If you had 120,000 in the bank. - Page 2 - TigerDroppings.com

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I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
31923 posts

re: If you had 120,000 in the bank.


Terrible options so far.

I'd buy a house at auction for 50 - 60 cents on the dollar and turn around and put it on the market for 90 percent of its appraised value to move it quick.

What's more likely to happen in the next six months another housing crash or the stock market falls.....






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TyOconner
Troy Fan
NOLA
Member since Nov 2009
10093 posts

re: If you had 120,000 in the bank.


I agree, anything you can get in relatively low and sell for any profit would be the best route. However, the index funds theoretically will always increase in value over time.....it just takes a lot longer but it does eliminate a large amount of risk.





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ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: If you had 120,000 in the bank.


any stock you buy if you hold it will be great.

Even a dog like coca cola would net you 3% and growing annual dividend which if you let it compound for a decade even if 2023 rolls around and coke is $40 still you will have brought in

$3000 the first year and each subsequent quarter you would have more shares paying more dividend






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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
29619 posts

re: If you had 120,000 in the bank.


Use it as a downpayment on a 30 year mortgage (not 15). If you already have a place, get an investment property.

The reason for doing a 30 instead of a 15 is that you don't want to pay extra into retiring a debt that costs less than the rate of inflation after tax.

That assumes you qualify for a low enough rate, of course.






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eng08
LSU Fan
Member since Jan 2013
1519 posts
 Online 

re: If you had 120,000 in the bank.


^ that. Throw the remainder into the market over time dollar cost averaging.

I was in a similar position a few years ago. That's what I did.



This post was edited on 6/3 at 9:59 pm


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battscave
LSU Fan
Member since Apr 2013
253 posts

re: If you had 120,000 in the bank.


Buy some ARNA and MNKD stock quickly.





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Dead Mike
LSU Fan
Cell Block 4
Member since Mar 2010
1758 posts

re: If you had 120,000 in the bank.


I wouldn't dollar cost average a lump sum given that huge chunks would be doing nothing in a savings or money market acct, but I would have a relatively diverse asset allocation with annual rebalancing. Maybe 20% domestic stocks, 20% foreign stocks, 20% bonds, 20% REITs, 20% cash. I haven't really done research into what kind of funds I'd choose to fit each asset class, though.


This post was edited on 6/3 at 10:37 pm


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mattloc
Alabama Fan
Alabama
Member since Sep 2012
1072 posts

re: If you had 120,000 in the bank.


Beach condos in PCB or certain parts of Florida are still relatively cheap, 50% or so off their 05-07 highs. don't buy until January





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matthew25
Ole Miss Fan
Member since Jun 2012
3359 posts

re: If you had 120,000 in the bank.


I would buy $10,000 of each of the 5 equity mutual funds listed below (YTD and 3 year returns are listed) plus one stock you and spouse both like at $10,000. In 3 months, decide how you want to spend another $30,000. I assume you have your 6-month ER fund in a liquid form.

VDAIX Vanguard Div App Idx; 14.89% 15.79%
VGHAX Vanguard HealthCare;Adm 20.14% 19.64%
VFINX Vanguard 500 Index;Inv 16.00% 16.45%
PRHSX T Rowe Price Hlth Sci 21.71% 26.61%
VDIGX Vanguard Div Gro;Inv 16.71% 16.93%






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kywildcatfanone
Kentucky Fan
Wildcat Country!
Member since Oct 2012
15776 posts

re: If you had 120,000 in the bank.


I would start with a fully funded Roth for both of you.





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Drew Orleans
LSU Fan
Member since Mar 2010
18623 posts

re: If you had 120,000 in the bank.


Already maxed both out...





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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
11831 posts

re: If you had 120,000 in the bank.


Here's my short answer.

Take $50000 and invest $10000 in each of these type of stock funds:

Large Cap growth (or Vanguard Dividend Fund)
Mid cap growth
Small cap growth
Global or international growth
Index fund/etf (either S&P or total stock market)

Take another $10000 and buy 3 or 4 stocks that you're familiar with, that pay dividends, set accounts to automatically reinvest.

Take $50000 to use on the down payment on the new house, furnishings, moving costs, and to set up an LLC +buy liability insurance so you can start renting out your current house.

Take the last $10000 and use it for short-term investing, learn options, commodities, precious metals, etc.


Do all of that, combined with what you're already doing, and you'll become incredibly wealthy. Your age is a tremendous advantage, TREE frickING MENDOUS.








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eng08
LSU Fan
Member since Jan 2013
1519 posts
 Online 

re: If you had 120,000 in the bank.


Ha, that's what I did pretty much to a T.







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saderade
New Orleans Saints Fan
America's City
Member since Jul 2005
20972 posts

re: If you had 120,000 in the bank.


I have to agree with Vols advice. We are in a somewhat similar situation but bought a lot and will build a house instead of investing a lot of that money





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Drew Orleans
LSU Fan
Member since Mar 2010
18623 posts

re: If you had 120,000 in the bank.


We will be building a house eventually but it won't be for a few years. Cant let the money sit around that long.

And to answer an earlier poster. Yes, I have a separate 6mo. emergency account.






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matthew25
Ole Miss Fan
Member since Jun 2012
3359 posts

re: If you had 120,000 in the bank.


In the OP you say you have a house note. Are you currently renting or buying.

By all means, real estate should be your first investment.






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Drew Orleans
LSU Fan
Member since Mar 2010
18623 posts

re: If you had 120,000 in the bank.


Bought an apartment next to LSU. Living there currently but will be renting it out when I move.





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monroe71201
Grambling Fan
Where you live
Member since Oct 2011
344 posts

re: If you had 120,000 in the bank.


How do you have 120k in the bank at 25? Pretty sure I hadnt made 120k in my whole life at 25.





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Drew Orleans
LSU Fan
Member since Mar 2010
18623 posts

re: If you had 120,000 in the bank.


Wife has helped out quite a bit.

Actually she currently saves all of her income and I pay all the bills. Save a good amount of mine though, too. And I funded the 6 mo. ER account.






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I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
31923 posts

re: If you had 120,000 in the bank.


I'm leaning towards a troll thread but I'll let it slide.





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