Author Topic: extra $1,700 to invest  (Read 2141 times)

Alwaysasunnyday

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extra $1,700 to invest
« on: September 06, 2020, 09:24:56 AM »
Good morning,

I've been informed that I will indefinitely be receiving a $1,700 a month pension, in addition to my normal employment income.  This will be money that I will not need for day to day living, and will essentially be 'extra' money.  I am 40, and about 15 years away from FI.  Other than simply adding the money to my current savings, I am considering using it as leverage to purchase purchase a larger asset.  I'd consider consider land/property but would want something relatively passive.  What would you do with an extra $1,700 a month?   

Morning Glory

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Re: extra $1,700 to invest
« Reply #1 on: September 06, 2020, 11:59:34 AM »
Congratulations. You can subtract $510k from the amount you will need to reach FI!! Go to the networthify.com and see how much time this takes off. Then follow the investment order.

Alwaysasunnyday

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Re: extra $1,700 to invest
« Reply #2 on: September 19, 2020, 07:33:20 AM »
Networthify doesn't seem to offer much other than a retirement calculator.  No love for leveraging the $1,700 into a larger asset?

terran

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Re: extra $1,700 to invest
« Reply #3 on: September 19, 2020, 08:38:07 AM »
Land is usually a non-productive asset (except for farm or timber land) and is therefore speculation not investing. Productive real estate is non-passive IMO even with a property manager, so I suppose it depends just how passive you need it to be. If you want truly passive stick with index funds invested in your current asset allocation.

ChpBstrd

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Re: extra $1,700 to invest
« Reply #4 on: October 12, 2020, 12:57:48 PM »
Real estate and passive donít really fit together unless youíre buying an REIT. The returns can be about similar, and the leverage is already built in.

If anything, this income stream gives you the leverage to start a business. It stretches out the time you could spend going without a paycheck. With this guaranteed income, you could fail fast and often until you get it right and become a multi-millionaire.

Alwaysasunnyday

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Re: extra $1,700 to invest
« Reply #5 on: January 02, 2021, 11:13:06 AM »
Thanks all for the responses,

I am still exploring ways to leverage the money into a larger investment, such as a large investment loan (into the market), real estate or other areas, instead of simply storing the cash in an ETF as it comes in.

And yes, I realize that most real estate is not passive.

What would you all do with an extra $1700 a month?

Rob_bob

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Re: extra $1,700 to invest
« Reply #6 on: January 02, 2021, 02:11:25 PM »
What would I do with $1700 extra?  Invest most of it in funds or stocks I already own or start a few new stock positions to diversify.  Then I would save up to buy a new tractor or some other item that could use upgrading.  But that probably isn't what you are looking to do with the $$.

I know I wouldn't buy a rental home, just too much hands on for me even with a property manager.  I use REITS for that.  It sounds like you are looking for something outside of your normal asset allocation.  Do you have a sector in mind, are you looking for a swing for the fences type of thing or maybe loaning money to someone for a business start up or to buy a rental?  What is it you would like to accomplish with these funds?

Mighty-Dollar

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Re: extra $1,700 to invest
« Reply #7 on: January 04, 2021, 11:33:37 PM »
25% BND (Total bond market index fund)
75% VOO (S&P 500 index fund)

If you want a little more risk then replace some of the VOO with XLK (tech stocks) or QQQ (the NASDAQ).