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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=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![/quote]

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.  
[/quote]

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. [/quote]

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. [b]Target retirement funds and Lifestrategy funds by Vanguard are a great option for most people.[/b] [/quote]

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

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