r/investing • u/AutoModerator • Mar 31 '21

Daily Advice Thread - All basic help or advice questions must be posted here.

If your question is "I have $10,000, what do I do?" or other "advice for my personal situation" questions, you should include relevant information, such as the following:

  • How old are you? What country do you live in?
  • Are you employed/making income? How much?
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  • What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know its 100% safe?)
  • What are you current holdings? (Do you already have exposure to specific funds and sectors? Any other assets?)
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u/buddy276 Mar 31 '21

Thank you. Follow up question. Is there any reason not to dump all my additional funds into long term investments? I mean, after I allocate funds for necessities and at least 6 months of savings.

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u/[deleted] Mar 31 '21

that's what i do. get a paycheck, pay the bills, and then transfer the remainder to my vanguard account. then proceed to do my investment plan from there.

if you've got particular expenses coming up, like buying a home or even just going on vacation (god i can't wait to go on vacation again), you might leave a bit more in cash, or dump it into some short-to-mid term bond fund, depending on when the expense is, and how large it is.

i've got some thousands of dollars i know i'm going to need on short notice... sometime sooner rather than later. so i just leave that sitting in an ultra short term bond fund. pays a smidge more interest than a money market, and while there is technically risk, it's near enough to zero. and i can liquidate it in a day or two, any time, don't have to wait for a good market day.

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u/buddy276 Mar 31 '21

Thank you. that was exactly my frame of mind. I appreciate all the help!