How to invest $120,000
How to invest $120,000
My wife and I have accumulated around $120,000 in cash. I'd like to invest it in the three-fund portfolio. My wife is hesitant. Any thoughts?
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Re: How to invest $120,000
Grammar and spelling matter. |
Quoting the OP isn't a necessity.
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Re: How to invest $120,000
How soon will you need this money? Is this extra or your total net worth? Do you have any debts? Any answers really depend what your plans are and the rest of your situation.
- arcticpineapplecorp.
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Re: How to invest $120,000
welcome to the forum.
just because you invest in a three fund portfolio doesn't IN AND OF ITSELF make it risky.
The risk level is determined by your asset allocation which means HOW MUCH of your $120k is in the stock portion.
For instance a 10/90 (stock/bond) portfolio is Less Risky (from a volatility standpoint, which I assume is your wife's concern) than a 90/10 portfolio.
You can spread either the 10% across US and International stocks just as easily as you can with 90% stocks.
So what you really want to know or your wife does, is what will losses look like. Here's how much different allocations lost during the Great Recession:
in addition to writing up an IPS as was previously suggested, also look at Managing a Windfall
what do you think now?
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions |
Re: How to invest $120,000
Why do you have so much uninvested cash now?
Why is your wife hesitant?
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- JupiterJones
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Re: How to invest $120,000
Echoing what others have said... it all depends on what you want to do with the money and (maybe more importantly) when you're going to do it.
As a general rule-of-thumb, you should only invest in stocks with money you don't plan on using for at least five years.
"Stay on target! Stay on target!"
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Re: How to invest $120,000
+1 Another vote for this ^^^randybobandy wrote: ↑Wed Dec 01, 2021 4:04 pm Do you have an IPS? If so, follow it.
Edit: https://www.bogleheads.org/wiki/IPS
--Randy Bo Bandy
If you don't know where you're going, any road will take you there
Re: How to invest $120,000
Welcome to the forum!
Here's a great place to get started learning about investing: https://www.bogleheads.org/wiki/Getting_started
- AnnetteLouisan
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Re: How to invest $120,000
+ 1cat_guy wrote: ↑Wed Dec 01, 2021 6:01 pmWelcome to the forum!
Here's a great place to get started learning about investing: https://www.bogleheads.org/wiki/Getting_started
Especially the link, personal finance start up kit. Welcome!!
Re: How to invest $120,000
Depends on a lot of things. You’ll get better and more complete advice if you post all the details in this format: viewtopic.php?t=6212
Re: How to invest $120,000
Thanks for your help. I can see I have to put a little more thought into this.