What to do with 70K

[tripods68]

I'm debating what to do with 70K in our MMA (sold our old home last week). Actually this account has 100K if we include $30K in EF. We have another small savings account $3K in the bank. We follow Dave Ramsey principle, no debt except a mortgage, looking to pay this off 10 years when I retire (hopefully).


So here's my options. I own both funds VWELX & VWIAX for stability, risk, and modest return.


Option 1
Add $50K VWELX. I'm already doing DCA $500 a week actively, or about $2000 a month to this fund. Currently have $11K, 11.5 by Friday. I will qualify for Admiral share with lower expense ratio.

Option 2
Buy all $70K VWELX and continue DCA $500 a week strategy.


Option 3
Split both funds $20K VWINX & $50K VWELX


Option 4

Keep it in MMA for now. Do nothing.


I like Option 2. What do you think?

[Jluke]

30k enough for an EF?

if I remember right, you have buckets of cash for future car purchase, xmas, vacation, etc so this is basically a nice windfall for you.

If so, what is the % balance of Wellesley compared to Wellington?

Will a lump sum into Wellington (and future DCA contributions) shift your desired asset allocation too much?

[TexasHusker]

Get a good deal on a 2016 model Toyota Land Cruiser.

[james.hendrickson]

No way man, invest that money in real estate - buy a multifamily or get some REIT shares.

By and large, cars are depreciating assets, every year you own then, they decline in value.

[tripods68]

No way man, invest that money in real estate - buy a multifamily or get some REIT shares.

By and large, cars are depreciating assets, every year you own then, they decline in value.

I already own REITs about 10K in our retirement account.

I thought buying real estate for purpose of home flipping. But I just don't have time or the passion to deal with contractors.

[tripods68]

30k enough for an EF?

if I remember right, you have buckets of cash for future car purchase, xmas, vacation, etc so this is basically a nice windfall for you.

If so, what is the % balance of Wellesley compared to Wellington?

Will a lump sum into Wellington (and future DCA contributions) shift your desired asset allocation too much?

$30K should be EF since we have a very stable jobs. We don't need to carry that much cash in our MMA.


Wellesley represent about 20% of my portfolio in ROTH account. Since I've already max for 2016, I can't contribute again until next year.

It is a windfall, but I'm trying not to think that way since most people think it should be a "spending spree", "let's go on vacation". Every dollar has a name. It gives us a huge cushion for future endeavors. Notwithstanding our $30K of EF, our total cash on-hand is $112K, if we include money in our Checking. It's more than we need to fund our lifestyle at this point.

Vacation is already pre-paid for next year and this year's x-mas. I don't have to pull out anything unless my 2002 Hyundai completely falls out its wheel today. Hopefully not, I plan to keep driving this piece of crap for the next 2 more years to avoid having to tap any funds out, and we keep growing this fund for a while. But if I do have to buy, I'm hoping to by new Tacoma 4X4 double cab TRD Off-road in cash.

[TexasHusker]

No way man, invest that money in real estate - buy a multifamily or get some REIT shares.

By and large, cars are depreciating assets, every year you own then, they decline in value.

Are you sure? That's the first I've heard of that...

[feh]

I'm debating what to do with 70K in our MMA (sold our old home last week). Actually this account has 100K if we include $30K in EF. We have another small savings account $3K in the bank. We follow Dave Ramsey principle, no debt except a mortgage, looking to pay this off 10 years when I retire (hopefully).


So here's my options. I own both funds VWELX & VWIAX for stability, risk, and modest return.


Option 1
Add $50K VWELX. I'm already doing DCA $500 a week actively, or about $2000 a month to this fund. Currently have $11K, 11.5 by Friday. I will qualify for Admiral share with lower expense ratio.

Option 2
Buy all $70K VWELX and continue DCA $500 a week strategy.


Option 3
Split both funds $20K VWINX & $50K VWELX


Option 4

Keep it in MMA for now. Do nothing.


I like Option 2. What do you think?

Invest all of it according to your investing policy statement. The sooner the better.

[DaveInPgh]

Buy one or more of these cars that are expected to become collector's items.

http://www.odometer.com/o/13-cars-invest-before-collectors-items

[Spiffster]

Use some of that cash to dip a toe (or two) in peer to peer lending. Just to see if you like it.

lendingclub.com
prosper.com

Perhaps even invest in bitcoin if you're feeling adventurous.

[greenskeeper]

keep half, so that's $35k remaining

take the other $35k and split it up to the active members as of this post

Currently Active Users: 393 (15 members and 378 guests)

so $35k / 15 = $2333 to each member

sound reasonable?

[james.hendrickson]

keep half, so that's $35k remaining

take the other $35k and split it up to the active members as of this post

Currently Active Users: 393 (15 members and 378 guests)

so $35k / 15 = $2333 to each member

sound reasonable?

Post of the day.

[disneysteve]

so $35k / 15 = $2333 to each member

sound reasonable?

Sounds reasonable to me. I vote in favor!

[Spiffster]

Well there you have it. It would appear that the general consensus is to give that money to us.

[DaveInPgh]

Well there you have it. It would appear that the general consensus is to give that money to us.

No, only half the money. Don't be greedy!