VTSAX or VTI: Vanguard Total Stock Market Index.
Serious question: what happens when everyone invests in index funds?
Would appreciate if one can point to research related to this scenario
How would you invest $500k at 30?
31–40 of 43 posts
Re: How would you invest $500k at 30?
#32I would buy some blighted properties in West Baltimore, fix them up, then rent it out through AirBnB.
Re: How would you invest $500k at 30?
#33Imagine my surprise this morning when I created a throwaway account to ask HN how I can actively invest $500K, go to the “Ask HN” tab to see how these posts are usually formulated, and someone’s asked almost the exact same question (I’m a couple years younger than 30 and I’m looking at small businesses).
Work or worked at lyft? Haha
Re: How would you invest $500k at 30?
#34Earlier quoted context omitted.
The easiest way to do it is follow my plans. The harder way to do it is watch the stock market and look into technical analysis. It takes a while but if you start with a small account you can look for an edge and utilize it. It takes a while and you have many losses early on and then over time you narrow it down to what works. I'm not sure if anyone can do it the same way I do but I don't know of a better way to answ…
OP - tread carefully, this "advice" is from an individual afflicted with a case of Dunning-Kruger.
:) Some people are meant to be employees and lack the ability to think for themselves. Stay in school.
[BB] The PLAN is to enter the Jun 21 $10.00 Calls if BB crosses above 10.50 if you like
[HD] The PLAN is to enter the Apr 18 $190.00 Calls if HD crosses above 193.00 if you like
[AAPL] The PLAN is to enter the Apr 18 $192.50 Calls if AAPL crosses above 193.00 if you like
Re: How would you invest $500k at 30?
#35If you need the money in short-term (2-3 years), I would split it into 2x250K and just park them in online savings accounts which currently give about 2.25% APY.
If you have a bit longer horizon, I would go for VTI.
Re: How would you invest $500k at 30?
#36What is your horizon?
Can you afford to lose a big chunk of it? No risk, no return..
If you have a long horizon (>15 years), invest part in crypto, part in index trackers, maybe take a few small angel investment stakes and some REIT.
Shorter horizon but still want to do aggressive? The half in Crypto, and several early stage companies and keep a half in cash or bonds.
Re: How would you invest $500k at 30?
#37VTSAX or VTI: Vanguard Total Stock Market Index.
Serious question: what happens when everyone invests in index funds? Would appreciate if one can point to research related to this scenario
The logical conclusion seems to be that individual stock picking becomes more attractive (there are overperforming stocks, but the vanguard funds can’t take advantage of it).
Re: How would you invest $500k at 30?
#38Earlier quoted context omitted.
Serious question: what happens when everyone invests in index funds? Would appreciate if one can point to research related to this scenario
The logical conclusion seems to be that individual stock picking becomes more attractive (there are overperforming stocks, but the vanguard funds can’t take advantage of it).
This -- you'd expect that actively managed funds would start, on average, to give better performance than the low-cost passive indexes. In the long-run this would likely reach an equilibrium where, on average, results are comparable -- minus fees. We are not there yet. Maybe we never will, because reasons.
Re: How would you invest $500k at 30?
#39Golden Butterfly portfolio:
https://portfoliocharts.com/portfolio/golden-butterfly/
Or some other portfolio among the many options on the site. The nice thing about this site is that you can simulate how your allocation would do historically.
Re: How would you invest $500k at 30?
#40Do some serious homework on the markets before putting that 500k on the line. Some, but not all, and probably not half of the stocks in the S&P 500 will continue to gain this year. Bonds have run up recently, so they also have more immediate risk of decline / low yield. Also, consider things not so obvious: option selling strategies. Warren Buffet does it, so smart is as smart does.
Yes, tempting to hold in cash and wait for the market correction - if it ever comes.