Hi all - I am 39 and will soon have enough to stop working for the rest of my life, while using a conservative 3.5-4% withdrawal rate which I am confortable with considering I live somewhat minimally.
I am 100% out of the stock market right now, this money was earned through other investments and is a large lump sum. My question is: what would be my best course of action for investing it with Vanguard index funds or ETFs?
1. Although it far exceeds annual limits on IRAs, should I at least max out the Trad and Roth IRA contributions annually while putting the rest in a regular brokerage account?
2. While perusing the retirement year adjusted funds on Vanguard I noticed their stock/bond allocation recommendations. Although I am young, it seems wise to go with a more conservative 60/40 stock/bond split since this is where my income will be coming from. I will still have other non-stock market aggressive investments. I need to ultimately answer for myself but should the fact I'd be retiring and living off this supercede my younger age in terms of picking a more conservative allocation over say a 90/10 stock bond split?
3. What specific ETFs/Funds would be best? I was thinking of VTI or VOO as my stock portion and whatever the US bond index might be BND, BNDX? for the bonds. Maybe also having a small percentage of both stock/bond in the international version of the market.
I know some of these are up to my own temperament/investment style but appreciate other examples or guidance anyone can provide. Thank you
I am 100% out of the stock market right now, this money was earned through other investments and is a large lump sum. My question is: what would be my best course of action for investing it with Vanguard index funds or ETFs?
1. Although it far exceeds annual limits on IRAs, should I at least max out the Trad and Roth IRA contributions annually while putting the rest in a regular brokerage account?
2. While perusing the retirement year adjusted funds on Vanguard I noticed their stock/bond allocation recommendations. Although I am young, it seems wise to go with a more conservative 60/40 stock/bond split since this is where my income will be coming from. I will still have other non-stock market aggressive investments. I need to ultimately answer for myself but should the fact I'd be retiring and living off this supercede my younger age in terms of picking a more conservative allocation over say a 90/10 stock bond split?
3. What specific ETFs/Funds would be best? I was thinking of VTI or VOO as my stock portion and whatever the US bond index might be BND, BNDX? for the bonds. Maybe also having a small percentage of both stock/bond in the international version of the market.
I know some of these are up to my own temperament/investment style but appreciate other examples or guidance anyone can provide. Thank you
Statistics: Posted by bjs2025 — Mon Dec 16, 2024 9:00 am — Replies 9 — Views 672