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Started By
Message
Just become a millionaire, how should I invest my money?
Posted on 12/5/24 at 7:49 am
Posted on 12/5/24 at 7:49 am
Due to some fortunate circumstances, my income and net worth has sky rocketed to end this year and should continue for the next two years. I should be able to pay off my mortgage around this time next year if things play out similarly.
Only debt I have is my mortgage
My kids 529 is funded and both should have more than enough
I earn too much for rothIRA
I have some $ in a brokerage account I dollar cost average add into
The rest I have in a HYSA
What’s the best way for me to strategically make my money work for me?
Only debt I have is my mortgage
My kids 529 is funded and both should have more than enough
I earn too much for rothIRA
I have some $ in a brokerage account I dollar cost average add into
The rest I have in a HYSA
What’s the best way for me to strategically make my money work for me?
24
Posted on 12/5/24 at 7:54 am to U_south_cack
You're going to get 20 different answers here and it all depends on your risk tolerance.
Pay off debt (unless it is cheap debt)
Stick it in an S&P 500 index and Bitcoin ETF and let the market do its thing.
Pay off debt (unless it is cheap debt)
Stick it in an S&P 500 index and Bitcoin ETF and let the market do its thing.
Posted on 12/5/24 at 7:56 am to I Love Bama
I have no exposure to BTC
Only debt is mortgage
30 years old so risk tolerance is pretty higher
Only debt is mortgage
30 years old so risk tolerance is pretty higher
Posted on 12/5/24 at 7:58 am to U_south_cack
What is your interest rate on the mortgage?
Spend $15 and read The Bitcoin Standard before you buy anything.
Spend $15 and read The Bitcoin Standard before you buy anything.
Posted on 12/5/24 at 8:01 am to U_south_cack
sounds like you are asking for investment advice which I would caution against gathering on a message board. Your best investment advisor is you…do your research
otherwise bama’s advice is the best you can get. Invest in the markets and long term you’ll make money. Open an account at vanguard and buy the funds that are appealing to you either indexed or sector specific
for example I believe software is going to recycle to 2-3 year highs this year so that’s what most of my money is going (VITAX). On the other hand I might be wrong so I have money in indexed funds and individual equity
otherwise bama’s advice is the best you can get. Invest in the markets and long term you’ll make money. Open an account at vanguard and buy the funds that are appealing to you either indexed or sector specific
for example I believe software is going to recycle to 2-3 year highs this year so that’s what most of my money is going (VITAX). On the other hand I might be wrong so I have money in indexed funds and individual equity
This post was edited on 12/5/24 at 8:03 am
Posted on 12/5/24 at 8:01 am to U_south_cack
How much time is left on your mortgage and what is your rate? That's the only thing I might do differently.
One thing I would do everything in my power is to not let lifestyle creep set in. I let that kill a couple of my larger raises earlier in life and have since put 100% of my raises into brokerage. Get that money out of your spending account and into your brokerage the DAY you get paid. Don't see the money, don't know it's "missing". Especially so if your windfall is a lump sum or a short term contract.
As far as brokerage investments, QQQ or whatever other consistent ETF's is what you're going to get here.
One thing I would do everything in my power is to not let lifestyle creep set in. I let that kill a couple of my larger raises earlier in life and have since put 100% of my raises into brokerage. Get that money out of your spending account and into your brokerage the DAY you get paid. Don't see the money, don't know it's "missing". Especially so if your windfall is a lump sum or a short term contract.
As far as brokerage investments, QQQ or whatever other consistent ETF's is what you're going to get here.
This post was edited on 12/5/24 at 8:07 am
Posted on 12/5/24 at 8:06 am to WhiskeyThrottle
29 years and 5.75 is the rate. I could pay it off next year if things continue to work out though
Posted on 12/5/24 at 8:14 am to U_south_cack
quote:
29 years and 5.75 is the rate. I could pay it off next year if things continue to work out though
Dang man. I'm jealous of your position. If you value being debt free more than the numbers game of making more in your brokerage than you pay in mortgage, I'd personally go for it. Just know it isn't the mathematically most logical approach.
And for the record, if I had your position, I'd get my house paid off ASAP. Monthly payments stress me out more than a looming retirement date. And again, if you can get it paid off and be discipline enough to apply your mortgage for the remainder of your mortgage term into your brokerage, you'll come out in a great place.
The lifestyle creep is the pitfall I'd avoid. Enjoy some of it, but put a strict limit on it.
Posted on 12/5/24 at 8:20 am to U_south_cack
What is your mortgage rate? If it's sub-4% then I would consider not paying it off.
You don't make too much for a Roth IRA. You can and should be doing backdoor Roth IRA conversions.
What do you mean exactly?
Generally speaking, IMO it's likely you should be looking to minimize taxes, minimize fees, and minimize risk (probably in that order too). Then it's just a matter of figuring out what appreciating assets you want to buy.
The way I look at it is all individual assets will be worth 0 over a long enough timeline and so they require active management to some degree.
This even includes real estate, individual blue chip stocks, bitcoin, whatever.
Will a particular rental house, Amazon shares, bitcoin, etc. be worth 0 in a year? 100% no, but in 1000 years 100% yes. So when between 2025 and 3025 do they each go to 0?
In any case, until the entire system goes to 0, the overalll stock market will be worth more far into the future than it is worth today.
It's possible that the event(s) that bring the whole market to 0 match the individual rental house, Amazon shares, and bitcoin going to 0 but most likely this isn't the case. Most likely there will be a time in the future when the total market is still chugging along while that individual rental house, or Amazon, or bitcoin are gone.
So I say all that to say this:
If you don't have a very specific plan to execute on how to strategically make the money work for you, buy total market index (starting in tax-advantaged accounts then working your way down to the brokerage account) and don't worry about anything else.
You don't make too much for a Roth IRA. You can and should be doing backdoor Roth IRA conversions.
quote:
What’s the best way for me to strategically make my money work for me?
What do you mean exactly?
Generally speaking, IMO it's likely you should be looking to minimize taxes, minimize fees, and minimize risk (probably in that order too). Then it's just a matter of figuring out what appreciating assets you want to buy.
The way I look at it is all individual assets will be worth 0 over a long enough timeline and so they require active management to some degree.
This even includes real estate, individual blue chip stocks, bitcoin, whatever.
Will a particular rental house, Amazon shares, bitcoin, etc. be worth 0 in a year? 100% no, but in 1000 years 100% yes. So when between 2025 and 3025 do they each go to 0?
In any case, until the entire system goes to 0, the overalll stock market will be worth more far into the future than it is worth today.
It's possible that the event(s) that bring the whole market to 0 match the individual rental house, Amazon shares, and bitcoin going to 0 but most likely this isn't the case. Most likely there will be a time in the future when the total market is still chugging along while that individual rental house, or Amazon, or bitcoin are gone.
So I say all that to say this:
If you don't have a very specific plan to execute on how to strategically make the money work for you, buy total market index (starting in tax-advantaged accounts then working your way down to the brokerage account) and don't worry about anything else.
Posted on 12/5/24 at 8:22 am to U_south_cack
quote:
What’s the best way for me to strategically make my money work for me?
You can go the income route. I have a lot of stocks that pay "qualified" dividends. Lots of preffereds. And some bonds.
I want to generate income, every year. Something you really don't get that with a S&P 500 fund or crypto.
Posted on 12/5/24 at 8:23 am to frogtown
You need to get a financial advisor and not ask a bunch of jackasses on the internet.
Posted on 12/5/24 at 8:28 am to U_south_cack
Posted on 12/5/24 at 8:30 am to U_south_cack
quote:
I should be able to pay off my mortgage
Probably would not do this, money should be growing at a faster rate invested than your interest. Paying off mortgage will feel good, but probably not right path fiscally speaking.
Are you getting enough money that puts you over the million dollar mark or are you getting an actual 7 figure influx of cash/worth? Those are two different scenarios.
If you are about to be gifted 7 figures, I would talk to a CPA and CFP. Money board is very smart with money, however there is growth, tax implications, legal, etc. you should get proper feedback on if you have not gone through that before.
Posted on 12/5/24 at 8:55 am to U_south_cack
quote:On your asset sheet, are you net of taxes? You might not be a millionaire yet if not.
Just become a millionaire,
quote:Don't.
I should be able to pay off my mortgage around this time next year if things play out similarly.
Posted on 12/5/24 at 8:56 am to saints5021
quote:
You need to get a financial advisor
This isn't rocket science.
Posted on 12/5/24 at 9:05 am to frogtown
quote:
This isn't rocket science
It is if he is talking about an actual 7 figure influx of cash. OP does not really state what the wealth is from. Money, land, real estate, other investments, etc.
He should talk to certified people in person and not a message board if this is legit million dollars of something he has not had before.
Posted on 12/5/24 at 11:15 am to U_south_cack
I am happy for you.
I paid off my mortgage after a number of years and never looked back and
I am heavy in the S & P Index fund. Hard to beat those returns over the long haul.
Save first and spend what is left. Do not spend first and try to save what is left over.
I paid off my mortgage after a number of years and never looked back and
I am heavy in the S & P Index fund. Hard to beat those returns over the long haul.
Save first and spend what is left. Do not spend first and try to save what is left over.
Posted on 12/5/24 at 11:38 am to U_south_cack
Sit down with a financial advisor & discuss what your goals are & plan accordingly.
Posted on 12/5/24 at 11:43 am to U_south_cack
Posted on 12/5/24 at 11:58 am to U_south_cack
quote:
Just become a millionaire, how should I invest my money?
Dang you can get like a whole basket worth of groceries
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