What should I do with $300k?
![[Post New]](/jforum/templates/default/images/icon_minipost_new.gif){kind=icon}
Anonymous
You might also want to spend some time at the bogleheads forum. They have a great wiki and as long as you've spent some time reading the wiki and relevant sticky posts are happy to answer questions. |
Anonymous
Agree with both of these suggestions. |
Anonymous
Yes although you definitely need to do some prep work before posting at Bogleheads ... they won't answer a question like OP posted. They will want details about asset allocation, risk tolerance, income, expenses, etc. If you can provide all that they will give excellent advice. Or, just call Vanguard, and you'd go through a similar process. |
Anonymous
|
First put your money into tax advantaged accounts:
At Vanguard, open IRAs (Roth if your income allows) for you and DH = $11,000. If either of you is self-employed, this number can go up to $51k) Put the money into Target retirement 2040. Put $130k into a 529 for your son (5 years of contributions at $26,000, you still have access to it in case of emergency). You'll have to pick a 529 plan. I believe Utah's plan uses Vanguard but I'm not sure. Chose a fund that's balanced, perhaps a 2025 (you'll need it in 16 years) That leaves you with $160. At Vanguard, put some amount in the money market- I'd suggest $25k. Not 6 months of salary, as you can also sell your mutual funds. Then I'd put the rest into Vanguard's Wellington Admiral shares - it's a balanced fund, so you don't have to worry about re-balancing. Voila. Done. Next? |
Anonymous
This. And it saves you $1000 in financial advisor fees. |
Anonymous
Just saved *two* people $1000 in financial advisor fees. Thanks! |
Anonymous
| On the 529 plan, 2013 contribution is $140k (5 years, 2 parents, $14k annual gift tax exemption limit). |
Anonymous
| What I wanna know is how you were able to save $300k, please do tell, I wanna know |
Anonymous
| To save $300k, you spend less than you take in. Just keep doing it. And you do not spend savings. |
Anonymous
Really? For how long?  What if you only have $200 leftover a month?
|
Anonymous
Then it will take you 125 years to reach $300K if you stick the money in a place with no interest, less if you invest it. |
Anonymous
exactly, my point which is why I was asking the OP how they were able to save that much money because obviously it did not take them 125 years 
|
Anonymous
| They saved more than $200 a month. It's not rocket science or luck or whatever you think it is. It's saving and spending less than you bring in. Simple. |
Anonymous
| Outside of our first car and primary home mortgages, we've never carried debt. Buy what you can pay for, spend less than you earn, pray for good health and reasonable investments. This was our formula anyway and after 20 years, we have a substantial net worth (and live 100% debt-free). |
Anonymous
|
Savings of $200 per month invested with a 3% annual return will get you $300,000 in about 53 years.
Savings of $200 per month invested with a 10% annual return will get you $300,000 in about 27 years. Savings of $2000 per month invested at 3% annual return will get you $300,000 in about 11 years Savings of $2000 per month invested at 10% annual return will get you $300,000 in about 8.5 years |