Help me decide: $20k in I Bonds or $20k in VOO?

[Anonymous]

Trying to figure out what to do with $20k I’ve saved up. Some context separate from the $20k fund:

- Currently have $20k in I Bonds purchased last year
- $60k cash cushion emergency fund saved
- $50k in after tax brokerage accounts
- will come into about $250k of tech stock in the next few years as it vests
- already max out 401k and 529 accounts

Any thoughts on if I should stick with my initial I Bond plan with these high rates, or use the low VOO prices to get more VOO at a “discount?”

TIA wise ones of DCUM!

[Anonymous]

Invest in a land-cruiser, OP.

[Anonymous]

Anonymous wrote:Trying to figure out what to do with $20k I’ve saved up. Some context separate from the $20k fund:

- Currently have $20k in I Bonds purchased last year
- $60k cash cushion emergency fund saved
- $50k in after tax brokerage accounts
- will come into about $250k of tech stock in the next few years as it vests
- already max out 401k and 529 accounts

Any thoughts on if I should stick with my initial I Bond plan with these high rates, or use the low VOO prices to get more VOO at a “discount?”

TIA wise ones of DCUM!

Damn uou rich

[Anonymous]

Given current market conditions, go with the I Bonds, especially if you don't have a stomach for volatility. You can always get out in a year or so if the market stabilizes.

[Anonymous]

Looong way to go before this market bottoms. How much you want to lose holding voo? Ibonds for now.

[Anonymous]

Anonymous wrote:Looong way to go before this market bottoms. How much you want to lose holding voo? Ibonds for now.

Nobody can predict the stock market. If you could, you would be rich and not posting on dcum. US small is down 35% from peak. Likely a good deal if you are a long term investor.

It's interesting that nobody would be skeptical about investing in stocks a year ago when valuations we're very high, and obviously not a good deal in hindsight.

[Anonymous]

Anonymous wrote:Trying to figure out what to do with $20k I’ve saved up. Some context separate from the $20k fund:

- Currently have $20k in I Bonds purchased last year
- $60k cash cushion emergency fund saved
- $50k in after tax brokerage accounts
- will come into about $250k of tech stock in the next few years as it vests
- already max out 401k and 529 accounts

Any thoughts on if I should stick with my initial I Bond plan with these high rates, or use the low VOO prices to get more VOO at a “discount?”

TIA wise ones of DCUM!

Ibonds. Stock market has the same chance of 10% gain or 10% loss at current environment. Chill with ibonds

[Anonymous]

Are you married? The limit on iBonds is 10K/person.
If you're married, great. There's your 20K.
If single, then you can do 10K in iBonds, 10K in VOO, or hold the second 10K until 2023 and see how they are looking then.

We just did 20K in iBonds, and are holding more cash to go into VOO.

[Anonymous]

And I'm sure you're reading that iBond rates are predicted/set to go down in November.

[Anonymous]

What is your time horizon for this investment?

[Anonymous]

Anonymous wrote:Trying to figure out what to do with $20k I’ve saved up. Some context separate from the $20k fund:

- Currently have $20k in I Bonds purchased last year
- $60k cash cushion emergency fund saved
- $50k in after tax brokerage accounts
- will come into about $250k of tech stock in the next few years as it vests
- already max out 401k and 529 accounts

Any thoughts on if I should stick with my initial I Bond plan with these high rates, or use the low VOO prices to get more VOO at a “discount?”

TIA wise ones of DCUM!

Depending on your age, risk tolerance and investment horizon:
High risk: 50/50 - TQQQ and SPXL (young, high risk tolerance, very long term investment horizon)
Mderate risk: 50/50 - QQQ/VOO
Low risk: 50/50 - VOO/iBonds
zero risk: 100% iBonds

For options 1 and 2, I'd spread the investment over the next 5-6 months.. Say second business day of each month, 2K per month per instrument.

[Anonymous]

What is your asset allocation (how much of your portfolio do you want to be in bonds?) This is dependent on when you plan to retire and your risk tolerance. Come up with something you’re comfortable with for the long term. Personally, I’m 20% in bonds. Once you have your AA, invest accordingly. As soon as your tech stock vests, sell it and reinvest accordingly. You don’t want to hold 250k at a place where you work. Too risky.

[Anonymous]

Anonymous wrote:Are you married? The limit on iBonds is 10K/person.
If you're married, great. There's your 20K.
If single, then you can do 10K in iBonds, 10K in VOO, or hold the second 10K until 2023 and see how they are looking then.

We just did 20K in iBonds, and are holding more cash to go into VOO.

OP here - yes married. When are you going to do more in VOO?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Trying to figure out what to do with $20k I’ve saved up. Some context separate from the $20k fund:

- Currently have $20k in I Bonds purchased last year
- $60k cash cushion emergency fund saved
- $50k in after tax brokerage accounts
- will come into about $250k of tech stock in the next few years as it vests
- already max out 401k and 529 accounts

Any thoughts on if I should stick with my initial I Bond plan with these high rates, or use the low VOO prices to get more VOO at a “discount?”

TIA wise ones of DCUM!

Depending on your age, risk tolerance and investment horizon:
High risk: 50/50 - TQQQ and SPXL (young, high risk tolerance, very long term investment horizon)
Mderate risk: 50/50 - QQQ/VOO
Low risk: 50/50 - VOO/iBonds
zero risk: 100% iBonds

For options 1 and 2, I'd spread the investment over the next 5-6 months.. Say second business day of each month, 2K per month per instrument.

Thank you - this is very helpful. I need to read up on TQQQ and SPXL. We are late 20s, and no immediate plans for the money so likely long term investment horizon. Some talk of getting a second property as an investment, but not sure if that makes sense or better to keep money in the market.

[Anonymous]

Anonymous wrote:What is your asset allocation (how much of your portfolio do you want to be in bonds?) This is dependent on when you plan to retire and your risk tolerance. Come up with something you’re comfortable with for the long term. Personally, I’m 20% in bonds. Once you have your AA, invest accordingly. As soon as your tech stock vests, sell it and reinvest accordingly. You don’t want to hold 250k at a place where you work. Too risky.

That is a good way for me to think about it. Right now we are very cash heavy for how young we are, but I get a sense of comfort from having so much cash on hand and accessible if we ever need it.
We do plan to sell the stock and reinvest in VOO, but ideally 1 year after it vests so we move to the long term cap gains tax bracket for the stock instead of ordinary income.