Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Ask HN: I have $450K cash, what should I do to maximize my return?

news.ycombinator.com

Post reply on HN
Print view View original

51–60 of 509 posts

Re: Ask HN: I have $450K cash, what should I do to maximize my return?

#51

Post by jordanmarshall »

Just skimming some of the replies here makes me think you will get better advice on the Bogleheads forum [1]. Despite the minimalist appearance it is actually a great place to get sensible financial advice. I would start with the wiki page on managing a windfall [2], then search through older replies to similar questions. This kind of question gets asked there a lot, so there should be some recent threads.

[1] https://www.bogleheads.org/ [2] https://www.bogleheads.org/wiki/Managing_a_windfall

Re: Ask HN: I have $450K cash, what should I do to maximize my return?

#54

Post by glofish »

hedora wrote: post #4

Cash out refi everything you can. At 3%, 30 year fixed, with fed target inflation rates of 2-3%, you’ll need a If you can’t get that with passive investments over the next 30 years, the banks will have bigger problems than your loan. Despite your risk aversion, consider putting some in a robo advisor (mix of bonds, index, foreign index, etc), to hedge against a spike in inflation, or a crash of just the US economy. T…

The Vanguard Federal Money Market Fund (Settlement fund) has a variable rate but produced 1.1% in the last year and 4% since inception.

In addition when you park your money there you can easily invest it at any time. In general going straight up Vanguard with minimal oversight is much better deal than Wealthfront.

Re: Ask HN: I have $450K cash, what should I do to maximize my return?

#55

Post by Trias11 »

ed25519FUUU wrote: post #46
Trias11 wrote: post #16

Buy oceanfront real estate in Panama and rent it out. Residency comes with this. You may use both if things in USA gets from bad to worse - from political, economical, financial and social aspects.

If the USA destabilizes, the last place I want to be is Central America.

Share your ideas then.

Panamá gets stable revenue from Panama Canal plus some natural resources and operates in US dollars in eastern timezone.

As a plan B it’s not exactly that bad.

Re: Ask HN: I have $450K cash, what should I do to maximize my return?

#56

Post by scottmsul »

janandonly wrote: post #10

1. Read this: https://medium.com/@100trillionUSD/bitcoin-stock-to-flow-cro... 2. Buy and hold Bitcoin for a while. (longer is better).

I agree, and I've put quite a lot into bitcoin recently due to the halving. But that was only after reading and understanding everything I could about the bitcoin markets. From the outside it definitely seems like a crazy speculation.

I would never recommend someone invest in bitcoin unless they've done a lot of research, are ready to hold through drops of 50% or more, and are prepared to hold for many years. Investors who haven't done the due diligence could be tempted to sell after a huge drop, and it's probably not for most people.

That being said, to outsiders it could be argued that bitcoin is at least a decent asymmetrical bet, and worth throwing a couple percent at. But only as much as someone is willing to lose.

Re: Ask HN: I have $450K cash, what should I do to maximize my return?

#57

Post by boulos »

The normal first question is "do you have near-term need for this money" which it sounds like your answer would be "No, this came to me and now I just need to invest it for a long time".

It sounds like your asset allocation is currently:

- $50k "index fund" (S&P 500?) - $150k land/home - $200k industrial real estate - $450k cash

I would suggest you start at Asset Allocation [1] and as an example read through the "Three Fund Portfolio" [2]. Before this cash, you were nearly 90% real estate. At the very least, you can outperform "cash at a bank" by at least keeping that $450k in a Vanguard or similar Prime Money Market Fund [3]. So as you think about what to do, take the 1.3% or so :).

[1] https://www.bogleheads.org/wiki/Asset_allocation

[2] https://www.bogleheads.org/wiki/Three-fund_portfolio

[3] https://investor.vanguard.com/mutual-funds/profile/performan...

Re: Ask HN: I have $450K cash, what should I do to maximize my return?

#58

Post by ceocoder »

Take a look at this comment from 'patio11 and response by 'mechanical_fish[0][1]. My investment strategy is remarkably close to what they've described (although I read/learned about it elsewhere - a really good friend). I still buy an odd stock in low single digits as a "token" - if I like the company I should get some stocks - think PTON, TSLA, AMD, GOOG, AAPL etc. However vast majority of everything else is in blend of vanguard index funds.

[0] https://news.ycombinator.com/item?id=10111454

[1] https://news.ycombinator.com/item?id=10114707

Re: Ask HN: I have $450K cash, what should I do to maximize my return?

#60

Post by cenal »

I’d buy more cash flow generating real estate.

As others have noted, we are printing cash and all assets valued in our currency are likely to be impacted.

Unlike gold, real estate should be able to generate cash and not cost you cash to hold.

They aren’t making more land. With rising sea levels there will likely be less land.

Midwest is a great place to invest. So is the south east.

If you want more information about what we do in these areas checkout our website:

http://www.accredited-capital.com

We are working to create returns for investors while also making a local impact by increasing levels of home ownership in areas that have routinely been overlooked by Wall Street.

Depending on your situation, these investments might also not be subject to tax.

Email me for more info if interested lcampbell (at) accredited-Capital (dot) com

Post reply on HN