Investment Suggestions.

You have 100k you have free to invest to mere you money.
Wat do? Phone Post 3.0

What's the next risky investment after a time deposit or certificate of deposit?




Damage360 -




Agreed. Vanguard is great if you're okay with doing everything online.

If you want to be able to walk into a brick and mortar location and meet someone face to face, then perhaps Fidelity or Charles Schwab would be better for you.

If you're investing for the long term, then low fee broad index funds according to an asset allocation appropriate for your risk tolerance is the way to go.

I say it on here once a week, if you're looking to invest for the long term or retirement saving, and you're only going to read one book, I recommend the Bogleheads Guide to Investing. There are other good books, but you're only going to read one than that's it. It's well written, easy to understand, and is an investment philosophy that I believe in and follow Phone Post 3.0

Invest in deez nuts.

Thanks I'll read it.

What is vanguard? Phone Post 3.0

Vanguard is an investment management company. They're very large (over $3 Trillion under management), and from their beginning they've always been about high value for their customers. By "high value" I don't mean a lot of money, I mean, they provide excellent services for a lower cost than most everyone else. Part of their savings is the fact that they don't have any brick and mortar store fronts for you to go to, so everything is online and/or on the phone.

If you're worried about them (or even if you're not), do some research, you'll see that they are a very large and well established company that is highly respected. You'll also see that they are all about providing high quality services for rock bottom fees. This is important to note because fees add up and can make a big difference over time.

Here's a quick example of fees making a difference. For this example we'll take the $100k mentioned in the original message, and let's say it's going to be invested for 35 years into a total stock market index fund (this is an fund that holds almost the entire stock market, so when the market goes up, its value goes up, when the market goes down, its value goes down). For this example we'll pretend that the market continues to grow 8% a year for those 30 years. ...obviously this is being made up, no returns are guaranteed, I just want to show an example of how fees can have a much larger impact than people realize.

So $100k for 30 years, getting 8% a year.

We'll do this with three different funds:

Fund #1 we'll use Vanguard's Total Stock Market Index Fund (admerial shares because you have more than $10k), which has an expense ratio of .05% ($5 a year for every $10k invested).

Fund #2 we'll make it up and say that it's another total stock market index fund, but this one charges a fee 1.25% ($125 for every $10k invested).

Since this is a single deposit held for 30 years we can use the simple formula of:
Initial_Deposit_Amount x (1 + Growth_Rate_After_Fees)^Years_of_Growth

So for Fund #1 our formula would be 100,000 x (1.0795)^30. So after 30 years you would have: $992,383.19

And for Fund #2 our formula would be 100,000 x (1.0675)^30. So after 30 years you would have: $709,627.42 ($282,745.77 less than Fund #1).

So in the beginning, it looked like Fund #2 would only have a difference of $1,200 in fees for the first year. But that difference in fees continues to grow as the account balance increases, and we see from the example, that this could have a very large impact over time.

Obviously the numbers were made up for these examples, but it does show you how paying a little more in fees could have a very large impact over time