Need Some Pointers For Investing In Mutual Funds/Other Areas

[Singuy]

I have a fully maxed 401k with a maxed traditional IRA as well so my wife and I think this is enough for age dictated savings account. I will not be opening up a 401k for my wife(kind of complex being a business owner) and we don't really need it. I know the tax savings will be huge but my 401k should hit 2 mil by the time I am 60 and that's more than enough for us. Our goal is to not rely on my 401k because we want to retire at around 50 yo (just turned 33yo).

With that being said, our goal is to invest/save 20k a month (+5% additionaly per year) since we are debt free (0 debt, 0 mortgage). This is after all our expenses for the month.

How would you tackle this? I started a mutual fund account and want to put 5k/month into index funds. Is this a good idea in a bear market(with raising interest rates?). Would you put more than 5k/month into these funds and less into CDs/ "high yield" savings account?


So it's either 10k/month index funds/ 10k/month savings account or 5k/15k.

I don't want to bother with real estates as a type of investment.

[corn18]

Visit the boglehead wiki and see if the low cost, 3 fund index approach fits you:

https://www.bogleheads.org/wiki/Main_Page

Tom

[jamiesmaoneyadvice]

Usually, people invest with an objective. The time period to meet the aim may vary from a few months to years. For instance, saving for a downpayment for a car is a short-term goal. Working out finances for retirement and children's education and marriage is a long-term goal.
When we invest in a fund, we give a mandate to the fund house to manage the money on our behalf. We expect the fund house to take due care of our investments. It is the decisions taken by the fund house that will take us close to our goals and secure our future. If the fund house fails in its objective, we will end up losing our money and, maybe, our faith in mutual funds as well.
The ultimate goal is returns. Investors should look at returns given by the fund during different time periods and compare them with the benchmark, usually an index, and other funds in the same category. For equity mutual funds, check the long-term (three-five years) performance, while for debt funds look at returns over the short to medium term.

[jamiesmaoneyadvice]

Usually, people invest with an objective. The time period to meet the aim may vary from a few months to years. For instance, saving for a downpayment for a car is a short-term goal. Working out finances for retirement and children's education and marriage is a long-term goal.
When we invest in a fund, we give a mandate to the fund house to manage the money on our behalf. We expect the fund house to take due care of our investments. It is the decisions taken by the fund house that will take us close to our goals and secure our future. If the fund house fails in its objective, we will end up losing our money and, maybe, our faith in mutual funds as well.
The ultimate goal is returns. Investors should look at returns given by the fund during different time periods and compare them with the benchmark, usually an index, and other funds in the same category. For equity mutual funds, check the long-term (three-five years) performance, while for debt funds look at returns over the short to medium term.