First post, thanks for any advice.
I have recently come into approximately $25K liquidity. I currently have about half of that (~$12K) as an outstanding balance on a credit card. The card in question was obtained with a promotional interest rate of 0%, which is applicable for another nine months (expiring the end of 03/25). All of my other recurring finances (bills, etc.) are accounted for, and I have an e-fund established.
I would like to maximize potential returns over the next 9-month period through investments. My goal is to set aside at least $500 monthly to my investing sum, minus minimum payments on this card (1%, or about $120) while I enjoy my interest-free loan. The investing amount can go toward anything, whether it be a brokerage account or a Roth. At the end of the promotional interest rate term, I plan on paying down whatever remaining balance I have by selling off long-term held investments.
Currently, I enjoy a ~$31K portfolio comprised of various individual tech stocks (~57%), a mixture of individual and ETF holdings in 3D printing (~11%), a mining ETF (~7%), and VOO as my "stable growth" fund (~25%). I understand my portfolio is very risk-heavy, and while I am not looking to sell any of my long-term holdings at the present moment, I would like to put my newfound liquidity toward longer-term, stable growth to balance things out.
As I am 30 years old, I am more willing to take on risk, and am comfortable with not holdings bonds at this time.
A few questions:
1. Is my plan to make full use of my interest-free loan worthwhile, or would it be more prudent to just pay the card off now for peace of mind? I understand investments are not a guarantee of return, particularly on a short timeframe (<1Y). Nonetheless, I considered the use of $12K in interest-free money to be better off invested for as long as I can.
2. I do not currently have a Roth IRA account, but I plan on opening one this year. Is it better max my contributions ($7K) with funds available to me presently, or to slowly build up toward it through setting monthly amounts aside? I could also feasibly do this halfway - set aside money monthly, and then top the account off in December.
3. The big question, how should I invest my newfound liquidity? Apart from VOO, I am still relatively unfamiliar with other stable growth investment vehicles - that is, other vehicles that are less volatile than individual stocks.
4. This may be worthy of another topic, but I would also take any advice on restructuring the remainder of my investments to mitigate risk. I don't want to completely exit investing in individual stocks, but would like to turn it from a majority to a minority of my portfolio.
Many thanks in advance to anyone responding, and I am happy to provide additional information as necessary.
I have recently come into approximately $25K liquidity. I currently have about half of that (~$12K) as an outstanding balance on a credit card. The card in question was obtained with a promotional interest rate of 0%, which is applicable for another nine months (expiring the end of 03/25). All of my other recurring finances (bills, etc.) are accounted for, and I have an e-fund established.
I would like to maximize potential returns over the next 9-month period through investments. My goal is to set aside at least $500 monthly to my investing sum, minus minimum payments on this card (1%, or about $120) while I enjoy my interest-free loan. The investing amount can go toward anything, whether it be a brokerage account or a Roth. At the end of the promotional interest rate term, I plan on paying down whatever remaining balance I have by selling off long-term held investments.
Currently, I enjoy a ~$31K portfolio comprised of various individual tech stocks (~57%), a mixture of individual and ETF holdings in 3D printing (~11%), a mining ETF (~7%), and VOO as my "stable growth" fund (~25%). I understand my portfolio is very risk-heavy, and while I am not looking to sell any of my long-term holdings at the present moment, I would like to put my newfound liquidity toward longer-term, stable growth to balance things out.
As I am 30 years old, I am more willing to take on risk, and am comfortable with not holdings bonds at this time.
A few questions:
1. Is my plan to make full use of my interest-free loan worthwhile, or would it be more prudent to just pay the card off now for peace of mind? I understand investments are not a guarantee of return, particularly on a short timeframe (<1Y). Nonetheless, I considered the use of $12K in interest-free money to be better off invested for as long as I can.
2. I do not currently have a Roth IRA account, but I plan on opening one this year. Is it better max my contributions ($7K) with funds available to me presently, or to slowly build up toward it through setting monthly amounts aside? I could also feasibly do this halfway - set aside money monthly, and then top the account off in December.
3. The big question, how should I invest my newfound liquidity? Apart from VOO, I am still relatively unfamiliar with other stable growth investment vehicles - that is, other vehicles that are less volatile than individual stocks.
4. This may be worthy of another topic, but I would also take any advice on restructuring the remainder of my investments to mitigate risk. I don't want to completely exit investing in individual stocks, but would like to turn it from a majority to a minority of my portfolio.
Many thanks in advance to anyone responding, and I am happy to provide additional information as necessary.
Statistics: Posted by GoldenCapitalist — Tue Jul 23, 2024 7:58 am