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Ask HN: What would you do with $100K cash?

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Re: Ask HN: What would you do with $100K cash?

#31

Post by weltstub »

stouset wrote: post #24
cimmanom wrote: post #9

My 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 c…

There are always reasons to believe the market is at its peak and you should hold off. Time in the market beats timing the market. DCA is also worse than time in the market. http://awealthofcommonsense.com/2014/02/worlds-worst-market-...

The link you provide says DCA would have been a better strategy. Doesn't mean it's the optimal strategy, but the link subverts your point.

Re: Ask HN: What would you do with $100K cash?

#35

Post by stouset »

weltstub wrote: post #31
stouset wrote: post #24

Earlier quoted context omitted.

There are always reasons to believe the market is at its peak and you should hold off. Time in the market beats timing the market. DCA is also worse than time in the market. http://awealthofcommonsense.com/2014/02/worlds-worst-market-...

The link you provide says DCA would have been a better strategy. Doesn't mean it's the optimal strategy, but the link subverts your point.

The point of the link was that even having the actual worst market timing, you’re still doing great. So stop worrying and just put your money in.

If you plan on investing large lump sums repeatedly and exclusively at market peaks, then yes, DCA will be a better strategy. But this is just as unlikely as you being a financial genius who only ever invests lump sums at market lows. Actually, given the upward trend line of the market, it’s slightly less likely.

Re: Ask HN: What would you do with $100K cash?

#36

Post by JauntTrooper »

thiago_fm wrote: post #29

I will try to shortly give you a crash-course about how to invest. First of all. Warren Buffet, on his whole life made around 17% p.a. average returns. With 17% on your 100k, it's okayish money, but won't take you anywhere, even in a few decades. And his average will be much higher than yours, don't try to compete with him or a have high return. So, first give up that you can get rich by investing or that you can out…

17% is an amazing annual return, not just ‘okayish’

$100,000 would be worth $2.3 million in 20 years and $11.1 million in 30.

Re: Ask HN: What would you do with $100K cash?

#37

Post by staticautomatic »

cimmanom wrote: post #23
staticautomatic wrote: post #22

Earlier quoted context omitted.

The limits don't apply to rolling over a 401K into an IRA. They're for contributions to an already established IRA.

OK, but the OP said they have $100K cash, not $100K in a 401K

You're right. I misread. Thanks for pointing that out.

Re: Ask HN: What would you do with $100K cash?

#38

Post by tobltobs »

bdcravens wrote: post #33

I'd put $10k in crypto if you're prepared to lose it. (or whatever ratio you're comfortable with) I won't say it's a sure lock to go up, but given history, returns of X00% are likely at some point.

Considering that X00% can be 0% you are correct.

Re: Ask HN: What would you do with $100K cash?

#40

Post by bdcravens »

tobltobs wrote: post #38
bdcravens wrote: post #33

I'd put $10k in crypto if you're prepared to lose it. (or whatever ratio you're comfortable with) I won't say it's a sure lock to go up, but given history, returns of X00% are likely at some point.

Considering that X00% can be 0% you are correct.

It can be 0, or it can any number greater than 0 in multiples of 100. I've yet to hear a convincing argument as to why it's incapable to posting gains ever again.
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