Should I put all my money into VOO?
I just have 150k on hand and total net worth maybe 250k including 401k and company stock plan. Should I put all my money (at same time) into VOO or any other stock ? I am not aUS citizen so can go back to my country in 2-10 years as I don’t know. Please help. I hate it sitting in back account, even in hysa it’s just 4.5% max
Yes, VOO is fine for 100% allocation
How much tax deduction when I take it out?
Generally, 15% on the gain, if you've held it at least a year, though some of it could be taxed at 0% or 20%, depending on how high your income is. State taxes vary
Another me in the world! Though I have more incoming stocks from company, I don't fully believe I can get all of them. I'll say yes to VOO. Only thing I'm not clear is show hand now or invest periodically.
Wait so if I have 120k cash in my HYSA, how much should I transfer to my checking for emergency fund and how much to VOO? TC:150k YOE: 2
3-6 months of expenses depending on your risk tolerance/family responsibilities and the rest in VOO
For me I think 20k is enough, but I'm not brave enough to invest all the rest to stock market.
Isn’t SCHB or SCHG better?
You are right on SCHG. You can also check SCHX for lower but steady increases.
SCHG all the way. Don’t know why VOO is so popular. Finance influencers just keep parroting VOO/VTI
Sell VOO at the money puts and then get assigned. Much better deal.
Didn’t get it, mind explaining please
What if you don’t get assigned though? Net loss. And what expiration?
I’m all about diversity. If you are already invested in stocks through your 401k, I would seriously consider real estate investing. Over the past few years I’ve been buying in the Midwest while living in Seattle. All the houses I buy are less than 100k and rent out for $1000/month or more. I started in Memphis but now I focus on Detroit. For reference, my last deal was 55k plus 17k for rehab and rents for $1100/month. Solid monthly ROI and appreciation is just icing on the cake. Feel free to dm if you want to chat about real estate investing.
I am not based of this country. I can buy a home but being in California, I can maximum afford only townhome. Does it do any good?
$100k cash only or mortgage?
No. Not all at once. Invest $5k every week into VOO for 30 weeks This reduces your chance of losing a lot of money because of short term market fluctuations.
Not true. Mathematically lump sum investing has higher expected return than dollar cost averaging. If they do what you say there is a chance the market will be ok or good for 30 weeks and then in the 31st it drops. What then?
Its typically easier mentally/psychologically to invest periodically than lump sum. Easier meaning most people will be able to resist the temptation to sell out on a dip or pullback. Personally, I invest $150 every single day into Fidelity mutual funds. And, my resolve is holding.
I suggest put money on ETF on each dip of market. Don't put very less amount in each dip otherwise due to brokerage charges you'll lose more. But keep aside a 6 month monthly expenses equivalent as emergency fund
When do we know it’s a dip. Sometime we feel a dip and it goes further. Sometime we feel not a dip till it further rises up. Yeah a layman question, but timing a market is tough for me
You need not to worry if dip go further because you are putting money in installment and that is avarage out strategy in some investment you have great return some doesn't have. but you will have less risk of putting all the money all together. But your plan is for very long time it doesn't matter you can invest all together but problem is people don't have patience and long-term is very subjective time. But when you invert you have to keep long term horizon else you'll not make much profit. keep in mind you are investing not trading
Bitcoin if you can handle two year return
If you dont need it for next ten years. Yes
I can still have money left here when my visa cancel and go back to my home country?
Yeah.. when you cash out be careful with taxes. You might have to pay 15% long term capital gains