So I am 31, and have an extra $100k cash on hand that I'd like to invest. I'm single, no kids, and have a new truck and my condo both paid for (no debt at all). I'd like to invest this money and get passive income (probably through dividend stocks, warren buffet style)... But I feel like the market is just starting to get bearish so it might be wise to wait a year or two even for the market to go down enough to get some good deals on great companies. I know there must be some wealthy term members who can give me some advice on how to invest this cash... Any ideas?
How to invest a spare $100k
- Thread starter desert monk
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With these qualities, you should be a babe magnet. How come no wife (female)?
Anyway, the stock market is flying high, especially in the U.S., the recovery is in its 6th years. The economic cycle would suggest another recession in a year or two. Be patient and sit on your money until then. Disclosure: My track record on investing is very spotty.
The OP wants "passive" income. Real estate requires hands on management. No fun getting a call at 3AM from a tenant saying the furnace died.
Dividend yielding stock could be a sound option. Bear in mind that some US dividend stocks might lower the payout in Q4 till whenever market picks up. For 100k, its possible to generate between 12-16k per year. Have a look at these stock. I would diversify between REIT and energy.
RIG, CUF:UN.TO, ESV, SDRL,
RIG, CUF:UN.TO, ESV, SDRL,
I think that's the first time I've ever heard someone saying not to put your money to work.
That's why I said I'm lucky to have good tenants. I have a great agent too that he took care of these for me.
You'd have ask women why they don't want me.
I guess. I know it sounds crazy, Just don't know what to do with all my extra money right now and I feel stupid having my money getting eaten away by inflation.
You're indeed very lucky. I would not touch this property investment with a ten-foot pole unless you are a handy man and have a good agent who will handle all emergency and non-emergency calls including those in the middle of the night.
If you really want boring, no hassle investment, then why not a GIC? The interest rate is meh, but safe as houses. ERrr, with the talk of real estate, I guess I should say safer than houses.
Speaking of real estate, if I were you I'd take a smidgin of risk and use it as a downpayment on a cottage (assuming you have enough income to cover a mortgage). That way you have a happy funtimes getaway that you can sell any time and which will most likely go up in value while you have fun using it. (even if Toronto real estate markets take a hit, cottage country is more likely to keep on strong*).
*I could be wrong. I am not a real estate or investment professional. Statistical analysis pulled out of my ass. Take my - and any advice you get on TERB - with a grain of salt and consider it as being worth every penny you paid for it. But still... cottages dude. They rock!
Agreed. If I was going to invest in real estate, I would do so through a REIT fund like someone already mentioned.
There are a number of closed end real estate funds that pay 8+% per year. Good sound properties. You can also look at a joint venture with an experienced real estate investor that will find, jointly purchase and manage properties. I've been investing in real estate for years...........never had a 3:00 AM furnace call, that is what service plans are for. The odd bad tenant, but the good far out number the bad. Stay out of the equity markets for awhile.
You're only 31....go the blue chip dividend re-investment route and just ride out the ups and downs. Time and money are your greatest assets.
Yeah you need to define what your requirements are for these funds. Given your situation it sounds like long term investment and then a good broad equity market ETF or several in combination makes sense. Vanguard, iShares and BMO all have good cost effective selections. Your investment time horizon here though should be at least three or four years.
There is no wrong time to get into investments, if you have the right guidance/advice on the market or a company... then it doesn't matter.
The wealthy gain more when the market goes Bearish or tanks.
It just boils down as to where you want to put your $100K in. Your options are: Equities, Commodities, Forex, Options or Real Property
The wealthy gain more when the market goes Bearish or tanks.
It just boils down as to where you want to put your $100K in. Your options are: Equities, Commodities, Forex, Options or Real Property
