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All-In [36450]
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What to do w my 200k?
Jun 14, 2022, 10:55 AM
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I mean sure there is hookers and blow, crypto, stocks… kinda want to put my money somewhere safer than those options.
Was looking at buying another town home to rent out. Pay cash, then just collect the rent. Seems like the safest option.
All opinions welcome…
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All-In [40936]
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safest option
Jun 14, 2022, 11:06 AM
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t-bills. Being a landlord is a lot of work. Maintenance costs are a lot higher than they are if you are living in the house. Renters don't take as good of care of things. When they move out, no rent and a bunch of cost to get the next renter in. If you can get a couple of 15 year mortgages and make them cash flow. They pay off your mortgage in 15 years and then you get income near retirement. I'm guessing you are mid 30s to mid 40 or so. If you have 3-4 units then its not as bad when 1 moves out.
I recently sold property and put the money in corporate bonds. Bonds were a little better right now, certainly safer, but it had more to do with my overall outlook and diversity. I did keep some in cash for a good buying opportunity, in 30 plus years of investing I never have been able to time the market that close.
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All-In [36450]
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Bonds are def the safest.
Jun 14, 2022, 11:11 AM
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I though about buying 200k in the SPY500. It’s down a lot now and in 3-5 years def I’m up 25% at the least.
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All-In [47750]
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Bonds are a horrible investment now, especially if the Fed
Jun 14, 2022, 12:34 PM
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does what it says and raises rates by 1%.
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Oculus Spirit [81925]
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An I-Bond right now is at 9.62%..."horrible investment"?***
Jun 14, 2022, 12:56 PM
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Orange Blooded [4095]
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Re: An I-Bond right now is at 9.62%..."horrible investment"?***
Jun 14, 2022, 1:08 PM
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Maximum purchase amount is like 10k and rates adjust every 6 months.
The fixed part of the rate on the ibonds is currently really low.
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All-In [47750]
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Legend [15083]
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You're 36 right? 20 or more years before you spend it
Jun 15, 2022, 8:47 AM
[ in reply to Bonds are def the safest. ] |
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Stay invested, something like a Vanguard S&P 500 fund. And don't obsess about it. Three or four more of these market corrections/recessions coming before you can spend that money.
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110%er [9300]
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Re: safest option
Jun 14, 2022, 6:07 PM
[ in reply to safest option ] |
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Rent to those south of the border. They pay cash and take care of the rental as if it were there own. Avoid honkeys. Put a clause in the lease that you change the air filters in HVAC every month that way you can legally go in once per month to check property.
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Oculus Spirit [81078]
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I keep mine in an old shoe box
Jun 14, 2022, 11:15 AM
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Some days I'll get liquored up and pull it out just to stare at it.
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All-In [36450]
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This is a good idea if I was 80
Jun 14, 2022, 11:20 AM
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But I’m 36…
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Oculus Spirit [81078]
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All-In [27151]
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You could finally get that ® instead of freeloading***
Jun 14, 2022, 11:17 AM
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All-In [26514]
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Oculus Spirit [83131]
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S&P 500 if for long term. Way down right now,
Jun 14, 2022, 11:38 AM
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could drop further, buy if long term no harm.
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All-In [31520]
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Re: What to do w my 200k?
Jun 14, 2022, 11:40 AM
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You can get some SC muni bonds at 5% and 5 year maturity right now. It won’t make you rich, but 10k per year and your principal back in 5 years doesn’t sound half bad. Only problem being that I expect bond rates will keep going up as market volatility persists, so I doubt you’d find any buyers if you needed that principle back sooner. Someone more financially savvy than I am might be able to correct me here, but I’m fairly certain bond yields are exempt from state and federal taxes if it’s a state issued municipal bond.
Or you could spend it all on an NFT of a JPEG of a meme, I’m sure that value will only go up.
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Lot o points [181005]
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BOAISY***
Jun 14, 2022, 12:43 PM
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Hall of Famer [21940]
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Give it to Warren Buffett
Jun 14, 2022, 3:05 PM
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sit in bonds until we hit bottom with half of it, maybe DCA 25% of it into SPY, BRK.B, or JEPI at 6.25% per quarter over the next 4 quarters?
I wouldn't touch real estate unless you can pick up something at auction.
If you had big balls you'd short ES mini contracts. Then turn around and buy ES mini contracts. Then you could probably stop working after the next rally.
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CU Guru [1059]
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Re: Give it to Warren Buffett
Jun 14, 2022, 3:24 PM
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CharlestonTiger is right.....for SC residents if you buy a SC tax free bond then you pay no tax on the State or Fed level.
I would like to know where he sees 5% for 5 year bonds. I see some 5 year bonds that yield about 3.50%. Maybe you are talking about a 5% "taxable equivalent yield".
Be careful with bonds though........all things being equal when interest rates go up the value of your bonds goes down. Folks could have bought a bond 12 months ago and be down 10%+ on principal bc of the sudden rise in rates. Many think that bonds are "safe" and in theory they are but they can go down in value.
For cash right now.......cash is king and now is not the time to be a hero. I like to keep it simple in times like this. Pick out a few low cost broad based ETFs (Vanguard, Schwab, etc). Maybe put a bit of cash to work now on this pullback (Nasdaq -30%, DOW/SP 20%). Leave another amount in a money market that is liquid so you can invest more if/when the market pulls back (powder dry). Take the rest and ladder a FDIC insured CD portfolio, 3, 6, 9, 12 mos. Cd rates have actually jumped a bit (1.6% 3 mos and 2.3% 12 mos). You wont get rich on the CDs but it guaranteed and is better than sitting in cash. PLus you have principal coming due every 3 months to either invest (depending on markets) or simply roll into another CD.
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CU Medallion [50635]
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Re: What to do w my 200k?
Jun 14, 2022, 6:23 PM
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Orange Blooded [3615]
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Re: What to do w my 200k?
Jun 15, 2022, 8:32 AM
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Buy Euros or some other foreign currency and wait.
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