Where would you invest if you have 200k? Stocks risky Rental cannot break even Bank interest too low
VT ETF
Depends on Risk you want to take on. Use a platform like Schwab Intelligent Portfolios or Betterment to invest in a range of ETFs. what's nice is those platforms allow you to dial in the risk level you want.
With that money I'll def invest in income producing properties. I'll be cautious but that's what I would do.
Thanks. Any suggestions on location
Uh rentals are significantly cash flow positive. You are doing something wrong if otherwise.
^this
Yes but not anymore with 25% downpayment. Not in California as I see. Where exactly are you referring
Micro-hedge fund
Many Investment property markets are in a bubble (but not all you can expand your location) many stocks are in a bubble, many bonds are in a bubble, debt is a bubble. However diversification is important. It’s a great time to hoard cash and patiently wait for the bubbles to pop. With my more aggressive part of my portfolio I started bettering against the market in September and going long on mining companies. Still long in retirement accounts but ... I think we’re seeing the start of a correction. That said there are always opportunities you can check emerging markets however if fed rate keeps rising they could get hurt but still I think they are in much less of a bubble than we are.
US treasury bonds are paying 3.2% (and could be as high as 4% next year) and there is nothing safer in the world that you can buy. However I still prefer cash bc I think many juicy opportunities will show up in the market over the next 2-4 years both in housing and equities. Be patient and be ready for it.
So.... buy the bonds on a staggered maturity. Duh!
Emerging markets are a decent buy at these levels. TIPS and munis to fend off inflation and taxes.
Which one is better in terms of return assuming CA resident tax . Tips or munis ?
Probably munis. Tips are good for inflation. Munis are good for taxes. Inflation is likely but taxes are certain. Should definitely hold some tips though. I’m targeting 10% at the moment. You should also plan to buy into stocks, just staggered so you don’t end buying the top, in case that’s what that is. Plan to buy in every six months or so over three years so you’re covered.
Start ups
High Yield Savings Account (HYSA) - you get 2% APY. Note, this income is taxable, so essentially 1.2% after Federal and California taxes for a joint filling (married).
Did you explore municipal tax free bonds if they produce better returns than 1.2% ?
Safe dividend paying etf’s are probably better option