What to do with my money?

Discussion in 'Investing' started by benpmdg3, Aug 2, 2021.

  1. benpmdg3

    benpmdg3 New Member

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    Hi

    I have 130k sitting in the bank not sure what is the thing to do with it. I also have 60k in VOO and QQQ.

    I've heard money sitting in the bank is a bad idea. I also hear the stock market is gonna be unreliable for the next few years.

    Right now I have ok income but due to my situation, I feel comfortable to keep 90k as a safety net in the bank.

    Given my situation, what is the right approach with the 40k extra and the weekly savings I make?

    Bitcoin?
    More VOO and QQQ?
    Anything else?

    Thanks
     
  2. StockJock-e

    StockJock-e Brew Master
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    VOO is always good.

    Bitcoin and all the other Cryptos are going to be super volatile.

    If you can take the risk and pain of what we just went through, which is buying at $60k and then be ok with it dropping 50%, then sure, add some crypto.

    It could go to $250,000 in 5yrs, or it could be at $5000.

    If your are in a situation where this volatility does not bother you, add a small amount and enjoy the ride!
     
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  3. TomB16

    TomB16 Well-Known Member

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    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.
     
    #3 TomB16, Aug 2, 2021
    Last edited: Aug 2, 2021
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  4. ddebrazza

    ddebrazza Active Member

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    Send me 2500k$ for 10% of my Cannabis Company :p
     
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  5. MrMike

    MrMike Member

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    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.
     
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  6. renegadelook

    renegadelook Member

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    Invest in Mutual funds and Index funds
     
  7. TomB16

    TomB16 Well-Known Member

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    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. :thumbsup:
     
  8. ddebrazza

    ddebrazza Active Member

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

    andyvds Active Member

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

    andyvds Active Member

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    depends on the wife ;-)
     
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  11. Stonksalltheway

    Stonksalltheway New Member

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    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.
     
  12. RoobySooqy

    RoobySooqy New Member

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    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.
     
    #12 RoobySooqy, Dec 29, 2021
    Last edited: Jan 3, 2022
  13. gtrudeau88

    gtrudeau88 Active Member

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    Mutual fund fees are too high. VOO is better
     
  14. Tuna Laf

    Tuna Laf New Member

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    This forum is for investments. Therefor you should invest on stock market.
     
  15. TomB16

    TomB16 Well-Known Member

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

    You and I share the same perspective on this. :thumbsup:

    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.
     
    #15 TomB16, Jan 25, 2022
    Last edited: Jan 25, 2022
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  16. Rayak

    Rayak New Member

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    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".
     

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