420k total family TC which includes combined ~40k stock comp every year; couple with 11yoe; a home that has almost doubled in value in the last 7 years(1.2m value now); 401k (maxed each year) invested in a standard 2045 retirement plan. My major regret of late is, as a household we have not taken any other steps to generate returns from our earnings and improve our net worth. We tend to be very conservative investors(despite being aware of multiple investment vehicles) with not much risk appetite or a solid network to follow/copy from; ever since 2014 the market seemed to have hit a peak per our bearish sentiments leading to not much investment efforts(foolish i know; hindsight is 20:20). We have about 500k in cash, which I finally want to invest for return since I feel so much regret. What are some stocks or investment picks blinders feel bullish about? I am not troll posting. Just sincerely some one who has had a wake up call and looking for advise. Spouse is not keen about hiring financial advisor.
You have not learned anything yet. If you’re chasing risk and return out of regret you’re better off parking the money in a fund with higher risk tolerance and is wel diversified. Give it to wealthfront.
Have you tried wealthfront? Can you share how you split your funds and what % returns you have been able to get over last few years?
You can’t have a view on markets any more than have a view on inflationary universe theories. I don’t know where people source their arrogance when it comes to investing. You’re reaping the fruits of it. You have enough money to seek pro advice or simply sit passively on 60/40 etf split
Wow, an arrogant comment from an Etrade employee. Have you not see your comment commercials? They tend to help fuel arrogance. Here’s one dumbass. https://m.youtube.com/watch?v=WgmJ_ivEVvw
I don’t make commercials. Actually I don’t even watch them at all but I’ll trust your assessment. I didn’t say you don’t trade, that’s a generally great idea for everyone to trade. However to simply pull out of market and sit on cash is ridiculous that’s the view. If you believe nvidia is going down and short them it’s a different thing altogether.
Index etf to start. Then after you get comfortable with the volatility of it then you can put come on sector etf and then ultimately on selected stocks. Avoid stocks with low institutional investor% though
What does stock with low institutional investor % mean? Any examples?
Stocks that large funds don't trust and hence don't buy atm. Uber, Lyft are a couple examples. Blue chip companies like Microsoft or FAANG have 70%+ ownership by institutional investors.
One mistake you are already making is to put it in the 2045 retirement fund. That thing has huge cost and loaded with bonds. You don’t need that at this age. I would move it slowly (i.e. a percentage per month) to a vanguard ETF. There is also some good advice above
Disagree. If OP is risk averse enough to hold 500k in cash, the next recession he’s going to panic sell all his stocks if his allocation is too high. An all stock portfolio only makes sense for people who have the stomach and understanding to not sell low.
Well, I am trying to tell him to get into some risk given his age. Also, the 2045 fund has a fee almost 1.5 percent afaik. That is killing his returns bigly (to quote a stable genius).
I like to dabble with really risky investments on SeedInvest or Syndicates on Angel.co or Republic. As you know most startups fail and I have yet to see any positive returns, but investing $100k on founders I like and believe in is satisfying on so many levels.
What's your net worth, that you're able to use 100k as feel-good money?
I am late thirties so it accumulated over time (started with $60 in college debt and $50k TC out of college). Net-worth $2M mortgage paid off. So why not?
Betterment or Wealthfront sounds like an option for you. Lots of options based on the risk you want to take.
Have you tried them out? Can you share how you split your funds and what % returns you have been able to get over last few years?
I’ve been using Betterment for about 2 years now. I like that they take care of the rebalancing and tax harvesting as you add money to it. Both of these companies are using ETFs to do their investing. So could you do this yourself, absolutely. But this is hands off and I don’t have to worry about it. They use all the top ETF players like Vanguard and Schwab. Returns have matches up with a lot of other places. Just this past year we are seeing a lot of ups and downs due to the trade agreements.
Make sure to DCA over a year or so. Don’t dump it all at once unless return is guaranteed (e.g. high interest bank accounts)
Keep 3-6 months of expenses in cash. From what’s left, move (most) it *slowly* in fixed dollar amounts per week/month (not fixed share amounts) to an index fund. You want an index fund with low fees, and ideally something that covers the entire stock market. With what’s left, say $5000 or $10k at most, put it in a Robinhood account and learn to trade yourself. No options, even in Robinhood. You’re too new.
What is a reasonable advisor fee? I live in Bay Area. Not sure if I can buy an investment property w/ cash flow which can cover mortgage.
Vanguard ETFs And then risk some shit on options
Don't do options if you are a newbie investor. Leave it to the pros.
The people on r/wallstreetbets?