My wife and I recently sold a house and we divided the funds into our personal accounts.
I've been thinking through what I plan to do with my cash. There are a few things I am considering.
Here is some background:
32 y/o married no kids
Aside from retirement accounts I am 100% VTSAX (~75k). I plan to diversify (part of the reason for this post) soon.
Recently put in $15k into VTSAX buying into the downturn.
I have about 120k cash left and I am considering a few options:
--Continue buying into VTSAX, but also diversify into either a) a bond fund b) a REIT.
--Purchase a multiple unit property as a long-term investment property. I'm looking at areas where I can purchase cash, with the goal of the property to generate cash flow immediately. I've never been a landlord (renting a room in a house doesn't really count compared to this venture), and would likely look to a management company. Would conduct relevant research on properties before purchasing.
--Open a Wealthfront/Betterment/etc account and let the computers do their thing.
Thoughts
I've gone back and forth about whether real estate makes sense. I'm attracted to the cashflow, though I know it's not the only way to go.
Since I am only in VTSAX I know at some point I should diversify. However, with the downturn, is now the time to get some extra bang for the buck, especially since I am relatively young? I don't think I would put all of my remaining cash into VTSAX, but maybe I buy more now than I would have otherwise.
I'm not sure if there is a bad decision in here, per se. I guess I'm really weighing the merits of diving into real estate vs continuing to invest in the markets and diversify my asset classes. I know this forum being the investors forum may focus more on that, but any feedback is appreciated.