Author Topic: Where to invest 200k  (Read 2640 times)

closeshave

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Where to invest 200k
« on: June 21, 2017, 09:05:29 PM »
The wife and I decided not to be landlords, to the tune of 200k.  It's presently rotting in a savings account. We have enough cash on hand.  I have about 40k in school loans, at 6.7%. How, given the present economic environment, would a true mustachian invest? 

Side quest: the same question, but while keeping enough liquid for a down-payment on a house in the next couple years.

surfhb

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Re: Where to invest 200k
« Reply #1 on: June 21, 2017, 09:17:54 PM »
Not enough info.   Age, income, expenses, ect all come into play.   

One thing is for sure.....pay off that loan ;)

Cossack

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Re: Where to invest 200k
« Reply #2 on: June 22, 2017, 07:18:48 AM »
If you have loans of 40k then you have 160k to invest, not 200k to invest. Might be a good idea to pay down that debt.

It is better to buy a property to rent out or get boarders to rent rooms than to buy a house for yourself.
A key to becoming rich is to use other peoples money to pay for your stuff.

closeshave

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Re: Where to invest 200k
« Reply #3 on: June 22, 2017, 12:25:22 PM »
We discovered we are not big fans of being landlords, as lucrative as that was; hence the sale.  Also, the debt is at a moderate rate, and there is some hope of debt forgiveness in the future: might we do better by investing in an index fund?

We are both late 30s, household income around 150k, no kids. We live in Boston, so taxes and cost of living are high, but we live frugally. We won't move.
« Last Edit: June 22, 2017, 12:29:53 PM by treptrek »

Heroes821

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Re: Where to invest 200k
« Reply #4 on: June 22, 2017, 01:25:37 PM »
7% isn't a moderate rate.  What website are you on? This is MMM. https://forum.mrmoneymustache.com/investor-alley/investment-order/


If the only debt you have is your student loans it's way better to pay those off than invest in a taxable anything.

closeshave

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Re: Where to invest 200k
« Reply #5 on: June 22, 2017, 09:23:43 PM »
Great link.  Thank you.  Many useful ideas.

JG in Hangzhou

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Re: Where to invest 200k
« Reply #6 on: June 22, 2017, 10:22:24 PM »
I resemble that remark.
I had 180K parked fir a few months.
And we are hunting for a house this summer.
Waited 2 months to see if market dipped. 
It didn't so into VTSAX it went.
Decided a short term line of credit will work if market drops. 
Since the house search is not time critical.

Have the same issue here  in China.
Hard to invest in China without Chinese ID. 
limited options.  lots  of  dangers...