What to do with $20k…

[Raybyrnes]

The first thing is to aggregate your investments and figure out what each sector represents. Next you would want to determine your target allocation. Once that has been determined you can better decide how to contribute to your portfolio. If you have a short time horizon you may want to go with a less agressive allocation. This might mean that if you ahve underweighted things such as bonds you may want to incorporate them into your portfolio. If your 401K is diversified but ther3e is a great bond fund that is closed off to retail that might be an opportunity to get more exposure to bonds in the 401K and take on a little more risk with the 20K you have. You might have better option on the retail side finding great companies either foreign or domestic. One international fund company that I like is Dodge and Cox. Can open accounts directly with this company and avoid the commissions. the management fees are reasonable.

[Raybyrnes]

The first thing is to aggregate your investments and figure out what each sector represents. Next you would want to determine your target allocation. Once that has been determined you can better decide how to contribute to your portfolio. If you have a short time horizon you may want to go with a less agressive allocation. This might mean that if you ahve underweighted things such as bonds you may want to incorporate them into your portfolio. If your 401K is diversified but ther3e is a great bond fund that is closed off to retail that might be an opportunity to get more exposure to bonds in the 401K and take on a little more risk with the 20K you have. You might have better option on the retail side finding great companies either foreign or domestic. One international fund company that I like is Dodge and Cox. Can open accounts directly with this company and avoid the commissions. the management fees are reasonable.

[Ozzie]

Don’t mean to be an A-hole, but it’s $20k.

Put it in an index fund and STFU.

Give me a break.

[Ozzie]

Don’t mean to be an A-hole, but it’s $20k.

Put it in an index fund and STFU.

Give me a break.

[Ash Housewares]

Ozzie, the question is valid regardless of the sum involved. The same ideas can be employed whether the sum is 1,000 or 10,000,000. Don’t jump at a guy’s throat for asking advice from the intelligent Piggingtons.

[Ash Housewares]

Ozzie, the question is valid regardless of the sum involved. The same ideas can be employed whether the sum is 1,000 or 10,000,000. Don’t jump at a guy’s throat for asking advice from the intelligent Piggingtons.

[cr]

“Don’t mean to be an A-hole, but it’s $20k.

Put it in an index fund and STFU.

Give me a break.”

Kind of hard to believe that first line when it’s followed buy STFU.

Not everyone here makes $7 million/hour, has 852 income properties, 6 yellow hummers, and a yacht in Monaco. So please excuse those of us who request advice on handling pocket change.

I wish I had $20,000 that I didn’t know what to do with, but I do have $5.36 in change in my car, any advice?

[cr]

“Don’t mean to be an A-hole, but it’s $20k.

Put it in an index fund and STFU.

Give me a break.”

Kind of hard to believe that first line when it’s followed buy STFU.

Not everyone here makes $7 million/hour, has 852 income properties, 6 yellow hummers, and a yacht in Monaco. So please excuse those of us who request advice on handling pocket change.

I wish I had $20,000 that I didn’t know what to do with, but I do have $5.36 in change in my car, any advice?

[HereWeGo]

Isn’t a “muni” a municipal bond? Aren’t municipal bonds issued by cities to finance debt? What does that have to do with capital goods production and international exposure?

Doh!
Try “fund”, as in “mutual fund”.

I can’t imagine the nature of that mental slip — I used to find munis intriguing, but given the dependence of much of California government on property taxes, I’m real hesitant to throw money in that direction at this time.

I like Dodge and Cox as well, Raybyrnes, dodfx that is.

Here’s another idea — you could go down the ETF route. ETF’s are supply/demand driven, not NAV driven, and they seem to be growing more popular. Actually, investing in La Fronnnnnce (EWQ) might not be half a bad idea, with Sarkozy taking over.

[HereWeGo]

Isn’t a “muni” a municipal bond? Aren’t municipal bonds issued by cities to finance debt? What does that have to do with capital goods production and international exposure?

Doh!
Try “fund”, as in “mutual fund”.

I can’t imagine the nature of that mental slip — I used to find munis intriguing, but given the dependence of much of California government on property taxes, I’m real hesitant to throw money in that direction at this time.

I like Dodge and Cox as well, Raybyrnes, dodfx that is.

Here’s another idea — you could go down the ETF route. ETF’s are supply/demand driven, not NAV driven, and they seem to be growing more popular. Actually, investing in La Fronnnnnce (EWQ) might not be half a bad idea, with Sarkozy taking over.

[beanmaestro]

I actually have a nice chunk of DODFX in my 401k, and other 5-star global funds in my taxable accounts. But I’m not so much concerned about the form of the investment (stocks, fund, ETF, etc), but what sector would be wisest to put available money in for a 2+ year horizon. Certainly putting more into global funds is the easiest answer, but I’m interested to hear other ideas.

For the fellow with only couch change, I’d advice scraping up another $35 and applying to a college engineering program. It worked great for me!

[beanmaestro]

I actually have a nice chunk of DODFX in my 401k, and other 5-star global funds in my taxable accounts. But I’m not so much concerned about the form of the investment (stocks, fund, ETF, etc), but what sector would be wisest to put available money in for a 2+ year horizon. Certainly putting more into global funds is the easiest answer, but I’m interested to hear other ideas.

For the fellow with only couch change, I’d advice scraping up another $35 and applying to a college engineering program. It worked great for me!

[Coronita]

Spend it!

It will be worth much less a year from now!

 

That would be the typical American thing to do :(.. Spend whatever money we have left over.

 

Anyway, my advice is that it's basically $20k. Put it into a index fund. Anything less won't keep up with inflation, and if you have only $20k to invest freely, it's probably not enough to buy a basket of individual stocks. If you just bought 1 stock, you'd be assuming a lot of risk unless you don't mind potentially losing a chunk of it. If you have less than $100k working cash, you really shouldn't be buying individual stocks imho.

 

[Coronita]

Spend it!

It will be worth much less a year from now!

 

That would be the typical American thing to do :(.. Spend whatever money we have left over.

 

Anyway, my advice is that it's basically $20k. Put it into a index fund. Anything less won't keep up with inflation, and if you have only $20k to invest freely, it's probably not enough to buy a basket of individual stocks. If you just bought 1 stock, you'd be assuming a lot of risk unless you don't mind potentially losing a chunk of it. If you have less than $100k working cash, you really shouldn't be buying individual stocks imho.

 

[barnaby33]

I wish I had $20,000 that I didn’t know what to do with, but I do have $5.36 in change in my car, any advice?

Clean your car, its like mining for gold!

Josh

[Author]

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