What to do with $125K right now?

[resjudicata]

@lordfeather I got fucked selling a covered call on NET. Bought it a week ago for a $139 strike price and now it’s at $159.. didn’t see that coming

 

[giannis]

@resjudicata Hahaha, . Yeah. I lost out on 23k profit on sens back in June. Settled for selling at my strike for a 4k profit

 

[resjudicata]

@giannis Damn! I’m honestly thinking of just buying it back for a $2k loss on the option. I have 2 weeks until expiration so I’m hoping it comes back down

 

[winnette]

@nick220 In my own recklessness I'd probably try to buy Bitcoin when it hits the 20k mark, or Ethereum at

 

[nick220]

@winnette To this point, I've stayed away from crypto. I still think about it, but I don't know that'd I personally throw more than $10K into crypto. Part of me says, just do it. The other part of me can't stand the volatility.

 

[resjudicata]

@nick220 I think that at this point it has proven itself to be an investment worth having a small place in a portfolio. Id say no more than 2-3% if youre a risk taker/confident in crypto and probably around .5-1% for an average investor. In your situation I would honestly just put 7k on BTC and 3k on ETH and sit on it.

 

[favord]

@nick220 I've put $100k in Bitcoin specially over the course of 4 years since 2017. It sure was a gamble back then but not anymore. My Bitcoin portfolio has gained 250% since. Bitcoin won't go away any time soon with prediction of hitting $100k price point within 3 years. If I were you, I'd put $100k in Bitcoin now & use $25k for vacation. Fly first/business classes around the world, stay in Hyatt/Hitlon hotels using my 100+ days leave saved up.

You could also invest in Fundrise.com. It's a crowd-fund property investment deal with less headache compared to traditional rental investment.

 

[nick220]

@favord I'm glad Bitcoin worked out for you, that's great. I've gone back and forth so many times on just throwing something into crypto, but have not yet to this point. I've wondered about Fundrise and other eREITs like that. Have you used Fundrise personally? If so, how has the experience been? And you're right about the 100 days of leave, I'm sitting at 99 days right now and roughly $10K in airfare credits, hotel points, etc. Can't wait to take a vacation!

 

[cineplus]

@nick220 I’m still pretty young (20), so my experience may not work for you, but I worked with a financial advisor to put some inheritance money a year or so ago into a mutual fund. So far, it’s done quite well for me. My dad (50-something) did the same, and it sounds like it’s done quite well for him, too.

Let us know what you decide to do and how it goes for you!

 

[alfaofbetas]

@cineplus TIL I should become a financial advisor

 

[pasofinodude86]

@alfaofbetas Its a long process and rewarding. If you set up your own shop, you gotta build a rep before you start making some real money

 

[alfaofbetas]

@pasofinodude86 It was really a joke bc he said he paid a financial advisor to put money in a mutual fund.

 

[pasofinodude86]

@alfaofbetas I got that. Just saying its not a bad gig

 

[helpmetohelpothers]

@nick220 Is your emergency fund included in the $125k?

I’d personally make sure I have a solid emergency fund and then pay down the primary mortgage early.

 

[pasofinodude86]

@helpmetohelpothers This. Especially since OP mentioned in a comment he had some health issues

 

[chole]

@nick220 Personally I would get into crypto if I were you. I understand it’s not a popular answer but it’s basically enabled me to upgrade my lifestyle and hit my goals.

 

[nick220]

@chole I've been reading more and more into it, but I don't know that I'm ready to pull the trigger yet. Any good resources I should look into?

 

[chole]

@nick220 I would start here (

https://imgur.com/a/fMOI2dX

).
Obviously it comes with risks and much less protections than stocks, but I would argue fortune favors the bold.

 

[blizzardwild]

@nick220 Have you considered another investment property? It seems like the rental property you had did well, at least when you sold it. It would be a good way to add a passive income stream before you retire, whether you go the short term rental (Airbnb, VRBO) or more long-term route with. In the right area, investment property is pretty much always a safe bet.

If not, index funds are always a great place to park some money so they aren't just sitting there earning no interest.

 

[nick220]

@blizzardwild I might get back into rental properties once we settle down back home in roughly 6 years. Trying to work with PMs from out-of-state and not having eyes on the property can be hard at times. Real estate where I'm at now won't cash flow as rentals unless you find distressed properties, although the appreciation is good. If/when the military moves us, we may keep our primary as a rental, but we'll see what the market looks like when that time comes.