Recently sold some real estate and since I am usually fully invested I have never thought of a place to stash large amounts of cash while patiently looking for good stock investments.
Seems a wast to not be making some money while waiting to invest. Anybody have a suggestion?
Thanks
BGM
BGM,
You could begin to income average into a few of the stocks that are discussed on this board…particularly those Saul invests in and graciously shares with us with monthly updates.
You could start with as little as $500/month or whatever you feel comfortable with. You could be fully invested after whatever time frame you feel comfortable with.
No one can tell you when the best time to begin investing in stocks since no one knows the future of the market.
However, historically, time is on our side. Just take your time and start with those stocks Saul and other astute investors are recommending are good purchase points.
Best of luck to you!
Jim
1 Like
Thanks Jim. I have been nibbling on the stocks discussed here and also adding to others in my portfolio such as Whole Foods on some pull back. But this is, well a lot more money than I have had to invest in a long time.
I’m thinking along the lines of BRKB or an index fund while I sort through what’s looking good out there. But having spent most of my time and funds on SA and HG stocks and boards I just don’t have any knowledge of more fixed income investments. But I’m open to ideas.
Thanks
BGM
Hi BGM,
Recently sold some real estate and since I am usually fully invested I have never thought of a place to stash large amounts of cash while patiently looking for good stock investments.
Seems a wast to not be making some money while waiting to invest. Anybody have a suggestion?
I also have some money invested in real estate…about 30% of my net worth is in R.E. and the balance in stocks. I’m 73 but have no bonds now, making me a risky guy but I have decided this is the golden age for stock investing (barring the normal ups and downs) so I have a lot in stocks. If I were you (and it’s what I intend to do when my land sells), I’d keep that money in real estate, paying real estate either via appreciation or rents or a house I"m living. Of course, you must be careful and good when you buy. Call it timing but unlike what TMF suggest we do with stocks that appreciate, it matters a lot what price you pay for a piece of property and when you buy it (cyclical pricing prevails).
We know inflation is coming some day and we are in the age of weak currency. R.E. protects you in both situations and does a good job of sheltering profits from taxes.
But having said that everyone must choose their own poison.
FYI
Mykie
1 Like
Hi BGM,
So if you only want to put this money to work in stocks, you might think about a dividend portfolio. I think, if you don’t need the money right away, you can generate a pretty secure 5% return via dividends in REITS, BDC’s and other more core type stocks like INTC and GE, etc. Building such a portfolio requires a steady hand and I would use a service to recommend what to buy and WHEN. There’s plenty of advice here in TMF with the income investor service, (though I’ve never used it).
You certainly want that money to do different things than the other money you have invested. Diversify is always a good idea.
Mykie
There’s plenty of advice here in TMF with the income investor service
Yes, I was going to suggest MF Income Investor as well. I too have never used it, but at least you can trust MF.
Saul
Thanks Mykie and Saul. Income Investor looks like a good place to start.
Most of my adult life I have been invested in RE and it served me well. I have been letting it go as I get older because I felt it was not liquid enough for the way I want to invest now.
I have reached that point in investing that I cheer the down drafts and the rallies. The doldrums bother me more.
BGM
Hi BGM,
I’ve been a subscriber to Income Investor for several years to glean ideas for more conservative portion of our portfolios. Some great ideas, much quieter boards than SA or RB. I have been quite happy with the few stocks I have purchased based on their recs. You can pick up a subscription for $49 often.
D.