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I would buy some $BBBY calls
Buffet would say most people can’t time the market and can’t pick individual stocks. Best thing is a broad index like SPY. As long as you don’t buy at the top you’ll obviously make out well. Hope it’s not the top
Define long term
Just 200k sitting in a bank rn? I would say maybe put in half now as a lump into VTI or an equivalent and then DCA every month for 6-12 months on the rest
I would honestly put $150K in ETFs and $50k in ETH
Yeah, totally your call. I do think some allocation to crypto would be wise in the long run. But I’m no expert
Buy 2 bitcoin and the rest in a broad low fee ETF.
Pro
Depends how aggressive and hands on you want to be.
I would personally look into buying / starting a business or buying real estate.
Cash flow positive, something you find fun/interesting/ absentee owner/future growth/attractively priced
I’d recommend you use a target date fund for 2065 or 2070, or put it in something like VTI that will track the whole market and have low overhead. And don’t dollar-cost average, it’s better to just put an investment of that size in at once and let it ride for the next 40 years.
Oof yeah completely forgot that it would need to be largely a taxable brokerage. Definitely go the ETF route instead if you can.
$BBBY
Had the same thing happen to me a few years ago with ~$1m.
In priority order
- emergency funds (1-6months salary depending if you have rent, dependents, risk acceptance etc)
- put aside any money you need for next 3-5 years. Debt repayment, home deposit, new car etc. put in a high yield saving account, CDs with your bank, etc. yields might be low but you’ve taken the risk off the table of a down market and needing the money for something.
- lump sum the rest into a low cost ETF. VOO is a popular choice. VTI too. Honestly just 50/50 it. Don’t overthink.
Statistically you’re best to lump sum today. If it goes down tomorrow, new week, rest of the year. Be ok with that as you did it for a reason and your timeline is long enough to ride it out. You’re basically betting the economy will be larger in X years than it is today. Eventually it will be inconsequential.
If you’re not comfortable with that then dollar cost average (DCA) a chunk every 2-4 weeks for 6-12months. Whilst you protect yourself if the market goes down, you miss potential up market.
No one knows if this is the top or the bottom.
The next challenge is just to leave it. Don’t trim a bit here to balance there. Just leave it. Don’t create tax events for yourself and save yourself the time and effort as this albeit boring strategy works well for 99% of people. Keep adding a bit of your paycheck as you can. I’d auto buy one fund but if you go two then just 50/50 it. Too much hassle to balance etc.
It’s a suductive mistress buying individual stocks, playing options etc. There is a lot of risk involved that you often learn the hard way. Honestly 90% of new investors will lost 90% of their money in the first 90 days. Don’t be another statistic.
Chief
I’d probably put $50k to $100k in a broad index fund, and then put the rest into a REIT or real estate syndication. I have a lot more faith in multi family real estate than I do in the stock market over the next 3 to 5 years.