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Old 06-12-2022, 11:17 AM
 
Location: Pennsylvania
26,276 posts, read 10,070,996 times
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Buy some USOI and some GLDI.
Then buy some canned goods and ammunition with the rest.
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Old 06-12-2022, 11:30 AM
 
Location: US
24,066 posts, read 24,230,983 times
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Quote:
Originally Posted by ColdAilment View Post
Would like tips and advice on how best to invest $15,000 into the market and make some modest growth.

My idea was to buy stocks that pay high dividends and enjoy an extra $200-$300 in dividends every quarter, but with the market what it is right now perhaps I should avoid that? Was also curious about the attractiveness of I bonds and if I could get a similar passive income from bonds?

I do have a vanguard brokerage account for what it's worth. Any and all advice is appreciated.
For modest growth, I’d just stick with QQQ. It’s an ETF that tracks the Nasdaq-100. However, you mentioned bonds, so if you are looking for something more conservative than QQQ, then you could do something like the Vanguard Balanced Fund or Vanguard Wellington Fund.
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Old 06-12-2022, 02:36 PM
 
Location: Mishawaka, Indiana
7,003 posts, read 11,089,996 times
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Quote:
Originally Posted by bmw335xi View Post
For modest growth, I’d just stick with QQQ. It’s an ETF that tracks the Nasdaq-100. However, you mentioned bonds, so if you are looking for something more conservative than QQQ, then you could do something like the Vanguard Balanced Fund or Vanguard Wellington Fund.
Thank you, I will look into those.
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Old 06-12-2022, 07:08 PM
 
724 posts, read 282,129 times
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In the current market, consider hedged-income.

The tamest example would be to buy STIP to get the inflation rate but then hedge the bond value with a buy of a 2-year Treasury-rate future.

To get more than the inflation rate than devise your own hedged income
.

Last edited by T Block; 06-12-2022 at 07:49 PM..
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Old 06-12-2022, 08:28 PM
 
Location: Sweet Home Chicago!
6,477 posts, read 5,506,389 times
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put half in VGT (or QQQ) and half in VOO.
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Old 06-12-2022, 08:44 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
30,490 posts, read 50,710,991 times
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Quote:
Originally Posted by flamadiddle View Post
put half in VGT (or QQQ) and half in VOO.
But... wait until there is confirmed support and a solid bottom has formed (i.e. not yet!, maybe not even during 2022). Typically the climb off lows is far slower than the quick fall to new lows.

Quote:
Originally Posted by ColdAilment View Post
Would like tips and advice on how best to invest $15,000 into the market and make some modest growth.

My idea was to buy stocks that pay high dividends and enjoy an extra $200-$300 in dividends every quarter, but with the market what it is right now perhaps I should avoid that? Dividend Stocks only pay high dividends when business is performing well, not during a recession, + NAV (stock price) might drop 30- 50%!). Dividend paying stocks so not have the asset valuation increases that growth stocks have, so not always the clear winner
Was also curious about the attractiveness of I bonds and if I could get a similar passive income from bonds? Set up your treasury Direct Acct and utilize I-Bonds during appropriate time (now) and for appropriate amount (limited)



I do have a vanguard brokerage account for what it's worth. Any and all advice is appreciated.
If you are a Vanguard 'style' investor, you should be hanging out over at bogleheads.org (conservative, but good advice)
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Old 06-12-2022, 09:32 PM
 
1,373 posts, read 820,218 times
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Quote:
Originally Posted by ColdAilment View Post
Would like tips and advice on how best to invest $15,000 into the market and make some modest growth.

My idea was to buy stocks that pay high dividends and enjoy an extra $200-$300 in dividends every quarter, but with the market what it is right now perhaps I should avoid that? Was also curious about the attractiveness of I bonds and if I could get a similar passive income from bonds?

I do have a vanguard brokerage account for what it's worth. Any and all advice is appreciated.
There's a couple of considerations you should keep in mind regarding I-bonds.
There are two parts to the I-bond rate: a fixed rate that lasts for the duration of the bond (30 years) and a composite rate that's calculated every 6 months.
The composite rate's formula:
Composite rate = [fixed rate + (2 x semiannual inflation rate) + (fixed rate x semiannual inflation rate)]

The fixed rate now is 0%, so the composite is going to be double the semi-annual inflation rate. In stable time the I-bonds you buy now will have interest that's just the inflation rate for that year. That's just treading water, but at least it's tax deferred, unlike CD's
You cannot sell them the first year, and there is a three month interest penalty in the first five years.

If the inflation rate goes to zero or negative, the I-bond rate goes to zero. If later the economy is good and inflation low, you may wish to sell the bonds and move to equities. The I-bonds interest is federal tax deferred and not state taxable. All those years of deferred interest immediately becomes taxable if you sell them - this could be a problem for your tax planning. Or not, depending on your situation.

Here is a chart of the historical I-bond rates. https://www.treasurydirect.gov/indiv...dratechart.pdf

For the long term what matters is the fixed rate. Historically, those bonds that had a 0% fixed rate haven't done much better than CD's.
To get a sense of how your I-bond investment may go in the future, the bonds with issue date 11/10-4/11 had a 0% fixed rate. Look across and you'll see how the rates have varied over the years.
Compare that to the 09/98-10/98 rates which had a fixed rate of of 3.4%, and notice how the Treasury never set the fixed rates above 2% since 2002.
I suspect we'll never see a good fixed rate again.
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Old 06-13-2022, 08:26 AM
 
110 posts, read 72,321 times
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Quote:
Originally Posted by flamadiddle View Post
put half in VGT (or QQQ) and half in VOO.
Exactly what I was going to recommend. I just got done feeding VOO and QQQ a bit this morning.
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Old 06-13-2022, 09:08 AM
 
Location: Florida
6,070 posts, read 5,975,229 times
Reputation: 6926
Quote:
Originally Posted by ColdAilment View Post
Would like tips and advice on how best to invest $15,000 into the market and make some modest growth.

My idea was to buy stocks that pay high dividends and enjoy an extra $200-$300 in dividends every quarter, but with the market what it is right now perhaps I should avoid that? Was also curious about the attractiveness of I bonds and if I could get a similar passive income from bonds?

I do have a vanguard brokerage account for what it's worth. Any and all advice is appreciated.
To get that much income from 15,000 you would have to be investing in higher risk investments.
With the market down now you can probably find some good 4% dividend stock but you would be better off in and ETF fund with a broad investment mix.

I bonds would work for now. If you need the money now then look at I bonds. I do not know if you can get the interest every 6 months or if you have to wait until you cash them in. My experience has been you get the interest when you cash them in which would not work for you.
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Old 06-14-2022, 08:15 AM
 
2,228 posts, read 727,891 times
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Quote:
Originally Posted by ColdAilment View Post
Okay thanks that is very helpful.

It's $30,000 but I have immediate plans for half of it, the other half I'm looking to invest and keep relatively liquid for the next 10-15 years. I would like to generate a small and passive income from the money if it all possible. Suggestions on how to begin?
I just want to make sure I understand. It sounds like you inherited $30K and have plans for half.

What about other investments? An emergency fund? Do you own real estate? Do you have a 401k/403b? IRA? Pension plan? Coin collection? Fine art? A valuable 1960s muscle car? Anything at all?

If you truly have no other investments at all, my guess is you should make that $15K part of your currently non-existent emergency fund. If you lose your job tomorrow, it might take several months for you to land a new one, and you'll need that $15K to live on. Because of that, I'd just put it in the bank.

If you already have an emergency fund, and if you already are invested in a 401k/403b, and if you have an IRA, then to answer your question about the $15K inheritance, it would be useful to know the asset allocation of your 401k/403b & IRA.
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