Investments outside of retirement

low2497

low2497

Lil-Rokslider
Joined
Nov 14, 2018
Messages
130
Location
Tennessee
Looking for some advice from the investors/bogleheads around here. I want to start investing for a down payment on land or rental properties. Looking at a 5-10 year goal. I already have my retirement contributions and emergency fund squared away and my only debt is a mortgage, so I am looking for ideas on what to do with the rest of my spare cash each month.

I have a brokerage account setup with Vanguard where I use to buy shares of ETFs (Not a considerable amount of shares in there). Should I continue to buy ETFs (Currently have a mixture of VOO and QQQ) or should I be looking at mutual funds? Any other ideas on where to be dumping cash during these crazy times if the funds aren't needed for the foreseeable future?
 
I'd look hard at ibonds for at least a limited portion of it (can only do $10k per person per year). Right now, and especially if you bought one over a few weeks ago, they are right now a very low risk route for a decent return - especially for a relatively near term need. FWIW....
 
I’m going to give a different option that may or may not be popular.

If your goal is 5-10 years I would look at tax lien properties. For this year the return is 12% and after three years you can have the deed to the property which is a win win if you are looking for land or investment properties. It is also a fairly safe bet but you do need to do your due diligence
 
So far I've learned that you can't really time or beat the market so mine as well just follow it with S&P500 ETFs / mutual funds. I have gotten into Crypto though, too volatile for me
 
Invest, or gamble? If you'd put it all into Nvidia or Bitcoin a few years ago you'd be the clear winner.

Less risky: VTSAX (total stock market) for 5 years. After that, start looking at what a 30%-50% decline would do and if you'd still be able to hit your target, shift enough into fixed income (ibonds, treasuries, cash) that you'd still make. Big RE buying opportunities are highly correlated with market declines.
 
The CDs are turning 5% right now and it isn't a bad place to park some of it. You can get them up to 10 year duration. Yes, you'll get more return in some ETFs, just understand that the CDs are insured.

ETFs before mutual funds. S&P 500 and big companies

Good luck!
 
VTSMX - Vanguard Total Stock Market Index is where I'd be socking it away for a 10 year investment horizon.
 
I am helping my daughter get started with investing. I split her money between an S&P 500 fund (SPY?) and Invesco QQQ (tech-heavy fund that has some very well for me over the years). She is a teen so has a long investment horizon.
 
N2TRKYS said:
Hookers and blow
Click to expand...
This is the way, it's a great asset class that brings plenty of enjoyment.

But my vote is all spare cash goes into a high yield savings account for your first investment property down payment. I own around 90 units and most of my spare cash goes into buying more. I did some risky shit a few years ago when I was getting started, but if I were to re-do my life I would've bought more sooner...
 
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