Where to Invest $150k

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Submitted by Hobie on January 1, 2020 - 7:18am

With the market at an all time high and no recession on the horizon where would you invest $150k?

I'm leaning toward equities and have a 10year+ time frame for liquidity. I'm also considering using that money to remodel and raise rents. However, net-net is about that of a CD.

What say you wise piggs?

Happy New Year!

Submitted by Coronita on January 1, 2020 - 11:28am.

wait and see in Jan for me :)
Drip investing will be fine though.

I need a new pair of of skis and boots. My 22 year old boots finally cracked last year while hiking up the slope to the ski lift and I forgot that I had not replaced them until the day before Big Bear. I can finally replace those ancient 205 length skis for something now parabolic, lol

us old farts are gradually replacing our old stuff that is breaking.

Submitted by Coronita on January 1, 2020 - 6:49pm.

From a tax planning strategy, I think I am going to do the following.

I'm going to slightly nudge my traditional 401k/Roth 401k split from 50%/50% to roughly 40/60%. I will be realizing a lot of capital gains in TY2019 but in 2020 I think I will be holding on to things, so not much cap gains in 2020, and given my 2018 taxes were significantly lower than the prior year, I think the same will be true in 2020. So for 2020, I'm going to try pay more income taxes up front and put slightly more in a Roth 401k and defer less to a traditional 401k.

I will increase my maximum 401k contribution mainly into the Roth 401k with the new 2020 limits.

My passive index fund accounts were rebalanced to roughly 30% domestic stock 20% international 25% bonds and 25% cash/money market and that won't change for now. will continue drip investing about $4.5k/month split roughly 1/2 into a 529k college plan and half into my own post tax index fund account. Asset allocation has been changed to be the same in 401k

I don't need spectacular returns in 2020. prefer more consistency over the longer term at this point.

Everything else is up to speculation .

Submitted by spdrun on January 1, 2020 - 2:51pm.

$150k cash? Buy a condo for 2/3 downpayment in the mid-200k range. Escondido or somewhere. e.g....

https://www.realtor.com/realestateandhom...

With over 50% down, you should have little issue getting a loan for the rest since they're now lending based on rental income potential.

Submitted by saiine on January 1, 2020 - 6:18pm.

50% towards RE, and 50% in TSLA :)

Submitted by Coronita on January 1, 2020 - 6:50pm.

I admit Tesla really surprised me

Submitted by Coronita on January 2, 2020 - 3:05pm.

Dow up 250+ on first day of 2020.

Me thinks we are going to have a good year. I am thinking tech and Nasdaq will lead this year. , specifically chip sector.

There will be a chip war between Intel/AMD/Nvidia where the 3 will try to be stealing market share from each other.
Intel will try to hold the line on desktop processors, and try to encroach into the GPU space. AMD will go after the laptop CPU market this year and go after the GPU high end market. Qualcomm and others will be fighting for 5G. TSM will be tapped to make all of this for everyone but Intel, and they will have the process lead for 2020, Samsung will come in a close second.

TSM 2020 7nm capacity is already fully booked until Apple moves on to 5nm in 2nd half of 2020

https://wccftech.com/amd-7nm-wafer-produ...

Submitted by Coronita on January 7, 2020 - 5:13am.

This is pretty interesting. check out Amazon's best selling computer CPUs.... pretty damning if you ask me. it hasn't been like this for a long time. game changer.

https://www.amazon.com/Best-Sellers-Elec...

Submitted by Oni Koroshi on January 8, 2020 - 3:04pm.

saiine wrote:
50% towards RE, and 50% in TSLA :)

I'm still kicking myself for not buying more. I bought at 180, then again at 190. I was hoping it was dip down a little more before buying more but it kept sky rocketing. It's about to crack 500 now.

Submitted by Coronita on January 8, 2020 - 3:19pm.

another run for record highs with the indexes despite the Iran conflict ....interesting.

Submitted by Coronita on January 8, 2020 - 8:10pm.

What do you guys think of as a long shot Fannie Mae and Freddie Mac?

Submitted by Coronita on January 9, 2020 - 8:32am.

markets going up again despite Iran conflict . AMD gets another upgrade, lol.

Melt up be damned. Meh,not gonna try to make sense of it.
Enjoy the ride!

Submitted by spdrun on January 9, 2020 - 8:57am.

Total people on unemployment hit a 1.5 year high in December: people who want to be working ... aren't.
https://www.cnbc.com/2020/01/09/weekly-j...

2019 growth is below 2%, despite Trump's promises of 3-4%.

Trucking and transportation indices dropping at the end of 2019.

Oh, this will be FUN. The higher they go, the harder they fall.

Submitted by Coronita on January 9, 2020 - 10:08am.

it's certainly been very fun for the past few years being part of the run up and taking money off the table to diversify elsewhere. If I didn't do that, I wouldn't have been able to buy and own most ofy properties free and clear simply on a engineers salary alone. not saying it wouldn't have eventually been possible , but it certainly cut the timeframe down by 10-15 years. Thank you Greenspan, Bernanke, Yellen, Powell

Everyone wins with a 401k, retirement plan, or drip investment plan. it's a good thing.

In Federal Reserve Can Kicking We Trust.

Submitted by Coronita on January 10, 2020 - 11:35am.

Out of all the investing books I've read, I really enjoyed reading this book about the virtues of long term, slow drip passive investing

https://www.amazon.com/Four-Pillars-Inve...

There's some differences though. The book talks a lot about drip investing in index funds, particularly Vanguard. But these days, especially with all the changes to $0 fee brokerage accounts, you aren't restricted to Vanguard anymore. You can do the same thing with regular drip investing in ETF's that track the indexes, like VO, VB, VOO... This race to the bottom of $0 commission really makes it so much easier for starting out.

drip investing imho is a hedge against yourself and your attempt to speculate and/or market time and getting it wrong .

Submitted by Coronita on January 10, 2020 - 1:57pm.

here's something interesting to invest in given all the tax law.changes.

https://fundrise.com/opportunity-fund

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