, but the general concept is that you can easily construct a solid, diversified portfolio using only commission free, low-expense ratio ETF's, and Future Advisor is one site that advises you on how to do so for free.

rivkao · « **Reply #10 on:** December 24, 2015, 07:57:29 PM »

What about whole life insurance policies which have a dual purpose, as a life insurance and you can use the cash value for marrying children in ~20 years. What I find with them is that they are the least risky and funds usually double within that time frame.

googwallet · « **Reply #11 on:** December 24, 2015, 08:10:23 PM »

Quote from: rivkao on December 24, 2015, 07:57:29 PM

What about whole life insurance policies which have a dual purpose, as a life insurance and you can use the cash value for marrying children in ~20 years. What I find with them is that they are the least risky and funds usually double within that time frame.

There is a whole separate thread on DDF were Whole vs. Term is discussed(http://forums.dansdeals.com/index.php?topic=18021.0). At the end of the day (and I don't want to bring the debate here), most people seem to agree that it's best to keep life insurance and investments separate i.e. use term for Life Insurance and use investments for growing your money.

Boruch999 · « **Reply #12 on:** December 24, 2015, 08:11:37 PM »

Quote from: rivkao on December 24, 2015, 07:57:29 PM

What about whole life insurance policies which have a dual purpose, as a life insurance and you can use the cash value for marrying children in ~20 years. What I find with them is that they are the least risky and funds usually double within that time frame.

VFINX will outperform by far. Will not provide life insurance, however.

Emkay · « **Reply #13 on:** February 02, 2016, 03:26:29 PM »

Looking into opening an IRA, anyone have any recommended reading on that topic like how to choose which on is right for you/

MarkS · « **Reply #14 on:** February 02, 2016, 03:49:08 PM »

Quote from: Emkay on February 02, 2016, 03:26:29 PM

Looking into opening an IRA, anyone have any recommended reading on that topic like how to choose which on is right for you/

Personally I'd just open a Vanguard account

Choose the same way you'd choose any brokerage account. The big advantage of an IRA (over a 401K) is the ability to better choose where/how to invest it. So pick any financial institution that offers IRA accounts that you would consider a good brokerage firm. The next question is where to invest. For that I recommend Vanguard - they are known for having the lowest fees. Specifically a Target Retirement Fund.