Where to Invest Money Right Now?

[toast2266]

Where would you be putting money right now?

Stock market has been soaring for quite a while now, but it seems like that can't last (although maybe there are bastions of safety to be found?). Real estate also seems overvalued in a lot of places (although maybe not everywhere?). Most "safe" investment options are yielding low returns, which doesn't seem like a great option in the current era of high inflation.

So what's a safe-ish bet that'll stay in front of inflation? Hookers and blow? Horde skis like climate change isn't a thing? Buy soon-to-be ocean front property in Nevada because climate change is a thing?

[Danno]

Plastics, LDO.

[Game Over]

Frozen OJ

[::: :::]

medical companies

[schwerty]

The stock mkt and company valuations can stay elevated for long stretches of time.

What makes you think it can’t last, (go higher in the long run)?

[toast2266]

Frozen OJ

I would throw money at anyone who can make frozen OJ that doesn't taste like reconstituted urine.

[singlecross]

Marijuana

[toast2266]

The stock mkt and company valuations can stay elevated for long stretches of time.

What makes you think it can’t last, (go higher in the long run)?

I mean, nothing, really.

But it seems like a lot of the stock market's growth is driven by companies that are massively overvalued. The whole electric vehicle thing feels like a bubble that is going to burst with fallout that will bring other sectors down with it. But, maybe that's just me being an idiot who's way out of his depth and who doesn't know what he's talking about (which is accurate).

But I'm talking more in terms of diversification. I have money in the stock market and I intend to leave it there. But it also seems smart to find an alternate place to park some money as well, unless the stock market really is the only viable option these days.

[Benny Profane]

Whatever you do, don't open that Bitcoin thread.

[PNWbrit]

Whatever you do, don't open that Bitcoin thread.

Tulip bulbs.

[toast2266]

Whatever you do, don't open that Bitcoin thread.

I have a nominal amount of bitcoin just to kinda see where it goes. Maybe it's just because I'm an investing luddite, but most of that crypto stuff feels a lot closer to actual gambling than most investments.

Not to mention the whole premise of bitcoin mining with its escalating power consumption seems entirely unsustainable.

[Marshall Tucker]

toast the conventional wisdom is twofold. First, a portfolio weighted 60% S&P 500 index fund and 40% bond market fund. The conventional wisdom is also dollar cost averaging, which means that if you went say 4 months, and had $50k even in cash, that on each of 12/13/21, 01/13/22, 02/13/22, and 03/31/22 that you invested $6k in the S&P index fund and $4k in the total bond fund, so that at the end of 4 months the full 50k is invested. that way, if the market tanks next week, you're inslulated on 30k of your 40k. follow?

Right now, the market's pretty active. I might wait until friday to make that initial 10k investment.

[MontuckyFried]

Pork bellies!

[Name Redacted]

What are your goals? Retirement? How involved do you want to be in the investment? Do you want dividends? Do you want passive income? What is your risk tolerance? How much money are we talking?

[406]

max out the I-bond amount...unless you already have treasury direct account, hopefully you can get paperwork done before new year. I have been doing them for years now and this year finally got my wife to open account, but waiting on her identity validation.
Tax free gains if used for kids education.
edit: 7.2% right now

[toast2266]

toast the conventional wisdom is twofold. First, a portfolio weighted 60% S&P 500 index fund and 40% bond market fund. The conventional wisdom is also dollar cost averaging, which means that if you went say 4 months, and had $50k even in cash, that on each of 12/13/21, 01/13/22, 02/13/22, and 03/31/22 that you invested $6k in the S&P index fund and $4k in the total bond fund, so that at the end of 4 months the full 50k is invested. that way, if the market tanks next week, you're inslulated on 30k of your 40k. follow?

Right now, the market's pretty active. I might wait until friday to make that initial 10k investment.

Thanks, and yeah, that all makes sense. I'm pretty well covered on the S&P index funds, but I think I need to read up on bond market funds a bit more.

What are your goals? Retirement? How involved do you want to be in the investment? Do you want dividends? Do you want passive income? What is your risk tolerance? How much money are we talking?

Long term goal is certainly retirement. Generally, the less involved I am in the investment, the better - I don't need another job. That said, I can put a bit of work in if the return is worth it. I don't need any dividends / income at the moment - that'll all get re-invested. But passive income would be nice in ~20 years. I would say that I'm not completely adverse to risk, but I'd err on the side of safety. My safety instincts obviously increase as the dollar amounts go up. Amount of money is, to some extent, a variable. But for the sake of discussion, lets say $10k.

[toast2266]

max out the I-bond amount...unless you already have treasury direct account, hopefully you can get paperwork done before new year. I have been doing them for years now and this year finally got my wife to open account, but waiting on her identity validation.
Tax free gains if used for kids education.
edit: 7.2% right now

Yeah, that's a good one that I got clued into last month. Maxed that one out for the year. Seems like a no-brainer.

[4matic]

FXI has dividend yield of 2.1% and the currency is weak.

Safish yield: JEPI or NUSI

[406]

Yeah, that's a good one that I got clued into last month. Maxed that one out for the year. Seems like a no-brainer.

Cool, I'm a fan. Thanks Al Gore!

Couple other ideas that I have thrown some money at...not that I know what I'm doing. And I'm talking small % of total portfolio.

Euro fund, those markets haven't seen the big rise like US, in theory they will 'recover' from the covid too?

REITS, (ex. NLY) most seem near 52 wk low, pay good dividend, in theory they like low interest rates and residential rent is high. Although I'm confused why they keep going down, so maybe not a good sign.

[AK47bp]

Nursing homes and home health aide services. These boomers are getting old and Covid won’t finish the job.


Also, plastics.


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[Dantheman]

Is your health insurance HSA-eligible? If so max that out every year. No taxes on contributions, capital gains, or withdrawals for qualified medical expenses. That's basically an instant ~25% return on your money compared to investing after-tax income. Most can be invested into various funds just like an IRA, and any money you don't burn on medical expenses converts to an IRA at 65.

[Core Shot]

Frozen OJ

Nice reference

I would throw money at anyone who can make frozen OJ that doesn't taste like reconstituted urine.

When I was a kid that’s all we had. Other than fresh squeezed.

[Conundrum]

Is your health insurance HSA-eligible? If so max that out every year. No taxes on contributions, capital gains, or withdrawals for qualified medical expenses. That's basically an instant ~25% return on your money compared to investing after-tax income. Most can be invested into various funds just like an IRA, and any money you don't burn on medical expenses converts to an IRA at 65.

Better yet you can leave that money tax free including investment growth for tax free medical costs and certain parts of your Medicare coverage. Only a benefit if you plan on living past 65 and having any medical expenses in retirement.

[Dantheman]

Only a benefit if you plan on living past 65 and having any medical expenses in retirement.

I see what you did there....

[Toadman]

Just put your money into setting up your own business that sells quack cures for COVID. If you have any dirt laying around, just put it into a ziplock bag and sell if for a $100. Just add water.

https://sciencebasedmedicine.org/boo...-for-covid-19/