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Originally Posted by ThaVirus
Anyway, thank you all as well as Buehler for the advice.
I am 100% not built for the individual stock game lol y'all are different.
My next issue is the constant threat of this looming recession. What does everyone make of that?
Part of me thinks it'd be best to just park the bulk of this cash into a HYSA and ride it out 'til the storm's over. It looks like you can find quite a few with returns between 3-5%. The other part of me says **** it, throw it into some ETFs. Even if/when the market dips, it'll recover down the line and it's best to be in when that recovery starts.
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You don't need individuals stocks at all the build wealth. I mean that. And I keep less than 20% of my total investments in single stocks.
You are killing yourself in the current environment to not be getting interest somewhere. It's risk free money in a higher yield money market, savings account, no penalty CD or TBIL. These get you 4-5% interest and access to your money quickly for liquidity. At least get your emergency savings in something like this.
Based on your car scenario I would probably put about $40k in something like this. If you still aren't comfortable investing the rest, than at least just dump the 100K in there while you decide what your investment strategy will be.
As far as timing the market, that's impossible, not matter what we talk about in this thread. Are your current investment contributions going into investments or just sitting somewhere doing nothing? I am a big fan of dollar cost averaging no matter what and rebalancing 1-2x per year if your timeline is 10+ years. Don't let trying to time the market make you miss compounding interest if the market makes a run.
I am VERY proud of that amount of cash/investments you've got. That's damn impressive as I think you're in your 30's. Good job, but don't let it sit there doing nothing while we have the highest interest rates in years. There's lots of options to get 4-5% pretty risk free.