What Is Cheap Right Now? Investment Wise...

[zghorner]

Not if its "liquid".
Zach, put that money in the market earning 11-12%. A monkey could pick a good index fund for you. Google compound interest calculator and put in the numbers and see what $200k looks like in 20-30 years earning 12%.

Yea a monkey could pick a good index fund since trump has taken office but what happens to my money when Oprah wins in 2020?

 

[JD8]

Not if its "liquid".
Zach, put that money in the market earning 11-12%. A monkey could pick a good index fund for you. Google compound interest calculator and put in the numbers and see what $200k looks like in 20-30 years earning 12%.

Right, you're jumping the gun here......again. I'm saying he should take some of that liquidity and make the best use of a tax vehicle.

 

[Shadowrider]

Don't pick a single fund! I'd spread that out over about 6 sector based ETF's (Energy, S&P, Aerospace, Real Estate, etc.) and sleep well. And by all means max out your IRA, it's a good tax shelter. Then mirror your investments with that.

 

[CHenry]

Yea a monkey could pick a good index fund since trump has taken office but what happens to my money when Oprah wins in 2020?

lmao. So much to learn you have.
Trump has had nothing to do with the 50 year track record of the S&P running an average of 11.8%. Dont think short term with the market, thats where people panic and lose money. Put it in and leave it. You'll have 20 mil in 30 years and if I'm half wrong, your still well off.
But do utilize the tax saving devices available to you.

 

[JD8]

I have an IRA which i did not count towards that amount. and nope i don't max it out with contributions.

I would.... and especially if you can max out a Roth or Traditional IRA every year. I prefer a Roth but the traditional will lower your current tax liability so it's up to you. I don't know what you do but if you are on a 1099 you can sink a TON of money in a SEP and given your age you'll be set for retirement.

 

[Shadowrider]

Yea a monkey could pick a good index fund since trump has taken office but what happens to my money when Oprah wins in 2020?

Re-allocate or if worse comes to worse, take it back out in cash and wait.

 

[JD8]

I aint jumping schit.
Step off and go kick your dog instead.

Shhhh..... let the adults talk.

 

[JD8]

Yea a monkey could pick a good index fund since trump has taken office but what happens to my money when Oprah wins in 2020?

Shadow had a point, try to pick ETFs in a sectors that will show decent performance historically over time no matter the political enviroment. Take a defense ETF for example, or even as Shadow suggested SPY (S&P ETF) or QQQ (tech ETF) You spread the risk over several (5-6+) sectors and at any given time one will be down and the others will be up. Vanguard has a TON of low cost ETFs you can reference. Keep in mind I'm really talking from a retirement/tax account standpoint as that should be your first priority with a good chunk of your liquidity.

 

[Shadowrider]

Shadow had a point, try to pick ETFs in a sectors that will show decent performance historically over time no matter the political enviroment. Take a defense ETF for example or even as Shadow suggested SPY (S&P ETF) or QQQ (tech ETF) Vanguard has a TON of low cost ETFs. I'm really talking from a retirement/tax account standpoint as that should be your first priority with a good chunk of your liquidity.

ETFs have lower operational costs and fees than mutual funds. That's why I like them.

Also look at dividend paying stocks and funds and use dividend reinvestment. I increased my holdings by right at 50% (number of shares) in about 7 years in a pipeline company. When I bought it, it was paying 25% a year in dividend (that's based on the price at the time of purchase). When it got bought out by another company it was down to 6 to 8% so that tells you how much that stock went up and it was reinvesting the dividend every quarter. I had no clue the price would do that or I would be retired in a lakefront home right now and have a lot of land to hunt on. That was a single MLP stock but there are ETFs and mutual funds that package these stocks too.

 

[JD8]

ETFs have lower operational costs and fees than mutual funds. That's why I like them.

Also look at dividend paying stocks and funds and use dividend reinvestment. I increased my holdings by right at 50% (number of shares) in about 7 years in a pipeline company. When I bought it, it was paying 25% a year in dividend (that's based on the price at the time of purchase). When it got bought out by another company it was down to 6 to 8% so that tells you how much that stock went up and it was reinvesting the dividend every quarter. I had no clue the price would do that or I would be retired in a lakefront home right now and have a lot of land to hunt on. That was a single MLP stock but there are ETFs and mutual funds that package these stocks too.

Agreed, just pulled my mom's egg out of funds last year, it wasn't doing bad, I just didn't like all the BS when I could do the same thing if not better with ETFs and making a few cherry pics. I split the portfolio up in three parts one ......was dividend stocks only about 20 of them. The other was a "best picks" from Raymond James using their metrics. Some weird picks in there but they are working very well this year. The last were my picks, tech heavy with some staples like LMT, HD and Waste Management with some NFLX and TWTR sprinkled in.

Be careful with the MLPs, the form K-1s will get ya. Ask me how I know.