Author Topic: How would you invest a lump sum of $150,000?  (Read 3506 times)

FIKristen

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How would you invest a lump sum of $150,000?
« on: July 29, 2017, 12:44:42 PM »
How would you invest a lump sum of $150,000 right now, if you were already retired? 

GuitarStv

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Re: How would you invest a lump sum of $150,000?
« Reply #1 on: July 29, 2017, 12:57:52 PM »
The same way I invest everything else.  I'd look at my asset allocation, split the money up and invest it as soon as possible.

FIKristen

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Re: How would you invest a lump sum of $150,000?
« Reply #2 on: July 29, 2017, 01:13:14 PM »
I figured I'd get that reply from a number of people.  :)

A follow up then -  Does anyone have a specific plan for unexpected lump sum investment opportunities?  Do you invest them the same way you would other, more gradual income streams, or do you put more thought into it?







GuitarStv

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Re: How would you invest a lump sum of $150,000?
« Reply #3 on: July 29, 2017, 05:15:00 PM »
That is my specific plan for unexpected lump sum investment opportunities.  Anything else ends up being a variation of market timing.

Monkey Uncle

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Re: How would you invest a lump sum of $150,000?
« Reply #4 on: July 30, 2017, 05:21:17 AM »
Same as GtrStv, although I would also immediately turn in my notice at work, because that amount of dough would be about the right amount to make me a lot less nervous about the U.S. health care mess.

talltexan

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Re: How would you invest a lump sum of $150,000?
« Reply #5 on: July 31, 2017, 12:39:11 PM »
Some reasons the Investing Policy statement would be secondary:

Having a short-term goal that requires substantial resources (i.e. educating a child, or moving to another location)
Having health or legal issues that make sheltering the money a priority (legal exposure, divorce, or eventual need to qualify for medicaid)
Family politics (are there siblings that view the windfall as having come at their expense?)

MountainTown

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Re: How would you invest a lump sum of $150,000?
« Reply #6 on: August 01, 2017, 11:40:37 PM »
Yea...too little information here. SO many questions...

Do you need it for anything? If no, then okay be aggressive.

If you have plans within 5 years for it, consider a balanced fund.

If it is less than 5 years, consider bonds or CD's even

And then that all depends on the plans...are they really important or are they just fun and could be deferred?

I re-read your post and I suspect you are having a timing issue. I'll bet you are seeing the market as up, and about to crash. I think we all are--and yet we could all be wrong. Honestly I think it's a comfort thing. If you got some guts, then go ahead and throw it all in. If this market just seems too insane to you then there is nothing wrong with doing 5k or even 10k at a time. You're still investing at a good rate with DCA. You could win or lose that way but it sure won't be dramatic. Again, this might all depend on the "need' of the money.

For example, if I thought I would need it soon DCA would be more attractive. If I thought I don't really need the money at all or I just might want to go on a cruise some day then maybe I would throw it all in. But I must admit, throwing it all in with the market this high would be hard for me.

And to answer your question more directly: I would probably do something like buy a house with cash or payoff a mortgage. I know it doesn't make financial sense around here but I love the idea of having a house paid off. Maybe you already do or maybe you would too.

JLee

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Re: How would you invest a lump sum of $150,000?
« Reply #7 on: August 02, 2017, 12:03:13 AM »
How would you invest a lump sum of $150,000 right now, if you were already retired?

100% VTSAX immediately.

But that's me. :)

Mighty-Dollar

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Re: How would you invest a lump sum of $150,000?
« Reply #8 on: August 02, 2017, 03:21:24 AM »
50% BND
50% ITOT

talltexan

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Re: How would you invest a lump sum of $150,000?
« Reply #9 on: August 02, 2017, 09:27:56 AM »
If you still have PMI on a mortgage, then using this money to clear that is pretty obvious.

StudentEngineer

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Re: How would you invest a lump sum of $150,000?
« Reply #10 on: August 02, 2017, 10:12:27 AM »
I'd do 50% VTSAX and 50% into blue-chip stocks (I'm too fond of dividends).

daverobev

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Re: How would you invest a lump sum of $150,000?
« Reply #11 on: August 02, 2017, 01:40:02 PM »
Same as my written asset allocation; not dollar-cost-averaged, as I'm far too likely to look for 'bargains' in the mean time.

IE, nicely globally diversified. Not too much home country bias. Low MER ETFs.

ysette9

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Re: How would you invest a lump sum of $150,000?
« Reply #12 on: August 02, 2017, 02:03:10 PM »
I'd sit down and have a conversation with my husband before doing anything. In that conversation we would likely decide to stick the bulk or all of it immediately into Vanguard into our preferred AA split between VTIAX and VTSAX. That is what we have done with smaller windfalls like stock options vesting in the past.

Since we just bought a house and are doing some work on it, it is possible we would set aside a small % of that amount for some house repairs/upgrades, but the bulk would still just get invested according to our plan.

ketchup

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Re: How would you invest a lump sum of $150,000?
« Reply #13 on: August 02, 2017, 02:10:47 PM »
$149,975 to VTSAX.  $25 to Thai food.

runewell

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Re: How would you invest a lump sum of $150,000?
« Reply #14 on: August 02, 2017, 02:29:16 PM »
$149,975 to VTSAX.  $25 to Thai food.

What about the international exposure?  Why buy only [expensive] US stocks?

JayhawkRacer

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Re: How would you invest a lump sum of $150,000?
« Reply #15 on: August 02, 2017, 02:33:30 PM »
$149,975 to VTSAX.  $25 to Thai food.

What about the international exposure?  Why buy only [expensive] US stocks?

Did you not read the part about the Thai food? :)

JLee

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Re: How would you invest a lump sum of $150,000?
« Reply #16 on: August 02, 2017, 04:39:38 PM »
$149,975 to VTSAX.  $25 to Thai food.

What about the international exposure?  Why buy only [expensive] US stocks?

I'm don't believe in market timing. Therefore, I wouldn't change my allocation plans if I came into $150k.