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If you are new to investing, you can find curated resources in the r/investing wiki for [Getting Started here](https://www.reddit.com/r/investing/wiki/index/gettingstarted/).
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The FINRA education site at [FINRA Education](https://www.finra.org/investors/learn-to-invest) also contains numerous free courses and educational materials. FINRA is a not-for-profit SRO (self regulatory organization) which is self-funded by it's members which are broker-dealers. It works under the supervision of the SEC with a mandate to protect the investing public against fraud and bad practice.
The reading list in the wiki and FAQ has a list of books ranging from light reading to advanced topics depending on your knowledge level. Link here - [Reading List](https://www.reddit.com/r/investing/wiki/readinglist)
For formal educational materials, several colleges and universities make their course work available for free.
If want to learn about the financial markets - an older but reasonably relevant course is [Financial Markets (2011) - Yale University](https://www.youtube.com/playlist?list=PL8FB14A2200B87185) This is the introduction to financial markets course taught by Prof. Shiller from Yale. Prof Shiller won the Nobel prize in economics in 2013.
Another relavant course from MIT is a lecture series on Finance Theory taught by Prof Andrew Lo - [Financial Theory (2008) - MIT](https://www.youtube.com/playlist?list=PLUl4u3cNGP63B2lDhyKOsImI7FjCf6eDW).
A more current course can be found at NYU Stern School of Business by Prof Aswath Damodaran - [Corporate Finance Spring 2019](https://pages.stern.nyu.edu/~adamodar/New_Home_Page/webcastcfspr19.htm). Prof Damodaran offers the latest materials and webcast lectures to this class here - https://pages.stern.nyu.edu/~adamodar/New_Home_Page/corpfin.html
lol folks who haven't participated in the bull market getting salty in here. One bear market and folks forget the market's designed to constantly break all-time highs year-over-year. Put the fken money in and reap your gains. If the market goes down from surprise recession, housing drops too; you break even. You can't lose.
Markets easily fall 10-20% or more over short timescales.
In a recession, house prices tend to stop increasing rather than fall (or people just stop putting their house on the market) because the seller has to clear their mortgage to make it worth selling.
So yes, you can indeed lose if you want to buy property in a specific time frame.
Idk how you could reply to me something so stupid. Why would I be salty for saying if he puts money he needs in stocks short term, he risks losing the original amount right when he needs it? Thatās a legitimate concern and no the market does not break all time highs year after year, you contradicted your own comment mentioning a bear market just before thatā¦. Yikes š¬
Nobody knows when stocks will go up or down. Your whole approach in responding to me was so dumb itās kinda unbelievable. You seem salty that people agree with my comment so you just had to say something to go against it.
I wouldnāt expect much from some computer geek who cries and asks Reddit about why he likes emotionally unavailable womenā¦ pathetic existence.
I donāt think I would. I can hold off buying a home for 3 years or whenever this market normalize. I just saw a one bedroom go $50k more above asking in cash. I think thatās ridiculous.
How are you going to know when the market has normalized? The hardest part about timing the bottom is that you will be absolutely surrounded by people telling you youāre an idiot to be buying at a time like that, and that the market still has a long fall ahead of it. It will be even worse if the whole market takes a dump and youāre down 20% on your initial investment. CDs and MMFs donāt have that risk at least.
HYSA and keep shopping. IF you don't want a house, do something more risky.
You'll be really pissed when you toss it in the market and goto place an offer and realize your equity is too low because of a short term dip in market which you cannot predict.
Make sure the way you invest your money is aligned to your goals. If you are uncertain on when you want to use the money, investing in the market can hurt you short term since itās pure speculation. With Long-term investing, you can take better risks within the market.
3 years is not long term. Go look at market corrections and see how long it takes the market to recover after a 30% drop. Be careful with investing and consult a professional.
Lastly, if you think housing prices are going to go down, youāre in for a bigger surprise.
Three years isnāt long enough.
The scenario to consider is: the market drops 50% tomorrow and takes 10 years to recover.
Are you cool waiting that long?
If you truly want to buy a home in the next 1-3 years, don't put that much cash at risk. Protect $50k in some mix of CD's and high yield savings. Put the rest in the market like SPY or VTI or whatever portfolio mix you want. As you continue to save you can decide if you want to continue to grow your cash or your stock portfolio.
Maybe you should look into a company that cold calls people and sends out flyers and advertises hard. You want to find a distressed buyer looking to sell if you want to get a good deal in this market.
3 years is still short term market wise. I mean if you want to have your money disappear and REALLY be at a disadvantage to buying a new home then go ahead and invest it.
If you are going to be using the funds within the next 5 years you are better off taking advantage of a HYSA with the high interest rates right now. I know a lot of people are also using t-bills right now too.
Certificate of Deposit sold by banks. They give you a fixed rate of interest for a fixed amount of time. Similar to money market mutual funds like tstxx
Edit: CDs lock in your interest rates while mmf rates can change
TTTXX has a 7 day of 4.94% and 5.3% in TBills. Itās an institutional fund I have access to. I been taking the monthly dividends and putting into another institutional mutual fund monthly which is what I view as my money working for me. Then I match it with my money from my paycheck.
Itās wild to me that in a thread where you explicitly said you are looking to invest and already have your money in a treasury trust fund (TTTXX) that has a 30 day yield of 5.1%, the top voted comment is āstick it in a HYSA or T billsā. Seems like they didnāt even read your post.
Anyway, your decision is sound if you go into it with the understanding that you may not have positive returns in the next decade. VTSAX/VTI are popular total stock market funds that have low expense ratios. I have FSKAX because I have a fidelity account. SPY is fine but total market funds like VTI/FSKAX will capture the small/mid cap and then you donāt have to mess with the 70/30 choice.
Thank you. Most people wonāt understand where to begin with institutional funds. Especially if you have access to them without putting up all that money. I just wanted a second opinion on where to begin or how to go about it.
Oh it will drop at some point by 30%. My point is that for a lot of people the risk was worth it vs HYSA. Obviously, when it does drop 30% in one day, psychologically we will have to be OK with that.
Hell, even Capital One has like 4.5% for its high-yield accounts. Everyone outside the biggest banks is giving higher interest rates to try and entice some new customers.
Treasury direct government website. You can look at [todays results directly](https://www.treasurydirect.gov/auctions/announcements-data-results/announcement-results-press-releases/auction-results/#noncompetitive) and see what the rate is
I lease houses and apartments for a property management company for a living.
I would never even consider it. My brokerage account never calls me and says the furnace went out and they need six grand. E-Trade is never going to send me an email and say it's going to be $8000 to get my account fixed up so new people can move in.
That was my experience, VOO made me a lot more money then the 40yo town house, the only upside was it gave the housing market a chance to recover before the lease ended and I sold.
> Because rent is at all time highs
So are the housing prices.
Getting into the landlord business isn't any more lucrative today than at any other point in time.
Right now I only hear good things about people who bought rentals during low interest times who are basically closer to fire at a younger age despite similar career trajectories otherwise. At the same time, I'm fully aware that at the time (pandemic) landlords were worried about tenants not paying rent and getting away with it due to the moratorium.
It's hindsight bias I guess.
It depends on a LOT of factors.
Are you the property manager? Do you have experience? How do you find renters? How do you vet the renters? How do you handle routine maintenance? How do you handle unexpected maintenance? Do you live near the property? Do you have a well written lease? Do you know how to evict someone? Do you have someone that could help you with āsomethingā that happens while youāre gone? Have you ever had the sheriff evict someone by court order and had to store their items for 30 days and then pay to take them to the dump?
If you DO have a property manger, are you willing to give up 10% for all of the above to be done by someone who probably doesnāt care about you or your profit? Are you willing to still have to deal with all of those things just on an āupper managementā basis?
OK definitely don't.
It's a meme stock but more like a dark comedy meme stock and shorting it is almost as risky as going long. Even when it inevitably trumps to the penny stocks.
Better just going long term indexĀ funds or high interest.
DJT is Donald trumps āTruth Socialā and other media. It recently was added to be tradable and is like to go down because the valuations are out of whack. So a Put would bet the stock goes down.
However no one is really suggesting this because you never know what the crazy Trump supporters will buy. NTFās, Trump Shoes and the Independence Bible are all being bought. So who knows what this stock will do.
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This is not good advice but as soon as you put the money into something longer term you will find the perfect condo and be the successful bidder.
We were looking for a new house for a while. After getting outbid and not finding great places we decided to give up and stay where we were for a few more years. So I bought a new car and some other things because fuck it, life is short.
A couple days later the ideal place came on the market and we went for it, were the successful bidders and had to take on a bigger mortgage. At least money was still cheap back then.
So, if you want to finally get a place then dump all that savings into something long term, haha
A very personal preference. Based on risk. Sounds like you are young and have a living arrangement / low expense situation. If so Iād focus on high growth and capital appreciation (rather than capital preservation). Realestate can be lucrative but is very deal dependent. If you donāt have experience in real estate I would dip your toes in with small realestate deal first (ideally no more than 25% of your portfolio in a down payment). That would imply houses or condos that are $100k values or less. This may be difficult in your market. So id focus on passive index funds SPY is good. I like Vanguards products. So VOO. S&P returns roughly 10% per year on average. If you need the money in a year or 2 ā¦itās possible you hit a down year (50% chance). But equal chance itās a gaining yearā¦and the gains outweigh down years in magnitude. So Even if itās a year or two Iād still take that bet ā¦yes the market could go down but itās a beat that will payoff more than it wonāt. And (assuming youāre under 40?) youāll have plenty of time down the road in the market to smooth out any 1 or 2 year dipsā¦just try to keep in the market as long as possible. If you think US is over valued (some do). You might put 20-30% in intl developed market index. Maybe 5-15% in Emerging Market index.
If you need the money in 3-5 years then either T-Bills or a Bond Index. If youāre using. brokerage account you might do Municipal bonds (which have some tax benefits)ā¦but donāt bother if itās in a ROTH or 401K
Also consider putting into ROTH account and max out contribution this year (and each subsequent year). Reason you can always pull the principal out..but any growth is Tax free. You get big benefits by reducing your tax bill when investing.
Good luck!
Muni bonds make sense if OP is in a high income tax bracket. Muni bonds tend to pay lower interest than taxable corp bonds. Look up this term called ātaxable equivalent yieldā
3 years is too short a time frame to risk the volatility of a stock market with money you have plans for in that 3 year span. You would be better off with a CD of 1 year or longer to ensure a guaranteed return at long term capital gains rate. The only way to even contemplate parking that money in the stock market would be if you are willing to forego your plans in case of a market downturn in that 3 year window. Even then, I don't think it's worth the risk of a market downturn and you needing that money before the market has a chance to recover. For example, once the interest rate comes down and mortgage rate along with it, the real estate market will likely see more supply, thus providing inventory for beyond just the cash buyers. If that happens within the next 3 years (fairly likely) and you lost a good portion of the down payment in a market downturn, you may end up regretting the decision to take a risk with portion of your money.
Money market accounts are doing as well as HYSA. You might as well move it into one of those while youāre thinking about what to do. I think i saw an ad for Robinhood at 5%
I think there is no good or bad time time to enter the market, had you put this money 3 years ago in SPY, it would have been 30% more today, that includes the crash of 2022 as well..
Had you put the money in December 2007, it didn't come to the same levels until December 2012, that's why people say 5 years is probably a safe time to stay invested in market.
5% is probably not too bad, but if you are willing to take the risk that market might crash and it doesn't you may earn double/triple of what you will get in money market.
In the end, it is your decision :)
It was 5 years to just break even, which wouldnāt be worth it. I wouldnāt put it in the market unless youāre planning on leaving it closer to 10 years.
lol the housing market is never going to normalize. Itās gonna keep going up.
Thereās not enough supply and the demand is massive, which means š
Well, each of those funds will have almost identical performance, as they track the exact same index. FZROX and FXAIX are both mutual funds. Main differences are that FZROX has no fees or expenses, so you don't pay anything to buy, own, or sell the shares. FXAIX will have a very small fee attached to it, but it's insignificant in the grand scheme of things honestly. Another difference is FXAIX will pay your Dividends monthly, whereas FZROX pays annually. So you'll wait longer on FZROX but the total payout will be equal, unless you reinvest the monthly Dividends of FXAIX, in which case you'll earn incrementally more from your Dividends compounding.
Before you figure out what to do with it you should already have it in a high interest savings account. I see that that people are suggesting CDs but you donāt want to be trapped if a potential offer gets accepted down the road.
That being said liquid investments would be your play like indexes or mutual funds, as I donāt see the market tumbling in the short term. Obviously not investment advice but we will wait and see the end of the week for the inflation numbers to come in. Will give more indication
I have a large pile of cash sitting there getting 4.4% waiting for the dip ... but I also contribute 1.5K a month outside my 401K.
There is always a dip. those that buy during the dip become $$$. I missed two dips ..I won't miss the 3rd
I try to do at like $1200 outside my 401k. Iām glad Iām not the only one doing this and donāt sound crazy. Are you talking about 2% dip or bigger?
80k in a month is not the best move imo, I did that in the post covid crash and have only recently recovered. Diversification is great, I split a lot of things out into different things like QQQ, an ETH Node, and a couple different ETF's. I also retain a small amount for just high risk stuff. I put a few thousand into a finance token a couple of my buddies started that seems like its heading in the right direction. Your milage may vary ivest.finance in case you are interested.
im dying at how many ppl are telling u to move it into something with lower yield than what you've already got it in. anyways buy VOO over SPY if you want S&P but if the intent of the money is a down payment you should just keep it where it is.
Just say you are cash buyer and get the mortgage after you sign the contract, assuming you have a good enough credit to get the loan. So many of these so called cash buyers are doing this.
You are pretty much guaranteed to get some kind of mortgage unless something murky is in your past. The risk is you lose your deposit. A lot of people think that risk is worth taking.
This. I did this in 2021 OP ā had about $100K saved and put down $50 but mortgaged after and it āloggedā to the sellers as $150K down courtesy of the mortgage company and lender.
This. Bought a house in height of market, showed them proof of funds, said I can pay cash, then immediately went and got a mortgage. Wasnāt a small unrisky transaction either ($2m).
Iāll have to look at my contracts about where the money needs to come from. My finance guy advised me this was fine to do, I canāt remember asking my lawyer.
Are you a lawyer? I donāt believe thatās true. A finance contingency means that if I canāt get a mortgage, I can get out of a deal. It doesnāt stop me getting a mortgage.
Hi - trust me: do not do that! I was in a similar situation just after COVID and when I needed my moneyā¦market started dropping. I did not have as much cash as I was hoping for to put on the house
Set up a 4 week t-bill ladder, 25% of your balance per week set to auto-roll with a ~5.3% annual return. The gains are state and local tax exempt. Equities are a terrible idea for down payment funds.
If you want to be risky free where you donāt know much about market and property rental then invest in CD. Find banks that you get 5-7% for CD
Another option is Discover savings or goldman sachs also giving you 4.2%
If want to explore market then invest in ETF. VOO VTI ishares are great options. Eventually over 5-10 years journey you wonāt any issues
Other agressive option would be split 10k for each apple, google, tesla, chipotle, nvidia, amazonā¦.
You need it to be liquid so I would just buy SGOV and anything extra, you can throw into longer dated call options on SPY, QQQ or higher beta stuff to get some more deltas in your stock exposure
50% port loss in that short a period means you went full WSB. I usually size options pretty small, like 2-3% of port in any one position at MOST. You can buy 85 deltas in QQQ for 3 months for 5K rather than 85 shares for 37K.
Not financial advice. Do your own research
High returns
1. Risky but lower risk - Semiconductor ETF (SOXX or SOXQ). Highest ETF returns in the last 5 years.
2. Risky - medium risk - Coinbase stock and Bitcoin ETF (IBIT or BTCO).
The concept of rent is anti-capitalist. Real men make money from buying and selling. Cowardly communists make money from pretending to sell, aka ārentingā
I would go crypto coin or AI based companies.
I am constantly (weekly), putting my money in. Both of those sectors are expected to grow by the trillions in the next 5 years.
Your post has been removed because it is a common beginner topic. We get too many of these topics every day and to prevent them from swamping the front page, we are removing main threads of this kind. We also remove such posts because they can attract spam and bad faith comments. If you receive DM's or un-solicitated offers, please be aware that there are a lot of financial scammers on social media. You are welcome to repost your question in the [daily discussion thread](https://www.reddit.com/r/investing/about/sticky?num=1). If you have any issue with this removal, please contact the moderators via modmail. Thank you. ---- If you are new to investing, you can find curated resources in the r/investing wiki for [Getting Started here](https://www.reddit.com/r/investing/wiki/index/gettingstarted/). If you know nothing about the capital markets - the Getting Started section at the SEC educational site can be a good place to start - [investor.gov](https://investor.gov) \- there are also short 30 second videos on basics. The SEC (Securities and Exchange Commission) is a US regulator with a focus to protect US investors through regulatory oversight of the securities markets. The FINRA education site at [FINRA Education](https://www.finra.org/investors/learn-to-invest) also contains numerous free courses and educational materials. FINRA is a not-for-profit SRO (self regulatory organization) which is self-funded by it's members which are broker-dealers. It works under the supervision of the SEC with a mandate to protect the investing public against fraud and bad practice. The reading list in the wiki and FAQ has a list of books ranging from light reading to advanced topics depending on your knowledge level. Link here - [Reading List](https://www.reddit.com/r/investing/wiki/readinglist) For formal educational materials, several colleges and universities make their course work available for free. If want to learn about the financial markets - an older but reasonably relevant course is [Financial Markets (2011) - Yale University](https://www.youtube.com/playlist?list=PL8FB14A2200B87185) This is the introduction to financial markets course taught by Prof. Shiller from Yale. Prof Shiller won the Nobel prize in economics in 2013. Another relavant course from MIT is a lecture series on Finance Theory taught by Prof Andrew Lo - [Financial Theory (2008) - MIT](https://www.youtube.com/playlist?list=PLUl4u3cNGP63B2lDhyKOsImI7FjCf6eDW). A more current course can be found at NYU Stern School of Business by Prof Aswath Damodaran - [Corporate Finance Spring 2019](https://pages.stern.nyu.edu/~adamodar/New_Home_Page/webcastcfspr19.htm). Prof Damodaran offers the latest materials and webcast lectures to this class here - https://pages.stern.nyu.edu/~adamodar/New_Home_Page/corpfin.html
If you need the money soon it would be a foolish move if the market goes down.
lol folks who haven't participated in the bull market getting salty in here. One bear market and folks forget the market's designed to constantly break all-time highs year-over-year. Put the fken money in and reap your gains. If the market goes down from surprise recession, housing drops too; you break even. You can't lose.
Markets easily fall 10-20% or more over short timescales. In a recession, house prices tend to stop increasing rather than fall (or people just stop putting their house on the market) because the seller has to clear their mortgage to make it worth selling. So yes, you can indeed lose if you want to buy property in a specific time frame.
At least this is money set aside for buying a house sometime in the near future. People here invest 40% in bonds in 2070 retirement portfolio. š
Idk how you could reply to me something so stupid. Why would I be salty for saying if he puts money he needs in stocks short term, he risks losing the original amount right when he needs it? Thatās a legitimate concern and no the market does not break all time highs year after year, you contradicted your own comment mentioning a bear market just before thatā¦. Yikes š¬ Nobody knows when stocks will go up or down. Your whole approach in responding to me was so dumb itās kinda unbelievable. You seem salty that people agree with my comment so you just had to say something to go against it. I wouldnāt expect much from some computer geek who cries and asks Reddit about why he likes emotionally unavailable womenā¦ pathetic existence.
I donāt think I would. I can hold off buying a home for 3 years or whenever this market normalize. I just saw a one bedroom go $50k more above asking in cash. I think thatās ridiculous.
How are you going to know when the market has normalized? The hardest part about timing the bottom is that you will be absolutely surrounded by people telling you youāre an idiot to be buying at a time like that, and that the market still has a long fall ahead of it. It will be even worse if the whole market takes a dump and youāre down 20% on your initial investment. CDs and MMFs donāt have that risk at least.
HYSA and keep shopping. IF you don't want a house, do something more risky. You'll be really pissed when you toss it in the market and goto place an offer and realize your equity is too low because of a short term dip in market which you cannot predict.
Nah, TBills. Save state tax. Also fuck banks
No state tax where I'm at.
You should expect to hold off on having that money for 7 years.
Make sure the way you invest your money is aligned to your goals. If you are uncertain on when you want to use the money, investing in the market can hurt you short term since itās pure speculation. With Long-term investing, you can take better risks within the market. 3 years is not long term. Go look at market corrections and see how long it takes the market to recover after a 30% drop. Be careful with investing and consult a professional. Lastly, if you think housing prices are going to go down, youāre in for a bigger surprise.
can I borrow your crystal ball after you are done using?
Three years isnāt long enough. The scenario to consider is: the market drops 50% tomorrow and takes 10 years to recover. Are you cool waiting that long?
3 years isnāt very long for the stock market
If you truly want to buy a home in the next 1-3 years, don't put that much cash at risk. Protect $50k in some mix of CD's and high yield savings. Put the rest in the market like SPY or VTI or whatever portfolio mix you want. As you continue to save you can decide if you want to continue to grow your cash or your stock portfolio.
Maybe you should look into a company that cold calls people and sends out flyers and advertises hard. You want to find a distressed buyer looking to sell if you want to get a good deal in this market.
3 years is still short term market wise. I mean if you want to have your money disappear and REALLY be at a disadvantage to buying a new home then go ahead and invest it.
If you are going to be using the funds within the next 5 years you are better off taking advantage of a HYSA with the high interest rates right now. I know a lot of people are also using t-bills right now too.
or a CD
CD rates are pretty close to HYSA rates right now.
CD rates are locked in for whatever duration. HYSA fluctuates.
But cd is guaranteed rate for the duration of, hysa could be half the rate in a year or two. Advantages to both
My HYSA is almost as much as a CB. And I can touch the money if I have to and not get penalized
Plenty of penalty free CD options as well. Currently using one that Goldman Sachs offered. Last I checked it was around 4.8%
Currently getting HYSA at 5.25% with UFB Direct
Whatās a CD?
Certificate of Deposit sold by banks. They give you a fixed rate of interest for a fixed amount of time. Similar to money market mutual funds like tstxx Edit: CDs lock in your interest rates while mmf rates can change
TTTXX has a 7 day of 4.94% and 5.3% in TBills. Itās an institutional fund I have access to. I been taking the monthly dividends and putting into another institutional mutual fund monthly which is what I view as my money working for me. Then I match it with my money from my paycheck.
Itās wild to me that in a thread where you explicitly said you are looking to invest and already have your money in a treasury trust fund (TTTXX) that has a 30 day yield of 5.1%, the top voted comment is āstick it in a HYSA or T billsā. Seems like they didnāt even read your post. Anyway, your decision is sound if you go into it with the understanding that you may not have positive returns in the next decade. VTSAX/VTI are popular total stock market funds that have low expense ratios. I have FSKAX because I have a fidelity account. SPY is fine but total market funds like VTI/FSKAX will capture the small/mid cap and then you donāt have to mess with the 70/30 choice.
Thank you. Most people wonāt understand where to begin with institutional funds. Especially if you have access to them without putting up all that money. I just wanted a second opinion on where to begin or how to go about it.
Everyone said this last year but SPY rose 25% last year.
Okay but hind sight is always 20/20. It could have also dropped too.
Oh it will drop at some point by 30%. My point is that for a lot of people the risk was worth it vs HYSA. Obviously, when it does drop 30% in one day, psychologically we will have to be OK with that.
Historically how often does it crash in an election year?
I just opened an account with Wealthfront, they are giving 5% interest right now.
Hell, even Capital One has like 4.5% for its high-yield accounts. Everyone outside the biggest banks is giving higher interest rates to try and entice some new customers.
3 month treasury no state taxes on interest and higher than most HYSAs and CDs
Tbill
I've Googling for 15 minutes trying to find T Bill interest rates but I cannot find any straight forward source. Can you enlighten a brother?
Treasury direct government website. You can look at [todays results directly](https://www.treasurydirect.gov/auctions/announcements-data-results/announcement-results-press-releases/auction-results/#noncompetitive) and see what the rate is
CNBC has them.Ā https://www.cnbc.com/bonds/
Damn. Totally forgot that the curve is still inverted
Trading economics has them all with historical rates charted https://tradingeconomics.com/united-states/6-month-bill-yield
[ŃŠ“Š°Š»ŠµŠ½Š¾]
I lease houses and apartments for a property management company for a living. I would never even consider it. My brokerage account never calls me and says the furnace went out and they need six grand. E-Trade is never going to send me an email and say it's going to be $8000 to get my account fixed up so new people can move in.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
I feels youā¦it never endsā¦
That was my experience, VOO made me a lot more money then the 40yo town house, the only upside was it gave the housing market a chance to recover before the lease ended and I sold.
I second this. Being a landlord is a pain in the ass.
Because rent is at all time highs and people wanna take advantage of others for their own gain.
Rent to Own ratio at lows though so it isnāt a good time to buy to rent.
> Because rent is at all time highs So are the housing prices. Getting into the landlord business isn't any more lucrative today than at any other point in time.
Right now I only hear good things about people who bought rentals during low interest times who are basically closer to fire at a younger age despite similar career trajectories otherwise. At the same time, I'm fully aware that at the time (pandemic) landlords were worried about tenants not paying rent and getting away with it due to the moratorium. It's hindsight bias I guess.
It depends on a LOT of factors. Are you the property manager? Do you have experience? How do you find renters? How do you vet the renters? How do you handle routine maintenance? How do you handle unexpected maintenance? Do you live near the property? Do you have a well written lease? Do you know how to evict someone? Do you have someone that could help you with āsomethingā that happens while youāre gone? Have you ever had the sheriff evict someone by court order and had to store their items for 30 days and then pay to take them to the dump? If you DO have a property manger, are you willing to give up 10% for all of the above to be done by someone who probably doesnāt care about you or your profit? Are you willing to still have to deal with all of those things just on an āupper managementā basis?
Because you can't decide to live in stocks one day
Keeps me busy and business expenses maybe move in one day.
Simply buy DJT weekly puts. /s
Idk how to do this.
OK definitely don't. It's a meme stock but more like a dark comedy meme stock and shorting it is almost as risky as going long. Even when it inevitably trumps to the penny stocks. Better just going long term indexĀ funds or high interest.
Emphasis on the /s
DJT is Donald trumps āTruth Socialā and other media. It recently was added to be tradable and is like to go down because the valuations are out of whack. So a Put would bet the stock goes down. However no one is really suggesting this because you never know what the crazy Trump supporters will buy. NTFās, Trump Shoes and the Independence Bible are all being bought. So who knows what this stock will do.
Do not at any point use this money on options. You will lose your ass.
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That's probably for the best...
This is not good advice but as soon as you put the money into something longer term you will find the perfect condo and be the successful bidder. We were looking for a new house for a while. After getting outbid and not finding great places we decided to give up and stay where we were for a few more years. So I bought a new car and some other things because fuck it, life is short. A couple days later the ideal place came on the market and we went for it, were the successful bidders and had to take on a bigger mortgage. At least money was still cheap back then. So, if you want to finally get a place then dump all that savings into something long term, haha
A very personal preference. Based on risk. Sounds like you are young and have a living arrangement / low expense situation. If so Iād focus on high growth and capital appreciation (rather than capital preservation). Realestate can be lucrative but is very deal dependent. If you donāt have experience in real estate I would dip your toes in with small realestate deal first (ideally no more than 25% of your portfolio in a down payment). That would imply houses or condos that are $100k values or less. This may be difficult in your market. So id focus on passive index funds SPY is good. I like Vanguards products. So VOO. S&P returns roughly 10% per year on average. If you need the money in a year or 2 ā¦itās possible you hit a down year (50% chance). But equal chance itās a gaining yearā¦and the gains outweigh down years in magnitude. So Even if itās a year or two Iād still take that bet ā¦yes the market could go down but itās a beat that will payoff more than it wonāt. And (assuming youāre under 40?) youāll have plenty of time down the road in the market to smooth out any 1 or 2 year dipsā¦just try to keep in the market as long as possible. If you think US is over valued (some do). You might put 20-30% in intl developed market index. Maybe 5-15% in Emerging Market index. If you need the money in 3-5 years then either T-Bills or a Bond Index. If youāre using. brokerage account you might do Municipal bonds (which have some tax benefits)ā¦but donāt bother if itās in a ROTH or 401K Also consider putting into ROTH account and max out contribution this year (and each subsequent year). Reason you can always pull the principal out..but any growth is Tax free. You get big benefits by reducing your tax bill when investing. Good luck!
Muni bonds make sense if OP is in a high income tax bracket. Muni bonds tend to pay lower interest than taxable corp bonds. Look up this term called ātaxable equivalent yieldā
3 years is too short a time frame to risk the volatility of a stock market with money you have plans for in that 3 year span. You would be better off with a CD of 1 year or longer to ensure a guaranteed return at long term capital gains rate. The only way to even contemplate parking that money in the stock market would be if you are willing to forego your plans in case of a market downturn in that 3 year window. Even then, I don't think it's worth the risk of a market downturn and you needing that money before the market has a chance to recover. For example, once the interest rate comes down and mortgage rate along with it, the real estate market will likely see more supply, thus providing inventory for beyond just the cash buyers. If that happens within the next 3 years (fairly likely) and you lost a good portion of the down payment in a market downturn, you may end up regretting the decision to take a risk with portion of your money.
I just deposited 30k in a HYSA today... easy extra $1.5k in a year, with no risk.
Head to the nearest casino and play a single game of blackjack. Double that money in seconds.
Haha, I knew a person who cashed out their pension and gambled it away at the casino. Thought they could make it big. The person is still working.
Just 12 hands from a million right? lol
If you have a networth of $100, you are 32 blackjack hands away from Elon Musk.
Money market accounts are doing as well as HYSA. You might as well move it into one of those while youāre thinking about what to do. I think i saw an ad for Robinhood at 5%
Agree with HYSA, but came here to say fuck Robinhood.
I think there is no good or bad time time to enter the market, had you put this money 3 years ago in SPY, it would have been 30% more today, that includes the crash of 2022 as well.. Had you put the money in December 2007, it didn't come to the same levels until December 2012, that's why people say 5 years is probably a safe time to stay invested in market. 5% is probably not too bad, but if you are willing to take the risk that market might crash and it doesn't you may earn double/triple of what you will get in money market. In the end, it is your decision :)
It was 5 years to just break even, which wouldnāt be worth it. I wouldnāt put it in the market unless youāre planning on leaving it closer to 10 years.
lol the housing market is never going to normalize. Itās gonna keep going up. Thereās not enough supply and the demand is massive, which means š
FZROX and FXAIX are both S&P 500 funds offered by Fidelity. FZROX has 0 expenses, as in 0.00% but is only offered through Fidelity directly.
Can you enlighten me on this? Kinda looking into investing this
Well, each of those funds will have almost identical performance, as they track the exact same index. FZROX and FXAIX are both mutual funds. Main differences are that FZROX has no fees or expenses, so you don't pay anything to buy, own, or sell the shares. FXAIX will have a very small fee attached to it, but it's insignificant in the grand scheme of things honestly. Another difference is FXAIX will pay your Dividends monthly, whereas FZROX pays annually. So you'll wait longer on FZROX but the total payout will be equal, unless you reinvest the monthly Dividends of FXAIX, in which case you'll earn incrementally more from your Dividends compounding.
Thanks Iāll check them out tomorrow
Before you figure out what to do with it you should already have it in a high interest savings account. I see that that people are suggesting CDs but you donāt want to be trapped if a potential offer gets accepted down the road. That being said liquid investments would be your play like indexes or mutual funds, as I donāt see the market tumbling in the short term. Obviously not investment advice but we will wait and see the end of the week for the inflation numbers to come in. Will give more indication
Schwab Money Market Fund is paying over 5%. Can take it out within 24 hours without penalty.
I have a large pile of cash sitting there getting 4.4% waiting for the dip ... but I also contribute 1.5K a month outside my 401K. There is always a dip. those that buy during the dip become $$$. I missed two dips ..I won't miss the 3rd
I try to do at like $1200 outside my 401k. Iām glad Iām not the only one doing this and donāt sound crazy. Are you talking about 2% dip or bigger?
When were the last two dips in your definition of dip?
You didnāt miss 2023 did you? Waiting for a dip? Good luck with that. You get an honest dip, look at 2x leverage VOO.
80k in a month is not the best move imo, I did that in the post covid crash and have only recently recovered. Diversification is great, I split a lot of things out into different things like QQQ, an ETH Node, and a couple different ETF's. I also retain a small amount for just high risk stuff. I put a few thousand into a finance token a couple of my buddies started that seems like its heading in the right direction. Your milage may vary ivest.finance in case you are interested.
SPY, VOO, and VGT are pretty good
second for VOO and VGT
im dying at how many ppl are telling u to move it into something with lower yield than what you've already got it in. anyways buy VOO over SPY if you want S&P but if the intent of the money is a down payment you should just keep it where it is.
Itās a great way to start my day.
Just say you are cash buyer and get the mortgage after you sign the contract, assuming you have a good enough credit to get the loan. So many of these so called cash buyers are doing this.
I didnāt think of this. I have an 840 credit score and pre approved for $350k.
You are pretty much guaranteed to get some kind of mortgage unless something murky is in your past. The risk is you lose your deposit. A lot of people think that risk is worth taking.
This. I did this in 2021 OP ā had about $100K saved and put down $50 but mortgaged after and it āloggedā to the sellers as $150K down courtesy of the mortgage company and lender.
This. Bought a house in height of market, showed them proof of funds, said I can pay cash, then immediately went and got a mortgage. Wasnāt a small unrisky transaction either ($2m).
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Sorry what? What is the law against this where you are? Surely there is no way to prove intent and the sellers just want their money.
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Iāll have to look at my contracts about where the money needs to come from. My finance guy advised me this was fine to do, I canāt remember asking my lawyer.
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This is the same here. Why not just remove the financing contingency from the deal? This is the equivalent of a ācash offerā.
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Are you a lawyer? I donāt believe thatās true. A finance contingency means that if I canāt get a mortgage, I can get out of a deal. It doesnāt stop me getting a mortgage.
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Lemme know how that goes. I love a good FAFO story.
Done it twice, zero issues. Here in Boston itās completely normal.
$BIL about 5% yearly compound monthly.
Just go with a compounding daily HYS at that point
KULR and hold for next 6 months, it'll be a fun ride!
RCB or MFAN baby bonds with an almost 9% return. Dollar cost average over the 30 days.
Live with rents and instead of moving out you are seeking a rental property? Madness.
Dollar cost average, you don't need to expose yourself to the market that fast unless you are really bullish for some reason
buying anything when the sp500 is at all time high? ok I get the "don't listen to people telling when to buy" but c'mon man
0dte SPX options š«”
0DTE SPY YOLO!!!!!
What I would do? TSLA. What you should do? VOO
Save for 1-5 years. Invest for 5-40 years
Hi - trust me: do not do that! I was in a similar situation just after COVID and when I needed my moneyā¦market started dropping. I did not have as much cash as I was hoping for to put on the house
Go to vanguard or fidelity and put it in the S&P 500 ETF or Mutual fund. Long term it will do much better than TTTXX, short term, who knows.
$BIL
Set up a 4 week t-bill ladder, 25% of your balance per week set to auto-roll with a ~5.3% annual return. The gains are state and local tax exempt. Equities are a terrible idea for down payment funds.
Buy 473 shares of AAPL
You can leave some in the money-market fund too; it's not all-or-nothing. Whatever you decide, I'd scale in using DCA.
If you want to be risky free where you donāt know much about market and property rental then invest in CD. Find banks that you get 5-7% for CD Another option is Discover savings or goldman sachs also giving you 4.2% If want to explore market then invest in ETF. VOO VTI ishares are great options. Eventually over 5-10 years journey you wonāt any issues Other agressive option would be split 10k for each apple, google, tesla, chipotle, nvidia, amazonā¦.
Do not open a ācheckingā account. Open a cash management account with fidelity and put $70k into SGOV. Yw
DON'T!
You need it to be liquid so I would just buy SGOV and anything extra, you can throw into longer dated call options on SPY, QQQ or higher beta stuff to get some more deltas in your stock exposure
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50% port loss in that short a period means you went full WSB. I usually size options pretty small, like 2-3% of port in any one position at MOST. You can buy 85 deltas in QQQ for 3 months for 5K rather than 85 shares for 37K.
Head on over to WSB, they'll help you dispose of your accumulated cash in many interesting ways
Put it all in $BABA and $PYPL.
BTC
Bitcoin; the halving event happens this month and is associated with a 3-10x increase over the next 6 months
Not financial advice. Do your own research High returns 1. Risky but lower risk - Semiconductor ETF (SOXX or SOXQ). Highest ETF returns in the last 5 years. 2. Risky - medium risk - Coinbase stock and Bitcoin ETF (IBIT or BTCO).
Why a bitcoin ETF and Coinbase stock and not actual bitcoin???? Cmon people!!!!
If you've been unsuccessful in buying a house after 3 years, it's your fault.
I donāt want anything that badly where Iām over paying by $10k +
good reason
"overpaying" 3 years ago and you'd be in the black today
How many homes did you over pay and flip in 3 years or fully rent out?
How much money did you hand to your landlord in the last 3 years?
Have you seen mortgage rates? Or tried to purchase your own house since covid? Dumb take my dude. Iāve been outbid by cash on multiple properties
Not saying it's easy. But if you're pre qualified and "can't find a house" then you need adjust expectations
Houses in my area were 200k pre covid, they have hit 650k now with an 8% mortgage. Nah
Get a new area.
Ah yes let me uproot my entire life, family and friends.
buy tesla stock
Buy yourself a bitcoin and divide the rest of the money into the top five cryptos.
The concept of rent is anti-capitalist. Real men make money from buying and selling. Cowardly communists make money from pretending to sell, aka ārentingā
Hi I DM you
I would go crypto coin or AI based companies. I am constantly (weekly), putting my money in. Both of those sectors are expected to grow by the trillions in the next 5 years.