How would you invest 60k right now?

[Muse]

You want insane easy gain like +25% annual return?

Here's a bit secretive index fund. Buy it only if you can tolerate it. It's called S&P500.

S&P 500 Index Price Calculation

Price Based On	2021 Begin	Dec 31 Close	Return
Jan 4 Open	3764.61	4766.18	26.605%
Dec 31 Close	3756.07	4766.18	26.893%

S&P 500 Total Return Price Calculation

Price Based On	2021 Begin	Dec 31 Close	Return
Jan 4 Open	7,777.41	9,986.70	28.407%
Dec 31 Close	7,759.35	9,986.70	28.705%

It's the only thing I invest in except when the market is sour, then I have been parking my equity at online savings accounts, all FDIC insured and with the highest APY available. I buy shares in SPY, the S&P500 index. My RothIRA is still at TDAmeritrade (who bought the company I used to trade with), but I moved my trading account from them to E*Trade because they were (at the time) offering a higher bonus for moving funds to them... a secondary consideration, but I figured it didn't matter (trades were free at both and no maintenance fees, so WTH).

I suppose there are better things I could do with my cash when I'm out of the market than online savings (that's why I'm checking this thread). I mean, right now the highest APY in online savings I could find the other day was 0.70%. That was Barclays and LendingClub. The other ones are at 0.60%.

Using the _system_ I have the question is when to buy and when to sell. I've been basing that on the golden cross versus death cross signals. When the 50 day exponential moving average crosses above the 200 day exponential moving average you have a golden cross. When it crosses the other way you have the death cross. My rule is to wait 3 weeks for the crossover to hold and if it does I have my signal.

I backtested this system against the life of the SPY back about 2013 and found that using these buy/sell rules gave about a 2% advantage over just holding on through thick and thin. The average year was 10% for the index and 12% using my rules. I heard the other day that the S&P500 has yielded on average 9% since way back when, so there seems to be a 1% disparity there for some reason.

 

[SaltyNuts]

Take $20,000, buy TQQQ.

Wait 6 months, buy $20,000 more of TQQQ.

Wait 6 more months, buy $20,000 more of TQQQ.

Come back and thank me for making you a butt-ton of money.

 

[TechYoda]

And what about investing in real estate? In my opinion, it is a great way to save money. In addition, the apartment can be rented, so it is also a great option for passive income. When we bought an apartment, we used the site https://geoln.com/real-estate/usa. Here you can choose the housing that will suit you in terms of area, location, price and other criteria. The search engine is easy to use, with many interesting features and capabilities.

 

[beginner99]

And what about investing in real estate? In my opinion, it is a great way to save money. In addition, the apartment can be rented, so it is also a great option for passive income. When we bought an apartment, we used the site https://geoln.com/real-estate/usa. Here you can choose the housing that will suit you in terms of area, location, price and other criteria. The search engine is easy to use, with many interesting features and capabilities.

With the current high prices in most parts of the world, raising interest rates and reduces purchasing power, I think this is pretty risky right now. Even with inflation, it would not surprise me if you are better of with "cash" than some investment 6 months from now.

 

[Red Squirrel]

I could probably sell my off grid property for over 100k right now if I really wanted to. I don't, but if I did it would probably be the best return on investment I've ever done. Paid 44k for it last year.

Seeing similar properties going for well over 100k now. I got in just in time or it would have been out of reach.

I sometimes think of selling though since my newly diagnosed foot condition has basiclaly robbed me of my mobility. Can't really do any work that requires standing or walking. I'm going to push and push to get surgery though. I really don't want to be like this for rest of my life.

 

[nOOky]

Circling back to this (I hate that catch phrase) the I bonds made right about 6% this past year. The current composite rate is now 6.89%, but it is dropping to possibly less than 4% May 1st. I was considering buying another $20,000 before May 1, but the wife bought a new vehicle and we paid cash versus financing it at 4.5% so I'll wait until another six months and re-evaluate.

I do have maybe $10,000 I can invest in either a 5% one year CD, or put it in an I bond now but I feel better having the cash... I'm also looking to see what I can invest my HSA in as that is around 10k now also, but I want that to be more of a guaranteed investment than something even mildly risky.

 

[aigomorla]

do you need liquidable funds immediate?
Like if you see yourself needing money in short term fast, like child is going to college this Sept, need funds for dorm items, and school supplies stuff, then a CD is probably your best bet.

CD's' right now have the best interest rate in while.
They are 6mo. 1yr. 2yr terms typically.
Although 2 yr might be very hard to find, there are some.

Until FED's reduce Tax rate, CD's will continue to go up, and unless the amount is more then 250k, your insured FDIC on that.

I hear IBonds went to the gutter after first offer @ 10%.
I hear next year they will be as competitive as a CD, but not be nearly as liquidiable.

I could probably sell my off grid property for over 100k right now if I really wanted to. I don't, but if I did it would probably be the best return on investment I've ever done. Paid 44k for it last year.

I tell people unless you absolutely must sell property don't.
People who own property now, are fortunate, because it will only get more and more difficult to own, especially with increased FED Rate on interest.

This means increase Mortgage APR, and people on Variable Loans, are going to be gutted like fish at a fish market, so it could spell more foreclosures.
SEC demanded that most financial institutions in the US even get rid of Libor Index, and switch to something else.

SEC.gov | Staff Statement on LIBOR Transition

Joint statement on LIBOR transition by the SEC's Division of Corporation Finance, Division of Investment Management, Division of Trading and Markets, and Office of the Chief Accountant.

www.sec.gov

This could spell horrible Rate of Returns on that property you invested.

 

[nOOky]

I'm thinking maybe the fed will raise interest another 1/4% when they meet, not sure that's enough to wait for. The money I have now would come from my emergency fund, which is currently getting too big for what it is, so I'm thinking a one year CD would be cool...?

 

[aigomorla]

I'm thinking maybe the fed will raise interest another 1/4% when they meet, not sure that's enough to wait for. The money I have now would come from my emergency fund, which is currently getting too big for what it is, so I'm thinking a one year CD would be cool...?

They are expecting a 5%+ Fed Rate.

When Will The Fed Stop Raising Rates? | Bankrate

The Fed is expecting to lift interest rates to 5-5.25 percent before hitting the pause button, but investors think the Fed may need to call it quits even sooner.

www.bankrate.com

LOL... some even say we need a 9%+ to keep our economy afloat, but at the cost of MANY MANY people being shoved below the poverty line.

I really wish there was a fix to it, but i don't see it.
Especially with more forecast on War in South East Asia.

 

[Brainonska511]

Have you considered laddering some T-bills for shorter term savings? The last auctions for the 13-, 17-, and 26-week were around or above 5%.

You might even consider cashing out the ibonds once the new rate kicks in for T-bills or something else.

 

[nOOky]

Have you considered laddering some T-bills for shorter term savings? The last auctions for the 13-, 17-, and 26-week were around or above 5%.

You might even consider cashing out the ibonds once the new rate kicks in for T-bills or something else.

Heck no I don't even know what you are talking about lol

 

[IronWing]

Why, Confederate bonds of course.

 

[Brainonska511]

Heck no I don't even know what you are talking about lol

US treasury bills. You can buy them through Treasury Direct, just like you did for the i-Bonds. They come in different lengths, from as short as 4 weeks to up to 52 weeks.

 

[nOOky]

US treasury bills. You can buy them through Treasury Direct, just like you did for the i-Bonds. They come in different lengths, from as short as 4 weeks to up to 52 weeks.

Ahh thanks that's something I can check out.

 

[jpiniero]

Flooz

 

[snoopy7548]

BBBY. It can only go up from here.

 

[snoopy7548]

BBBY. It can only go up from here.

 

[AdamK47]

Take $20,000, buy TQQQ.

Wait 6 months, buy $20,000 more of TQQQ.

Wait 6 more months, buy $20,000 more of TQQQ.

Come back and thank me for making you a butt-ton of money.

On May 13th '22 TQQQ was $31.63. $20K would buy you 632.31 shares. TQQQ was $22.07 six months later on Nov 14th. $20K would buy you an additional 906.21 shares for a total of 1538.52 shares. TQQQ closed at $26.71 today.

TQQQ had two dividends on Dec 22nd and Mar 22. $0.097919 and $0.149799. If no reinvesting that would add $381.12.

You would end up with $41,475.99 worth of TQQQ and dividend.

Not terrible. It's not a loss.

 

[Red Squirrel]

I tell people unless you absolutely must sell property don't.
People who own property now, are fortunate, because it will only get more and more difficult to own, especially with increased FED Rate on interest.

Yeah I would need to be in very hard times to sell. I would regret it so much if I sold it. It's hard to put a dollar amount on property, as it's not easier to get more of it. Especially property in an unorganized township, that's already very hard to get. The huge advantage of that is low taxes and not needing permits to do anything. It's the closest to freedom you can get.

Even if I get into hard times I'd more likely sell the house, I could get over 200k for it, then put the money towards building on the property.

 

[nOOky]

Hmmm another question. I am POA and executor of my brother's will. He has about $350k in his Vanguard 401k that is 60% stocks, 40% bonds. He was gravely ill, now he may stretch it out for weeks or months. I'm wondering if I should move it all into guaranteed interest to avoid any huge ups or downs in the near future. I have the ability to manipulate his finances as I see fit by the will, and his permission right now with access to his accounts. I'm nervous it may take a big hit, and I'd hate to lose a bunch. Ugh.

 

[IronWing]

Consider his age and likelihood of recovery. When will he need the money? Ever?
Consider care expenses. Is he burning through cash now? Will he burn through cash if bumped into long term care that isn't covered by insurance?

Does your brother have debts that will have to be settled using the 401k assets?

Is the 401k a traditional plan or a Roth? If he passes away, is the 401k subject to immediate liquidation? Rollover to a beneficiary IRA? Does the 10-year rule apply for liquidation?

The answers will help you frame the timeline for liquidating the account and help in the decision to move to safer investments.

Edit: Keep in mind that traditional 401k withdrawals are taxed as regular income. Pulling a big chuck out in a single year can throw one into a higher tax bracket and, if applicable, jack up Medicare B premiums for the following year (maybe the year after that, don't recall the details).

 

[skyking]

those are good points above. His age is a factor.
Are you the sole benificiary?

 

[nOOky]

He is 75 and it will be split 3 ways. He is completely debt free except for normal monthly bills. His checking account *should have enough to cover all expenses unless it drags out for months. The checking account does not collect interest, I was thinking of changing that, but decided it wasn't worth it. His RMD's go into the checking account each month.

Edit: I intend to sit down with my financial advisor at some point, we've just been very busy.

 

[Muse]

He is 75 and it will be split 3 ways. He is completely debt free except for normal monthly bills. His checking account *should have enough to cover all expenses unless it drags out for months. The checking account does not collect interest, I was thinking of changing that, but decided it wasn't worth it. His RMD's go into the checking account each month.

Edit: I intend to sit down with my financial advisor at some point, we've just been very busy.

Online FDIC insured savings accounts can be found now around 5% APR, possibly better.

 

[skyking]

He is 75 and it will be split 3 ways. He is completely debt free except for normal monthly bills. His checking account *should have enough to cover all expenses unless it drags out for months. The checking account does not collect interest, I was thinking of changing that, but decided it wasn't worth it. His RMD's go into the checking account each month.

Edit: I intend to sit down with my financial advisor at some point, we've just been very busy.

I really enjoy this community, but for advice of this nature I suggest making an account here, @nOOky
https://www.early-retirement.org/forums/

They are very generous and helpful and have faced your question in many forms over the years.
I got to my happy retirement mindset there. Good folks much the same as here and no BS.