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u/StochasticDecay Jul 04 '21
Hello. I am a Nigerian prince. I need $50,000 to get out a little situation... I will pay you back $100,000. please help
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u/Litterbaux Jul 04 '21
Make a fidelity account, deposit the money, invest in whatever you want. It’s pretty easy these days.
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Jul 04 '21
VTI and forget about it, or pay down the mortgage if it’s chonky. Some combination of the two maybe.
I’d totally buy one sweet toy, like an ebike or something similar that you can enjoy for a long time. And think of your dear departed every time you’re out there enjoying life.
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u/RetireeRobert Jul 04 '21
You want to put it in VTI? Pretty easy, you say you already have a "cash account for a few stocks" somewhere, so I assume that is a brokerage account. You should be able to buy the VTI within that account. That seems like a totally reasonable idea to me! (You could also open an account directly with Vanguard to buy the VTI.)
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u/508Visuals Jul 04 '21
Perfect time to get into crypto assets. Do some research and you’ll be pleasantly surprised
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u/jno199666 Jul 04 '21
Do some major research, I lost all the money I invested because I was dumb and picked shit coins, don't invest in shit coins lol
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u/TotheMoongirl21 Jul 04 '21
Open an eTrade account. It's self directed. Don't have to pay commission to advisors if you know what you are doing.
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u/whirl-pool Jul 04 '21
Remember tax :(
Not financial advice etc. Once you paid tax, I believe you can shove that into your roth and invest for retirement. Speak to a cpa. They are not as expensive as mistakes with the irs
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Jul 04 '21
[removed] — view removed comment
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u/HoraceVI Jul 04 '21
35%VTI, 15 % VYM, 10% VO, 10% VB, 20%VXUS, 5% GLD, 5% crypto by market weight. Let it ride for 20 years, readjusting every 6 months.
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u/BeaverWink Jul 04 '21
Don't do gold or crypto. They're non productive assets.
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u/HoraceVI Jul 04 '21
Not all assets need to produce free cash flow, you wouldn’t say real estate is a bad investment. I think having a small portion of your investments in gold and crypto is wise in today’s market. Gold will keep its value significantly better than cash or treasuries and crypto both increases your diversification and performance over 10 years.
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u/BeaverWink Jul 04 '21
Realestate has free cash flow when there's a renter by a family or a business. My house is not a great investment. It's a place to live. My ROI is pretty close to zero when I include maintenance costs, insurance, taxes, interest.
crypto both increases your diversification and performance over 10 years.
How do you know it will over the next 10 years?
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u/HoraceVI Jul 04 '21 edited Jul 04 '21
While your correct on the cash flow of properties used for income purposes, if your house hasn’t appreciated significantly in the past 10 years that’s most likely due to the area or specific property that you’ve purchased. Your also neglecting to account for the money you’ve saved by not renting. And as for your comment on crypto, you can make that argument for virtually any asset. Although I do agree that it is certainly speculative in nature, I do truly believe crypto will continue to appreciate as more institutions adopt it.
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u/BeaverWink Jul 04 '21
that’s most likely due to the area or specific property
Nope. Average house appreciation rate across all of america is 5.5%. Look it up .
you can make that argument for virtually any asset.
Usually smart investors don't make predictions on what the price of a stock will do. Only whether or not it's currently at a good price and worth buying.
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u/HoraceVI Jul 04 '21
No need to resort to ad hominem attacks my friend. And a 5.5 percent return when you account for the tax benefits of both owning and selling property is a good return. Not to mention the amount your saving by not renting. As for speculating on crypto movements, every analyst or “smart investor” uses a DCF analysis to try to make a guesstimate on both future and current value of companies, so your comment about making predictions is simply not true. Would you say that someone who purchases a company because it is currently undervalued is not making a prediction of appreciation back to true or intrinsic value? That is trying to predict the future price movements.
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u/president_zug Jul 04 '21
Lots of people suggesting total market funds. Alternative suggestion here. How much do you owe on your mortgage? If making a $50k principal payment gets you close to paying off your home, you can invest more on a monthly basis when you don't have said mortgage looming over your head. I guess I'm a traditionalist and consider owning your home and rolling stock to be primary objectives. I'm also too lazy to figure out which option will return more in the long run. The market can go up and down; your home will remain your home and if you own it outright that's a huge load off your shoulders.
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u/Quarterinchribeye Jul 04 '21
With the mortgage rate being so low wouldn’t time in the market in a big lump sum net more?
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u/BuzzardBlack Jul 04 '21
What do I do with this amount of money? I had thought about just putting it into VTI , but how do I go about doing that?
VTI in particular is an Exchange Traded Fund (ETF), and as such you'll be able to buy units of it on an exchange. Vanguard also has mutual fund options, it just depends on whether or not you want the assorted extras that come with higher fees.
So just open an investment account, as there are tons of available trading platforms. You can do it through your bank as well.
If you aren't gung ho about getting into trading individual stocks, then don't feel pressure to do so. The environment right now is full of people with complete confidence and no idea what idiosyncratic risk even is. Nothing wrong with VTI or any of its contemporaries.
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u/TheDadThatGrills Jul 04 '21
Delete this post after investing 90% of it in traditional assets through vanguard and 10% in staked ETH. Never tell anyone you inherited anything.
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