If you had $100k, what investment vehicle would you choose?
Best way to invest $100k?
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74 Replies |
Last: 1 mo ago by 4th and Inches
Fun question to ponder. So much depends on one's age, appetite for risk, other existing assets, etc. As an active trader for 30 years who is now retired and looking to cut back on risk, preserve capital, and simplify my stock portfolio (probably too many tickers in there now, but I've been whittling them down the last couple of years), I'd look to portion that 100K out among the following: SCHD, XLV, XLK, MGK, SMH, MOAT, and T-bills. If you are into options, you can sell cash secured puts on these and either collect premium or get assigned. Once assigned, you could sell covered calls against. I keep strangles on most of my core holdings, fwiw.
One can spend (waste?) many hours building portfolios to see how they have performed. Here's a free and fun tool: https://www.portfoliovisualizer.com/backtest-portfolio
You can build a portfolio that has beaten SPY consistently with smaller draw downs with the above mentioned. Of course, past performance is no guarantee of future blah, blah, blah... Good luck.
One can spend (waste?) many hours building portfolios to see how they have performed. Here's a free and fun tool: https://www.portfoliovisualizer.com/backtest-portfolio
You can build a portfolio that has beaten SPY consistently with smaller draw downs with the above mentioned. Of course, past performance is no guarantee of future blah, blah, blah... Good luck.
coffee can buried in the backyard. Thanks Joe Tarden!
dalecoin.
pro ecclesia, pro javelina
CDs are becoming safe and sexy again. You can get 4.9 APR for a 3 month and 5 percent for locking in for a year. I expect markets to remain extremely volatile as long as President Memory Care and his flying monkeys are steering the ship.Doc Holliday said:
If you had $100k, what investment vehicle would you choose?
I remember back in the mid/ late 80s, CDs were paying 14-15 percent. Don't think we will see those again, but I believe interest rates have more room to rise.
"Never underestimate Joe's ability to **** things up!"
-- Barack Obama
-- Barack Obama
Thanks for this!curtpenn said:
Fun question to ponder. So much depends on one's age, appetite for risk, other existing assets, etc. As an active trader for 30 years who is now retired and looking to cut back on risk, preserve capital, and simplify my stock portfolio (probably too many tickers in there now, but I've been whittling them down the last couple of years), I'd look to portion that 100K out among the following: SCHD, XLV, XLK, MGK, SMH, MOAT, and T-bills. If you are into options, you can sell cash secured puts on these and either collect premium or get assigned. Once assigned, you could sell covered calls against. I keep strangles on most of my core holdings, fwiw.
One can spend (waste?) many hours building portfolios to see how they have performed. Here's a free and fun tool: https://www.portfoliovisualizer.com/backtest-portfolio
You can build a portfolio that has beaten SPY consistently with smaller draw downs with the above mentioned. Of course, past performance is no guarantee of future blah, blah, blah... Good luck.
I want to learn about options.
hull's text is still highly regarded:
https://www.amazon.com/Options-Futures-Other-Derivatives-11th/dp/B0B9JS99C2/ref=sr_1_1?crid=28KLFGB9RJQ0A&keywords=john+hull+options+futures+and+other+derivatives+11th+edition&qid=1681415537&sprefix=hull+options+11th+edi%2Caps%2C207&sr=8-1
https://www.amazon.com/Options-Futures-Other-Derivatives-11th/dp/B0B9JS99C2/ref=sr_1_1?crid=28KLFGB9RJQ0A&keywords=john+hull+options+futures+and+other+derivatives+11th+edition&qid=1681415537&sprefix=hull+options+11th+edi%2Caps%2C207&sr=8-1
pro ecclesia, pro javelina
Doc Holliday said:Thanks for this!curtpenn said:
Fun question to ponder. So much depends on one's age, appetite for risk, other existing assets, etc. As an active trader for 30 years who is now retired and looking to cut back on risk, preserve capital, and simplify my stock portfolio (probably too many tickers in there now, but I've been whittling them down the last couple of years), I'd look to portion that 100K out among the following: SCHD, XLV, XLK, MGK, SMH, MOAT, and T-bills. If you are into options, you can sell cash secured puts on these and either collect premium or get assigned. Once assigned, you could sell covered calls against. I keep strangles on most of my core holdings, fwiw.
One can spend (waste?) many hours building portfolios to see how they have performed. Here's a free and fun tool: https://www.portfoliovisualizer.com/backtest-portfolio
You can build a portfolio that has beaten SPY consistently with smaller draw downs with the above mentioned. Of course, past performance is no guarantee of future blah, blah, blah... Good luck.
I want to learn about options.
Almost endless info out there easily available online now about options. I fiddled with them off and on almost 20 years but never managed to do much more than break even in a good year. Finally started listening a lot to Tom Sosnoff who is an interesting guy with a fascinating story. He is the founder of TastyWorks. They have hours of live streaming every day. A lot of their basics make sense to me and I've gradually learned to keep things very simple while looking to just make a little here and there regardless of market direction as we go along while essentially staying fully invested. It's beyond my ability to trade my way to a fortune. Ask me how I know. You might also just search the term "the wheel" as it pertains to options. That accounts for maybe 80% of the options I trade.
I was trying to think of his name - alot of people like his site and his overall trading platform.curtpenn said:Doc Holliday said:Thanks for this!curtpenn said:
Fun question to ponder. So much depends on one's age, appetite for risk, other existing assets, etc. As an active trader for 30 years who is now retired and looking to cut back on risk, preserve capital, and simplify my stock portfolio (probably too many tickers in there now, but I've been whittling them down the last couple of years), I'd look to portion that 100K out among the following: SCHD, XLV, XLK, MGK, SMH, MOAT, and T-bills. If you are into options, you can sell cash secured puts on these and either collect premium or get assigned. Once assigned, you could sell covered calls against. I keep strangles on most of my core holdings, fwiw.
One can spend (waste?) many hours building portfolios to see how they have performed. Here's a free and fun tool: https://www.portfoliovisualizer.com/backtest-portfolio
You can build a portfolio that has beaten SPY consistently with smaller draw downs with the above mentioned. Of course, past performance is no guarantee of future blah, blah, blah... Good luck.
I want to learn about options.
Almost endless info out there easily available online now about options. I fiddled with them off and on almost 20 years but never managed to do much more than break even in a good year. Finally started listening a lot to Tom Sosnoff who is an interesting guy with a fascinating story. He is the founder of TastyWorks. They have hours of live streaming every day. A lot of their basics make sense to me and I've gradually learned to keep things very simple while looking to just make a little here and there regardless of market direction as we go along while essentially staying fully invested. It's beyond my ability to trade my way to a fortune. Ask me how I know. You might also just search the term "the wheel" as it pertains to options. That accounts for maybe 80% of the options I trade.
- kkm
{ sipping coffee }
{ eating double chocolate muffin }
pro ecclesia, pro javelina
TSMDoc Holliday said:
If you had $100k, what investment vehicle would you choose?
ASML
COST
NVDA
AAPL
AMD
BRK-B
LLY
https://www.cbsnews.com/news/how-googles-dont-be-evil-motto-has-evolved-for-ai-age-60-minutes-2023-04-16/
NVDA, ASML, and TSM leads the charge on this. That's why I love these stocks.
NVDA, ASML, and TSM leads the charge on this. That's why I love these stocks.
Along these lines, if you have a CD making 'meh' rates, call your bank and tell them you are moving your CD to another bank, but will consider staying if they can offer a higher rate. My wife and I kept our CDs at two banks that way but moved their interest rates from 2.5% and 2.6% APR to 4.35% APR for a 12-month CD.RD2WINAGNBEAR86 said:CDs are becoming safe and sexy again. You can get 4.9 APR for a 3 month and 5 percent for locking in for a year. I expect markets to remain extremely volatile as long as President Memory Care and his flying monkeys are steering the ship.Doc Holliday said:
If you had $100k, what investment vehicle would you choose?
I remember back in the mid/ late 80s, CDs were paying 14-15 percent. Don't think we will see those again, but I believe interest rates have more room to rise.
A third bank could only offer 0.5% on a renewal, so we moved that CD to one offering the 4.35%.
12 month cd at 4.9%Doc Holliday said:
If you had $100k, what investment vehicle would you choose?
It's money I don't want to touch for like 16 years or so.Ghostrider said:12 month cd at 4.9%Doc Holliday said:
If you had $100k, what investment vehicle would you choose?
I want to compound it.
Would a CD still be good for this?
Up to you....I don't see the market doing much this year. At best, the market goes up 5%. You are guaranteed that with a cd. Then after 12 mos re-evaluate the market.
Or dump in into a few index funds.....
Or dump in into a few index funds.....
12 month T-bill yields 4.78%Oldbear83 said:Along these lines, if you have a CD making 'meh' rates, call your bank and tell them you are moving your CD to another bank, but will consider staying if they can offer a higher rate. My wife and I kept our CDs at two banks that way but moved their interest rates from 2.5% and 2.6% APR to 4.35% APR for a 12-month CD.RD2WINAGNBEAR86 said:CDs are becoming safe and sexy again. You can get 4.9 APR for a 3 month and 5 percent for locking in for a year. I expect markets to remain extremely volatile as long as President Memory Care and his flying monkeys are steering the ship.Doc Holliday said:
If you had $100k, what investment vehicle would you choose?
I remember back in the mid/ late 80s, CDs were paying 14-15 percent. Don't think we will see those again, but I believe interest rates have more room to rise.
A third bank could only offer 0.5% on a renewal, so we moved that CD to one offering the 4.35%.
Long story but my wife won't spend money on any government product ...Tempus Edax Rerum said:12 month T-bill yields 4.78%Oldbear83 said:Along these lines, if you have a CD making 'meh' rates, call your bank and tell them you are moving your CD to another bank, but will consider staying if they can offer a higher rate. My wife and I kept our CDs at two banks that way but moved their interest rates from 2.5% and 2.6% APR to 4.35% APR for a 12-month CD.RD2WINAGNBEAR86 said:CDs are becoming safe and sexy again. You can get 4.9 APR for a 3 month and 5 percent for locking in for a year. I expect markets to remain extremely volatile as long as President Memory Care and his flying monkeys are steering the ship.Doc Holliday said:
If you had $100k, what investment vehicle would you choose?
I remember back in the mid/ late 80s, CDs were paying 14-15 percent. Don't think we will see those again, but I believe interest rates have more room to rise.
A third bank could only offer 0.5% on a renewal, so we moved that CD to one offering the 4.35%.
I tip my hat to your wife. I feel the same way. One can get as good or better rates at many banks in the private sector. More Capitalism and Free Enterprise. Less government.Oldbear83 said:Long story but my wife won't spend money on any government product ...Tempus Edax Rerum said:12 month T-bill yields 4.78%Oldbear83 said:Along these lines, if you have a CD making 'meh' rates, call your bank and tell them you are moving your CD to another bank, but will consider staying if they can offer a higher rate. My wife and I kept our CDs at two banks that way but moved their interest rates from 2.5% and 2.6% APR to 4.35% APR for a 12-month CD.RD2WINAGNBEAR86 said:CDs are becoming safe and sexy again. You can get 4.9 APR for a 3 month and 5 percent for locking in for a year. I expect markets to remain extremely volatile as long as President Memory Care and his flying monkeys are steering the ship.Doc Holliday said:
If you had $100k, what investment vehicle would you choose?
I remember back in the mid/ late 80s, CDs were paying 14-15 percent. Don't think we will see those again, but I believe interest rates have more room to rise.
A third bank could only offer 0.5% on a renewal, so we moved that CD to one offering the 4.35%.
"Never underestimate Joe's ability to **** things up!"
-- Barack Obama
-- Barack Obama
Lots of significant earnings being reported this week. Maybe wait to see if there's a big down day then sell cash secured puts on SPY or XSP. You can probably collect $400+ in premium while requiring about $37,000ish in capital with mid-July expiration. This is about 10% down on the S&P index from where we are now. Could work out to about 4.7-5% annualized return if not exercised. If assigned, sell cash secured puts against shares as long as necessary. With $100,000 you could keep a couple of contracts rolling with no margin. Perhaps wait a month before putting on the second contract.
16 years, I think I'd just dump into an index fund and not have to worry about it...but I'm lazy and not real aggressive with investing. If you have the time, then really knowing a few markets/stocks can help you time some buys and sells.Doc Holliday said:It's money I don't want to touch for like 16 years or so.Ghostrider said:12 month cd at 4.9%Doc Holliday said:
If you had $100k, what investment vehicle would you choose?
I want to compound it.
Would a CD still be good for this?
A Random Walk Down Roast Beef!william said:
hull's text is still highly regarded:
https://www.amazon.com/Options-Futures-Other-Derivatives-11th/dp/B0B9JS99C2/ref=sr_1_1?crid=28KLFGB9RJQ0A&keywords=john+hull+options+futures+and+other+derivatives+11th+edition&qid=1681415537&sprefix=hull+options+11th+edi%2Caps%2C207&sr=8-1
--Burton G. Au-Jus
If you are going with CDs, you can get better rates with brokered CDs, as it gives you access to banks large and small, regional and national, versus having to look at multiple banks yourself. Schwab and TD Ameritrade have an excellent variety of options. I would guess other major brokers have similar offerings. Usually there is no fee or commission involved if you do the transactions online.Oldbear83 said:Long story but my wife won't spend money on any government product ...Tempus Edax Rerum said:12 month T-bill yields 4.78%Oldbear83 said:Along these lines, if you have a CD making 'meh' rates, call your bank and tell them you are moving your CD to another bank, but will consider staying if they can offer a higher rate. My wife and I kept our CDs at two banks that way but moved their interest rates from 2.5% and 2.6% APR to 4.35% APR for a 12-month CD.RD2WINAGNBEAR86 said:CDs are becoming safe and sexy again. You can get 4.9 APR for a 3 month and 5 percent for locking in for a year. I expect markets to remain extremely volatile as long as President Memory Care and his flying monkeys are steering the ship.Doc Holliday said:
If you had $100k, what investment vehicle would you choose?
I remember back in the mid/ late 80s, CDs were paying 14-15 percent. Don't think we will see those again, but I believe interest rates have more room to rise.
A third bank could only offer 0.5% on a renewal, so we moved that CD to one offering the 4.35%.
Great advice, blackie. Fidelity Investments is a great option as well.blackie said:If you are going with CDs, you can get better rates with brokered CDs, as it gives you access to banks large and small, regional and national, versus having to look at multiple banks yourself. Schwab and TD Ameritrade have an excellent variety of options. I would guess other major brokers have similar offerings. Usually there is no fee or commission involved if you do the transactions online.Oldbear83 said:Long story but my wife won't spend money on any government product ...Tempus Edax Rerum said:12 month T-bill yields 4.78%Oldbear83 said:Along these lines, if you have a CD making 'meh' rates, call your bank and tell them you are moving your CD to another bank, but will consider staying if they can offer a higher rate. My wife and I kept our CDs at two banks that way but moved their interest rates from 2.5% and 2.6% APR to 4.35% APR for a 12-month CD.RD2WINAGNBEAR86 said:CDs are becoming safe and sexy again. You can get 4.9 APR for a 3 month and 5 percent for locking in for a year. I expect markets to remain extremely volatile as long as President Memory Care and his flying monkeys are steering the ship.Doc Holliday said:
If you had $100k, what investment vehicle would you choose?
I remember back in the mid/ late 80s, CDs were paying 14-15 percent. Don't think we will see those again, but I believe interest rates have more room to rise.
A third bank could only offer 0.5% on a renewal, so we moved that CD to one offering the 4.35%.
"Never underestimate Joe's ability to **** things up!"
-- Barack Obama
-- Barack Obama
yep, that is what i do. Use the fidelity ladder feature.RD2WINAGNBEAR86 said:Great advice, blackie. Fidelity Investments is a great option as well.blackie said:If you are going with CDs, you can get better rates with brokered CDs, as it gives you access to banks large and small, regional and national, versus having to look at multiple banks yourself. Schwab and TD Ameritrade have an excellent variety of options. I would guess other major brokers have similar offerings. Usually there is no fee or commission involved if you do the transactions online.Oldbear83 said:Long story but my wife won't spend money on any government product ...Tempus Edax Rerum said:12 month T-bill yields 4.78%Oldbear83 said:Along these lines, if you have a CD making 'meh' rates, call your bank and tell them you are moving your CD to another bank, but will consider staying if they can offer a higher rate. My wife and I kept our CDs at two banks that way but moved their interest rates from 2.5% and 2.6% APR to 4.35% APR for a 12-month CD.RD2WINAGNBEAR86 said:CDs are becoming safe and sexy again. You can get 4.9 APR for a 3 month and 5 percent for locking in for a year. I expect markets to remain extremely volatile as long as President Memory Care and his flying monkeys are steering the ship.Doc Holliday said:
If you had $100k, what investment vehicle would you choose?
I remember back in the mid/ late 80s, CDs were paying 14-15 percent. Don't think we will see those again, but I believe interest rates have more room to rise.
A third bank could only offer 0.5% on a renewal, so we moved that CD to one offering the 4.35%.
I like this.Tempus Edax Rerum said:TSMDoc Holliday said:
If you had $100k, what investment vehicle would you choose?
ASML
COST
NVDA
AAPL
AMD
BRK-B
LLY
I've had a lot of success with selling covered calls the last year and loading up 70% on T-Bills. But hey, I'm way over 80 years of age lol.
The youth in my trading mind makes me want to chose the eight above, maybe minus BRK-B.
Doc Holliday said:
If you had $100k, what investment vehicle would you choose?
1oz Gold Eagles
ball bearings.
- Fletch
en serio, pon te un poco de energia en el.
XLE.
BID.
{ sipping covfefe }
- Fletch
en serio, pon te un poco de energia en el.
XLE.
BID.
{ sipping covfefe }
pro ecclesia, pro javelina
I am up 24% so far this year as of today's close. I have some other names in my portfolio not mentioned in this list.Aliceinbubbleland said:I like this.Tempus Edax Rerum said:TSMDoc Holliday said:
If you had $100k, what investment vehicle would you choose?
ASML
COST
NVDA
AAPL
AMD
BRK-B
LLY
I've had a lot of success with selling covered calls the last year and loading up 70% on T-Bills. But hey, I'm way over 80 years of age lol.
The youth in my trading mind makes me want to chose the eight above, maybe minus BRK-B.
Yeah, probably not a good idea at your age!
If things go according to plan I hope to have it to hand off to kids, grandkids and great grandkids lol. I don't want to burn through it in some mindless retirement centerTempus Edax Rerum said:I am up 24% so far this year as of today's close. I have some other names in my portfolio not mentioned in this list.Aliceinbubbleland said:I like this.Tempus Edax Rerum said:TSMDoc Holliday said:
If you had $100k, what investment vehicle would you choose?
ASML
COST
NVDA
AAPL
AMD
BRK-B
LLY
I've had a lot of success with selling covered calls the last year and loading up 70% on T-Bills. But hey, I'm way over 80 years of age lol.
The youth in my trading mind makes me want to chose the eight above, maybe minus BRK-B.
Yeah, probably not a good idea at your age!
If you had asked this 15 years ago, knowing what I know now, I would have said buy a building or other real property in the down town Waco area.
You would have been far better off buying AAPL, MSFT, GOOG, AMZN, NVDA and META 15 years ago than RE in downtown Waco and with far less hassle.PartyBear said:
If you had asked this 15 years ago, knowing what I know now, I would have said buy a building or other real property in the down town Waco area.
I believe Warren Buffett's purchase of Apple stock has been far and away the best stock purchase he ever made .
Good picks indeed...the other important part of that regimen is knowing when to sell...or NOT sell...I've enjoyed my 50+ years in the market..and I'm perfectly content at this point to hold short term treasuries and CD's at @5 percent...But that's my age and risk tolerance speaking...Good luck to you all..Tempus Edax Rerum said:You would have been far better off buying AAPL, MSFT, GOOG, AMZN, NVDA and META 15 years ago than RE in downtown Waco and with far less hassle.PartyBear said:
If you had asked this 15 years ago, knowing what I know now, I would have said buy a building or other real property in the down town Waco area.
I believe Warren Buffett's purchase of Apple stock has been far and away the best stock purchase he ever made .
Doc Holliday said:
If you had $100k, what investment vehicle would you choose?
My wife and I are buying a waterfront lot in the Bahamas. It will take us a bit to add some cottages to it. Anyway, this is how we are investing $100k.
Thats cool, What kind of profit/returns are you expecting?ScottS said:Doc Holliday said:
If you had $100k, what investment vehicle would you choose?
My wife and I are buying a waterfront lot in the Bahamas. It will take us a bit to add some cottages to it. Anyway, this is how we are investing $100k.
Doc Holliday said:Thats cool, What kind of profit/returns are you expecting?ScottS said:Doc Holliday said:
If you had $100k, what investment vehicle would you choose?
My wife and I are buying a waterfront lot in the Bahamas. It will take us a bit to add some cottages to it. Anyway, this is how we are investing $100k.
Great question. We need to have 2 units rented 1/4 of the time to break even (where we don't pay anything). After 10 years we would have our loan done with. The real reason we are doing this is because we've seen the price of beach rentals double or triple over the last 8 years. This is our way of countering that.
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