Author Topic: Help me invest $300k  (Read 1778 times)

Nycginger

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Help me invest $300k
« on: January 10, 2021, 04:35:28 PM »
Hi!

I'm trying to figure out what to do with some cash and am looking for help/your ideas!

Important life details:

--34 year old single male
--Entrepreneur. Haven't had a job really since I graduated from college. Made savings to this point from first business. Haven't had an income for the last 4+ years. I guess my net worth decreased by 20k or so during that time. Lived in NYC, drove a car across a couple continents, wrote a few books, and now I'm starting another business, a technology startup, which is about like lighting a rocket ship and hoping it goes in the right direction. I'm already doing exactly what I would want to do if money was no concern.
--I live like a slightly lavish monk and would be pissed if I had to live otherwise. I spend about 21k a year.
--Our startup may possibly raise money soon. Even if it does I'll go w/out a salary as long as possible (or a minimal one!) to hold onto that equity!

Here's my current set up:

cash source    amount      
savings account    161172.99      
checking account 37000      
expected cash     20000      
checking account  1888      
cash inside IRA's. 38000      
Other cash     42302      
              
Total                   300362.99      
         
stocks             81852.54      
cryptos             40000      
jewelry             2700      
wotc tax credits     27334      Not sure if I can count these in net worth, but they are dollar for dollar and will cancel out taxes when I do have an income again.
land/lot             15000      
car                     2514      
tax deductions     25000      
         
                     194400.54      
      
total                   494763.53      percent in cash   0.6070839336


When the market crashed in March, I didn't invest more. If anything, as it went back up I pulled a little out. My goal isn't to be rich in life. It's to have the margin to do what I want to do (mainly entrepreneurship and writing books!). So, I played much more conservatively than I would have if I'd had a steady income going at the time. I feel some regret even though I feel like given my life circumstances it was the right move at the time. But it's time to move to the present!

I'm on the bandwagon that inflation is coming though and I'm ready to get off some of this cash. Here's my thoughts/plan:

--I'm thinking I'll hold onto 60-80k in cash regardless for future opportunities/savings/spending money for every day expenses.          

--House: A while back I found 40 lots for a developer. He eventually got 100. He told me that he would sell me a house at cost. While it was verbal/handshake and I'm not sure if he will honor that deal, I think he'll give me the best deal he can. I'll find out in the next few weeks when I meet him. He's building now selling the houses for about 200k and my guess is that I'd pay 100-150k and that I could collect about 18k of rent annually. It's in an up and coming part of the city I live in which is a hot spot in the US right now. I know there will be expenses but that should put a heavy dent in my annual living expenses with some other built in upsides.

I do not currently own where I live. I rent for $600 a month including utilities. I love where I live and don't want to move.

Given that this is an asset that would increase w/ value w/ inflation, I think will increase anyways, and I can raise rent if inflation comes, and because I could see myself potentially living there down the road, I think this is a potential good play if he gives me a good deal on the house. I already own the lot and that's the land/lot that's 15k above.

That leaves me with 120k-70k.

I'm frankly thinking of putting another 10-35k in cryptos. I'm 34. If I put in 10-35k it's 10-15% of my net worth. If it pans out for the way it has for the people who bought Etherium at $100 in March of 2020 and it's now worth $1,300, then it's a bit life changing. If it goes to 0 then I haven't lost my shirt, just a sleeve.

I feel like those two investments represent a risk spread that I'm comfortable with the upsides and downsides of each.

And then I'm not sure what to do w/ the rest. I could put some in a few stocks, not sure. That's why I'm here! They feel high but I expect the value to keep going up.

Plus there's the hope that my new business hits in a big way.

Thoughts?

nsmall

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Re: Help me invest $300k
« Reply #1 on: January 10, 2021, 05:07:33 PM »
I would personally only buy some VTSAX and VTIAX and call it a day.  I agree you have too much cash.  If you cant lump sum, DCA on a specific plan like 2k a week until your goals are accomplished.  Good luck.

Nycginger

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Re: Help me invest $300k
« Reply #2 on: January 10, 2021, 05:38:23 PM »
just so that I'm understanding correctly, you're saying you'd skip the house and crypto and the rest and just pile the 220k or so into VTSAX and VTIAX? Thanks!

nsmall

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Re: Help me invest $300k
« Reply #3 on: January 10, 2021, 10:34:34 PM »
Personally Im a big fan of real estate even though we just sold our last rental in 2020 and my life is better without those rentals.  If you get a sweet deal on the home and the future looks bright in that neighborhood, yeah it will fight inflation and I would personally do it if I was young and wanted to diversify my assets.  As for VTSAX and VTIAX, its not going to from 100 to 1300 anytime soon, but it over time I believe it will go up and I sleep good at night being in those funds and some cash and VTSAX and VTIAX is way easier to deal with vs a rental.

cool7hand

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Re: Help me invest $300k
« Reply #4 on: January 11, 2021, 02:19:02 AM »
Perhaps a lower volatility portfolio would work better for your cash. Some growth and income, lower risk? Give Ray Dalio's All Season's (aka All Weather) Portfolio a Google. It's what we use given our situation and goals.

Dicey

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Re: Help me invest $300k
« Reply #5 on: January 14, 2021, 03:00:14 PM »
JL Collins all the way, baby! Start here:

https://jlcollinsnh.com/stock-series/

FLBiker

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Re: Help me invest $300k
« Reply #6 on: January 15, 2021, 10:39:48 AM »
You've gotten good advice here.  I'm fully in low-cost index funds, 90/10 stocks and bonds, with ~35% in non-US stocks.  That said, I've been toying with the idea of putting 5-10% into something else, possibly crypto.  I'm not sure I'll bother, though, as we're basically at our FIRE number so simplicity is more attractive to me than maximizing gains.

chicklets123

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Help me invest $300k
« Reply #7 on: January 15, 2021, 01:16:29 PM »
I would personally only buy some VTSAX and VTIAX and call it a day.  I agree you have too much cash.  If you cant lump sum, DCA on a specific plan like 2k a week until your goals are accomplished.  Good luck.
Iím in a similar situation but not as much as you. Itís actually because I feel my porto folio managers arenít performing well so I held back some cash to invest in my own.

Is this the same as VTI code?

And what Iím reading is to invest $2K every week until you clear out the lump sum?


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« Last Edit: January 15, 2021, 01:18:05 PM by chicklets123 »

nsmall

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Re: Help me invest $300k
« Reply #8 on: January 15, 2021, 08:55:23 PM »
I would personally only buy some VTSAX and VTIAX and call it a day.  I agree you have too much cash.  If you cant lump sum, DCA on a specific plan like 2k a week until your goals are accomplished.  Good luck.
Iím in a similar situation but not as much as you. Itís actually because I feel my porto folio managers arenít performing well so I held back some cash to invest in my own.

Is this the same as VTI code?     

And what Iím reading is to invest $2K every week until you clear out the lump sum?


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VTI is the ETF version of VTSAX.

Yes my opinion is 2k a week as an example if you cant stomach a lump sum.  Thats what I am up to as I have a big chunk of money from a rental we sold and I do have the stomach to lump sum 200k.

 

Wow, a phone plan for fifteen bucks!