I have about $150k to invest, it's money I don't anticipate needing anytime soon (10+ years). Easy route is the taxable brokerage account, but reading a number of posts on the stock market thread have me concerned about timing. Is there an alternative anyone would suggest at this point? Or just go with the taxable account.
Where to invest $150k today?
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Last: 4 mo ago by Cyprian
Land and real estate.
Vae Victis
I would get 2-3 rentals
Milwaukees Best Light
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AG
You trying to hit a home run with this 150k, or just a single?
Buy an index fund and don't do a dang thing to it unless it drops about 15%, which it will at times. When it does that buy some more.
I'm 77, have been retired for 5 years and am 100% in equities in both my IRA's and my cash accounts. Those accounts have doubled since I quit contributing in spite of my RMD's.
I'm 77, have been retired for 5 years and am 100% in equities in both my IRA's and my cash accounts. Those accounts have doubled since I quit contributing in spite of my RMD's.
Kyle Field Shade Chaser
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AG
where can you find 3 rentals for $150K?
Kyle Field Shade Chaser said:
where can you find 3 rentals for $150K?
Toros23 said:
I have about $150k to invest, it's money I don't anticipate needing anytime soon (10+ years). Easy route is the taxable brokerage account, but reading a number of posts on the stock market thread have me concerned about timing. Is there an alternative anyone would suggest at this point? Or just go with the taxable account.
why wouldn't you use it as you would establish ANY investment portfolio?
large cap stocks
ETFs
Bitcoin
REITS
international/emerging markets
S&P tracker
Treasuries / CDs / Bonds
Milwaukees Best Light said:
You trying to hit a home run with this 150k, or just a single?
I'd settle for a double
Lots of factors come into this. Your age? Kids? Do you already have a good investment portfolio started for retirement such that this can truly be a riskier investment with more upside but larger downside where the larger downside case doesn't hurt your retirement goals? Are you truly willing to be illiquid for at least 3-5 years?
FXAIX (or whatever the equivalent is at your preferred brokerage)
Aglaw97 said:
Lots of factors come into this. Your age? Kids? Do you already have a good investment portfolio started for retirement such that this can truly be a riskier investment with more upside but larger downside where the larger downside case doesn't hurt your retirement goals? Are you truly willing to be illiquid for at least 3-5 years?
Your age? 37 wife is 32
Kids? Nope, don't intend to either
Do you already have a good investment portfolio started for retirement such that this can truly be a riskier investment with more upside but larger downside where the larger downside case doesn't hurt your retirement goals? - I would call it decent but maybe slightly behind
Are you truly willing to be illiquid for at least 3-5 years? - Yes
Just buy btc
Take the following with the understanding that it's just my $.02 and my philosophy. I'm a believer in having a good foundation to my retirement portfolio that can be building over time and serves as my minimum base when I retire. Then excess investment capital goes into more branched out opportunities and riskier investments.Toros23 said:Aglaw97 said:
Lots of factors come into this. Your age? Kids? Do you already have a good investment portfolio started for retirement such that this can truly be a riskier investment with more upside but larger downside where the larger downside case doesn't hurt your retirement goals? Are you truly willing to be illiquid for at least 3-5 years?
Your age? 37 wife is 32
Kids? Nope, don't intend to either
Do you already have a good investment portfolio started for retirement such that this can truly be a riskier investment with more upside but larger downside where the larger downside case doesn't hurt your retirement goals? - I would call it decent but maybe slightly behind
Are you truly willing to be illiquid for at least 3-5 years? - Yes
I think $150k is going to be difficult to get into real estate that either isn't pretty speculative or requires you to assume some debt to finance part. You could use the 150k as a down payment, finance the rest with a mortgage and be able to recoup those costs through rent and just hold the hopefully appreciating asset. But that's whether you really want to own real estate and whether you plan to add to that portfolio. The people I know that make good money off of real estate don't just stop at one or two properties. They build over time so that they have a dozen or more by retirement or move into commercial RE. That takes a certain level of dedication and desire. Not to say that one or two properties is a bad investment, just not likely life changing.
There are some private investment vehicles that allow you come in at this level or even slightly less assuming you are willing to be illiquid for some time. They offer historically higher returns in exchange for the illiquidity and risk associated.
Having said all of that, your age and comment about being "slightly behind" would lead me to suggest you take at least half if not more and put it into an index or similar fund and just let it go. Given your age and time horizon, you have time on your side and by the time you turn to that in say 30 years, you should have a nice return. If that shores up your investment foundation, then you can be a little more speculative on future investments while continuing to add to your foundation regularly. In other words, this could be the catch up so that you aren't slightly behind. I hear your concerns regarding the market. I'm someone who believes we are going to have a pullback and likely soon. But with your timeframe I wouldn't worry with timing the market too much. That can be a dangerous game.
Best of luck and happy to offer other thoughts. You may naturally be a riskier person and having no kids affords more leeway there. You are likely smart enough to realize the risk reward with the options. You could hit a homerun but could also lose a lot of it.
At a minimum it should be in a high yield savings account while you figure out how to invest it more strategically
Vanguard Total Stock Market Index. Set it and forget it
You could almost get 3 for 150k in my building in Mt Crested Butte (the smaller ones are probably ~250k x 20% down). I wouldn't do it though, as our HOA dues have gotten out of control ($800/mth)... so 35k gross only nets 10-12k/year per unit now (my mortgages are 2.625% 15 and 4.5% 7/1... so even less net with current rates).Kyle Field Shade Chaser said:
where can you find 3 rentals for $150K?
Couple of MLP's, ET & EPD have served me quite well in the past few years. Both above 7% dividend yield.Toros23 said:
I have about $150k to invest, it's money I don't anticipate needing anytime soon (10+ years). Easy route is the taxable brokerage account, but reading a number of posts on the stock market thread have me concerned about timing. Is there an alternative anyone would suggest at this point? Or just go with the taxable account.
You could also acquire several rent houses that could generate cash flow & increase your net worth thru equity capture. Several places where you can learn how to do it.
Good luck to you & congrats on your opportunity to grow your wealth.
Ronnie '88
Alabama moneyline on Saturday
Brk.b is a value at any price. It will always be up nicely at 10yrs out.
Which building?
Also, if you are concerned about "market timing" (which I don't blame you, its natural to think this way, but history shows its a fools errand), you can always put in a little at a time.Toros23 said:Aglaw97 said:
Lots of factors come into this. Your age? Kids? Do you already have a good investment portfolio started for retirement such that this can truly be a riskier investment with more upside but larger downside where the larger downside case doesn't hurt your retirement goals? Are you truly willing to be illiquid for at least 3-5 years?
Your age? 37 wife is 32
Kids? Nope, don't intend to either
Do you already have a good investment portfolio started for retirement such that this can truly be a riskier investment with more upside but larger downside where the larger downside case doesn't hurt your retirement goals? - I would call it decent but maybe slightly behind
Are you truly willing to be illiquid for at least 3-5 years? - Yes
For instance, park the 150K in a high yield savings account, and invest 5,000 a month (or 10, or whatever you are comfortable with), and you can stretch that out over time. Yes, you may miss a big run up, but you may also miss a big pull back. This is dollar cost averaging.
Just another strategy to consider.
At your age, AgLaw has some solid advice. Sure you can go the RE route, but man...its alot more hands on, often riskier.
Investing in an index tracking fund at your age at a rate you are comfortable with...is boring...but in 30 years (if history is any indication), will be a nice nest of money.
If history since 1927 is any indicator you'd turn 150k into nearly $1mm over 20 yrs in spx. Pretty good. Would you do better elsewhere? Hard to say .
I would invest half of it in low risk mutual funds and then take the other half over to my friend Asadulah who works in securities
Half in low risk physical Bitcoin, 20% in physical gold, 20% in ETF Bitcoin, 10% cash
MAS444 said:
Which building?
Grand Lodge. I'll probably baby look to sell one of my units within the next 1-2 years so let me know if there's any interest. I'm a real estate agent as well.
I highly recommend reading this book before you do anything. It's the best book on investingI've read so far (and I've read several lately). It's not long, and it might keep you from making a mistake you can avoid. I'm regretting a few choices and attempting to make some adjustments now.
https://a.co/d/bzyS51i
He's not going to tell you where to invest, he's going to tell you what you really don't want to do.
https://a.co/d/bzyS51i
He's not going to tell you where to invest, he's going to tell you what you really don't want to do.
If I’m posting, it’s actually Mrs GeographyAg.
Mr. GeographyAg is a dedicated lurker.
Mr. GeographyAg is a dedicated lurker.
What would be the net if buying a unit for cash - no financing?proudaggie02 said:MAS444 said:
Which building?
Grand Lodge. I'll probably baby look to sell one of my units within the next 1-2 years so let me know if there's any interest. I'm a real estate agent as well.
Two bitcoin and season tickets to Aggie Baseball.
Similar situation - we started seriously thinking about it when we were in our 30's-40's. No kids. We went the real estate route. Started in 2015 with the purchase of an affordable 4-plex in a small town with money we got from a lawsuit. Cash purchase & the rent from that we used to buy more properties. We were younger then & bought some pretty bad houses in great locations and were able to do most of the work ourselves. Our fee only investment guy told us at that point to keep going with that strategy instead of continuing to put money in our IRA accounts or the stock market. We do still have money in both - we stuck with the original funds he recommended when we went to him in 2011 and they have performed pretty well but we've made significantly more in rents & appreciation. Unfortunately he retired a few years ago.
We now have 15 properties with 21 "doors". Our strategy has been to buy at least one per year & we'd love more, but it would be much harder to do now with the increase in property costs. Our initial strategy was to recoup everything (purchase price & reno) in 5-7 years, but our last few houses are now stretching to 8-9 years.
You are smart to start thinking about this now.
We now have 15 properties with 21 "doors". Our strategy has been to buy at least one per year & we'd love more, but it would be much harder to do now with the increase in property costs. Our initial strategy was to recoup everything (purchase price & reno) in 5-7 years, but our last few houses are now stretching to 8-9 years.
You are smart to start thinking about this now.
Toros23 said:
I have about $150k to invest, it's money I don't anticipate needing anytime soon (10+ years). Easy route is the taxable brokerage account, but reading a number of posts on the stock market thread have me concerned about timing. Is there an alternative anyone would suggest at this point? Or just go with the taxable account.
QQQ
aglaes said:What would be the net if buying a unit for cash - no financing?proudaggie02 said:MAS444 said:
Which building?
Grand Lodge. I'll probably baby look to sell one of my units within the next 1-2 years so let me know if there's any interest. I'm a real estate agent as well.
17k or so
3 ETF strategy +10% cash in MM
something like $40k QQQ + $50k SCHD + $40k MOAT and $20k Vanguard MM
something like $40k QQQ + $50k SCHD + $40k MOAT and $20k Vanguard MM
Do you think these entry points are too high to buy into right now? Or are you more on the 'long term it will still go higher' line of thinking?
aggiesundevil4 said:
Do you think these entry points are too high to buy into right now? Or are you more on the 'long term it will still go higher' line of thinking?
Well after today they may not be too high
In the end it's about how long the money stays in. Generally I've been told if the money will be there a long time then just enter when you can. The advantage of SCHD is you still earn a dividend every year so that softens the impact of slow growth and some negative market action.
I'm absolutely not one of the experts on here. I've resorted to ETF play because I'm just not a good trader and with ETFs you are really just playing a whole segment or market
Investco and Vanguard stuff typically has lower expense ratios and that's important. Do some due diligence and talk to experts. And depending on your age, set a structure. The 3 ETF concept is old and proven and with modern etfs and good selection it's a solid option but absolutely not the only one. I just like it for dummies like me.
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