$100,000

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John Badman

John Badman

kiwifarms.net
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Aug 7, 2024
Humble brag. I have come into a windfall of $100,000. How should I invest this money or play with it in the markets?

I plan to keep $20,000 in cash for school, $40,000 in Roth, and $40,000 to invest. I need a game plan for what I’m going to do to take advantage of the market slowing. I don’t expect to beat it but I need to recoup my 20k off the top in 10 years.
 
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VOO or VTI are solid choices for index funds. The former is based on the S&P 500, the latter is total-market. You can pick individual stocks as well if you'd like to try your luck but on a long enough timeline index funds will generally be better. People may also recommend crypto but personally I'm a bit lukewarm on that at the moment.
 
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Go read the bogleheads wiki on windfalls

your plan ain't bad but I would say that you should mark 10% or so for "charitable" giving (whatever you may conceive this to be, think pass-it-on type stuff, maybe just send it to null lol) and another 5-10% for you "for fun" e.g., buy something like a new computer or take a trip.

Being too tightwad with your money can squeeze your balls off.
 
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Oh also there's limits to roth contributions, and doing a backdoor roth is PROBABLY not worth it if you won't max your roth next year anyway, but do the math. google "Excel1040" if you want simulators and shit. bogleheads has it all
 
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By "cash" you mean in savings with at least a small % return right? Right?
(Make sure you put your savings in an actual bank, with all the state protections you can have)
 
reptile baht spaniard rid said:
Oh also there's limits to roth contributions, and doing a backdoor roth is PROBABLY not worth it if you won't max your roth next year anyway, but do the math. google "Excel1040" if you want simulators and shit. bogleheads has it all
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Can you explain the backdoor roth? I've heard people mention it before but I'm not sure about the exact details.
 
Angry Shoes said:
Can you explain the backdoor roth? I've heard people mention it before but I'm not sure about the exact details.
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If you cannot contribute to a Roth IRA because your income exceeds the income eligibility limit, you can still choose to contribute indirectly through a two step process known informally as the backdoor Roth.

If you have already made a Roth contribution but now realize your income is too high, the IRA recharacterization process allows you to treat that contribution as if it were made to a traditional account instead.

From the bogleheads wiki

basically, you make a traditional IRA contribution, and then convert it to a Roth, and pay tax on that conversion. It's a process, not a thing, but everyone knows about it. Ten, 15 years ago it was rare and brokerages etc would get confused.

NOTE: IT IS NOT GUARANTEED THAT IT IS THE BEST OPTION! Traditional IRAs have their place, you need to simulate it out.

But if you have "unused low tax liability earning space" it can be worth doing (as is true of any Roth conversion).
 
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Chongqing said:
US government savings bonds wouldn't be too bad, I imagine.

But maybe that's retarded considering current events.
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TIPS ain’t bad but you need to fully understand interest rate risk and other things associated with bonds before going whole-hog on them.

But a money market fund pays 5% right now and is a good place to idle whilst you learn.
 
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Be a Moon bro, Buy GME, AMC, APE, and NFT's! also consider the Iraqi Dinar, or Shitcoins like Litecoin, and Doge.
 
Most of it is in bonds. Should I keep it in bonds? I’m a bit iffy after I saw recently how Warren Buffett owns most of the US Treasury bonds.
 
John Badman said:
Most of it is in bonds. Should I keep it in bonds? I’m a bit iffy after I saw recently how Warren Buffett owns most of the US Treasury bonds.
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Bonds? You ain't 80 years old, nigga. Even if you are trying to game some odd tax situation and go with municipal bonds or something, it's an insanely bad gain and idea.

Just put it in an index fund.
 
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John Badman said:
Most of it is in bonds. Should I keep it in bonds? I’m a bit iffy after I saw recently how Warren Buffett owns most of the US Treasury bonds.
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My portfolio.
65% Investment properties.
30% cash
5% other.

Within that 30% cash it is in CD's MM's "I: Bonds and will be putting some into treasuries.

Not counting the cash in my portfolio. I have @home cash close to what you have for emergencies.

But this depends on how old you are. I have to go conservative because I'm older than dirt.
But I really suggest that you put it into something that will get you a positive NET return.

OH and get a good acccountant!
 
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