
How would you invest $500k at 30? - dawhizkid
I want to more aggressively invest some cash but unsure where to put it.
======
nutcracker46
Do some serious homework on the markets before putting that 500k on the line.
Some, but not all, and probably not half of the stocks in the S&P 500 will
continue to gain this year. Bonds have run up recently, so they also have more
immediate risk of decline / low yield.

Also, consider things not so obvious: option selling strategies. Warren Buffet
does it, so smart is as smart does.

~~~
zapperdapper
Yes, tempting to hold in cash and wait for the market correction - if it ever
comes.

~~~
marketgod
The market is fine. There is no recession here. SPY support is $249.57 right
now.

Inflation eats cash.

------
ChasingReturns
Imagine my surprise this morning when I created a throwaway account to ask HN
how I can actively invest $500K, go to the “Ask HN” tab to see how these posts
are usually formulated, and someone’s asked almost the exact same question
(I’m a couple years younger than 30 and I’m looking at small businesses).

~~~
quietthrow
Work or worked at lyft? Haha

------
icedchai
VTSAX or VTI: Vanguard Total Stock Market Index.

~~~
quietthrow
Serious question: what happens when everyone invests in index funds?

Would appreciate if one can point to research related to this scenario

~~~
badpun
The logical conclusion seems to be that individual stock picking becomes more
attractive (there are overperforming stocks, but the vanguard funds can’t take
advantage of it).

~~~
LUmBULtERA
This -- you'd expect that actively managed funds would start, on average, to
give better performance than the low-cost passive indexes. In the long-run
this would likely reach an equilibrium where, on average, results are
comparable -- minus fees. We are not there yet. Maybe we never will, because
reasons.

------
countryqt30
The same way everyone should invest 10'000 USD:
[https://www.youtube.com/watch?v=JcqlCoreWi8&t=12s](https://www.youtube.com/watch?v=JcqlCoreWi8&t=12s)

------
kc10
If you need the money in short-term (2-3 years), I would split it into 2x250K
and just park them in online savings accounts which currently give about 2.25%
APY.

If you have a bit longer horizon, I would go for VTI.

------
marketgod
Do you have time to watch the market? If you want to go with aggressive
growth, and $500K you are willing to risk, then options trading. Put $20K per
trade and it should double in a year.

~~~
quickpost
Any suggestions on how to properly learn how to do this?

~~~
marketgod
The easiest way to do it is follow my plans. The harder way to do it is watch
the stock market and look into technical analysis. It takes a while but if you
start with a small account you can look for an edge and utilize it. It takes a
while and you have many losses early on and then over time you narrow it down
to what works. I'm not sure if anyone can do it the same way I do but I don't
know of a better way to answer your question.

Main items we focus on are price-action and price-volume. In essence, for
every minute the price goes up, what's the volume? For every penny the stock
goes up, what's the volume? For every 100,000 shares what's the change in
price?200k? 300k? 1m? and so on. Also, weighted factors for all the different
indicators, MA/SMA/CCI/RSI/VWAP being of most pertinence. Pitch fork trends
weighted at a lower level. Also several other proprietary indicators based on
stock correlation (i.e. BABA vs AMZN, if AMZN is moving down, BABA should as
well because of what it relies on). Sentiment Analysis to look for bad news.

~~~
phyalow
OP - tread carefully, this "advice" is from an individual afflicted with a
case of Dunning-Kruger.

~~~
marketgod
:) Some people are meant to be employees and lack the ability to think for
themselves. Stay in school.

[BB] The PLAN is to enter the Jun 21 $10.00 Calls if BB crosses above 10.50 if
you like

[HD] The PLAN is to enter the Apr 18 $190.00 Calls if HD crosses above 193.00
if you like

[AAPL] The PLAN is to enter the Apr 18 $192.50 Calls if AAPL crosses above
193.00 if you like

~~~
marketgod
For anyone looking at the statistics here.

BB never met the entry point.

HD did 150%.

AAPL is up 60%.

------
bigato
Golden Butterfly portfolio: [https://portfoliocharts.com/portfolio/golden-
butterfly/](https://portfoliocharts.com/portfolio/golden-butterfly/)

Or some other portfolio among the many options on the site. The nice thing
about this site is that you can simulate how your allocation would do
historically.

------
sloaken
Depends on your event horizon.

If you are planning to invest for retirement, then I would put it into a
collection of Growth funds.

If your objective is to get a constant payout, then some dividend based fund.

If you want to throw it away: 1) send to me :) 2) buy a business you think you
know but do not really. Everyone thinks they can run a restaurant. It is the
winner for failed businesses.

------
ArtWomb
>>> aggressive

BI provides a list of tech IPOs coming down the pike. No need to buy at all
once.But a price-action-averaged, market-cap-weighted basket of securities
from this pool could achieve 20%+ IRR through 2024

[https://www.businessinsider.com/tech-startups-going-
public-2...](https://www.businessinsider.com/tech-startups-going-
public-2019-rumored-ipos-2019-2#beyond-meat-1)

------
patrickxie
You can look into investing them in Amazon resellers. you can use a platform
like upfund.io, or loan it out to Amazon sellers you know personally, from my
experience investors can expect 40%+ annual returns. This is because the FBA
business models can yield 200%+ yearly ROI for the resellers themselves.

~~~
DarmokJalad1701
Aren't signups closed on upfund?

~~~
patrickxie
not sure, I am a seller using their services, not an investor. Are you not
able to invest in new deals?

------
dhruvkar
I'd look for an industrial warehouse in the Midwest with strong credit tenants
and long-terms leases (e.g. like a publicly traded company serving a utility
function).

You'd have to start with a small property, given your capital. But returns are
stable and can be relatively high -- 9-15%.

------
muzani
In general, invest in things with higher returns and lower risk. They're not
necessarily correlated.

Things which you understand better than anyone, that you believe in but others
don't.

------
sergiotapia
FZROX or VTSAX. Perhaps not in a lump sum right now, but that amount divided
into weekly deposits to mitigate risk a bit.

~~~
omosubi
Why would weekly deposits mitigate risk?

~~~
sergiotapia
I read somewhere they used previous outcomes to simulate lump sum investments
at the start, and weekly/monthly deposits.

End result wasn't that much different - the lump sum did do better, but not
significantly. The weekly/monthly deposits was smoother.

~~~
AznHisoka
icedchai summed it above but the reason for this isn't to maximize return -
it's psychological. If the market drops, you now can buy more at a cheaper
price. If you spent it all, you probably would be tempted to cash it all out
to cut your losses. of course, you shouldn't, but we're talking about our
lizard brains here.

------
chungleong
I would buy some blighted properties in West Baltimore, fix them up, then rent
it out through AirBnB.

------
antoineMoPa
Donate at least 100$ to Greenpeace.

------
quickthrower2
What’s your unfair advantage? What do you know that most people don’t?
Rhetorical questions of course!

------
k0t0n0
make sure to watch this

>
> [https://www.youtube.com/watch?v=tCc1n90ntWk](https://www.youtube.com/watch?v=tCc1n90ntWk)

------
eaenki
Buy Decentraland

wait 8 years ... x100 return?

sounds like a joke, and it kind of is, but I did it myself with 10k. With
$500k you're going to fluctuate $10k everyday anyway. You never know.

------
Cypher
buy shitcoins.

~~~
turtlecloud
Which ones?

~~~
akarki15
shitty ones.

------
RtBVCFO
What is your horizon? Can you afford to lose a big chunk of it? No risk, no
return..

If you have a long horizon (>15 years), invest part in crypto, part in index
trackers, maybe take a few small angel investment stakes and some REIT.

Shorter horizon but still want to do aggressive? The half in Crypto, and
several early stage companies and keep a half in cash or bonds.

