Smartest way to invest 300k

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Forum -> Household Management -> Finances

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amother

Fri, May 14 2021, 4:14 pm

Real estate? Stocks? Other?
Looking to grow the principal and also see yearly dividends hopefully to the tune of 20k. Possible?

amother

Papaya

Fri, May 14 2021, 4:18 pm

We invest with someone else in real estate.
Returns are about 8% - which should be about 24k. Also when they refinance after about 5-10 yrs you get back your initial investment plus profit and retain ownership of a portion of the property until they sell.
You also can claim depreciation on your taxes which is nice.

Of course if the market changes or interest rises things can change.

You would prob make more with your own investment. But then you have all the headache. (We do they too)

But I wouldn’t put all of it into one project if you got that route.

amother

Purple

Fri, May 14 2021, 4:23 pm

You really can't go wrong with index funds. I have about 75k invested, my husband has about 175k, and it's been about 29% growth over the past year mostly in things like QQQ and VGT.

amother

Scarlet

Fri, May 14 2021, 4:27 pm

amother [ Papaya ] wrote:

Thank you for that. I have much less than op to invest and my husband has been convincing me to invest in real estate. He actually finds deals for people and does all the work so I wouldn’t have that headache or expense. The only thing is, I’ve seen deals go bad too. They usually don’t and my husband is pretty good at what he does but it happens once in a while. I feel like the investors he deals with can risk a loss more than I can. I recently received a small inheritance and it’s just sitting in a regular savings account. Maybe I should go ahead with it??

amother

Papaya

Fri, May 14 2021, 4:47 pm

amother [ Scarlet ] wrote:

We invest only 100k with each person for safety. (they prefer 250k)
We’ve done a lot of research and chosen to work with ppl who are extremely careful and have an ethic similar to ours. The returns are less then others promise.
My dh checks references, has someone look over deals.
At the end I of the day every deal is min Hadhsmayim.

doodlesmom

Fri, May 14 2021, 4:54 pm

Probably best to divide it into 2 or 3 investments....
Stocks, real estate, and something else...

imasinger

Fri, May 14 2021, 5:02 pm

It's worth it to pay a professional, and get a balanced portfolio.

amother

Charcoal

Tue, Jun 15 2021, 4:11 pm

What did you end up doing?

amother

Tue, Jun 15 2021, 4:34 pm

Nothing yet

amother

Celeste

Tue, Jun 15 2021, 4:53 pm

We like the S&P 500 index fund. It tracks the US economy.

causemommysaid

Tue, Jun 15 2021, 5:13 pm

We invest in mutual funds with a financial advisor. We don't have 300k to invest but we put some away every month.

We also divide our retirement according to David Ramsey. 33% C fund, 33% I fund, 33% S fund.

Real estate has high returns but it's usually much higher risk than other investments.

amother

Mauve

Tue, Jun 15 2021, 5:15 pm

amother [ Purple ] wrote:

You really can't go wrong with index funds. I have about 75k invested, my husband has about 175k, and it's been about 29% growth over the past year mostly in things like QQQ and VGT.

can I ask if your well off in general or if this money is from savings? Or is that a silly question?

amother

Purple

Tue, Jun 15 2021, 6:01 pm

amother [ Mauve ] wrote:

can I ask if your well off in general or if this money is from savings? Or is that a silly question?

We're not particularly well off - we've been in the workforce about 6 years and have each grown from around 50k to 85k salary in that time. But we're good at saving and DH was aggressive about putting a lot in the stock market, especially before we got married when he was still living at home and had basically no expenses.

amother

Mauve

Tue, Jun 15 2021, 6:29 pm

amother [ Purple ] wrote:

wow! Kudos to you. We make around 300k a year and have little to show for it.

Amarante

Tue, Jun 15 2021, 7:36 pm

Your best thing would be to take a certain amount that covers six months of expenses and stick that in something absolutely safe and don’t worry about a return on it. You want to have that money fir an emergency.

Take the rest and invest in diversified low cost mutual funds like the ones that are managed by Fidelity or Vanguard. You would would want to diversity a bit in terms of having some foreign and some US. There are brokers at Fidelity and Vanguard who can steer you to the appropriate funds.

Don’t invest the money all at once because if you divide it you won’t run a risk of buying when the market is high but your purchases will be averaged out.

If you feel you want help with more of an overview, then find a certified financial planner who charges a fee and does not sell anything. You really would not need much time as your investments are not at the level where you would need to pay someone for actively managing them for a percentage. Periodically you could check in to see if you should adjust for anything.

Real estate is not a good investment for a novice in my opinion since there are too many traps for the unsophisticated. Of course using the money or a portion of it for a down payment on your own home is a good use of the funds.

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