I have around $200k in cash, $300k in stocks/index funds (non-401k). Thinking of investing 100k from the 200k cash. Have a mortgage @ 3.5% 30 yr with loan more than $1M, so not all of the interest is tax deductible.
Hookers and blow
Option 6: lend me the 100k at 8% interest so that I can buy a rental property.
I'm in a similar situation. I have almost $300k cash and am not sure where to park them. I plan to buy a bigger house in a year or two so my investment is short term. Stock market is at all times high, same as real estate and crypto. I already have 3 rental properties. Rental market CoC return is not that good anymore (in the area I invest). There is no cash flow for rentals in the bay area. Where do you guys invest your money these days?
There are some short term CDs where you can park some of the cash for the next year or two. I agree the market is too high. You can always invest in rental properties in markets that are under valued.
Why is everyone so afraid of the stock market? S&P500 has grown 10% in average since the first day. Just be ready for the dips and don’t take the money out of the market. Keep enough cash for an emergency situation
How liquid does the 100k need to be? Which index funds do you already have money in? Have you considered options like LendingClub/prosper?
I've invested some in p2p like LendingClub & PeerStreet
100k need not be liquid
Donate to a charity. Get on their board of directors. Make a different kind of change and a different kind of ROI.
Buy silver metal
Not enough info provided. Are you exhausting all investment options that lower your taxable income? If not those should be the first things you attempt. Max 401k or better yet max sep IRA (53k/ year if you are self employed own a biz or 1099)... other things to try as well.
paydowm the mortgage and then open a HELOC. Keep maybe 20K as flex money and invest the rest
Paying off a 3.5% loan is like making 3.5% investment return. I hope you can do better somewhere else.
I like to keep 1yr worth of expense in cash which ~$100k