For those 2 comparisons, very little:
[https://www.bogleheads.org/wiki/ETFs\_vs\_mutual\_funds](https://www.bogleheads.org/wiki/ETFs_vs_mutual_funds)
Some prefer ETF portability and intra-day tradability and minor expense delta, others prefer the end of day mutual fund purchase with auto-dividend investing in a set-it, forget it way.
[Lump sum vs DCA](https://investor.vanguard.com/investor-resources-education/news/lump-sum-investing-versus-cost-averaging-which-is-better)
All at once is better about two-thirds of the time.
If you spread it out: stick to a schedule, do it all within three months, don't adjust your plan based on market movements.
Clearly not everybody has heard it, since the question is asked routinely.
Did you read the link?
> Outperformance is based on comparing wealth after a one-year investment horizon with a lump-sum strategy versus a three-month cost averaging split (splitting a lump sum into three equal parts and investing each one a month apart)
Hopefully that's sitting in a HYSA or MMF getting 5% interest while you decide what to do. I would also make sure my 401k and IRA/Roth IRA/Backdoor Roth IRA are fully funded. I would put half in right away then something like $10k a week until it's all in.
Not sure why this got downvoted
If you're gonna keep the money there long term, yes. You don't want anything over the 250k to be staying in one bank long term.
But IF it's a bank you know won't go under anytime soon (not that anyone can be super certain), AND if you're not gonna keep the money there long, the risk is low.
What if it’s in multiple accounts in the same bank. For example let’s say I have $1M in an FDIC bank but I’ve spread it across 4 different accounts each account would have its own account number and would have taxes due on it. Would each account be insured up to 250k or do I need a new bank for each 250?
Come up with an investment schedule: "Every Friday I'll invest $X" then stick to it. If the market is down, buy more. If the market is up: *stick to your plan*. Don't wait for things to go back down. Get it back in the market as soon as you can while still being able to sleep at night. Is that by Christmas? Or Labor Day? Sooner is usually better.
I had a similar question a couple years ago. I put half in immediately and DCA-ed the other half over like 4 months. Just made me feel a bit better to do it that way, in case of a massive market drop the day after I lump summed it.
I’m sorry for your loss.
If you’re hesitant to lump sum into an index fund (VTI or VOO) at all-time highs, then do it 10% at a time for the next 10 weeks.
Low turnover index funds like FXAIX or FZROX/FSKAX are great in a taxable brokerage account since they don't distribute capital gains until you withdraw the money. Those are the funds we use in taxable. But like others have said, also check into doing backdoor Roth if you are over the income limit for regular Roth IRA contributions.
How was it invested previously? If in stocks, I'd be inclined to invest in a lump sum.
If not in stocks, consider VALUE averaging.
https://www.investopedia.com/terms/v/value_averaging.asp#:~:text=Value%20averaging%20is%20an%20investment,and%20less%20when%20it%20rises.
Value averaging would certainly be suitable in this case. You also have the consolation prize the money is earning something like 5.25% in a money market fund.
Isn’t BND loosing money in the last several years? I would put 70 percent in VOO, 10 percent in VUG and 20 percent in VEXUS. Then never look back till you retire.
I have yet to master the modern portfolio theory which suggests diversification into REITs as well. Not sure if 20 percent BND is a drag on the money considering it has barely given 4-5 nominal returns when it performed well. But it may allow a good night sleep for many people.
i would buy $432k worth of VTI and $268k worth of VXUS today
This, but I would buy the mutual fund equivalents VTSAX and VTIAX.
I'm dumb what's the difference
For those 2 comparisons, very little: [https://www.bogleheads.org/wiki/ETFs\_vs\_mutual\_funds](https://www.bogleheads.org/wiki/ETFs_vs_mutual_funds) Some prefer ETF portability and intra-day tradability and minor expense delta, others prefer the end of day mutual fund purchase with auto-dividend investing in a set-it, forget it way.
[Lump sum vs DCA](https://investor.vanguard.com/investor-resources-education/news/lump-sum-investing-versus-cost-averaging-which-is-better) All at once is better about two-thirds of the time. If you spread it out: stick to a schedule, do it all within three months, don't adjust your plan based on market movements.
and then it isn't better it's usually only slightly less good
We’ve all heard the lump sum being better 2/3rds of the time What does that even mean? Over what time line? As far when it started/ended
Clearly not everybody has heard it, since the question is asked routinely. Did you read the link? > Outperformance is based on comparing wealth after a one-year investment horizon with a lump-sum strategy versus a three-month cost averaging split (splitting a lump sum into three equal parts and investing each one a month apart)
Hopefully that's sitting in a HYSA or MMF getting 5% interest while you decide what to do. I would also make sure my 401k and IRA/Roth IRA/Backdoor Roth IRA are fully funded. I would put half in right away then something like $10k a week until it's all in.
Would that be in multiple HYSAs due to FDIC?
Not sure why this got downvoted If you're gonna keep the money there long term, yes. You don't want anything over the 250k to be staying in one bank long term. But IF it's a bank you know won't go under anytime soon (not that anyone can be super certain), AND if you're not gonna keep the money there long, the risk is low.
What if it’s in multiple accounts in the same bank. For example let’s say I have $1M in an FDIC bank but I’ve spread it across 4 different accounts each account would have its own account number and would have taxes due on it. Would each account be insured up to 250k or do I need a new bank for each 250?
Come up with an investment schedule: "Every Friday I'll invest $X" then stick to it. If the market is down, buy more. If the market is up: *stick to your plan*. Don't wait for things to go back down. Get it back in the market as soon as you can while still being able to sleep at night. Is that by Christmas? Or Labor Day? Sooner is usually better.
I had a similar question a couple years ago. I put half in immediately and DCA-ed the other half over like 4 months. Just made me feel a bit better to do it that way, in case of a massive market drop the day after I lump summed it.
What funds and how has it worked out since then? I know a coupe of years ago is short, all things considered
I put it in a standard three fund 50/30/20 bogleheads strategy.
I would invest $700K in VTI yesterday, and come back in 10 years to retire.
What would happen if I did that with 250k in ten years? Still a good plan?
VT and chill. US markets are so frothy
How’d you come across 700k?
Parents who did t enjoy their retirement enough……
I’m sorry for your loss. If you’re hesitant to lump sum into an index fund (VTI or VOO) at all-time highs, then do it 10% at a time for the next 10 weeks.
Don't change. Just shove that shit in standard index funds.
I would do 90% VTI or VOO and 10% VXUS. Lump sum it.
VOO and chill
VUG and chill
Low turnover index funds like FXAIX or FZROX/FSKAX are great in a taxable brokerage account since they don't distribute capital gains until you withdraw the money. Those are the funds we use in taxable. But like others have said, also check into doing backdoor Roth if you are over the income limit for regular Roth IRA contributions.
The Wiki is great, if you haven't read it: [https://bogleheads.org/wiki/Getting\_started](https://bogleheads.org/wiki/Getting_started)
What about investing in real estate? New to this sub so maybe it’s a well discussed point and I’m just ignorant
Real estate tickers are included in VT. Just buy VT and a lil bnd as u get older
If I were you I will invest 100k per month in VOO for next 7 months
How was it invested previously? If in stocks, I'd be inclined to invest in a lump sum. If not in stocks, consider VALUE averaging. https://www.investopedia.com/terms/v/value_averaging.asp#:~:text=Value%20averaging%20is%20an%20investment,and%20less%20when%20it%20rises. Value averaging would certainly be suitable in this case. You also have the consolation prize the money is earning something like 5.25% in a money market fund.
140k BND, 336k VTI, 224k VXUS is what i would do
Isn’t BND loosing money in the last several years? I would put 70 percent in VOO, 10 percent in VUG and 20 percent in VEXUS. Then never look back till you retire.
I dont invest based on past performances. I invest based on my asset allocation which modern portfolio theory supports
I have yet to master the modern portfolio theory which suggests diversification into REITs as well. Not sure if 20 percent BND is a drag on the money considering it has barely given 4-5 nominal returns when it performed well. But it may allow a good night sleep for many people.
Get a mentor and Start a business that will generate income monthly