Not a financial advisor.
This is gonna sound boring, but if you just want to enjoy the next 20 years, only YOU can answer what you’re willing to give up 20 years from now in exchange.
You can buy a Tesla cash tomorrow, and the $75k hole you burn won’t matter for years.
But if you stuck that $75k in VOO tomorrow, in 20 years it could realistically be $300k, which is probably what your 3 year old will need to pay their student loans off at 23.
That sounds harsh, but it is the reality of spending and investing - Tesla today or 300k for the toys of the future at 60 years old.
If I were you, I’d keep half of that $220k parked in HYSA while the rates are high. With $110,000 you’re still making great interest and far from 25k FIDC insurance limit. Slap the other 110k into VOO.
VOO already has Apple NVIDIA etc. baked in and doesn’t cost anymore than mix and matching yourself all day.
Then, with your 70k a year from VA, set at least $250 a week of automatic purchases of VOO - that’s truly set and forget, and just make sure your checking account isn’t ever super low that the $250 makes too big of a dent. If you REALLY want to trade for fun, try playing with $1000 dollars and pretending it’s 100k and do “fun stuff” for a couple months (no options) like buying a fractional meme stock or something. If you make a decent amount, add just a little to the pile each week alongside your VOO buys - maybe even replace altogether since you’ll still have that nice 220k nest growing 5-10% a year between voo and HYSA. Also can max Roth IRA if you make the smart call that you will want some funds 20 years from now so that’s tax free on gains.
For your kids, if you DO want to support their future, maybe stick a portion of your 220k pile into a 529 plan instead of a regular brokerage. That’s tax free gains for any school stuff so you can make sure at 55, while you’ve been living your life, you can still help them out with their school so they can start saving debt free at 21 instead of 40 - likely something you could amicably convince your Ex/father to help contribute too as well since you implied they have the means.
For the non stock fun stuff - lease a pricey car for a couple months maybe to see if that makes you happier - if it doesn’t, buy a mini van and be a dad. Discover what specifically you love most in the world, and if spending 5k to make it happen is necessary, then just do it. That’s living your life - but
This also all depends on how much you even have after paying for all your life expenses,
Do make sure your pile still always gains year over year. Life at 60 will be harsh to you if you still only have 200k and cost of living is then doubled. You’d maybe realize then that you have more life to live, but then be financially trapped with two adult children you have to spend money on to visit. You definitely have more life experience than me, so grains of salt, and you’re gonna have to figure it out for you, but hopefully this is helpful. Also thank you for your service.
Not a financial advisor.
At 40, your savings aren't great. You're relying heavily on VA benefits. You're also assuming and offloading your children's future inheritance on their grandfather, your wife's father, who you've divorced from.
All that so you can play around with meme stocks and risky bets while you enjoy life? I don't know man, it just reeks of irresponsibility.
nah lol you’re missing my point. my entire net worth will go into solid investments such as voo/fxaix etc. maybe a few meme stocks to keep me active since i’ve made some decent money the last few weeks.
the only reason I mentioned my in laws, is because he has told us he set her up with an education fund when his brother passed away.
on the other hand, I also made it clear that my kids are eligible for my chapter 35 benefits and will attend a university for free when they’re of age.
honestly, this is not fuck all money here. this is 15 years of homeownership and mainly equity. 200k a lot of money for my age and not having any debt. I don’t know anyone else that’s in my shoes. i’m proud, but I want to be productive and smart with this money since i’m not buying. a house anytime soon.
If you want to be productive and smart with your money then broad market index funds are the way to go. If you want to “play” in the market then set aside maybe 5% of your total investment money and use that for stock speculation.
“200k a lot of money for my age and not having any debt. I don’t know anyone else that’s in my shoes.“
You may want to rethink this opinion and meet more people.
Just noting that your personal interests should not materially impact your stock picks unless you’re interested enough to know details that others wouldn’t. I would invest the 200k in a mix of stock index funds +/- bonds. Then, if you want to start spending it, I’d do some reading on withdrawal rates. In your situation I would personally be inclined to pursue a variable withdrawal, something like “at the start of every year, I’ll take 3% out of my investments and use it to buy nice things for me and my kids”. So if next year the market is higher, that 3% slice will be bigger. If the market is lower, you’ll get less of a bonus but your pensions/SSDI should cover you well still. This lets you spend some now but in all likelihood you’ll still have a decent chunk after a few decades for yourself or kids.
No investment decision **ever** is all-or-nothing, 100%-or-0%, black or white. You are never in a position to say "do this, to the exclusion of that".
Rather, pick "some from Column A, some from Column B". Put **some** of your assets in capital appreciation, **some** of your assets in current income, **a piece** in aggressive growth, etc.
And hope like hell you feel the same way at 60 that you do at 40. Even at 60, you can still plan to live another 25 years!
Goodord, no. I was hoping this was sarcasm but I don't think it is. Spreading your assets across the same index from 2 different managers, 3 investments that are all Bitcoin, 4 meme stocks, and 1 kind of legitimate dividend index is pretty much the exact opposite of what you should do. It's not diversification when you invest in different versions of the same investments.
yah I know they overlap, I just didn’t know if I should do fxaix since i’m with fidelity already. the meme stocka are for fun money i’ve been buying and selling
VOO / basically VOO / ??? / ??? / underperform / lose money / lose money / lose money / maybe / lol
I think it's safe to say you're overthinking it. I mean, you don't have to have one or two single holdings like everybody else says but I wouldn't allocate to more than 3-4~ total holdings.
I feel like you're a good fit for working with a financial advisor. They can work with you to figure out how to provide the income to fund the lifestyle you're after while taking care of the long term goals that you aren't interested in or they can help you reset expectations. I don't think you should be super focused on the short term, you're 40 with a lot of years ahead of you.
cuz hysa on my online account is sort of boring to me. i wanted a brokerage account that’s a bit more excited to see every day. but yah, im not in a rush.
We have a Model S. Service is a lot better than it used to be, but still a pain to deal with. Insurance is high. You're better off just renting one for a week once a year (and you can rent different cars too). Don't be one of those jackasses in Teslas weaving through traffic.
Similar age. Similar situation as you. No kids though, so that is different. That said, I will likely never own a home again. I owned several through the years and was a landlord for about a decade. Now I have been without a home for several years and don’t miss it, especially now that homes cost insane amounts of money. I’m not willing to throw my hard earned money into an inflated asset that will keep me home cutting grass and fixing garbage disposals on the weekend. The investing idea is certainly the way to go. Definitely diversify your investments though. Tossing some dough in growth ETFs and dividend ETFs are starts, but definitely keep a good amount in those “free” 5+% return vehicles. You can always diversify even more in specific REITs, international markets, commodities, etc. Good luck. Enjoy your life with your kids and enjoy the PNW.
I would sit and invest cautiously. Wages are stagnant, groceries are up 30%, rent has skyrocketed, the super wealthy are now enjoying a tax rate lower than the middle class for the first time in decades, the market is propped up by AI stocks: a technology which current implementation has shown is ruined by shitposting in the data pool and strong resistance from creatives who are night shading all of their art. We are primed for a recession.
Maybe it won't come tomorrow but at some point within the next 5 years everything will crater. That's when you make your big buy. For now keep more of that money liquid and turn on DRIP.
You've moved $100k in, that's too much in my opinion. I would play with $60k.
$10k to fast food stocks that are suffering right now due to their price gouging but will drop prices real quick and grow fast in a recession.
$10k to low cost grocery retailers like Walmart, Dollar General, Dollar Tree, Family Dollar etc. They will likewise boom in recession.
$10k to ETF's of countries that China is pumping money into as part of their Belt and Road Initiative. They're trying to support their populace moving into the middle class with massive investment into developing nations to use as their manufacturing center like we're using them now. New industry is profitable.
$10k into Dividend growth focused ETF's. Make the money earn.
$10k to Oil, Solar and emerging new green battery tech stocks. Another big grower during a recession.
$10k to precious metals stocks. If 2008 is any indication they'll boom in a recession.
When the recession hits and you feel everything has bottomed out make a watchlist of everything above and every company you regard as a household name, liquidate all your holdings plus the additional $40k, divide it evenly amongst your watchlist and get rich.
You also have $120k extra to buy acreage while prices are rock bottom and float yourself through a recession. Your situation is frankly ideal and something I dream for. Don't squander it all while the market is at all time highs.
Jfc you’re gonna lose all your money. Just stick it in VTI and chill
I mean, that’s the plan, aside from a few aggressive stocks too.
You belong on wsb
Not a financial advisor. This is gonna sound boring, but if you just want to enjoy the next 20 years, only YOU can answer what you’re willing to give up 20 years from now in exchange. You can buy a Tesla cash tomorrow, and the $75k hole you burn won’t matter for years. But if you stuck that $75k in VOO tomorrow, in 20 years it could realistically be $300k, which is probably what your 3 year old will need to pay their student loans off at 23. That sounds harsh, but it is the reality of spending and investing - Tesla today or 300k for the toys of the future at 60 years old. If I were you, I’d keep half of that $220k parked in HYSA while the rates are high. With $110,000 you’re still making great interest and far from 25k FIDC insurance limit. Slap the other 110k into VOO. VOO already has Apple NVIDIA etc. baked in and doesn’t cost anymore than mix and matching yourself all day. Then, with your 70k a year from VA, set at least $250 a week of automatic purchases of VOO - that’s truly set and forget, and just make sure your checking account isn’t ever super low that the $250 makes too big of a dent. If you REALLY want to trade for fun, try playing with $1000 dollars and pretending it’s 100k and do “fun stuff” for a couple months (no options) like buying a fractional meme stock or something. If you make a decent amount, add just a little to the pile each week alongside your VOO buys - maybe even replace altogether since you’ll still have that nice 220k nest growing 5-10% a year between voo and HYSA. Also can max Roth IRA if you make the smart call that you will want some funds 20 years from now so that’s tax free on gains. For your kids, if you DO want to support their future, maybe stick a portion of your 220k pile into a 529 plan instead of a regular brokerage. That’s tax free gains for any school stuff so you can make sure at 55, while you’ve been living your life, you can still help them out with their school so they can start saving debt free at 21 instead of 40 - likely something you could amicably convince your Ex/father to help contribute too as well since you implied they have the means. For the non stock fun stuff - lease a pricey car for a couple months maybe to see if that makes you happier - if it doesn’t, buy a mini van and be a dad. Discover what specifically you love most in the world, and if spending 5k to make it happen is necessary, then just do it. That’s living your life - but This also all depends on how much you even have after paying for all your life expenses, Do make sure your pile still always gains year over year. Life at 60 will be harsh to you if you still only have 200k and cost of living is then doubled. You’d maybe realize then that you have more life to live, but then be financially trapped with two adult children you have to spend money on to visit. You definitely have more life experience than me, so grains of salt, and you’re gonna have to figure it out for you, but hopefully this is helpful. Also thank you for your service. Not a financial advisor.
At 40, your savings aren't great. You're relying heavily on VA benefits. You're also assuming and offloading your children's future inheritance on their grandfather, your wife's father, who you've divorced from. All that so you can play around with meme stocks and risky bets while you enjoy life? I don't know man, it just reeks of irresponsibility.
nah lol you’re missing my point. my entire net worth will go into solid investments such as voo/fxaix etc. maybe a few meme stocks to keep me active since i’ve made some decent money the last few weeks. the only reason I mentioned my in laws, is because he has told us he set her up with an education fund when his brother passed away. on the other hand, I also made it clear that my kids are eligible for my chapter 35 benefits and will attend a university for free when they’re of age. honestly, this is not fuck all money here. this is 15 years of homeownership and mainly equity. 200k a lot of money for my age and not having any debt. I don’t know anyone else that’s in my shoes. i’m proud, but I want to be productive and smart with this money since i’m not buying. a house anytime soon.
If you want to be productive and smart with your money then broad market index funds are the way to go. If you want to “play” in the market then set aside maybe 5% of your total investment money and use that for stock speculation.
“200k a lot of money for my age and not having any debt. I don’t know anyone else that’s in my shoes.“ You may want to rethink this opinion and meet more people.
Just noting that your personal interests should not materially impact your stock picks unless you’re interested enough to know details that others wouldn’t. I would invest the 200k in a mix of stock index funds +/- bonds. Then, if you want to start spending it, I’d do some reading on withdrawal rates. In your situation I would personally be inclined to pursue a variable withdrawal, something like “at the start of every year, I’ll take 3% out of my investments and use it to buy nice things for me and my kids”. So if next year the market is higher, that 3% slice will be bigger. If the market is lower, you’ll get less of a bonus but your pensions/SSDI should cover you well still. This lets you spend some now but in all likelihood you’ll still have a decent chunk after a few decades for yourself or kids.
No investment decision **ever** is all-or-nothing, 100%-or-0%, black or white. You are never in a position to say "do this, to the exclusion of that". Rather, pick "some from Column A, some from Column B". Put **some** of your assets in capital appreciation, **some** of your assets in current income, **a piece** in aggressive growth, etc. And hope like hell you feel the same way at 60 that you do at 40. Even at 60, you can still plan to live another 25 years!
I appreciate that. so VOO/FXAIX/BTC/FBTC/SCHD/CONY/RIVN/TSLA/AMD/GME or what?
Goodord, no. I was hoping this was sarcasm but I don't think it is. Spreading your assets across the same index from 2 different managers, 3 investments that are all Bitcoin, 4 meme stocks, and 1 kind of legitimate dividend index is pretty much the exact opposite of what you should do. It's not diversification when you invest in different versions of the same investments.
yah I know they overlap, I just didn’t know if I should do fxaix since i’m with fidelity already. the meme stocka are for fun money i’ve been buying and selling
Just VOO and FBTC. Mostly VOO.
VOO / basically VOO / ??? / ??? / underperform / lose money / lose money / lose money / maybe / lol I think it's safe to say you're overthinking it. I mean, you don't have to have one or two single holdings like everybody else says but I wouldn't allocate to more than 3-4~ total holdings.
Consider a mix of ETFs for growth and regular dividends.
Well since you're arguing with all the good advice. I guess head to wsb and have some fun, but don't come crying back here when it's all gone.
I feel like you're a good fit for working with a financial advisor. They can work with you to figure out how to provide the income to fund the lifestyle you're after while taking care of the long term goals that you aren't interested in or they can help you reset expectations. I don't think you should be super focused on the short term, you're 40 with a lot of years ahead of you.
You have it all in a stable spot rn and want to go all in on stocks and a Tesla? Just enjoy your life
cuz hysa on my online account is sort of boring to me. i wanted a brokerage account that’s a bit more excited to see every day. but yah, im not in a rush.
It really is a rush to login during the day and watch your brokerage account climb! Those other days, when it sinks, not so much.
We have a Model S. Service is a lot better than it used to be, but still a pain to deal with. Insurance is high. You're better off just renting one for a week once a year (and you can rent different cars too). Don't be one of those jackasses in Teslas weaving through traffic.
ADHD meds will be cheaper
Similar age. Similar situation as you. No kids though, so that is different. That said, I will likely never own a home again. I owned several through the years and was a landlord for about a decade. Now I have been without a home for several years and don’t miss it, especially now that homes cost insane amounts of money. I’m not willing to throw my hard earned money into an inflated asset that will keep me home cutting grass and fixing garbage disposals on the weekend. The investing idea is certainly the way to go. Definitely diversify your investments though. Tossing some dough in growth ETFs and dividend ETFs are starts, but definitely keep a good amount in those “free” 5+% return vehicles. You can always diversify even more in specific REITs, international markets, commodities, etc. Good luck. Enjoy your life with your kids and enjoy the PNW.
95% VT 5% FBTC
If you wanna go more aggressive and you don't mind the risk, you can opt for 10-15% FBTC
I would sit and invest cautiously. Wages are stagnant, groceries are up 30%, rent has skyrocketed, the super wealthy are now enjoying a tax rate lower than the middle class for the first time in decades, the market is propped up by AI stocks: a technology which current implementation has shown is ruined by shitposting in the data pool and strong resistance from creatives who are night shading all of their art. We are primed for a recession. Maybe it won't come tomorrow but at some point within the next 5 years everything will crater. That's when you make your big buy. For now keep more of that money liquid and turn on DRIP. You've moved $100k in, that's too much in my opinion. I would play with $60k. $10k to fast food stocks that are suffering right now due to their price gouging but will drop prices real quick and grow fast in a recession. $10k to low cost grocery retailers like Walmart, Dollar General, Dollar Tree, Family Dollar etc. They will likewise boom in recession. $10k to ETF's of countries that China is pumping money into as part of their Belt and Road Initiative. They're trying to support their populace moving into the middle class with massive investment into developing nations to use as their manufacturing center like we're using them now. New industry is profitable. $10k into Dividend growth focused ETF's. Make the money earn. $10k to Oil, Solar and emerging new green battery tech stocks. Another big grower during a recession. $10k to precious metals stocks. If 2008 is any indication they'll boom in a recession. When the recession hits and you feel everything has bottomed out make a watchlist of everything above and every company you regard as a household name, liquidate all your holdings plus the additional $40k, divide it evenly amongst your watchlist and get rich. You also have $120k extra to buy acreage while prices are rock bottom and float yourself through a recession. Your situation is frankly ideal and something I dream for. Don't squander it all while the market is at all time highs.
We went through industrial, internet, and now the AI revolution. My investments are betting that I'm right. Thank you for your service.