If you had a100k to invest what would you do?

Mike

Buy land

Buy 2-3 houses

Real estate

Rentals. A headache worse than Covid19 can give.

Would be a bad idea to buy land in a state you're planning to move to? I don't see myself staying here for much longer.

Where? $100k here would barely be enough for a down payment let alone enough to buy 2 or 3 houses, certainly not anything worth owning.

Not around here.

Primers and .22lr ammo

Long term? The market. It has outperformed just about anything else out there. Unless one has inside info aka Hitlary when at the Rose Law Firm.

Land with development potential.

Wanted to buy Boeing stock about this time last year but did not have the cash in hand. Bummer, as I would have doubled right about now. Still being listed a buy at the moment though.

Houses are still cheap in rural PA. If you are able to do basic maintenance yourself, leveraged single family rentals are about as safe as it gets and you can do better than the stock market. That strategy doesn't work in hot real estate markets. In those markets you have to rely on appreciation for your return and that introduces additional risk.

b/c we're all f*cked:

You don't need money to buy houses.

Oh.


Really?

What's the skinny on this?

I am long term into:
1) AMZN
2) GOOG
3) APPN
4) NFLX
5) UNP

I’d take the 100 grand to my investment advisor and see what he says. Most likely it would get spread over 2-3 different investments.

If you're not a knowledgeable investor--a S&P500 Index Fund.

Leverage.

coke and whores

or if i had a long timeframe, an S&P500 mutual fund. but at my age, coke and whores.

Leverage on houses sounds like tons of fun as the government keeps pushing back when and how you can evict squatters. No thanks here, not that I have the cash to play that game in Colorado either.
I’ll stay with my mutual funds. FBGRX has been good to me, POAGX, POGRX and others in my portfolio have done really well. Have no idea if they peaked. But I’m doing boring growth stock mutual fund investing, not looking any sort of hot ticket. My foreign stuff finally started to show signs of life in the latter half of the year too.

The 'alphabet' soup listed above and the GOV is going to be throwing money at the 'green' businesses......

PBW is up 18% in just over a month.................... TAN 14%

Land and houses are as overpriced as the market right now. I think I'd just put it in the bank to begin with. Dollar cost average into the market and wait for a correction, then put it all in the market. Had you done that the last week of March last year you would now have $300K to invest.

This time last year Boeing was over $300.. Be glad you didn't.

Silver!

Right now I'd say lead!

10 best stocks of the decade 2010 -2020

Netflix: 4,011%
MarketAxess Holdings Inc.: 2,627%
ABIOMED: 1,854%
Broadcom: 1,627%
United Rentals: 1,600%
Align Technology: 1,466%
Regeneron Pharmaceuticals: 1,453%
Ulta Beauty: 1,294%
Old Dominion Freight: 1,291%
Amazon: 1,274%


I held NFLX and AMZN for the decade.
Unfortunately, I was 50% in AMZN and 2% in NFLX.

Buy a 4 plex. I won’t buy single family homes again for rental unless it’s a smoking deal, or I intended to AirBnB or VRBO it.

I can go mow one yard at a 4 plex which is a time saver, and I’m always shirt on time.

Right now is not a good time to buy. It seems that everything is very high priced from homes, land, stocks and bonds. Food stocks, energy and utilities are not real high now. Energy is downright cheap yet , but up 20% this year.

S&P 500 Index fund. I prefer Vanguard.

Learn how to short the market.

Would liked to have put 1k in ALPP 2-3 months ago. I would have to think on what to do with the other 99k. ALPP was 4 or 5 cents a couple month ago now it’s almost $5. So I would be at nearly 200k now. Of course it could have went to zero. I would obviously never put a large amount in a pink sheet sheet stock.

Individual stocks; absolutely. Broader market ... no, unless you were leveraged.

Bingo. I prefer index funds like VTSAX. Very low fees w Vanguard and you own a piece of just about every major us stock with that fund.

jlcollinsnh.com

6) Facebook
7) Twitter
8) Wal-Mart

There. Fixed it for ya. Now ya have all the traitors covered.









Take care, Willie

This is an example of an unbalanced portfolio. It reminds me of when it was believed that you could retire with IBM and GE investments only. Think Boeing.......

I have a friend who loves the idea and all the time buys houses to remodel and rent. He tells me about his renters not making payments, getting fired, breaking stuff. One guy never made a payment last half of 2020 so he is down $5000. I can't evict him or I will never see it and I can't let him stay. My friend has given me wisdom. And a lot of laughs at his stories.

20% Cash
20% IYR
20% BOND
15% Physical Gold
10% VWO
10% ARKG
5% Bitcoin

I lost 20% / year under Bush 41
I made 20% / year under Clinton
I made 20% / year under Bush 43
I made 20% / year under obuma
I made 40% / year under Trump


I don't call it skill or luck. I call it perseverance and learning from mistakes.
In 1991 I was working two consulting jobs and my 5 year old son said, "Dad, if you didn't lose so much money on the stock market, you wouldn't have to work so hard."
I knew he was right, but I kept on trading and losing. I talked to my father in 1994. He was making 20%. After that meeting I went all in on MSFT and held for the next 6 years. No more day trading.

A liberal friend of mine inherited money 3 years ago. I told him to put 90% in an indexed fund and do trades with 10%. When you make more than the index fund, then you can trade with the bulk of the money. He did not listen. He started buying stocks based on aesthetics. You can imagine what happened.

My son listened to me when I told him to keep his AMZN options when he was a software engineer. He made millionaire at age 29, 5 years ago.
My youngest brother listened to me and bought AMZN. He just reached $2M in his portfolio.

My liberal friend's son was also an engineer at AMZN, but sold his options. He still has to work at age 35.
My friend's kid could beat me at any IQ test, but I could beat him a fishing and investing, where my perseverance and learning from mistakes makes the difference.

pay off debt if you have any

At home, alcohol, penicillin and junk silver; Broader DFA according to modern portfolio theory. Been very good lately. ;-{>8

This isn't remotely close to the top 10 unless the assumption is that someone bought a stock available on 1.4.2010 and sold at close 12.31.2020, which is an arbitrary and stupid rule that only an imbecile would base investment advice on. TSLA, for instance, didn't go public until June 2010 but buying at IPO day's close price and selling 12.31.20 would net ~15,000% return. There are several other stocks that I know off the top of my head that returned well over 4,011% inside that period.

As an aside, 1 BTC could be had for $0.06 USD in late 2010, which would be a return of about 500,000% at the end of 2020.

Facebook
Apple
Google
GE
Overstock
Tesla

So you think AMZN is still a good buy now?

I wouldn't buy much tech stocks now. They are really high. They are exuberant now. The S&P is too high cause of the tech stocks. These companies hate our kind to make matters worse. A good idea is to invest in the more conservative ETF's. I bought SPYD and it is still not back up to the highs of 1 yr. ago. It pays about 4.5% dividends to boot. There are other very good conservative ETF's that I use . SPYD, VYM, SCHV, SCHD, HDV are the large companies that pay very nice dividends , like 3.5% to 4.5% . These ETF's have not gone up a lot in 5 yrs compared to the tech stocks. They have very good companies in them ,however. There chances of commodities doing very well over the next 5 yrs. are very high. Soybeans and corn are way up the last 4 months. Copper, silver and gold has been doing very well. Crude oil in the last few months has done very well. Real estate has gone way up all over the United States. However, there are real-estate stocks you can buy called a REIT . very moderately priced. I own some. The tickers are WPC and O. I also have a few more that have done very well.

Watching

JETS

Everything was cheap yesterday. High today and sure to crash tomorrow.

50 years of investing and I've never seen it any different than that.

1 Buy low, sell high

2 Pigs get fat, hogs get slaughtered.

3. NOTHING is EVER as bad as the market thinks it is.

4 Nothing is EVER as GOOD as the market thinks it is.

5 Find your self a market or broker that lets you buy things today for what they cost a year ago and sell them tomorrow for what they are worth today.

6 Don't get your investing advice on gun and camping forums.

At less than 3% interest rates? That’s some stupid advice...

Probably some of the best advice I’ve ever seen posted on here.

Did he tell you how much he gained on the property in appreciation over the last year? 10-25% here.
($5k Is about 2 months rent here.)
Or that he could get his rent from the cities where the houses were located If tenant cannot pay because of covid?
Or that he could have used forbearance agreements with the lenders (over the last 6 months, as of now) to alleviate current cash flow issues?
Does he know how to use rent to own to instill a sense of ownership in tenants, and sell at a strike price a year from now at a 10-15% above market?
Does he know that tenant buyers will pay 20-25% more in rent, if 10-15% is applied to their down payment every month?
Coupled with that, Does he know that most rent-to-own tenants fail on their first try? And that their down payment belongs to the seller, if they do?
And, does he know that he can do the rent-to-own all over again that next year with a new tenant or write a new contract with the current tenant buyers?

6 Don't get your investing advice on gun and camping forums.

[/quote]


Or from anyone who sells you anything, except their advice on a fee for service basis.

5 cracked me up, and 6 works for quite a bit beyond investing.

Agreed unless it’s consumer debt at 10% plus.

I remember what my father told me.. If they are so smart why do they need my money? They should be millionaires on there own money, not risking mine. He also told me land is good, they are not making more of it.

I keep thinking about this. Do I still want to own rentals with dems passing laws saying renters can stay in your place without paying rent? I sold several a few years too early. I've got a nice 4 bed 2 bath 2 car garage less than 1/2 mile from BYU idaho that rents well and is almost paid off.

I want to sell it while it's appraising for about $270000 but the wife wants to keep it. We bought it in about 2013 for $123,000 then put a new roof on it and a few other things. Probably in it less than $135,000. I want to put it on zillow when the current lease ends in May. We would end up with a huge tax bill unless we did a 1031 exchange.

Bb

It hit $90 one day in March. I told my broker I wanted to buy $25 K of it that day and he talked me out of it. I bought $25 of Royal Dutch shell that day instead at about $22/ share and then sold it the next week at about $34/share. I then started day trading a bit and made a little more here and there but it drove me nuts watching the markets all the time. I was obsessed with it so I pretty much quit and parked most of the money.

I had much more spreadout over 8-9 mutual funds and just parked all that shortly after the dems stole the election. I don't know what to do now but don't really want my money being ran by leftists into their big fascist businesses anymore. I'm thinking of putting $250k into a self directed ira and doing hard money loans but properties are so high right now I don't trust even being in first position unless the buyer has a ton of their own skin in the game.

Bb

Usually playing stock market craps does not end well.

Long term diversified index funds

Ethereum. watch it grow

Yeah the rental thing, buy cheap, remodel , then the government will fill it with illegal aliens who will revert it to the dump you bought. Then tell you to remodel it again and repeat. No f ucking way to enjoy your retirement babysitting fugging real estate.

We’ve had great “luck” with renters. My wife thoroughly vets applicants. We charge $50 application fee also, which weeds out a lot of garbage. Rentals are in higher demand than local supply in our AO so obviously every area is different. Ours are multiplex so you’re in constant communication with their neighbors which helps too.

I’m glad you have it all figured out. Yes, rates are stupid low, that said, you go show me where you can find risk free yield that more than offsets 3% interest rates. Even limited risk investments. That’s right, you can’t because it doesn’t exist. Debt is like a house of cards that will implode, don’t believe me, give me your analysis of what’s going on with the 10-yr treasury over the last 90 days.

BTW, it’s never bad in my book to be debt free, poor advise IMO.

Not if your credit card is charging you 15%.

Same here. Credit and background checks. Don’t buy anything that you wouldn’t live in yourself if you had to. I bought a few single family homes from banks 2010-2012 and have had the same tenants the whole time in more than half of them.

Penny ante real estate is a bum deal. Fixing toilets at 3:00AM, tenants stealing cabinets when they leave, Maintenance and landscaping, evictions...

And long term you won't beat the S&P 500. 1-plex? 4-plex? S&P 500 takes NO maintenance.

Selling your S&P 500 takes one phone call. Selling real estate is a hassle.

Debit will effect cash flow. Carrying debit for nor reason is a good way to get in trouble when the required spending comes along, The emergencies will come.

It depends where you are in life. If you’re young and using leverage to buy income producing assets it’s a valid strategy and a lot of people have become very wealthy doing it. If that 3% is business debt it’s really under 2% after tax deductions. It’s pretty easy to find real estate that produces well above that. If you’re retired or a few years from it, then I agree, debt free is a good place to be.

Fair enough and buyer beware. Just go back to March of ‘07 and tell me how leveraged debt worked for many, young and old alike. Let me know if you need a few examples.

There is no free lunch.

I don’t disagree, and I’m not advocating leveraged real estate as your only investment. I’m assuming that the OP has a decent portfolio and little debt if he has $100k laying around. It’s never bad to have alternative assets. If it were me I wouldn’t put an additional $100k in the market right now if I already had significant exposure. If I were looking at real estate and had the choice between a $100k property and a $200k property both paying an 8% return. I’d leverage 50% LTV at 3% interest all day. But that’s my risk tolerance.

So I’m an 18 year old kid, just graduating high school with some scholarships, but still need 20K for school plus living expenses.
Lay out a path for that kid to be successful in life without taking on debt? Most of the folks that preach that crap already borrowed money found success and are 60, Inherited or had parents give them a home, or are compensating for their lack success by bragging up being debt free from a rented house and a 20 year old vehicle.

Every situation is different. In my AO, and being a contractor with a wife and multiple friends in real estate , it makes total sense.
One example, We purchased a 4 plex in 2018 for $280K put $15K in it and was offered $360K for it recently. New roof, new siding, new landscape, new paving/striping the parking lot. Mostly my labor on saturdays.
Cash flows +\- $10K per year on top of the appreciation in value.
I’ve been there for repairs maybe 7-8 times in 2 1/2 years? Never at 3am. If you’re dealing with evictions and tenants stealing cabinets (?)
You’re too blame.
I work 7 days a week anyway, so I’m not worried about the extra work load. If you can’t do work yourself, or like yo have evenings and weekends for leisure time, I would stay away from rentals unless they cash flow enough to pay for property management.

If you are 65 yrs . old and need to retire but have a mortgage and credit card debt, , then paying it off is not such a bad idea. If you are a 23 yr old like my son is, then investing it is a good idea. Anything but the bank is a good idea.

Yes, investing is always a good idea, I’m with you. Now if you are talking highly leveraged investing I don’t agree.

Financial rules don't know if your young or old. They will cut if you violate them. Tell your son to hire a financial adviser. Your not qualified.

You love to see it!

Invest it in my Vanguard brokerage account and diversify a little broader.

How about a low cost, broadly diversified investment portfolio (think Vanguard) which doesn’t require debt and matches his or her risk tolerance? Lots of ways to the top of the mountain, don’t need to be a borrower to make a return. I hear what you’re saying, but you are only fixated on rental properties. Again, tell me how that worked for folks in ‘07?

How about a full time job taking classes at night.
Pay your own way.
Worked for thousands of us.
Cuts into social hour, I know...

Great 22% return over 2.5 years, plus you do cash flow. Solid.

Just for fun: had you put $295k into the the S&P 500 fund during that same time period it would be now worth $470k, zero headaches with tenants, no insurance costs, no property taxes and NO TIME.

Most didn't know the Fed was going to permanently nationalize the stock market in 2008. Take the phony baloney QE money out of the mix and no way the market performs like it has.

Correct.

My guess is he leveraged it so the cash on cash return is probably much higher.

Why?

If they bought smart, they made it through it. I did, and picked up a few at 1/2 price.

He’s buying a home for cash? Or he should rent his whole life?
When’s the last time you looked at what 4 years of a state college runs? He’s gonna pay that making $12/hr plus his living expenses? Ok.

I’m confused on how borrowing at 3% for a major purchase or 0% on a new car, as long as you can afford it, is a bad thing, or why structured debt is a bad thing.
If you’re an idiot that can’t pay off your credit card ea month it’s one thing but responsible borrowing is the only way to build wealth unless you’re making serious $$ from an early age.

An investment in a home goes hand in hand with good credit (clean) and a smart mortgage. Buying a home should not happen UNTIL all other things are completed and a good career has begun.

Everything before that can be done in a pay as you go manner, including education and job training. Millions of people have proven that.
And folks keep on proving it today. How bad do you want it? You can not discount those who have proven it is doable.

It is stupid to take on debt without a career firmly in place. Too many today think they deserve a NEW vehicle along with it's payment book before they have any idea where their salary will originate.

Or half a house here where I live.

The entire airline industry is down.. what about the JETS ETF? The airline industry overall has to come back, right?

Open a Vanguard account. Preferably a Roth IRA to contribute to as much as they allow. Converted one of my accounts from conventional to Roth last year. Will be paying taxes on what I converted but not on the 20%+ gain it made. One of my financial planners says he sees the Roth being stopped by the government within a few years. Too much money being made tax free. ETF’s in biotechs and high quality international stocks as the dollar will be declining greatly with the Biden printing press.

I doubt the bank would’ve financed a 280k loan to put into the stock market though! So In that case id have made $0.

I don’t disagree. I misunderstood, thought you guys were preaching no debt as opposed to smart debt. There are times when running debt is a very good idea. Borrowing money to buy a couch, a vacation or a T.V. Is absolutely stupid.

My daughter has been working since the 9th grade, doing dog care and a little baby sitting in the 9th grade, then working at Jimmy Johns sandwhich shop and now a local wood fired pizza restaraunt. She got grades and worked hard at school, competed in speech & debate as well as other business oriented activities. When she graduated as a senior, she has $40k saved up for college. She had also bought a $1000 car, drove it for all of high school, and sold it for $1500 (after the investment of brakes and tires) and bought another car, 6 years old with 60k miles, cash. She chose our state college, which costs $17k a year. She gets a Hathaway scholarship for about 25% of that bill each year. She also competed and won a few scholarships her freshman year that brough in another $4. She worked during college, for the school as a front desk assistant in her dorm. That job provided all of her spending money needed on a day to day basis, and a big more. At her current rate, she will graduate with her 4 year degree and likely have $20k left in the bank to start her life where ever she gets her job. Her mother and I will help her out as needed, getting some groceries a few times a semester, etc. Due to Covid, she will spend this semester at home, attending virtually (all of her classes are online) and keeping her job. After the scholarships, this semester will only cost her $1k (living at home). She has done an incredible job being responsible for her own choices. I expect she will have a successful career and help a lot of people. The point being, if you prepare and focus on college and are wise with your school choice, it is plenty possible to go to college with no debt, or little debt.

National Guard....

Don’t think I’d suggest my kids go that route any longer. Not when the ruling communist party calls them up to protect them from “the people”

Damn Oakster, I was proud of your girl just reading that.... you must be uber proud... well done!

down payment here.....bob

That is absolutely outstanding. You've raised one hell of an adult. Can't not take a little credit as the parent. Outstanding.

Ditto, amazing kid you’ve raised.