Where to invest $25k?

I got a new job earlier this year and my retirement funds from my prior job are just sitting there right now. My previous job was with state government so the money went towards my pension as opposed to a 401k. As a result, it's not collecting anything right now.

In my new job, I have 40% invested in a Target retirement fund (2045) and 60% invested in a vanguard 500 index fund (large cap).

I've never actually invested a large sum of money at once. It's always been taken out of my check on a biweekly basis. Any personal finance experts out there that have advice for me on how to make the best of my $25k?

Thanks Phone Post 3.0

Cocaine. Invest it in some solid physical cocaine. Phone Post 3.0

Roulette table. Double your investment in a matter of 10 seconds Phone Post 3.0

Mark Antony's hangover - Roulette table. Double your investment in a matter of 10 seconds Phone Post 3.0
Yeah that. And cocaine. Phone Post 3.0

I'm not that investing savoy but wouldn't there be big penalties for taking the money out of a retirement fund to invest? Phone Post 3.0

See if you can just roll it into your new 401k. And watch out for fees on the Target portion because 99.99% of funds will not outperform the baseline market index over the long run. Phone Post 3.0

In me.

ChicagoTom - I'm not that investing savoy but wouldn't there be big penalties for taking the money out of a retirement fund to invest? Phone Post 3.0
I was told as long as I don't withdraw it for personal uses, and that I only use it for investment/401k reasons, there is no penalty. Phone Post 3.0

Why do you own a target date fund and an s&p 500 tracker? Pick an investing strategy and implement it across your portfolio. Put the $25k there.

cdmontgo - Why do you own a target date fund and an s&p 500 tracker? Pick an investing strategy and implement it across your portfolio. Put the $25k there.
You're saying pick one or the other? I originally had 100% going to my target retirement fund but I recently added vanguard. Phone Post 3.0

Oil stocks.

A target date fund is intended to be a set it and forget it solution. You pick the one that has the asset allocation and glide path that you want and put everything you have into that. They handle rebalancing and shift your asset allocation for you. The assets are typically whole market mutual funds which gives you plenty of diversity within that asset class.

What is in your TD fund? What's the AA? What's the glide path? What are the fees?

How does buying the S&P improve that?

I'd prefer to have some diversity with money management, not just within the investment itself.

At this point you're obviously looking for growth over income.

What you should be researching is asset allocation. You can either invest in a few funds that will do it for you or you can attempt to do it yourself by buying various equities and other investment vehicles.

So look at different asset allocation models and determine which type of set up is best for you and your future. Then look at which specific investments will meet that criteria and choose accordingly. You're not actually touching this scratch for 30-40 years until you need to. Phone Post 3.0

cdmontgo - Why do you own a target date fund and an s&p 500 tracker? Pick an investing strategy and implement it across your portfolio. Put the $25k there.

Why?

Scratch-offs.

youarewhatiswrong - 
cdmontgo - Why do you own a target date fund and an s&p 500 tracker? Pick an investing strategy and implement it across your portfolio. Put the $25k there.

Why?

I'm not exactly sure what you are asking. "Why" could mean a number of things in this case.

cdmontgo - A target date fund is intended to be a set it and forget it solution. You pick the one that has the asset allocation and glide path that you want and put everything you have into that. They handle rebalancing and shift your asset allocation for you. The assets are typically whole market mutual funds which gives you plenty of diversity within that asset class.

What is in your TD fund? What's the AA? What's the glide path? What are the fees?

How does buying the S&P improve that?
Target retirement fund is through Fidelity. T. Rowe price 2045. I'm only 28 so I don't anticipate retiring for at least another 30 years.

I looked online today for pros and cons of a target retirement fund. The one I initially had has pretty high management fees, at least according to online reviews, at .75%. I read a lot about the benefits of investing in index funds, so I found one called Spartan 500 index fund with high returns over the last 10 years and moderate risk. Also, very low fees.

Would I be an idiot to put 100% in the s&p index fund? I called and spoke to a representative at Fidelity but the woman wasn't very helpful. Phone Post 3.0

Index funds.  Balanced across US equity, international equity, and bonds. 

kyle223 - 
cdmontgo - A target date fund is intended to be a set it and forget it solution. You pick the one that has the asset allocation and glide path that you want and put everything you have into that. They handle rebalancing and shift your asset allocation for you. The assets are typically whole market mutual funds which gives you plenty of diversity within that asset class.

What is in your TD fund? What's the AA? What's the glide path? What are the fees?

How does buying the S&P improve that?
Target retirement fund is through Fidelity. T. Rowe price 2045. I'm only 28 so I don't anticipate retiring for at least another 30 years.

I looked online today for pros and cons of a target retirement fund. The one I initially had has pretty high management fees, at least according to online reviews, at .75%. I read a lot about the benefits of investing in index funds, so I found one called Spartan 500 index fund with high returns over the last 10 years and moderate risk. Also, very low fees.

Would I be an idiot to put 100% in the s&p index fund? I called and spoke to a representative at Fidelity but the woman wasn't very helpful. Phone Post 3.0

You would do fine if you put all of your retirement in an index fund. If you are not actively trading stocks, than an index fund is the way to go. By a few shares every month to dollar cost average.

Ayatolla of Rock and Rolla -
kyle223 - 
cdmontgo - A target date fund is intended to be a set it and forget it solution. You pick the one that has the asset allocation and glide path that you want and put everything you have into that. They handle rebalancing and shift your asset allocation for you. The assets are typically whole market mutual funds which gives you plenty of diversity within that asset class.

What is in your TD fund? What's the AA? What's the glide path? What are the fees?

How does buying the S&P improve that?
Target retirement fund is through Fidelity. T. Rowe price 2045. I'm only 28 so I don't anticipate retiring for at least another 30 years.

I looked online today for pros and cons of a target retirement fund. The one I initially had has pretty high management fees, at least according to online reviews, at .75%. I read a lot about the benefits of investing in index funds, so I found one called Spartan 500 index fund with high returns over the last 10 years and moderate risk. Also, very low fees.

Would I be an idiot to put 100% in the s&p index fund? I called and spoke to a representative at Fidelity but the woman wasn't very helpful. Phone Post 3.0

You would do fine if you put all of your retirement in an index fund. If you are not actively trading stocks, than an index fund is the way to go. By a few shares every month to dollar cost average.
That's my plan. I put 8% of my salary biweekly towards my 401k.

I'd like to implement a dollar cost strategy with my $25k from my previous account as opposed to a large lump sum investment. Any way I can do this and not be penalized? I know I can rollover my money without incurring any penalties, but I'm not sure if it allows me to take the $25k out and invest in a little at a time. I will call Fidelity again tomorrow and ask.

Thanks for the help everyone! Phone Post 3.0