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Ask HN: I've saved up $80k USD. What should I do with it?

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81–90 of 112 posts

Re: Ask HN: I've saved up $80k USD. What should I do with it?

#81
Key question is: When do you need the money?

Depending on time frame is the key to deciding where to put it.

How to put it, the best advise, and I am doing this myself, is to put it in a little at a time. For my needs, I have selected 8 places to put the money. Based on 3 different times to need the money. I then looked at each to determine where I thought they were going. i.e. money in emerging markets I will not put into until a year from now. Real estate and banking I am waiting to the start of summer. Others started a month ago. When I expected to be fully invested. For each I assigned now much in total I plan to put in. This gives me an amount over time to invest.

Using your 80K, assume you wanted 3 pots. Pot A is 35K, pot B is 25K and Pot C is 20K. Assume you want to put pot A 35K in over the next 6 months - assumption being you expect the bottom of that market within that time frame. 6 months is approximately 180 days - or $194 per day - $1361 per week. So I would either once a week put in $1361 or every other week $2722. In your case, I would probably do it every week.

I highly recommend vanguard.

Plan two, follow Warren Buffets advice - he said when he dies to put in 10 amount in short term government bond fund for his wife to spend every year, and the rest in a S&P 500.

https://www.investors.com/news/warren-buffett-sticks-with-tw...

Re: Ask HN: I've saved up $80k USD. What should I do with it?

#82
I would keep 1-2 years worth of living expenses, then take the rest and put it in an index fund, and keep putting new savings into the index fund.

I would also move to a country with 1/4 the cost of living so that you're instantly 4x wealthier, and use the extra to take time off and enjoy life and build your own company.

Re: Ask HN: I've saved up $80k USD. What should I do with it?

#84

I would keep 1-2 years worth of living expenses, then take the rest and put it in an index fund, and keep putting new savings into the index fund. I would also move to a country with 1/4 the cost of living so that you're instantly 4x wealthier, and use the extra to take time off and enjoy life and build your own company.

He has 80K, not 80M.

Re: Ask HN: I've saved up $80k USD. What should I do with it?

#87
post #65
post #64

1. Open a margin account on Interactive Brokers. 2. Choose a target volatility level you're comfortable with (I like 20%). 3. Buy shares of BRKB. Buy enough such that volatility of your portfolio reaches your target volatility. 4. Every month, update your share amount to maintain the same target volatility. https://alphaarchitect.com/2019/05/22/volatility-targeting-i...

At step 1 I was half expecting this to go towards /r/wallstreetbets and some terrible jokes.

same

Re: Ask HN: I've saved up $80k USD. What should I do with it?

#88
post #86

If you have any debt and less than 3-6 months of emergency savings, and do not own your home, I recommend starting with a free BYU personal finance class (I can dig if you cant find a link), and/or Dave Ramsey materials.

A comment is appreciated on down-votes; thanks.

Re: Ask HN: I've saved up $80k USD. What should I do with it?

#89
post #79

Earlier quoted context omitted.

Buying a foreclosure is the same as any other home purchase -- get an inspection and title search to know what you're getting into. You're not "buying all responsibilities" any more than you are when purchasing a home the "normal" way.

Saying just get title insurance is exactly what I meant you should be prepared to know what is required and is not something you should jump into thinking of it as easy money. When you are buying a typical real estate the cost of title search and title insurance are usually part of the settlement process and are included automatically, you don't have to do anything, all gets done for you. The problem is that with for…

There will be plenty of pre-foreclosures.

Re: Ask HN: I've saved up $80k USD. What should I do with it?

#90
post #61

Earlier quoted context omitted.

Cool, I think you missed my point, though. I personally do not want to have a penny invested in Facebook/Google/Amazon. I do not care about the gains or losses or the number of people that love to use their apps/services. Money isn't everything.

There are ethical investing firms, and they offer ethical investing mutual funds and ETFs -- my wife holds a few of their offerings. Their performance isn't amazing. You're also not obligated to buy an ETF -- you can create your own "index" without much effort. The OP's $80k would let them do that, were they so inclined. Maybe not all 500 in the S&P, but a lot.

Eh, after seeing the pile of dogshit that VCs are pushing on the public markets lately, I've lost a lot of faith in publicly traded companies.
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