So, I'm having a dilemma on what to do next with a pile of cash ($160K). I'm fortunate enough to have a very generous salary and can fully fund my 401(k), a roth IRA for both my wife and me, and have no debt other than the house ($340K left on a $480K value). I have a 10yr ARM at 2.875% and put enough into it each year to have it paid off during the fixed rate period.
So, what would you recommend that I do with excess cash of $90K? I already have a brokerage account with $120K in it, but I would like to diversify into other assets besides stocks and bonds. I live here in Des Moines, and the way I see it I have three options:
1) Pick up some rental property. Most homes in Des Moines run at the 0.8-1% rental return on a purchase price for $95-$115 for my target range. Most are in the 0.8-0.9 return range.
2) Continue to put money into Lending Club. I have had an account with $9K and it has been open 3 years with a return of 8.5%.
3) Continue to plow money into the traditional brokerage and hope the stock market has more legs.
I'm liking a combination of picking up one or two rentals over the next 3 years while plunking down more money into Lending Club.
Thoughts?
