What else to invest in other than real estate?

U.S. Department of Veterans Affa / Other SFnurse
Aug 10, 2018 20 Comments

What investments do you guys have and have how much do you put in? How much do you guys keep in cash?

I maxed out retirement and Roth accounts. No debts. Over 40k in ETF funds and contributing 1k a month into them. Have some crypto and don’t want anymore. Tried peer lending and didn’t like it. Have about 50k in cash and was thinking investing half of that into something but not sure what. Have an additional 1k a month that I can invest into something.

I have been toying around with the idea of real estate investing in out of state but not sure if it’s the right time right now. If I do real estate investing, my margins will basically be breaking even and not sure if it’s worth the effort.

How should I invest 25k and the 1k extra each month? Have I invested enough into stocks for now or do I do more?

Age: 25

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TOP 20 Comments
  • Google / Mktg QuadLovin
    Put some in a CD for a year, yields around 2.5% - safest. Then a little in home union or real estate investment that is completely managed by a REIT, they rent out your property in low cost places with high yields and help you navigate the entire process. Another strategy is to buy the top 5 dividend stocks. You get a yield of 3% plus gains in stock prices.
    Aug 10, 2018 4
    • U.S. Department of Veterans Affa / Other SFnurse
      OP
      Any recommendations for REIT?
      Aug 10, 2018
    • New
      TrXcVx

      New

      BIO
      mehy
      TrXcVxmore
      CDs are barely above inflation. Bad advice.
      Aug 11, 2018
    • Amazon Pooper69
      CD = idiot
      Aug 11, 2018
    • New
      TrXcVx

      New

      BIO
      mehy
      TrXcVxmore
      @Pooper69 I won’t go that harsh. Every instrument has its role in a portfolio.

      A retiree or someone holding onto funds for a specific purchase may choose to do a CD.

      I don’t recommend it for a 25-year-old starting out
      Aug 11, 2018
  • Microsoft WoCE36
    TC or GTFO. Smells like a troll
    Aug 10, 2018 4
    • U.S. Department of Veterans Affa / Other SFnurse
      OP
      TC: 160k

      Not a troll. Looking for legit advice here. Figured people on blind have money and thus probably know what to do with that money.
      Aug 10, 2018
    • Oath / Eng [object
      The government pay is not bad. Do you get pension too?
      Aug 11, 2018
    • U.S. Department of Veterans Affa / Other SFnurse
      OP
      Yes. 30% of your highest 3 years of TC. Older people had it good... theirs was 80%.
      Aug 11, 2018
    • Oath / Eng [object
      Where do I apply? It’s nice to be on the receiving end of the tax dollars sometimes 😂
      Aug 11, 2018
  • Salesforce 2438ez
    Good advice about individuals being terrible at investing. And emotional. Try to be truly honest with yourself about what you would do if you invested that 25k into stock market, and next year it was worth 15k. Would you think you made a big mistake and sell to recover your 15k before it falls further? It’s hard to know how you’ll feel until you’ve lived through an example.

    If you would stay invested in the stocks, good for you, that’s a good move at 25! And in this case, buy more stocks and forget about them for a while.

    Do you have international exposure in your 401k or Roth IRA? You may consider buying some international stock funds. They have underperformed relative to US stocks for a while now, but past performance is no guarantee of future returns.

    Otherwise if you’re comfortable with more domestic stock exposure, I’d stick with the basics. VTI or VTSAX through vanguard, FTSVX or FZROX through Fidelity. ITOT or SPTM, any of these total market funds are good for set and forget investing.

    Make sure you have an emergency fund set up so that you aren’t forced to withdraw from stock during a recession. These investments should be long term investments.
    Aug 11, 2018 3
    • U.S. Department of Veterans Affa / Other SFnurse
      OP
      I have a target fund for retirement and S&P 500 for Roth. I think the target has some international funds. Why do you think international funds have been underperforming compared to the US? Is it the influence from tech companies?

      I want to buy a real estate in the next 5 years (not in SF cus it’s too damn expensive 😭). How would you go about super short term investment? I will have around 40k cash a year post retirement and stock investing for the down payment. Right now, that money is just going into a savings account.
      Aug 11, 2018
    • Salesforce 2438ez
      Five years is getting to the point where stocks are probably the right choice but the risk is still there that you could come out behind. If you’re okay with the risk then stay invested in stocks. If you’re not, then savings account is not the worst you can do, if you are in a high yield savings account (1.8% is available through things like Ally or CIT). You could also do a CD for a few years. But five years is kind of hard to plan for really - you may plan to buy real estate in five years but a lot could also change in five years. So it’s going to be a personal decision for whether you want to optimize for growth (stocks and maybe you won’t have the money you wanted in five years and it takes seven instead) or optimize for safe risk (leaving money in lower yielding savings but guaranteed to have what you want in five years).

      Bonds are also a potential investment for five years but they too have their risk. I’m still not quite sure if the risk is worth the meager increase in yields, at least for young people who are still in the wealth accumulation phase.
      Aug 11, 2018
    • Salesforce 2438ez
      I don’t know why US has outperformed international. Tech could be one reason. But there’s nothing to say we won’t see the opposite for the next ten years, which is why international exposure may be a good thing. You’re right that a target fund probably has some international exposure built in (though it’s a good idea to check)
      Aug 11, 2018
  • Google edit
    At 25 I was an idiot. You are doing the right thing. Please invest in ETFs and forget them. That's the best way to save.

    Something that come to mind voo vfiax
    Vbiax
    Qqq
    Aug 11, 2018 2
    • U.S. Department of Veterans Affa / Other SFnurse
      OP
      Can’t believe I have never heard of qqq 🤦🏻‍♀️ thanks!
      Aug 11, 2018
    • Microsoft / Eng
      slickbarbi

      Microsoft Eng

      PRE
      Freelancer
      slickbarbimore
      Qqq is way up. Might want to check sqqq
      Aug 11, 2018
  • LinkedIn Sexyasian
    Dollar cost average
    Aug 10, 2018 1
    • U.S. Department of Veterans Affa / Other SFnurse
      OP
      What to buy?
      Aug 10, 2018
  • MyVest notjohn
    Most investing theory comes to the conclusion that individuals are terrible at investing and we make emotional choices. Best answers is low cost etfs or use a cheap advisory service. Best robo advisors are wealthfront and betterment or for slightly better service and more personalised help use personalcapital. They'll invest for you based on your risk tolerance, rebalance regularly to keep your portfolio aligned to the strategy you're on, will take into account tax loss harvesting which is too complicated to do yourself easily and show you how your money will grow over time based on long term predictions which are pretty accurate. You'll be able to connect external accounts then model different retirement dates with retirement salary from your investments and get a % chance of meeting that goal.
    They take a cut but it's small and overall worth it to remove the losses that will happen because we all make emotional choices with our own money.
    Aug 11, 2018 0