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

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

#281

Post by reducesuffering » Sat, Aug 01, 2020, 8:26 PM UTC

BbzzbB wrote: post #261

nemild wrote: post #146

Earlier quoted context omitted.

One more to add is Reddit's Personal Finance, where this question gets asked a lot. The wiki (second link, search for Windfall) esp has a number of great articles on topics like this. https://www.reddit.com/r/personalfinance/ https://www.reddit.com/r/personalfinance/wiki/index

PF will say the same thing as always (not that it's wrong), i.e. SPY if you're risk-tolerant, some Vanguard I don't recall (VOO?) if you're less so.

VOO is the same index as SPY (SP500), so that can't be it. Maybe you meant BND, a highly popular total bond market ETF that would be for the risk-intolerant?

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

#282

Post by [deleted] » Sat, Aug 01, 2020, 8:27 PM UTC

[deleted]

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

#283

Post by rvr_ » Sat, Aug 01, 2020, 8:27 PM UTC

In your position I would save 90% on the safest type of account you can get (big bank, insured). The remaining 10% I would spend trying to bootstrap some business. There's a big chance of failing, but if you fail you will still have a nice amount to reboot.

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

#284

Post by Sschellbach » Sat, Aug 01, 2020, 8:27 PM UTC

overcast wrote: post #11

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).

Any mention of Bitcoin or cryptocurrency investing should be banned on HN.

you support censoring technology topics on a technology forum?

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

#285

Post by arcticbull » Sat, Aug 01, 2020, 8:28 PM UTC

eloff wrote: post #192

Apes wrote: post #167

Earlier quoted context omitted.

The current risk free rate is absurdly low, which would suggest a much lower sustainable draw down than 4% for the next 10-30 years, probably only around .5 to 1.5% at most.

That's rubbish that you think you can predict a 1% return in the market over the next couple decades. It would be extremely unprecedented, and you'd need a very solid argument to have any confidence at all in that prediction.

Not to mention SPY has a 1.75% dividend yield.

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

#286

Post by Sschellbach » Sat, Aug 01, 2020, 8:28 PM UTC

conchy wrote: post #276

Any answer here that includes the word bitcoin will be downvoted to oblivion, but it was the right answer 10 years ago and it is still the right answer today. Ignore and downvote at your peril!

If you want to secure your current wealth by saving, the fiat standard is not for you. Bitcoin is saving technology

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

#287

Post by atwebb » Sat, Aug 01, 2020, 8:28 PM UTC

tzury wrote: post #82

Use it as down payment for three condos in Austin TX and rent them.

Whew, really, really run the #s, I've seen some things listed there that are absolutely losing money (beyond the depreciation part). $450k renting for mid 2k.

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

#288

Post by orasis » Sat, Aug 01, 2020, 8:31 PM UTC

If you want to get rich and are reasonably intelligent/motivated, the best investment you can make is in YOU. With that much money you have the freedom to not earn income whiling attempting to start a business or join a higher risk venture.

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

#289

Post by t0mmyb0y » Sat, Aug 01, 2020, 8:31 PM UTC

Invest in structured investments, the same ones used to buoy annuities. All the upside, less risk overall than most investments.

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

#290

Post by pxx » Sat, Aug 01, 2020, 8:31 PM UTC

ReallyAnonymous wrote: post #249

darawk wrote: post #231

Earlier quoted context omitted.

Do not do this. Dividends are not a good way to pick stocks. Dividends and buybacks are fungible, except that buybacks are more tax efficient. All equities should have the same risk-adjusted expected total return (i.e. including dividends, if markets are efficient), so you should not be picking stocks based on their dividend yield alone. If you want income from your equity portfolio, just periodically sell shares.

If you make less than 38600, you pay ZERO dollars in taxes on the first $75k of qualified dividend income

Your sentence contradicts itself. How can you make less than $38,600 when you're making $75,000?

Also note that long-term capital gains are also taxed at the same rate as qualified dividends, but can be deferred into the future. Your argument doesn't seem to advocate for the thing you think it does.