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Key Investment Recommendations for $100,000
A recent Reddit inquiry focused on how to invest a lump sum of $100,000 without any debts. Suggested strategies involve determining your desired level of investor involvement, with options ranging from automated robo-advisors for passive investing to constructing a personalized portfolio of individual stocks.
The “Rule of 110” serves as a guideline for asset allocation, recommending that investors subtract their age from 110 to decide the percentage of their portfolio to allocate to stocks. For instance, a 43-year-old should consider putting 67% in stocks and the remainder in fixed income.
For a balanced portfolio, investing about two-thirds in high-quality stocks and ETFs is advised. Recommended options include the Vanguard S&P 500 ETF (NYSEMKT: VOO) for stocks and the Vanguard Total Bond Market ETF (NASDAQ: BND) for fixed income to simplify the investment process.
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