I inherited 120k and a house (worth ~$230k) and I have no idea wtf to do now. I have no debt and the house is paid off. I rent the house out ($1600 profit a month) but aside from that my money is just sitting around. Naturally, I know that the best place to seek financial advice is from Jow Forums.
What the heck do i do?
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Buy yourself some boomer bonds like a good buy!
The rent-to-price ratio on the home is very poor. So to start with, I'd either live in it or sell it.
Then you'd have say about 325k in cash before capital gains taxes on the home, so call it, i don't know 300?
Take that, put it into VTSAX and let it ride. That's what I'd do if I were you.
> Already made it
> Concerned
Put it all in BITCOIN except 1 year in expenses.
Live frugally until you make it then travel the world and read chinese poetry.
But the big question is "what do you want out of that cash?". the VTSAX plan is for low-tax-profile capital growth, but if you're already good on that, you may want other things from it.
Do you have any bad debt? Car getting unreliable? Any medical stuff you need taken care of? How old are you? What's your current income?
These are all unanswered questions.
It's not enough to retire on. Buy bitcoin asap!
buy 21 bitcoin and put the rest in BAT. rent the house out and live in your car. 10 years later you will be a multi millionare
No debt, college educated, I have a car, 26, $30,000
Ok, then I stand by my plan. Sell the place, all in VTSAX and forget you even have the money.
I can never tell if the "invest in bitcoin" is a meme or actually sound advice. I know it rises and falls often and I'd hate to just throw my entire savings into a one single volatile market.
then again, no one ever got rich from playing it safe
Say I drop $300k in VTSAX like you suggest and then just forget about it. What do you think the yearly / long term earnings would be? I can't find an interest calculator for it.
>buying the ATH
the absolute state of Jow Forums
Stop wait a minute. Pay off the car if the car has outstanding debt on it. Raise the rent on the house by small 1% increments gradually dependent on the area if a nice place to live (check zillow etc) raise it a 2% or so assuming hard working honest people are living in it and provide them an option to buy it out from you. If the people are shit kick them out and work on selling it. Currently it sounds like a pretty good passive income but keep in mind you will have to pay property taxes on it and fees related to upkeep and maintenance depending on the rental agreement.
The VTSAX isn't a bad idea but never ever all in. Do open a Vangaurd account a regular trading account and a ROTH IRA. Max out the 6K limit in the IRA every year and buy things like VTSAX, VCORX, VTI, and some of the REIT funds they offer. All of this will put that money to work preferably you want it to sit and accumulate dividends over time. Alternate investments include QQQ, SPY, DDM, and DIA. You should buy a mixture of all of them between the ROTH IRA and your regular trading account. only keep less than 10K of your windfall as liquid assets and diversify the rest.
Some other options for diversification include signing up with a credit union to invest in 5 and 10 year Money Market certificates that yeild 2.5% or higher.
You could also invest in non fiat goods including gold, silver, and platinum as a store of value these wont make you money but if the market shits the bed they will retain their worth. Alternatives to non fiat include boutique watches, guns and ammunition, and rare coins/stamps. While they sound odd all of them are things which can be stored in safe deposit boxes or homes securely.
Finally do not allow yourself to grow comfortable with this windfall. Lifestyle creep is real and the reason why lotto winners often end up broke again. Do not: radically change your lifestyle, Do: begin self teaching financial literacy and education.
Good luck.
This.
Stick in the S&P for guaranteed gains over a long period of time and retire a comfortably
You can look at the long term growth it's had right from the start of the fund. And there are tons of articles about it too and probably even calculators.
Indexes are usually at an ATH, since they're meant to be a stable growth vehicle. Remember: never time the market.
oh and as an aside. if you absolutely must indulge in crypto make sure you only hedge in crypto. it is still too young and volatile to put any significant amount in with realistic expectations. Spend only what you can afford from your active income or what allowance you leave yourself after doing the responsible steps outlined in the tl;dr post.
this too as well as NOBL and $ES_F $SPX $VIX $PKW $NOBL
You want to play the long game and ignore this money as it accumulates in investments. You could retire by probably 40 something if you let it just accumulate interest. Continue living your life as if you had not received it I implore you. Continue your training, education, employment, and budgeting as though you had only received an additional 80 dollars a month if you really must indulge otherwise you suffer the results of lifestyle creep.
user I'm serious about this gay shit I'm spewing out it doesn't sound fun but it's useful and important responsible information. You're basically getting free fiduciary advice.
I can't stress enough OP become autodidactic regarding financial literacy and beware the lifestyle creep.
investopedia.com
a good place to start learning. and please don't all in on anything or listen to crypto advice from here.
could have bought the S&P dip. too late now though. you missed it by 3 weeks
This is definitely great info, thank you for writing out so much advice. The car is paid off as well. I'm pretty much a blank slate for investing. Currently I have an account with schwab but all the advice I get seems to point towards vanguard so I'll transfer it over.
I found an investment planner that charges a one-time fee of $1500 to develop an investment plan. Seems a bit steep. Then again you just did it for free and it's probably the same advice they'd have, if not better.
yeah the lifestyle creep is real. Thank you, I definitely need to read up on managing my finances.
sell the house, use all money on bitcoin, buy bigger house
Essentially yes they would have told you much of the same if not similar. You can keep your Schwab account and open the Vangaurd independently. Again I stress that you divert/find time and energy to build your financial literacy. If you have further questions and comments feel free to email me at a throwaway I keep for Jow Forums associates [email protected]
After opening your investment accounts with Vangaurd/high interest credit union and putting the money to work begin researching property information so you can begin to leverage the house accordingly. You may find a way to use the passive income to offset the taxes with new tenants.
I don't want to encourage making some people homeless but you need to take care of your shit and this isn't a charity. After a year or so you'll start to enjoy the self learning process so look forward to that and find some hobbies for your retirement since you will get an early one if you don't fuck it all up.
I'm rooting for you user. We're all gonna make it.
damn bud, you're a genuine guy. it's good to know that beyond all the shitposting and memes on Jow Forums, they're some nice people on here. thanks for taking the time to reply to the thread and for your encouragement.
*there are*
big oof on that typo
20k per month into crypto: 45% eth, 40% btc, 10% your choice of xrp, ltc, bch, last 5% nano.
you guys should join xaviers room
stock, crypto, alt investing
discord dot
gg/pxzVVD5
This
Buy btc no shitcoins
Post account balance you LARPer
ty for the bump, my friend
Trade your fake paper money for Bitcoin before it is too late, you need at least 21 BTC if you want to make it.
start a business that sounds fun/interesting to you. (Photography,anime shop,Go-Kart track, Paintball etc).
Keep costs fairly low so if it fails its not a problem.
$1600/mo is $19200/year. On a $230K house, that's a 8.34% yield before tax benefits and appreciation. You will be lucky to make 10% in the stock market at these levels. Keep the house unless you can find one that yields more. If anything, refinance it and use the income/cash to buy another.
I know I'm not adhering to the rules set by oldfags despite being an oldfag but in literally becoming an oldfag irl I want to help people prevent the mistakes in youth that I had experienced. On the subject of being an internet thug and all that
>Yeah Sorry. . .
I still very much told you where to lurk moar despite all the spoonfeeding. Pay it forward WHEN you see someone asking the same types of questions online and irl.
I don't think we're counting taxes, insurance, repairs, vacancy and potential property management fees. On a home that's 230k, you should be looking to rent it out for about 2300 a month to give you a decent margin after all that. The 1% rule is a rule for a very good reason.
After insurance, grass and pest upkeep, property tax, and property management fees it’s around a 6.5-7% roi
btc is a 100 billion dollar market
gold is a 7 trillion dollar market
stock market is over 10 trillion dollar market
btc will get to a couple trillion dollar market in the next 20 years
its the safest 10-20x out there
Fucking Christ you’re retarded
Put it into passive index ETFs with low expense ratios and some bonds (if you want lower risk). That's literally all you'll need. Don't fall for the stock picking meme or the timing the market meme.
The global stock market is way more than that.
thats why I said over 10 trillion people said the same when I said bitcoin is a safe 10x at 1k
you can always sell it down the line too. I'd keep it rented for at least a year and see how it goes and if it's sustainable
My first tenants left before the lease was up but I’ll see how these new ones do. I’ll keep closer track of my expenses and see how the ROI is after this upcoming year. I figured I might as well rent it until I make the big move to sell it. Thankfully it’s just going up in value each year