Sold my home, now what to do with 100K?

[hobdsara]

Hi MMM forum,

I am selling my home for a nice profit, ~100K after closing costs, and moving to a cheaper part of the US where I will rent. My question is what to do with/how to invest the large chunk of money.

Current allocations:
403b, ~12K 85% VTSMX, 10% VBMFX, 5% VGSTX
Roth IRA, ~9.5K 100% VTSMX
Taxable, ~24K 100% VTSMX
Lending Club, ~5.6K
Cash, ~14K*
Old 401k that I need to rollover, ~5K money market

Current plan is to max out my Roth contribution, 2.5K, then slowly roll the rest into my taxable ($500-1000/mo) and LC ($500/mo) accounts until 1) stocks go on sale then put the remainder into my taxable account and/or 2) until I can contribute to my Roth, next year.

 Also, possibly diversify into REIT now that I no longer own a home?

I would be grateful for any advice.

S

*I will have less in cash after I no longer have a mortgage and home maintenance to worry about, yay.

 

[data.Damnation]

Go to the casino and put it all on red!

Just kidding obviously. I have some money in a REIT, it's performed poorly in the last 12 months due to the threat of interest rates going up. Long term, it's a good investment to have in my opinion because it helps you to diversify, but I wouldn't do more than 10% of your allocation.

Your current allocation percentages are ok, except you don't have any money allocated in international funds. Also, VTSMX is very large cap heavy, so you might want to invest in a small cap index fund to compensate.

You'll hear a lot of different opinions on dollar cost averaging (putting money in gradually instead of all at once). My opinion is that the market goes up more than it goes down (otherwise why would anyone invest in it?), so it's better to put all the money in as early as possible. Yeah, the market could tank tomorrow and you'll lose 30% of your money, but it could also go up 30% and you'll miss out on a big chunk of that market run.

[AssetGrinder]

Depends if you need that 100k soon or not. If u need it within 4-5 years then put it into a high interest cash deposit in an internet bank.

If you dont need it and want to invest the whole amount then there are many options. First max your registered accounts and then spread out the rest. Depending on your age you should allocate some in cash deposits or bonds 20-50%. The rest spread out in diversified funds. Also invest outside the US if u havent already.Reits are a bit like fixerd income so dont go too heavy in it. You could also use that 100k to pick up a good house to rent out pending yields are good in your area.Best of luck dude!