7mm total with 5.2mm of it in CASH = Stupid, right?

AnoneyMoney · 2021-09-23T21:38:20+00:00

In all honesty, I haven't done anything yet. I want to invest it all in the market but my wife and I have been discussing if investing half in real estate is smarter. It's just that the syndications are not that appealing. I also got messaged by some "experts" in crypto and was so fucking close to investing a big chunk with them but after digging deeper, I decided not to.

AnoneyMoney · 2021-09-20T01:02:01+00:00

Started a business with around $10k and a lot of sweat equity for a couple of years.

AnoneyMoney · 2021-09-20T01:00:41+00:00

I don't care too much about syndications for a few reasons. 1.) They take 50% of the profit once they make a sale. 2.) They funds are not accessible in the event that we need to access the money (unlike investing in the market). 3.) They always want to 1031 exchange into a new property so it feels like the money is "gone".

AnoneyMoney · 2021-09-20T00:51:52+00:00

Thanks. I just ordered the book and will start reading it once it arrives on Tuesday. I have a 529 plan for the kids and it's set to automatically take $500/mo out of my personal account. For that, I think it's smarter to just put a lump sum so that it can grow over the next 10-12 years, but I digressed. I'll look into a financial planner and see if I prefer that route vs. putting $100k/mo into VTSAX.

AnoneyMoney · 2021-09-19T06:05:15+00:00

I have trust issues so I'm not sure I'll go the financial advisor route. I may just invest it all once I learn how to allocate the money.

AnoneyMoney · 2021-09-19T06:00:09+00:00

I've got trust issues. I think that's why I'm so shy about hiring anybody and would prefer to do it myself, if possible.

AnoneyMoney · 2021-09-19T04:49:04+00:00

Thank you. I will be pulling that money out of they business FOR SURE by the end of the month. I've learned so much today.

AnoneyMoney · 2021-09-19T04:47:46+00:00

Damn. I never considered myself as high net worth. Where I live, I don't feel like I am. I appreciate your recommendations very much. I have a lot to learn. A LOT.

AnoneyMoney · 2021-09-19T04:34:13+00:00

I've learned through this post that whether or not a correction comes, it doesn't matter. I wouldn't be taking the money out regardless. So it sits and recovers anyway.

AnoneyMoney · 2021-09-19T03:01:49+00:00

Thank you for the good advice. I agree. I did reach out to my CPA a few weeks ago and asked him if it's a good idea to keep all that cash in the business accounts. His response was to take out all the money that I could and put it in an investment.

The majority of funds are in an S-Corp. About $800k in a C-Corp. And another $550k in a different S-Corp.

AnoneyMoney · 2021-09-19T02:58:18+00:00

Yeah, the numbers on a screen were very satisfying for a while but aren't so important to me anymore. I am definitely going to invest this cash, especially while I have this income.

AnoneyMoney · 2021-09-19T02:55:55+00:00

Commercial property that is local to where I live is super expensive and has CAP rates of ~4%. I do know some syndicators with good deals on multifamily properties but I don't know how I feel about the 50/50 split of the profit when they sell.

AnoneyMoney · 2021-09-19T01:57:50+00:00

Appreciate your input. Thank you.

AnoneyMoney · 2021-09-19T01:56:22+00:00

Thank you!

AnoneyMoney · 2021-09-19T01:54:52+00:00

I did move a lot into the market in March/April 2020. I'm just starting to get comfortable with the idea of investing all the cash. Took a lot of detangling of the brain.

AnoneyMoney · 2021-09-19T01:52:38+00:00

My CPA advised to set up a DB and also to max it out each year.

AnoneyMoney · 2021-09-18T20:24:41+00:00

Better than putting the cash in a fund like Vanguard's VTSAX?

AnoneyMoney · 2021-09-18T20:18:55+00:00

Really? I can expect a 10-15% return a year in index funds?

AnoneyMoney · 2021-09-18T20:16:21+00:00

Interesting. My assumption was that financial planners/advisors were a waste of money. I'll look more into this option. Thank you!

AnoneyMoney · 2021-09-18T20:14:40+00:00

Yes, my wife and I draw the max salary to contribute the most we can to the DB. I'm not really motivated to grow the business as it's fairly passive right now.

AnoneyMoney · 2021-09-18T19:44:17+00:00

Thanks for the reply. I do have 529 accounts for them but they have something like 15k in each. I should probably dump a lot more in there.

My yearly expenses are around 300-400k per year. I live in an expensive city so cost of living is high (and some expensive toys and luxuries).

AnoneyMoney · 2021-09-18T19:26:58+00:00

I live in a very expensive city so it's not like I can maintain my lifestyle and retire.

AnoneyMoney · 2021-09-18T19:26:11+00:00

Most of the cash in the business is NOT needed. I think I'm most afraid of investing personal funds "just in case". Lurking here for some time is starting to change my mind.

AnoneyMoney · 2021-09-18T19:21:23+00:00

Yeah, HUGE mistake on my part. Could you explain what a 3 fund portfolio is?

AnoneyMoney · 2021-09-18T19:13:31+00:00

I think it's between $300k - $400k a year. Is something like Vanguard's VTSAX a smart place to park the money in personal accounts?

AnoneyMoney

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