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

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are mid 30s, came into some cash this year (low six figures), and have done a similar approach… a little here, a little there. For us that’s our brokerage, kids 529s, and ibonds. We have spread out the brokerage purchases over time, every couple weeks. The approach gives me the most piece of mind.

I am curious - you said you are maxing 529s, what does maxing mean? There is no limit, but there is a cap to the tax benefit depending on your state.

That approach makes sense to me - I hope to do something similar.
We are in VA so doing $8k per kid per year ($16k/year), for the “max” VA state benefit of $4k/account/person. Right now the 2 year old has $27k and the 9 month old has $11k in their accounts. We intend to keep this approach for the years to come so even though the #s aren’t big yet, I don’t necessarily want to put more in those accounts now.

What are you doing for your 529s?

We are only doing $250/month per child - both are a year older then yours - but added 15k each from the cash I mentioned to help front load. I am concerned about the college landscape changing before they go, but also recognize that significant reform is h likely. So we want to be prepared but may contribute some from our brokerage or cash flow at the time. We are in MD so minimal tax break.

Any cartel-like business is unlikely to suffer drastic changes over time. Changes, if any, will be ones that appease the loudest constituents of society so the cartel continue to exist and make money. Colleges are one such cartel. Save.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

I sold out of all my equities in November 2021. The overvaluation of the market was as plain as day. I’m sitting on $18M in cash that will be put back into growth stocks when the S&P 500 dips below 3200. Once the market pushes back up to 4800 (ETA 2028), I’ll be sitting pretty with a cool $27M. Plus, of course, I’ll be DCAing new money in at low prices all along the way. My divine brilliance knows no earthly bounds, of this we can be absolutely sure.

Wake up Ralph!

"Ralph came home drunk one night, slid into bed beside his sleeping wife, and fell into a deep slumber.
He awoke before the Pearly Gates, where St. Peter said, ’You died in your sleep, Ralph.’
Ralph was stunned. ’I’m dead? No, I can’t be! I’ve got too much to live for. Send me back!’
St. Peter said, ’I’m sorry, but there’s only one way you can go back, and that is as a chicken.’
Ralph was devastated, but begged St. Peter to send him to a farm near his home. The next thing he knew, he was covered with feathers, clucking, and pecking the ground.
A rooster strolled past. ’So, you’re the new hen, huh? How’s your first day here?’
’Not bad,' replied Ralph the hen, but I have this strange feeling inside. Like I’m gonna explode!’
’You’re ovulating,’ explained the rooster. ’Don’t tell me you’ve never laid an egg before? ’
"Never," said Ralph.
Well, just relax and let it happen, says the rooster. ’It’s no big deal.’
Ralph did, and a few uncomfortable seconds later, out popped an egg!
Ralph was overcome with emotion as he experienced motherhood. He soon laid another egg -- his joy was overwhelming.
As he was about to lay his third egg, he felt a smack on the back of his head, and heard his wife yell.....
"Ralph! Wake up you dirty bastard. You shit the bed!!"

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

I sold out of all my equities in November 2021. The overvaluation of the market was as plain as day. I’m sitting on $18M in cash that will be put back into growth stocks when the S&P 500 dips below 3200. Once the market pushes back up to 4800 (ETA 2028), I’ll be sitting pretty with a cool $27M. Plus, of course, I’ll be DCAing new money in at low prices all along the way. My divine brilliance knows no earthly bounds, of this we can be absolutely sure.

Wake up Ralph!

"Ralph came home drunk one night, slid into bed beside his sleeping wife, and fell into a deep slumber.
He awoke before the Pearly Gates, where St. Peter said, ’You died in your sleep, Ralph.’
Ralph was stunned. ’I’m dead? No, I can’t be! I’ve got too much to live for. Send me back!’
St. Peter said, ’I’m sorry, but there’s only one way you can go back, and that is as a chicken.’
Ralph was devastated, but begged St. Peter to send him to a farm near his home. The next thing he knew, he was covered with feathers, clucking, and pecking the ground.
A rooster strolled past. ’So, you’re the new hen, huh? How’s your first day here?’
’Not bad,' replied Ralph the hen, but I have this strange feeling inside. Like I’m gonna explode!’
’You’re ovulating,’ explained the rooster. ’Don’t tell me you’ve never laid an egg before? ’
"Never," said Ralph.
Well, just relax and let it happen, says the rooster. ’It’s no big deal.’
Ralph did, and a few uncomfortable seconds later, out popped an egg!
Ralph was overcome with emotion as he experienced motherhood. He soon laid another egg -- his joy was overwhelming.
As he was about to lay his third egg, he felt a smack on the back of his head, and heard his wife yell.....
"Ralph! Wake up you dirty bastard. You shit the bed!!"

What did I just read

[Anonymous]

I bought some tqqq today. Rate cuts. Optimism on a trade deal. Who knows. Everyone says tech is super overvalued and we are in an era of “irrational exuberance” again, but the last time those words were uttered it took 3 years for the bubble to pop.

I think I’m going to buy XLK tomorrow. Anyone have ETFs they like?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

Don't waste your time reading about SPXL and TQQQ, as these are leveraged products and not in the realm of being a good idea. Try to figure out how much risk (bonds) you are willing to take and then do a little research on small caps and international stocks. I used to have a complicated portfolio and have learned over the years that it's best to keep things as simple as possible. Target retirement funds and Lifestrategy funds by Vanguard are a great option for most people.

This is horrible advice. Horrible. Target date funds are awful - too generic to be effective especially for anyone under 40.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

Don't waste your time reading about SPXL and TQQQ, as these are leveraged products and not in the realm of being a good idea. Try to figure out how much risk (bonds) you are willing to take and then do a little research on small caps and international stocks. I used to have a complicated portfolio and have learned over the years that it's best to keep things as simple as possible. Target retirement funds and Lifestrategy funds by Vanguard are a great option for most people.

This is horrible advice. Horrible. Target date funds are awful - too generic to be effective especially for anyone under 40.

Would love to hear more about what "too generic" means regarding investments. Is owning a basket of total stock market stocks "generic"? What tips the balance into "too generic"?

[Anonymous]

Anonymous wrote:Invest in a land-cruiser, OP.

I love that car. My dad has one back in Africa.