Originally Posted by ErikLS2 (Post 643043)

Here's my 2 cents worth, but remember it's free and you get what you pay for:D

1) Personally I think you're too young and 23 yrs out at least is too long to even worry about bonds in my opinion. T pays more than most bonds just in it's dividend.

That's what I was thinking, but I thought I'd double check. As I said, this is much more money than I am used to managing by myself.

2) See answer 1 but I would favor strong companies you are comfortable with that have taken a dip based more on overall market conditions than their own individual fundamentals. Scaling in, or "dollar cost averaging" is never a bad idea. Also, read this article: http://www.marketwatch.com/story/how...rly-2016-01-25

So how many positions would you look at in total with this amount of money to get a good diversification? I was thinking 10-15 positions total, but it definitely isn't set in stone.

And for scaling in, do you typically start with purchasing half of the position that you'd like and going from there?

3) Personally, I've learned to always have some cash on hand for when we have these sudden dips that really aren't based on much of anything concrete. I don't use it but HYG is a popular bond ETF for storing cash, it's not the most conservative though nor without risk. On the conservative side, T-Bills may or may not do much for you, depending on how much cash you are parking, to even be worth the trouble, but they are safe.

With the relatively low interest rates in bonds, would it be worth keeping money there or in cash over the month or months as I am putting the money into stocks.

4) Max out any free money company match 1st, then max out Roth contributions, then go back to 403b and max that out (like most plans, it probably doesn't have very many or very good choices).

That's what I was thinking.

BTW, changing jobs is a perfect opportunity to swap out of a limited set of poor choices in a 401k and into a Rollover IRA with unlimited choices without paying a penalty. That was a great move and most people don't even know they can do this. My company was sold and I didn't change jobs but it allowed me to do this too!

You're just fine tuning at this point so don't lose any sleep, you're doing it right! Good luck!

Originally Posted by WSSix (Post 643237)

Welcome Kenny. Erik pretty said everything I would have. You're smart to be doing this now. Keep up the good work. The only thing I would recommend is to further diversify. If you can continue to purchase more shares of what you own and diversify at the same time, great! If not, I'd lean towards diversifying as a priority over expanding current selections. Keep your eyes on your current selections though for any dips. Jumping in during dips isn't necessary but it's great when you can.

Originally Posted by jkp41 (Post 643706)

I have been watching this thread for around 3 years. It is what got me into investing and paying attention to my retirement. Any ideas that I have were heavily influenced by what I read here. I feel like I'm on a much better retirement path than I was a few years ago. I really appreciate the wealth of knowledge that has been shared here.


1) Personally I think you're too young and 23 yrs out at least is too long to even worry about bonds in my opinion. T pays more than most bonds just in it's dividend.

That's what I was thinking, but I thought I'd double check. As I said, this is much more money than I am used to managing by myself.

2) See answer 1 but I would favor strong companies you are comfortable with that have taken a dip based more on overall market conditions than their own individual fundamentals. Scaling in, or "dollar cost averaging" is never a bad idea. Also, read this article: http://www.marketwatch.com/story/how...rly-2016-01-25

So how many positions would you look at in total with this amount of money to get a good diversification? I was thinking 10-15 positions total, but it definitely isn't set in stone.

And for scaling in, do you typically start with purchasing half of the position that you'd like and going from there?

3) Personally, I've learned to always have some cash on hand for when we have these sudden dips that really aren't based on much of anything concrete. I don't use it but HYG is a popular bond ETF for storing cash, it's not the most conservative though nor without risk. On the conservative side, T-Bills may or may not do much for you, depending on how much cash you are parking, to even be worth the trouble, but they are safe.

With the relatively low interest rates in bonds, would it be worth keeping money there or in cash over the month or months as I am putting the money into stocks.

4) Max out any free money company match 1st, then max out Roth contributions, then go back to 403b and max that out (like most plans, it probably doesn't have very many or very good choices).

That's what I was thinking.

BTW, changing jobs is a perfect opportunity to swap out of a limited set of poor choices in a 401k and into a Rollover IRA with unlimited choices without paying a penalty. That was a great move and most people don't even know they can do this. My company was sold and I didn't change jobs but it allowed me to do this too!

You're just fine tuning at this point so don't lose any sleep, you're doing it right! Good luck!

Originally Posted by jkp41 (Post 643706)

I have been watching this thread for around 3 years. It is what got me into investing and paying attention to my retirement. Any ideas that I have were heavily influenced by what I read here. I feel like I'm on a much better retirement path than I was a few years ago. I really appreciate the wealth of knowledge that has been shared here.

Originally Posted by YAMATHUMP (Post 643048)

I am a long time lurker on this thread, and I just wanted to take the time to say thank you to all who have posted. It is funny how some of the most solid investing advice I have seen has been on a "car forum". LOL Another thing that's funny is how you go from "gambling" to "investing" and you feel so much more secure.
You know I wish I knew at 20 what I know now.......and I have always saved money, just sometimes made bad investment decisions (some good too!) Any how, I hope everyone who reads this thread gets out of it what I have! Thanks again and keep up the good work!
Brad

Originally Posted by captainofiron (Post 643805)

I have a pretty significant chunk of my portfolio in Lowes, and today they missed so they are down ~$5

I have a reasonable chunk of cash sitting (from being an idiot and not using the dividends reinvestment option), but I am really nervous about putting money into them on a dip, given that it has kicked me down hard when I did this the past couple years with COP and STX

Any thoughts?

Originally Posted by GregWeld (Post 643806)

The very best time to buy is when the market is DOWN not UP.


Having said that --- even when you have a bucket of money --- it's hard to follow this simple advice. I get it.


Whenever you get nervous..... GO TO THE CHARTS!!! Stretch 'em out ---- DO YOU NOT SEE THAT THEY'RE LOWER ON THE LEFT SIDE AND HIGHER ON THE RIGHT??


Now -- be a smart guy and pull up a comparo chart of Home Depot (HD) and Lowe's (LOW).... Personally I've always liked HD better. Lowe's - to me - is too "Chinese imports for the housewife" kind of a store.


How many years do you have before you actually retire --- and then --- wait for it --- how many years do you plan to live after retirement?? My guess is - no matter how many dips the market takes - it'll be higher in the long run.

Originally Posted by captainofiron (Post 643816)

Greg you are the man.

I bought lowes at the time because it was worth half of what HD was, and it has really paid off. I have shopped at both, and I understand exactly what you say about contractor style of Home Depot vs housewife faux-renovation style of Lowes, BUT both are always packed everytime I go into one, PLUS the Lowes is easier to get to for me, haha

Im gonna take a look at the comparison, last time I looked they were pretty neck and neck for the past few years.