Another “I have x to invest” post, hurray! The difference is I also have a POLL. Here are the options I am considering given the current and near term macroeconomic conditions - think a possible Trump impeachment, no-deal Brexit, slowing China. Right now the vanguard index fund portfolio I’m investing in is: 60% VTSAX 20% VTIAX 20% VBTLX Goal: portfolio growth for the next 3 years after which the portfolio may be relied upon for income and thus will need liquidity.
Ntnx
What's your risk appetite and what do you want to do with this money?
On average DCA performs worse than a lump sum investment for market backed securities. You need to specify your time horizon for this money... Are you trying to buy a house anytime in the next 7 years? Do you have a kid/s and need liquidity for daycare and such? No point asking strangers for an investment strategy without specifying what your goal is
3 years.
What is your goal, timeframe, and risk tolerance?
Growth, 3 years, medium
Impeachment? Hah.
Why mutual funds and not etf's
Your portfolio is too conservative, a portion 25% ought to be in high growth stocks or fund, diversify and take on more risk. These are the years that you can afford to take the risk in exchange for more growth.
I need the cash in 3 years.
Buy a rental and hold it for >2 years and 1031 out to pay no taxes ;)
1031 just delays tax liability, no?
That's what I'm doing, holding real estate for another 2 yrs, great tax shelter, expecting high six figures ROI.
You must be in the bay. The housing market has completely stalled out in Seattle.
Yep. Northern CA has more to offer. I could use a partner iuri. This is better than parking money.
What is DCA? B t w, trump impeachment is unlikely to directly impact equities. It’s a political thing and has no consequences on monetary policy.. perhaps you are thinking about ripple effects of that.
Dollar Cost Averaging. You can bet your bacon the market will react to an impeachment. I’m not claiming to know in which direction but there WILL be a reaction to the news.
Stock markets hate instability, so likely will drop if Trump is impeached. Anyway that doesn’t look likely to happen.