Author Topic: Just sold my Investment Property, just put it all into S and P today?  (Read 3690 times)

andysandp

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I just sold my Investment Property and made a good return. 

Now I want to put all the proceeds (around $240,000) into S and P 500.  The logical answer is to put it all in today.

Is that would you would do?  Or divide it month by month for a year...

RWD

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If you already had it all invested in the SP 500 would you take some out? That should answer your question.

Further reading:
http://jlcollinsnh.com/2014/11/12/stocks-part-xxvii-why-i-dont-like-dollar-cost-averaging/

solon

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Sure, the S&P500 seems high right now, but that's not the point. The question is, will it go up or down from here? Since you don't know the answer to that question, the best response is to put it all in. If the index goes down, your shares will be worth less, but then they'll go up and you'll be fine.

Mr. Green

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If it would make you more comfortable you could split it up into equal amounts and deposit it over a short period, but only if you're willing to set exact parameters and stick to them. Like say $60,000 every two months. That would spread your deposits out over 6 months if your hesitant about a lump sum deposit right this second. Just make sure you don't keep sliding things to the right or the next thing you know you're market timing.

Heckler

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Sounds like more than enough dough to develop an IPS before doing anything.

https://www.bogleheads.org/wiki/Investment_policy_statement

Me, I would globalize it with total market funds.

daverobev

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No, you can get exposure to more than just America for the same low MER. You can get more exposure to America than just the S&P500, too.

Retire-Canada

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I just sold my Investment Property and made a good return. 

Now I want to put all the proceeds (around $240,000) into S and P 500.  The logical answer is to put it all in today.

Is that would you would do?  Or divide it month by month for a year...

I would put it into my investment accounts according to my asset allocation. I dumped $200K+ into there in early 2016 when everyone was saying it was the top and a crash was imminent. Now my AA is globally diversified so I'm not buying just the S&P.

Mighty-Dollar

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The question is how much risk do you want to take. A lot? The put 100% in an S&P index fund. Less risk? Then put some in a total bond market index fund.
Typically you subtract your age from 120 to determine the stock portion. Ex- 120 minus age 50 equals 70% stocks, 30% bonds.

MrGville

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I'd say go ahead and invest it all at once.  This is especially true if you won't need the money for a long time (decade or more).  If you won't be touching the investment for 15 years, it doesnt really matter if the market experiences a temporary drop in a year or two. 

andysandp

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Thanks for the tips everyone!  Another option I have is paying off a mortgage for a different investment property which has a 5% interest rate.

Should I pay off the investment property?  Or invest it into S and P? 

Retire-Canada

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Re: Just sold my Investment Property, just put it all into S and P today?
« Reply #10 on: June 12, 2017, 02:41:47 PM »
Should I pay off the investment property?  Or invest it into S and P?

Go read one of the dozen or so keep mortgage vs. pay off mortgage fast threads on this forum. There is no point starting another one of those threads here. We've hashed the topic out from every angle many times.

ChpBstrd

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Re: Just sold my Investment Property, just put it all into S and P today?
« Reply #11 on: June 12, 2017, 03:38:02 PM »
I would sell a 30 day cash-secured put in SPY. If the market dips, you just bought lower than you would have otherwise. The only downside would be not participating in a major upswing, but even such an upswing would increase options prices for the next month you do this, so it's not all bad news.

VoteCthulu

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Re: Just sold my Investment Property, just put it all into S and P today?
« Reply #12 on: June 13, 2017, 02:14:34 PM »
Depends on the situation, if I needed some portion of the money in the next 5 years I wouldn't invest that in the market right now. If I was planning to retire soon and wanted to reduce my cash flow for tax purposes I might pay off the mortgage, but otherwise I would invest all of it instead.

I would also choose a total market index instead of the s&p, so YMMV.