Managing finance
Whats a good investment in the long term. I dont want to put a whole lot in something as volatile as crypto ( have around 5k there ). I put some money in wealthfront ( 25k around) but majority of the money (100k+) is still sitting in my bank account with almost no returns. Dont think I can afford a decent house in the bay area even for investment purpose with that kind of money. What are other good investment options ? Put more money in wealthfront ? How people here usually invest ?
Check out betterment.com. Great returns and you can get your money out in a few days if you needed to. Plus some cool features like tax harvesting.
Put it into 10-15 stocks that you don’t plan on touching for 5+ years and then a smaller allocation to Betterment and a REIT mutual fund (assuming wealthfront doesn’t already have REIT exposure)
Dividend income portfolio 8.47% yield with mostly monthly distributions. (VNQ, SDIV, SEA, AMZA, AMJ, KBWY, MORT, YYY)
What's going on with SEA, AMZA, AMJ, and YYY? They're down quite a bit from a year or so ago
Over the past 5+ years the equity hasn't gains valued its been about breakeven. Its more of a stable place to park cash and gain a monthly income stream as all those etfs pay monthly dividends except VNQ. Focus on the price stability of the portfolio and size of yield. The price chart doesn't ever reflect the dividend income generated. It basically can use the yield to buy more shares and compound dividends. If you need a good broker reference for this strategy let me know. Do some research into dividend and income portfolios first so your familiar with the strategy
Any robo advisor can give u 9-10% yoy so that’s the safest thing next to savings account
Be careful with statements like this. All the Robo-advisors have gone live during the longest bull market run in history. Nobody knows how they’ll react in a bear-market.
It’s all ETFs so you kinda know how they react in a bear market. They basically track it so bear’s down, maybe less or similar to S&P. They’re definitely not fixed income so subject to market condition fo sho. Now if you’re more conservative and go full bonds then it’s even safer, less gain ofc
Personally, I saw what Betterment suggested and then I invested in mutual funds similar to what they suggested and made allocations to them similar to their percentage allocation. I.e. X% to large caps, Y% to small caps, Z% to emerging markets etc.
I don’t mind keeping 100k+ in savings as an emergency fund, especially with large crypto holdings. It offsets the volatility in other markets.
This is what I do. Barbell style investment. 100k in CD+cash, the rest in high volatility speculation of crypto, stocks, options. Nothing wrong with sitting on a year or two worth of cash if you're unsure what to do with it. Nice emergency fund that allows you to take risks in other areas.