I have around $50k sitting in a couple 401k accounts. The rest of my savings, somewhere around $100k, is sitting entirely in cash right now. In all likelihood, I'm not going to spend the time required doing research to invest any of it in individual stocks, so what should I do with it? Mutual funds, index funds, real estate, crypto?
Ask HN: What would you do with $100K cash?
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Re: Ask HN: What would you do with $100K cash?
#2It is my understanding that you want to achieve a certain amount of benefit in the long term, not short term, isn't it?
If the answer is yes, you are absolutely right in not investing in individual stocks. Where can be Google in 20 years? Facebook? Tesla? You don't know and the owners don't know either.
The first thing that comes to mind would be a mixed index/bond approach using Vanguard ETF's although any company will do. If you go for a conservative approach you could invest 50% Vanguard all US market ETF, 30% Vanguard Whole bond market ETF and 20% Rest of the world ETF market. In a more venturous approach you could move the 50% up to 60% while adjusting bond and ROW markets. I am a hobbist investor as well and I would very much like to see the rest of opinions.
Re: Ask HN: What would you do with $100K cash?
#3Does backpacking around the world interest you?
Experience is a worthwhile investment.
Re: Ask HN: What would you do with $100K cash?
#4Put it in an IRA comprised of Vanguard index funds. Play with other investments in the future when you have more money.
Re: Ask HN: What would you do with $100K cash?
#5"I have $X, what should I do with it?"
https://www.reddit.com/r/personalfinance/wiki/commontopics
Re: Ask HN: What would you do with $100K cash?
#6[random financial advice from the internet]
If you don't know what to do with it, don't do anything. Later, when you know what to do with it, you can do it. To put it another way, right now, you have insufficient information to make an informed decision. You'll have more information later, and if you don't spend the money now, $100k to put behind that informed decision.
Re: Ask HN: What would you do with $100K cash?
#7Start a company in something you love and master! And maybe use a small amount for a 3-month travel, you'll learn a lot!
Re: Ask HN: What would you do with $100K cash?
#8Definitely invest in a business idea of your own. Alternatively, invest in real estate.
Re: Ask HN: What would you do with $100K cash?
#9My advice would be to echo those who suggest index funds or target retirement funds.
BUT: there's reason to believe that the stock markets are currently near peak. Instead of investing all your money at once, you may want to do something called "dollar cost averaging", where you spread out your investment by putting a bit into the market every month for years. That way you get some of the benefit from a market that continues to rise in the short term but don't lose your shirt if it crashes hard three months from now.
Re: Ask HN: What would you do with $100K cash?
#10Vanguard VTSAX. Or the equivalent ETF with symbol VTI. This mirrors what others are saying, just a specific recommendation so you don't need to bother with much research. Total Stock Market Index fund with 0.04% expense ratio.