Investing in today's market..?

[kimbe]

If it was you, what would you do if you had between 1 and 2 million to invest?

[Sam38g]

I'd move to a country with very little taxes if any at all, invest in stocks that pay a nice dividend and live off of that money.

[Zofia]

I'd move to a country with very little taxes if any at all, invest in stocks that pay a nice dividend and live off of that money.

Dividend investing is always a wise course. Keep in mind, the U.S. and many states impose a universal income tax, that is they tax U.S. citizens on their worldwide income. However, a U.S. citizen can lawfully earn foreign income without incurring a U.S. tax liability. There are complicated rules with such a strategy. I suggest you consult a tax accountant who is very knowledgable regarding the taxation of U.S. citizens expatriots.

Z

[Zofia]

If it was you, what would you do if you had between 1 and 2 million to invest?

Warren Buffet's advice remains sound. Invest 90% of it in a good low cost S&P500 index fund and 10% in a low cost bond fund. Sit back and let the best of American industry work for you doing what it does really well, that is, make money.

HTH
Z

[kimbe]

I'd move to a country with very little taxes if any at all, invest in stocks that pay a nice dividend and live off of that money.

While tempting in a way, I'm not planning on moving out of of town..

I recently sold a commercial property that provided a good rental income, one option is of course to buy another property..

[kimbe]

Warren Buffet's advice remains sound. Invest 90% of it in a good low cost S&P500 index fund and 10% in a low cost bond fund. Sit back and let the best of American industry work for you doing what it does really well, that is, make money.

HTH
Z

Yep, history don't lie, he's mostly right in his advice..

[miss.a.p1600]

Warren Buffet's advice remains sound. Invest 90% of it in a good low cost S&P500 index fund and 10% in a low cost bond fund. Sit back and let the best of American industry work for you doing what it does really well, that is, make money.

HTH
Z

one of my wealthy relatives suggested bonds

I thought to myself “bruh I don’t want to get rich slow wtf”

I can see the safety factor

And

it’s a good thing you specified the percentage there

[kimbe]

^^Safety factor is definitely an issue!

[Sam38g]

I suggest you talk to a tax accountant. If you re-invest that money back into real estate then you might not have to pay taxes on it. Consult one to limit you tax liability as much as possible.

[eagle2]

Warren Buffet's advice remains sound. Invest 90% of it in a good low cost S&P500 index fund and 10% in a low cost bond fund. Sit back and let the best of American industry work for you doing what it does really well, that is, make money.

HTH
Z

It's also good to keep some money in an emergency fund, as you mentioned in another thread.

[SnuffleUffleGrass]

Warren Buffet's advice remains sound. Invest 90% of it in a good low cost S&P500 index fund and 10% in a low cost bond fund. Sit back and let the best of American industry work for you doing what it does really well, that is, make money.

HTH
Z

I love Warren so much. I just wanted to post that on this thread.

[eagle2]

If it was you, what would you do if you had between 1 and 2 million to invest?

For me, a major consideration would be whether it was short-term or long term. Short term, I would look for a bank savings account, checking account, or CD, offering the highest interest rate. For long term investments, I would put it in stocks or real estate. I don't have experience in real estate, so I would either have someone else manage it, or invest in REITs. It's good to diversify, rather than put all of your eggs in one basket.

[kimbe]

For me, a major consideration would be whether it was short-term or long term. Short term, I would look for a bank savings account, checking account, or CD, offering the highest interest rate. For long term investments, I would put it in stocks or real estate. I don't have experience in real estate, so I would either have someone else manage it, or invest in REITs. It's good to diversify, rather than put all of your eggs in one basket.

Well, yes, I sold a property that paid off very well over the years I owned it, in addition to rental income... The obvious thing is to buy another property.
As for now, I just keep the money in my savings account, aware of that it's not a smart decision over time..

[eagle2]

As for now, I just keep the money in my savings account, aware of that it's not a smart decision over time..

There's nothing wrong with keeping your money in a savings account when there's a lot of uncertainty in the markets. By putting your money in the bank, you probably avoided losses. I'm in a similar situation. I took a lot of my investments in stocks and moved it to savings accounts because of the uncertainty.

If you're going to keep your money in a savings account, it's worth taking the time to see which banks offer the best rates. It's not that difficult to compare rates with the internet. Here's one bank offering 2.8% for their savings account (as of today).

https://www.briodirectbanking.com/high-yield-savings/

[eagle2]

If you're looking for investment income, real estate is probably a good option, because right now, demand seems to be high for rentals. Just make sure you do your research.

[kimbe]

There's nothing wrong with keeping your money in a savings account when there's a lot of uncertainty in the markets. By putting your money in the bank, you probably avoided losses. I'm in a similar situation. I took a lot of my investments in stocks and moved it to savings accounts because of the uncertainty.

Exactly, that's my thinking of it as well. There is so much uncertainty going on right now and by selling I at least secured the profit which has been much bigger than I ever expected.

[Zofia]

There's nothing wrong with keeping your money in a savings account when there's a lot of uncertainty in the markets. By putting your money in the bank, you probably avoided losses. I'm in a similar situation. I took a lot of my investments in stocks and moved it to savings accounts because of the uncertainty.

If you're going to keep your money in a savings account, it's worth taking the time to see which banks offer the best rates. It's not that difficult to compare rates with the internet. Here's one bank offering 2.8% for their savings account (as of today).

https://www.briodirectbanking.com/high-yield-savings/

At 2.8% you are losing money due to inflation. Conversely, as the market declines, individual stock prices and fund prices decline. If you continue investing, you buy more shares for the same amount invested. When the market starts to climb, you will grow wealthy faster. And that, my dear friend E2 is how the rich get richer.

XOXO
Z

[kimbe]

At 2.8% you are losing money due to inflation. Conversely, as the market declines, individual stock prices and fund prices decline. If you continue investing, you buy more shares for the same amount invested. When the market starts to climb, you will grow wealthy faster. And that, my dear friend E2 is how the rich get richer.

XOXO
Z

I know, and it's fu...ng annoying..

[eagle2]

At 2.8% you are losing money due to inflation. Conversely, as the market declines, individual stock prices and fund prices decline. If you continue investing, you buy more shares for the same amount invested. When the market starts to climb, you will grow wealthy faster. And that, my dear friend E2 is how the rich get richer.

XOXO
Z

If you have a steady income, I agree it's best to keep investing in stocks over the long term on a regular basis. If you have a lump sum, then I don't think it's a good idea to put all of it in stocks or real estate right now, while there's a lot of uncertainty in the market. If you have money that you won't be needing for many years, then investing it in stocks or real estate is most likely beneficial. I think stocks and real estate will do well over the long term. I'm keeping money that I won't be needing short term, in stocks. I'm keeping money that I may need in the short term in the bank, because short term, stocks could either go up or down, and when I need that money, it could end up being less than what I have now.

For many years, I was putting money into stocks on a regular basis, like you recommend, and over time it did well.