Here’s Exactly How I Would Invest $100,000 in 2024

I'm Tyler, a former portfolio manager and investment advisor, now dedicated to making financial content available for free.

1. Invest 80% in S&P 500 Fund

I would invest 80% of the money into a fund that tracks the S&P 500, like Fidelity's FX AIX. I wouldn't waste my time investing in international funds because every single company that drives the S&P's returns is, in fact, multinational.

2. Allocate 10% to Growth Funds

The next step would be to put 10% of the money into a growth fund, such as Vanguard's VUG or Invesco's QQQM. I wouldn't waste time on small-cap stocks, as they tend to be too vulnerable during market downturns. On the other hand, big tech and growth funds can offer similar higher expected rewards but with lower risk.

3. Invest 10% in Short-Term Money Market Fund

Finally, I would allocate 10% of the funds into a short-term money market fund that invests in short-term treasuries. I wouldn't waste time trying to choose bonds, as money markets provide the same liquidity, exposure to a risk-free asset class, and offer the diversity effect that helps in reducing volatility while enhancing expected returns over time.

If you prefer bonds, consider checking out a tips fund. They keep up with inflation and can negate some of the risks associated with more traditional bond investments.

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