Thoughts/criticism on my investing strategy and AA

[target2019]

Quote:

Originally Posted by dvalley All this aside, because I'm not the fed chairman or a rocket-scientist, I'm just wondering about how to invest my $125k into the market without regretting it? should I break it up into 20k chunks and invest it once a month or throw everything in (which is what I'm feeling uneasy about)?

My preference would be to set a time interval and break total investment into sufficient pieces so that I am comfortable placing 20K on red. Or is it black?

I think you answered your question when you mentioned feeling uneasy.

[nun]

Quote:

Originally Posted by dvalley I'm just wondering about how to invest my $125k into the market without regretting it?

That's a psychological question rather than an investing one.

[dvalley]

Thanks all, I appreciate the candid yet helpful feedback.

As for the action plan, I just stopped making additional payments towards the mortgage and will add that to my kid's college fund- the sharebuilder account investing in VTI each month.

The rest of the lump-sum I think I'll be investing it in the market in the next three months. However, since no one suggested using the cash to buy an investment property etc (which can return some nice dividends during the retirement) I'm curious why not? Is it because the general consensus is that the stock market will produce the highest returns?

As for the savings, unfortunately, I can't save anymore than what I'm trying to save ($27k/yr) already- even that's a bit of stretch but I think I can come close. So I suppose we'll just have to see what the next 10-15yrs look like.

[clifp]

Quote:

Originally Posted by dvalley The rest of the lump-sum I think I'll be investing it in the market in the next three months. However, since no one suggested using the cash to buy an investment property etc (which can return some nice dividends during the retirement) I'm curious why not? Is it because the general consensus is that the stock market will produce the highest returns?

Rental even with a property manager is a part time job. I have 3 out of town properties In the last 3 months.
I have evicted tenant
Spent almost 3 months rent repairing the damage to the unit.
Dealt with turning utilities on and off
Filed a police report for the theft of a water heater, filed a insurance claim
paid 3/4 of month rent in HOA violations.
Emailed HOA violation to my good tenant.
Negotiated with the HOA for fine on my bad tenant but paying tenant on my 3rd property

You can make a lot of money with real estate and it really is function of where you live and your local real estate market. Plus your skill in assessing properties, figuring out what you need to do to maximize rent, and working with contractors, and your property manager.
(I can't recommend out of town property based on personal experience)

Now there are still so good RE markets I am sure...but the time to buy was a few years ago in most markets. Even then unless you used leverage you made more in the stock market.

[nun]

Quote:

Originally Posted by clifp Rental even with a property manager is a part time job. I have 3 out of town properties In the last 3 months. I have evicted tenant Spent almost 3 months rent repairing the damage to the unit. Dealt with turning utilities on and off Filed a police report for the theft of a water heater, filed a insurance claim paid 3/4 of month rent in HOA violations. Emailed HOA violation to my good tenant. Negotiated with the HOA for fine on my bad tenant but paying tenant on my 3rd property You can make a lot of money with real estate and it really is function of where you live and your local real estate market. Plus your skill in assessing properties, figuring out what you need to do to maximize rent, and working with contractors, and your property manager. (I can't recommend out of town property based on personal experience) Now there are still so good RE markets I am sure...but the time to buy was a few years ago in most markets. Even then unless you used leverage you made more in the stock market.

As with any investment there are ups and downs in RE. It should be thought of in relation to your desired AA and I would only buy locally and only buy quality. My experience of owning a 2 family home has been excellent and the rental apartment hasn't been vacant in the 15 years I've owned it thanks to ads at local colleges and on Craigslist.