What to do with my money?

Old guy here. Good advice above but here is another perspective.

I have taken a different path. By doing hundreds of hours of research and working on finding companies that are run by honest, hard working, smart people (in that order of importance), I have found some companies that generate wealth and distribute that wealth to the owners.

Over the years, those companies have mostly been oil field services companies, REITs, and Tesla. This is because of my knowledge base. Tesla grew into a core holding, by virtue of it's exploding valuation, but it was never intended to be so. The idea was to hold distributing companies, at the core.

By owning a core of distributing companies, your investing becomes self-funding. Once you are making $500, 1000, 2000 per month, you can buy more stock every 4, 2, 1 month. I try to buy a minimum of $2K at a time.

The $2000 minimum worked out to 1% overhead, back in the days when I paid $10 per transaction. $10 to buy, $10 to sell, so $20 of overhead means 1% on $2K. Yeah, that was a while ago.

With a self-reloading investment gun, you can start to hunt growth companies. If you should lose your job, you have some income to extend your survival and give you more time to find another job. That makes distributing companies part of your employment insurance. By the time you get to 4~5K per month of distributions, you are buying quite a bit of stock every distribution period and your income is going up a noticeable amount; plus, you have an income stream that would carry you through anything, as long as your overhead is under control.

The original plan was to hold Tesla until it starts distributing. That plan was derailed in January by a valuation so high, I would have been a fool to not sell the entire stake and move the money into our distributing core of companies. The money from Tesla created an income stream that will serve us very well in retirement.

I'm not arguing against growth companies. Growth companies are great but the best investment is going to depend on where you are in life, your risk tolerance, your knowledge base, etc.

I do think younger people would do well to build up a couple of hundred thousand dollars of income generating companies (should be over $1000/mo) before they start playing the lottery of growth companies. If you happen to pick a winner, that's fantastic but the majority do not.

 

Send me 2500k$ for 10% of my Cannabis Company

 

Generally speaking, for growth I suggest XEQT (Globally diverse equity growth). Technically in my wife's TFSA I'm reinvesting in VFV, VE and VA and in my TFSA, I'm reinvesting into blue-chip Canadian companies. What I'm doing could be simplified into XEQT but I find handling the individual companies and controlling the allocation my wife's 3 ETFs fun.

Generally speaking, for dividends I suggest VDY (Canadian companies that pay dividends) & XHU (Long-term capital growth by replicating the performance of the Morningstar Dividend Yield Focus Index). I have these in my taxable account, they both contain blue-chip dividend paying companies. I also have more income generating split-share and covered call funds but if I don't have anything particular to put my money, I default to VDY and XHU.

 

Invest in Mutual funds and Index funds

 

Earlier, I posted a long-winded diatribe about a complex system but, seriously, VOO is always good. I completely agree with StockJock-e and Brackwom in this regard.

 

Send me 5,000$ for a 10% ownership in my start-up Cannbis Company, Foetidus Labs.

 

Buy your wife a nice golden ring with a big diamond on it.

 

depends on the wife ;-)

 

Market is dipping hard right now and I would allocate some of it on crypto. That's a whole lot better compared to putting it all in the stock market.

In terms of stocks, $BTCS is a good buy since they just got listed on Nasdaq last week and are also involved in crypto.

 

You can keep money in the bank, but it's not a good idea if you look at it from the investment side, however if you consider it as a financial cushion, it looks cool to have so much money in the account. If you want to use your money, it is better to invest it in real estate, because according to statistics, at the website https://www.mcgeewm.com/investment-management-portland-financial-advisor real estate is one of the reliable investments, unlike the same cryptocurrencies. On the other hand, I have no right to advise anything, because the money is yours and the decision is yours, I would even advise you to contact people who are engaged in investments professionally, perhaps they can help you.

 

Mutual fund fees are too high. VOO is better

 

This forum is for investments. Therefor you should invest on stock market.

 

Hello, Tuna Laf. It is nice to meet you.

You and I share the same perspective on this.

However, it has become clear the entire world, save a few like us, consider any financial risk to be investing. FX trading, for example, is generally considered investing despite the fact it is not investing. Crypto trading, also not investing but is invariably described as investing.

If you watch investing videos on YouTube (I watch a lot of Buffett/Lynch/Bogle/etc), you will be subjected to every get rich quick advert they have by charlatans wanting to be sent money. Their algorithm, apparently, thinks: "Hey. This guy is an investor. He may be susceptible to a get rich quick scheme."

I wish it weren't so but this is the level the world is at.

Very kind regards to you.

 

Why mutual funds instead of ETFs? It would seem that ETFs have an advantage over mutual funds. What am I missing?

ETA: Sorry, I just realized this is an old thread. I saw "August" and I missed the "2021".

 

I'm not sure if gambling and trade are related. Trading offers a greater chance of financial success than gambling does. I occasionally win modest sums of money, but that's pretty much all. Even though I've started investigating various online casinos, including and others, I haven't been successful in striking it rich.

 

Rayak is right....even though the thread is mostly OLD. ETF Index funds and other ETF's in general do have an advantage over mutual fund type funds. I dont personally care about being able to buy and sell them in real time like a stock, but many people do. What I would care about is they are a bit more efficient for taxes.

ETFs vs. mutual funds: Tax efficiency
In a nutshell, ETFs have fewer "taxable events" than mutual funds—which can make them more tax efficient. Find out why.

https://www.fidelity.com/learning-center/investment-products/etf/etfs-tax-efficiency

 

I wonder if benpmdg3 has any money left after a year?

 

or if they did anything at all with that 130k sitting in the bank.