Sun Aug 18 2024, by Tyler Gardner

Smart Investment Strategies for Individuals in Their 40s and 50s

Here is exactly how I would invest $100,000 if I were in my 40s or 50s. I'm Tyler, a former financial advisor and portfolio manager, and now I create financial content for free so that you don't have to pay for it.

1. Invest in a No-Cost Index Fund

I would invest 40% of my assets in a no-cost index fund like Fidelity's FNILX. This is practically identical to an S&P 500 index fund, but because they don't have to pay a fee for using the name S&P, it can get away with zero in fees. I'll take it!

2. Invest in a Dividend Fund

I would then allocate 30% into a dividend fund like Schwab's SCHD. This provides me with just under a 3.5% annual dividend return, helping to supplement my daily excursions to Jersey Mike's. Plus, I get to retain the underlying assets that hopefully appreciate over time.

3. Invest in a Money Market Fund

Finally, I would invest the remaining 30% into a money market fund such as Fidelity's SPRXX. This currently returns about 5% and allows me to take advantage of a high interest rate environment. Additionally, it provides quick and easy access to cash if I want to buy more of either option one or option two at a discount, or even put bacon on my number seven at Jersey Mike's.

If any of this is helpful, like and follow for more insights, and I'll keep trying to get you one step closer to where you need to be.

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