What to invest in now?

[Lee94joyce]

If you wanted to invest 10 to 50K in the market..... what do you do?

 

[5Miler]

Same thing I'm doing. Have some patience.

 

[SnowballCamper]

What is the money for? When do you think you'll need/want to spend it? What's your tax bracket? Do you habitually have large capital gains currently?

 

[marko]

Depends. If it's the only money you have to invest that's different than if you're adding to a $3MM portfolio.

 

[moontower]

VOO or SPMO

 

[FREE866]

If you have a 10 or even a 5 year investment time horizon I'd go all in VTI. Or if you're really ballsy go in UPRO--you'll get 3x the return of the S and P 500.

 

[jollystomper]

DCA in 10K at a time to VTI . Assuming, as others have said, you have a 5-10 year outlook.

 

[Lee94joyce]

This is FU money. Don't need it for 5 to 10 years.

 

[Lee94joyce]

What is the money for? When do you think you'll need/want to spend it? What's your tax bracket? Do you habitually have large capital gains currently?

Pretty much low capital gains. 22% tax bracket

 

[TheWizard]

Depends what type of investment account.
Sounds like a taxable account. If so, then put it it an ETF with an eye to Tax Loss Harvesting.

You're familiar with TLHing, I presume?

 

[Lee94joyce]

Nope. What is that?

 

[SnowballCamper]

When you have a stock / fund / ETF that has lost value relative to when you purchased it, you can sell it and use the loss to offset capital gains from another security. This results in lower taxes, but you also have a security that lost value.

 

[SnowballCamper]

I'd probably do 10k at a time with limit orders every month or so into VTI, VOO etc. (your broad index ETF of choice). There is some research that shows that a lump sum is usually the better choice, but with the current high volatility, DCA is probably better. here is an article Is Dollar-Cost Averaging Better Than Lump-Sum Investing?.

 

[Gumby]

When you have a stock / fund / ETF that has lost value relative to when you purchased it, you can sell it and use the loss to offset capital gains from another security. This results in lower taxes, but you also have a security that lost value.

Yeah, I'd rather just make money than lose money but get a partial offset of some taxes.

 

[TheWizard]

TLHing is useful for many of us who have taxable accounts and especially if we have excess income that might be left to heirs eventually.

ETF lots bought in the past 6-12 months will be showing a loss presently. Let's assume you've been investing excess income into VTI, a total stock market ETF.

So you find all the lots showing a loss and then sell those with a market order, let's assume $50,000 worth with a loss of $3500.
Then you immediately buy $50,000 or thereabouts of VOO, the s&p 500 index ETF, so as not to be out of the market for very long.

Bingo, $3000 of that loss can be used to offset Ordinary Income this year, taxed at maybe 24% or higher.
Would be nice if that $3000 amount increased with inflation every year, but our congress critters haven't made that happen.

So anyway...

 

[HFWR]

MREs, shotgun shells, gold coins, tp

 

[Koolau]

MREs, shotgun shells, gold coins, tp

And VIT.

 

[mdbrown]

Right now I would put "new" money in fixed income, but leave any "old" money that might already be in the market, where it is. Because there is a big loss of international trust in the U.S. economy, and we will continue to run big deficits, bond yeilds will probably remain high for a while.

 

[Theophrastus Bombastus]

Overly broad question. Since you state this is FU money, define what you mean by FU money.

 

[TheWizard]

Depends. If it's the only money you have to invest that's different than if you're adding to a $3MM portfolio.

Well stated...

 

[indiajust]

This is FU money. Don't need it for 5 to 10 years.

Send it to me. I take all comers with this type of money, assets, food, beer.....

 

[Sanbenito1]

I bought $50k in Vanguard Total Index back when it dropped. I have a 10 year horizon and don’t need the money. Don’t know if I’d do that right now, but I’m sure we have another few years of erratic presidential behavior so I’m waiting

 

[indiajust]

I just followed Buffett lead with some japanese investment houses. Motley Fool getting excited (as always) with mild decline. I just bought more PHYS, more international, more silver etf, adjusted gold exposure %. I have about 90k to do in an inherited IRA. Another 400k in a taxable account. I like my odds and I like the opportunity. Feels ripe to me.

 

[Al18]

FU money - buy a slightly used camaro or vette

 

[aja8888]

FU money - buy a slightly used camaro or vette