What to do with $250k inheritance right now?
I inherited $250k after the passing of my parent last year. I haven't done anything with that money because I believed we were in a massive bubble last year with all the IPOs. Now, I don't want to sit in cash with inflation this high (just signed a 20% hike on my apartment rent), but I don't see many great investment opportunities right now. Thought I'd ask others here for some advice.
Hi Associate 3 in IB - Gen, check out these threads:
More suggestions...
Hope that helps.
I am actually in a very similar situation right now (150k). So far I have been holding it all in cash waiting for the bottom, but who the fuck knows where that is. The market is pretty fucking low right now as it is, so I think I am going to go ahead and start investing. My allocation will be split between VOO (heavy), QQQ (heavy), TQQQ (to a lesser extent), and a few other blue chip tech stocks, for the most part
I plan to still hold maybe 50-60% in cash until things shake out with the market over the next few months and I have more visibility of whether we are going to slip into a full long term market downturn
Real Estate is always a good investment, probably safer than the market at the moment and look more to the commercial sector. In talking with people, it seems next year we are going to feel the mess created by the FED, though no one has a crystal ball. Personally, I would advise against the stock market at the moment, unless you're prepared to not touch that money for a few years. Best recommendation is to connect with a multi-family real estate syndicate who knows what they are doing and head hunting for deals right now. People will always need an affordable place to stay.
I'd wait a few months on any RE purchase. There has to be some form of correction coming to values with these new rates.
Correction has already largely hit in the multi sector, if whoever is buying on your behalf is using cheap agency debt then might as well get in now while everyone else is too scared to participate and are on the sidelines, good time to find a deal
It’s super hard to give you tailored advice when you don’t give much color in your post.
What’s your annual income?
What’s your annual rent and fixed expenses?
What’s your cash balance?
Do you own real estate?
What’s your 401k and Roth IRA?
Age?
Dependents?
Any cc or student loan debt?
You’re not getting any replies cause your post was so low effort and general.
In the absence of any real detail about your financial picture, generic advice would be to start dollar cost averaging into vanguard total stock market index.
I'm very sorry to hear about your loss... I can't imagine.
To stay on the topic, you could buy a 1-year treasury bond that gets you 4% - I know it's not much but it's better than a bank and it's better than putting money into stocks to try and catch a falling knife that just goes down more. Put it in the bond, hold to maturity (and collect interest), and when you get your principal back the world should be a much clearer place. Plus the interest should help or totally offset your rent?
Also, if you have any debt, go ahead and pay that all the way down to $0.
Given a retirement time horizon of at least ten years, I would invest in a broad market ETF with a reasonable risk tolerance.
Tenant management is difficult. Compared to the markets, one investment property is much riskier and requires much more work.
I would check out this website. Pick a portfolio that agrees with my risk profile, and not look at it for 10-20 years. This will be the most straightforward and low-effort option.
https://portfolioslab.com/lazy-portfolios
This aggregates most of the common high-profile portfolios of prominent investors and strategies. To be compared.
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