NewJeeeeez

Got a windfall: where to invest?

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.

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Google Ducksworth Jul 13, 2018

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.

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Jeeeeez OP Jul 13, 2018

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.

Google Ducksworth Jul 13, 2018

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.

CareerBuilder JonDoe1 Jul 13, 2018

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.

Proofpoint foodtruckj Jul 13, 2018

The only problem with precious metals is the physical security of them. Still a good idea for diversification.

Google Ducksworth Jul 13, 2018

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.

NAVEX Global HollaBackG Jul 13, 2018

Hire a professional financial advisor.

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Jeeeeez OP Jul 13, 2018

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.

Google Ducksworth Jul 13, 2018

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.

Visa shaolin Jul 13, 2018

Get to preipo market get Stripe whenever it ipos it will double in a day

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Jeeeeez OP Jul 13, 2018

How would you go about for doing that?

Visa shaolin Jul 13, 2018

Equityzen

Facebook XLhI02 Jul 13, 2018

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.

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Jeeeeez OP Jul 13, 2018

Thanks. Yeah I’m worried that REIT are just super correlated to the stock market, so I might as well just simplify.

Facebook XLhI02 Jul 13, 2018

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?

Proofpoint gaaandu Jul 13, 2018

Just buy some lower risk etf's or stocks.

Microsoft yumyup Jul 13, 2018

Crypto!

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Jeeeeez OP Jul 13, 2018

This guy gets it

Microsoft infdc Jul 13, 2018

Autodesk Adsk84 Jul 13, 2018

MSFT and SHOP