$500G cash that you cant afford to risk, where to put it?

amother

Cerulean

Mon, Jan 06 2020, 3:14 pm

Posts like these make me sick to my stomach. You do realise alot of people on here live from paycheck to paycheck and can't afford a vacation or something more basic like a new shabbos dress.

Coming here to flaunt that you have 500 G EXTRA is in bad taste and shows a lack of social awareness. Please put it towards therapy to deal with the reason you feel the desire to flaunt something most people will never have.

amother

Bisque

Mon, Jan 06 2020, 3:18 pm

amother [ Cerulean ] wrote:

Posts like these make me sick to my stomach. You do realise alot of people on here live from paycheck to paycheck and can't afford a vacation or something more basic like a new shabbos dress.

Coming here to flaunt that you have 500 G EXTRA is in bad taste and show a lack of social awareness. Please put it towards therapy to deal with the reason you feel the desire to flaunt something most people will never have.

Oh, please. 500k is more than I can dream of ever having, but I'm not mortally offended by someone asking how to invest her money. As OP points out, a house in Brooklyn will easily cost double that, vacations and pesach hotels over the course of just a few years cost that too. Give her a break and fargin others their share.

amother

Black

Mon, Jan 06 2020, 3:21 pm

amother [ Bisque ] wrote:

The issue isn't that she discusses having half a million in liquid assets. Its that she states that compared to others, that paltry sum "make[s her] poor by comparison."

asmileaday

Mon, Jan 06 2020, 3:38 pm

If anyone is triggered by a random woman asking for financial advice DON'T OPEN THE THREAD. The description is clearly in the title.

I understand some of the responses are coming from a place of pain but do yourself a favor and don't open such threads.

And why can't op ask? She didn't say she's going to take anonymous advice blindly. Maybe she wants to know some of her options before sitting with a financial advisor.
People's life experience can be enlightening.

Op I don't have any advice for you since I never had even a fraction of that amount to invest but I'm genuinely happy for you. Good luck!

Amarante

Mon, Jan 06 2020, 3:52 pm

I will answer seriously and am not attempting to be snarky.

First I would study basic investment strategies so that when I contact a financial institution or advisor I can ask intelligent questions and evaluate the recommendations based on my knowledge of what each type of investment is.

Risk really depends on what stage of life you are at and what your needs might be for the money. In other words, acceptable risk for a 35 or 40 year old person investing for retirement is different than for a 60 year old and investing for retirement would be different investment strategies than someone who wants to tap out the money within the foreseeable future.

First make sure you have at least six months of expenses in a reasonably liquid safe place - either FDIC secured or T Bill

If you are saving for retirement and it is in the longer term then the best best is to invest in a low cost index fund managed by Vanguard of Fidelity. If you speak to them they could advice you on specifics.

However, you might also be well served by seeking recommendations for a financial advisor who charges on an hourly basis - I.e. does NOT make commissions on what is being sold. This person who provide you with overall investment strategy based on exactly what your life is at the present and what your goals are.

Last edited by Amarante on Mon, Jan 06 2020, 5:37 pm; edited 1 time in total

amother

Mon, Jan 06 2020, 3:52 pm

amother [ Black ] wrote:

But acting like its not a lot of money is in very poor taste.

I hear you, but most couldnt live as thriftily as DH and I live, which led to this. Unlike many others who live in luxury homes, more than 1 or 2 homes in different locations, have daily help to maintain their big homes, make huge Simchas, take lavish vacations many times a year, buy expensive designer furniture with decorators, and very expensive clothing (very very unlike us, who only buy what we need).

amother

Mon, Jan 06 2020, 4:08 pm

naturalmom5 wrote:

YOU ARE ON THE WRONG WEBSITE

you need imagvir com

Not quite. Id have nothing in common with the wealthy who have multiple homes, go on many vacations, buy the most expensive jewelry and sheitels, wear designer clothing.

If I'd live and spend anything like them, Id need imabroke.com

amother

Beige

Mon, Jan 06 2020, 4:13 pm

500,000 is not a gvir if money is being saved for retirement or marrying off kids or paying for weddings and supporting kids.
DH and I are very practical and based on numbers we crunched you need at least that to live. (And we live 6 kids in 2 bedroom house in Lakewood so not rich but we are trying to invest a lot)

If someone has 500,000 coming in regularly then yes a gvir. But a one time lump sum. Then no.

amother

Jade

Mon, Jan 06 2020, 4:34 pm

I'm surprised no one said this yet, but things in the US are changing for the Jewish and non-Jewish communities. Anti-Semitism, the economy, the value of the dollar, potential war with Iran (and the possibility of a military draft). That's not a country where I would want to have all my assets, let alone get stuck. Does anyone believe CDs and funds (including Vanguard) will be worth the paper they're not even printed on for eternity? I would not bet on that.

OP, I'm saying what I would do in your position: First I would buy a property in Israel. I would take my money and get it out of the USA as fast as I could, as it looks like things there are in the process of taking a bad turn.

Second, I would invest in physical gold/silver bullion stored offshore. Gold and silver bullion stored in a private, insured vault offshore is NOT reportable as an asset on your US taxes. There are several reputable companies offering offshore gold bullion services. Gold is wealth protection (and gold/silver continue to increase in value against the US dollar, as the Federal Reserve's inflationary policies continue to devalue the dollar), while also being a tangible asset, like real estate!

With these ideas, you would protect the value of your assets and have them offshore, in case it becomes necessary to leave the US. An idea which these days sounds increasingly likely.

*Etd. for spelling*

amother

Vermilion

Mon, Jan 06 2020, 4:41 pm

Why is everyone being so mean to OP for having been responsible and saved up money over the years? 500k might be comfortable, but it's not rich enough to be oblivious to the concept of financial struggle.

In case anyone hasn't done the math, a person planning on marrying off 7 kids over 15 years, spending an average of 25k per wedding and help setting up home, and providing $1500/month for 5 years, would need 800k over that 20 year period, not inflation adjusted. No allocation was added to this figure for seminary costs ect. Then, there's retirement. Having 500k in savings 5 years before you start making weddings means you should be ok if the money is invested correctly (which OP is asking for advice with), but are by no means makes one filthy rich. These aren't the people making 150k weddings, which it feels like half the people here are whenever there's a wedding thread. Life is expensive, and 500k today isn't what it once was.

amother

Black

Mon, Jan 06 2020, 4:50 pm

amother [ Vermilion ] wrote:

No one is being "mean" because OP has half a million dollars.

We're simply pointing out that its a lot of money, and that she's not, as she claims, practically poor.

She's engaging in what is known as a humblebrag, where she'd pretending to be poor, and oh-so-frugal because she doesn't own multiple homes, but really wants us to know that she's got a half a million.

Had she said "I recently inherited a half a million dollars" (or received it as a settlement, or whatever ... I'm skeptical that she had $450,000, but no investment strategy until it hit $500,000) "its a lot of money, and I want to make sure that I invest it properly. I'm risk adverse, but looking for long term strategies," the response would have been different.

amother

Beige

Mon, Jan 06 2020, 4:55 pm

amother [ Black ] wrote:

A one time 500k windfall does not make someone rich.
As a previous poster said it can go really fast even living responsibly.
This is why people who win the lottery often end up poorer then before. Ppl think it’s s lot of money when it doesn’t really go that far.

amother

Jade

Mon, Jan 06 2020, 5:00 pm

amother [ Black ] wrote:

That's not particularly liquid (she said she might need it within 5 years), and not particularly risk-averse. Its also not a passive investment, as it would require maintenance and management.

I'm not sure how illiquid Israeli real estate is. So long as you price a property here at the market rate, it usually sells quite successfully. Funds and CDs are some of the most non-risk adverse investments you could think of. Stock are very risky, and yet what are funds, but a collection of... stocks! What are CDs... buying US dollars! CDs today don't even earn interest equal to the inflation rate. That means you're losing money on inflation. It's madness. While real estate in Israel, like anywhere else in the world, require maintenance and management, that's a negligible problem when you consider that you've got a tangible asset which could earn you a rental income profit, and a place to go should things get even worse than they already are in the States.