50K extra to invest

LinkedIn Zitar
Mar 25, 2018 31 Comments

I have 50K extra to invest, and i have already diversified my other investments to many different areas using: Vanguard 3-fund index fund portfolio ( vtsax, vtiax, vwitx (60/30/10) ), M1Finance 3-fund ETF portfolio ( vti, vxus, vteb (60/30/10), individual company stocks and ESPP (around 80K), Treasury notes (6-month and 1-year, total of 40K), I-bonds (10K limit for this year), some CDs (1-year 2% at ally and synchrony), and some in savings account in synchrony.

How can i invest the extra 50K? I can put it into savings account, but return is low. Treasury notes return slightly higher, but not so much. Tax-exempt muni bonds could be, but returns are dropping due to interest rate hikes. Stock market is risky right now, thanks to drumpf. Any suggestions here about what i can do with extra 50K? How about real estate funding via Fundrise or Peerstreet? Real estate investment in another state via house flipping or renting? (I’m in bay area, age 31 if it matters.). Haven’t put anything in Roth IRA, maybe that? Any other options / suggestions?

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TOP 31 Comments
  • Amazon diinoshaur
    Congratulations
    Mar 25, 2018 0
  • Facebook / Eng
    sherry 69

    Facebook Eng

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    Google
    sherry 69more
    Keep them very liquid (e.g. CD) to hedge against market crash.
    Mar 25, 2018 5
    • LinkedIn Zitar
      OP
      This is something i’m thinking about doing as well, except i’m thinking about keeping it in savings account.
      Mar 25, 2018
    • Facebook / Eng
      sherry 69

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      sherry 69more
      Thought saving account rates are basically nil. With CDs you could be getting 2%
      Mar 25, 2018
    • LinkedIn Zitar
      OP
      Synchrony returns 1.55%, and CD has withdrawal penalty. But you are right, returns of both are only barely above 1% after taxes.
      Mar 25, 2018
    • Shopify / Eng
      teeth

      Shopify Eng

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      teethmore
      Sorry to be that guy but what’s CD?
      Mar 25, 2018
    • Facebook / Eng
      sherry 69

      Facebook Eng

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      sherry 69more
      certificate of deposit
      Mar 25, 2018
  • CareerBuilder AgnewsHead
    Just keep adding to your 3 find portfolio. It scales to hundreds of billions of dollars
    Mar 25, 2018 0
  • Salesforce palmreader
    Buy emd . Good diversification and 8% dividend
    Mar 25, 2018 5
    • LinkedIn Zitar
      OP
      Won’t be able to buy the idea until i learn more. This is emerging market stock and very volatile. Does it return qualified dividends (this determines the tax amount)? I know some REITs i could buy with higher dividend rate, but the dividends are not qualified, and the REITs are also volatile.
      Mar 25, 2018
    • Salesforce palmreader
      It's invested in sovereign debts, not stocks
      Mar 25, 2018
    • LinkedIn Zitar
      OP
      I see. Bonds have unqualified dividends, so this may not be tax efficient, but will check. Interestingly, i see NYSE:EMD online, which has 8% div yield, and in robinhood, I see EMD, which has a different value plot, with no div yield, not sure which one you are referring as to.
      Mar 25, 2018
    • Salesforce palmreader
      It paid about a dollar in dividends every year for last 10 years which is 8 percent based on current value.
      Mar 25, 2018
    • T-Mobile lAFM00
      Very interesting pick. Thanks for the insight
      Jul 10, 2018
  • I use wealthfront for such lump sums. Just get it invested. Don't time the market hoping for a crash. DCA historically almost always trails lump sum investing. It's just a cognitively safer strategy. But not actually.
    Mar 25, 2018 1
    • LinkedIn Zitar
      OP
      Some of the extra 50K comes from Wealthfront, which i did exit due to management fees. So, no. I know the research around lump-sum > DCA in terms of returns, but i will keep DCAing during this presidency. Also, no market timing here, i’m still continuing my biweekly contributions to 3-fund portfolios.
      Mar 25, 2018
  • LinkedIn LiKafka
    Online savings & CD 1.5% - 2% makes me sleep well
    Mar 25, 2018 1
    • Salesforce palmreader
      That's less than 1 percent after taxes
      Mar 25, 2018
  • WalmartLabs Greatness
    Trade options
    Mar 25, 2018 3
    • LinkedIn Zitar
      OP
      I still yet to learn more about this, i know it is risky, but i will check.
      Mar 25, 2018
    • New Hbj864
      Don’t! Unless it’s Vegas money 💰
      Mar 26, 2018
    • LinkedIn Zitar
      OP
      Yep! A little search led me there.
      Mar 26, 2018
  • OpenText / Eng no_scrubs
    Try to consolidate your different accounts and focus on getting enough saved up into VBIAX in order to have the option to semi-retire before you're 60 (using the 4% safe withdraw rate rule). Use a non-retirement account so that you could withdraw from it during your 40s/50s.
    Mar 25, 2018 1
    • LinkedIn Zitar
      OP
      I’m hearing about this fund second time after asking this question. VBIAX seems interesting, it is low-cost and self-balancing.
      Mar 25, 2018
  • LinkedIn Zitar
    OP
    I already add a fixed amount to 3-fund portfolio every other week, and dollar-cost-average the risk. I would rather not use this lump-sum of 50K for these funds.
    Mar 25, 2018 1
    • CareerBuilder AgnewsHead
      But that is the best destination for this money.
      Mar 25, 2018
  • Zuora
    🍌...

    Zuora

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    Amazon
    🍌...more
    Peer street isn’t bad, my average returns are about 8%, no foreclosures in the last 2 years.
    Nov 5, 2018 0
  • BlackRock CA_25
    Park it in Wealthfront
    Jul 19, 2018 0
  • Amazon IntoDWild
    Spend half of it and put rest in your funds.
    Mar 25, 2018 0
  • Palo Alto Networks wdcyjn
    I’m with lunchmeat - sock some away into an IRA and I’d either keep the rest liquid in savings or just add to one of your indexes. No idea what will happen this year with the market. Either keep it ready for an opp or just add it to your Vanguard funds since it’s so hard to time the market.
    Mar 25, 2018 0
  • Roth or traditional IRA is a no-brainer. Beyond that, whatever tickles your fancy. Sometimes, it's good to keep a healthy amount liquid should an opportunity present itself.
    Mar 25, 2018 0

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