Managed to sell a small portion of my startup equity and have made 1M cash, which will be taxed at long term capital gain. Where should I put the after tax money to diversify? My current net worth not considering this sale is 800k split in vanguard funds and bonds 80/20. I also have a 3% stake in crypto that I am not looking to increase. Happy renter, I am super minimalist and hate owning shit. I would like to diversify, maybe in real estate, but I don’t have the mental bandwidth to go around and chase deals, especially in the Bay Area. I also don’t like crowdfunding websites, the offers I see there seem to be the bottom of the barrel, they are super risky (e.g. interest only mortgages with mega balloon payments in 3 years. Insane). Thanks blind. TC: 280 cash and about 2M illiquid startup equity. 8 yoe. Early startup employee.
Stay away from real estate if you don't have it in you to be an active investor: you'll get fleeced. Vast majority of turnkey "opportunities" are scams. Stick with your Vanguard portfolio and add a stake in REITs or precious metals if you want to diversify.
The only problem with precious metals is the physical security of them. Still a good idea for diversification.
Doing turnkey certainly requires some due diligence and it isn’t totally passive, but it isn’t nearly as bad as you’re making it out to be imo.
Hire a professional financial advisor.
Haha spent too much time on bogleheads. Never gonna do that. In the worst case I’ll reinvest it all in VTI + VXUS. Definitely not gonna listen to any scumbag.
Financial advisors mostly charge a lot of money to provide nothing beyond placebo effect. They don’t beat the market with any consistency. If you are totally new to investing and don’t want to learn hiring one can make sense, but that’s the only time.
Get to preipo market get Stripe whenever it ipos it will double in a day
How would you go about for doing that?
Equityzen
You've got a good Vanguard setup and are on bogleheads, why not just do the obvious thing and pump more into that? If you want to get more into alternatives and really want in on real estate, just go with a REIT. But you're financially competent— I'm going to bet that you know the best risk/reward is to just throw more at Vanguard.
Thanks. Yeah I’m worried that REIT are just super correlated to the stock market, so I might as well just simplify.
I don't know your age, but 20% bonds is fairly conservative, right? I'd say you're fairly insured against the stock market already, maybe even to the point of missing out on gains?
Just buy some lower risk etf's or stocks.
Crypto!
This guy gets it
MSFT and SHOP
Congrats! The easiest thing to do is to do turnkey or nearly turnkey rentals out of state. There are also non-shitty real estate crowdfunding sites available for accredited investors. I’ve done both and it’s been good for me.
Which websites would you recommend? I have looked into turnkey but I don’t like it, I don’t have the capacity to deal with a tenant who will sue me or put the house on fire, even with a property manager. Would prefer to be a limited partner in a holding.
Sign up for crowddd.com and the 506 investor group. Very active mailing list of experienced investors who do due diligence on all the deals. PM me if they ask for a referral.