What to do with 300K cash

Aug 2, 2020 96 Comments

I am going to dump my FB stocks and dumped MSFT. I will have about 300K cash tomorrow. What would be the best strategy to use the money..few data points
- House on mortgage. About 700K remaining loan. Valuation 1.2m
- Car loan, 30K
- Married and plans to have family in next 1 year
- Net worth: 1.5m which includes the 300K cash
- THC: 600K

#personalfinance #investments

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TOP 96 Comments
  • Rivian
    $56(+fsfyu

    Go to company page Rivian

    $56(+fsfyu
    Hands out 10$ a day to a stranger on the street for the next 82 years
    Aug 2, 2020 1
  • Venmo
    doncool

    Go to company page Venmo

    doncool
    Buy some bitcoin
    Aug 2, 2020 7
    • Venmo
      doncool

      Go to company page Venmo

      doncool
      Bitcoin is a cyclical market driven by the halvings every 4 years. So yes, it was bag Holder trade all these years, but this is possibly the best time to buy as we are about to start the next bull run
      Aug 3, 2020
    • Amazon
      uaIB20

      Go to company page Amazon

      uaIB20
      You would've been in the red on Bitcoin only if you bought it in a couple of months' time frame in 2017/2018. Now is the time to get in rather than wait till you hear everyone talk about it at 50k
      Aug 4, 2020
  • OP
    Thanks everyone..I put 30% in QQQ , closed auto loan and remainder in MM...
    Aug 9, 2020 7
  • Walmart
    mBKE74

    Go to company page Walmart

    mBKE74
    Keep it as fun powder and wait for more opportunities in the market. Paying off the car is a mental no brainer (more emotional than mathematical) depending on your interest rate. With rates so low the best place to put it is back in the market.. keep a 5 to 8 year horizon and look for companies with good fundamentals and currently undervalued.
    Aug 2, 2020 4
    • For Fire you are quite a few years away given your net worth and lifestyle. You will have to be able to live on about 4% of investments per year(not including primary home) so you can do the math on how much money you should have as investments.
      I wonder if you plan to live in your 1.2 mm house - if yes, then probably think about paying it off and then build investments up to the 25 to 30x yearly expenses. If no, invest the 300k and as you get close to FIRE, downsize your house.
      Aug 2, 2020
    • Some other suggestions I had based on your situation:
      1, Payoff the car loan. I don't like having liens on depriciating items
      2. If you are planning to have kids, a chunk of that money can be put into a 529 account once the baby is born and you may be able to deduct against your state income tax - check your state tax laws
      3. Once you guys have a plan of how your FIRE lifestyle will look, you can quickly chart out a plan. You are in a good place to execute it given your income.
      Aug 2, 2020