Advise: Joint income lil north of 200K, 80 K in cash savings, 100k invested in property. NO 401K, NO STOCKS/MUTUAL FUNDS. Have a car loan and property Mortgage as usual. Am I too risk averse?thoughts?

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I think you are foregoing substantial tax advantages and employer match by not taking advantage of the 401k. How about HSA? If anything so would say that you are assuming risk by not having a diverse portfolio.

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It is a huge risk to avoid 401k and IRA as you forgo being shielded from capital gains tax (15%).
Your fear of stocks is based on not understanding them. The risk is your fear which is based on ignorance.

The truth is, all business is the same and has the same 2 levers:
1. Revenue
2. Cost
That’s it. And if you feel comfortable with real estate (a service business that sells space as a service), you should feel comfortable with any business.

Big differences between real estate in your experience and stock:
1. Real estate is like a small business, owner operated - stock has a management team
2. Real estate is illiquid - stock is highly liquid

Both experience volatility in the market, but due to illiquidity of RE you can’t see it, but you can with stock.

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Also, there's nothing inherently risky about a 401k. It's just a tax advantaged retirement account, a vessel. The contents of the vessel (what you invest in) define the risk, not the vessel itself.

Nothing says you have to invest in stocks within your 401k, though I'd still recommend it. You could stick with something more safe woth a lower avg return like bonds. However, I'd encourage you to look up a log chart of the s&p 500 over the past 100 or so years and tell me what you see. Time is a huuuuge risk mitigating factor that gets underappreciated sometimes.

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Thank you Kpmg 1, that sounds like an insight.

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I should mention that if you do decide to start investing in a mutual fund do not buy in a lump sum other than your initial buy-in requirement. Your biggest risk mitigation with funds is your dispersion of purchases. Timing the market is risky. I personally am very conservative and invest in lifecycle funds. They automatically adjust risk profiles towards a more conservative stance as you get nearer the lifecycle date. It is basically a set it and forget it thing. If there is a recession in the next decade keep buying in. That is when you will make your best contributions. These funds should really be viewed as an illiquid asset so it is entirely long term funds. Just my two cents, not sure if it’s helpful.

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