What are you investing in?

[jobae1234]

How would you invest 100k, other than in the market? We’re looking to diversify.

[Poppy]

I mean, the point of [most] index funds is diversification. I'm not sure what you mean.

Are you talking like real estate? IMO it's hard for a regular person to truly diversify via real estate because you have to put such a large chunk of your portfolio into a single property.

[jobae1234]

Jun 10, 2023 11:53:02 GMT -5 Poppy said:

I mean, the point of [most] index funds is diversification. I'm not sure what you mean.

Are you talking like real estate? IMO it's hard for a regular person to truly diversify via real estate because you have to put such a large chunk of your portfolio into a single property.

Sure. Rental properties. Micro lending. Investing in kickstarter. Idk.

[clairebear]

As a property manager I would never buy real estate! I have all my money parked in a Vanguard index fund. 

[Poppy]

Jun 10, 2023 13:38:07 GMT -5 jobae1234 said:

Jun 10, 2023 11:53:02 GMT -5 Poppy said:

I mean, the point of [most] index funds is diversification. I'm not sure what you mean.

Are you talking like real estate? IMO it's hard for a regular person to truly diversify via real estate because you have to put such a large chunk of your portfolio into a single property.

Sure. Rental properties. Micro lending. Investing in kickstarter. Idk.

I own shares of thousands of companies via my index funds. I do also own bonds and a small amount of REIT shares. For me, that's enough diversification.

My home is more real estate exposure than I'd otherwise choose, I've always been wary of crypto, and I would be really reluctant to invest in a very small business unless it was one I was starting. So, I guess that's not the answer you're looking for but as I said, I feel that I have sufficient diversification for my goals. I think you've got to weigh the risk/reward of every investment you make and buying risky investments for the sake of "diversification" likely raises rather than lowers your overall risk.

[dr.girlfriend]

We have been doing I-series bonds to have something that's a little inflation-proof. The max is $10k a year for each of us but it adds up. Otherwise, I think you can get mutual funds that are primarily real estate holdings. No way would I want to be responsible for a second property, but YMMV.

[sadlebred]

I would invest if I had money to do so.

[jwright]

I have several real estate investments that I've inherited, bought myself, or invested in through syndicate/group. While I'm currently happy with their performance, I haven't seen anything in the past couple of years that I'd want to jump in the real estate market. Prices got too high and haven't come down substantially with the increasing interest rates.

Another word of warning I'll put out there, short term rental has become a very saturated market. I'm sure there are areas that continue to see growth, but our 2023 results have been lackluster and the experts are citing an over saturation of supply. Basically a ton of people came onboard during the pandemic and with current economic anxieties for travelers, rentals are just not filling up.

One investment that I do like that I haven't seen mentioned is market-linked notes (also seen it called structured debt investment). You invest/loan for a certain time period (I've done 1yr, 5yr and am currently in a 4yr) and if the underlying market is up at the end of the time period; you get your investment plus a premium. If it is down you get your money back so you have downside protection (this is oversimplified but the gist is a return if the market goes up at all plus downside protection if it doesn't). I've gotten an 8% premium and 12% premium, but the earnings and amount of downside limitation is all up to the specific note. Our financial advisor has gotten us in through Goldman Sachs, UBS, Morgan Stanley etc. I'm not sure if an individual can participate but might be worth looking into.

[ohgillian]

Jun 12, 2023 9:06:02 GMT -5 jwright said:

I have several real estate investments that I've inherited, bought myself, or invested in through syndicate/group. While I'm currently happy with their performance, I haven't seen anything in the past couple of years that I'd want to jump in the real estate market. Prices got too high and haven't come down substantially with the increasing interest rates.

Another word of warning I'll put out there, short term rental has become a very saturated market. I'm sure there are areas that continue to see growth, but our 2023 results have been lackluster and the experts are citing an over saturation of supply. Basically a ton of people came onboard during the pandemic and with current economic anxieties for travelers, rentals are just not filling up.

One investment that I do like that I haven't seen mentioned is market-linked notes (also seen it called structured debt investment). You invest/loan for a certain time period (I've done 1yr, 5yr and am currently in a 4yr) and if the underlying market is up at the end of the time period; you get your investment plus a premium. If it is down you get your money back so you have downside protection (this is oversimplified but the gist is a return if the market goes up at all plus downside protection if it doesn't). I've gotten an 8% premium and 12% premium, but the earnings and amount of downside limitation is all up to the specific note. Our financial advisor has gotten us in through Goldman Sachs, UBS, Morgan Stanley etc. I'm not sure if an individual can participate but might be worth looking into.

Can you tell me what syndicate/group means here? I’m not planning any real estate investing (we have one STR and that’s plenty) but I’m just curious and wanting to learn.

[shaynaatl]

We've invested some in an apartment complex through a syndicate. We caught the tail end of the wave due to rising interest rates, so that investment isn't doing well.

Our big one will be investing in a new beachfront hotel in Florida. We know the primary investors and they feel really bullish about it.

But the majority of our investments are still through standard index mutual funds.

[jwright]

Jun 12, 2023 11:41:22 GMT -5 ohgillian said:

Jun 12, 2023 9:06:02 GMT -5 jwright said:

I have several real estate investments that I've inherited, bought myself, or invested in through syndicate/group. While I'm currently happy with their performance, I haven't seen anything in the past couple of years that I'd want to jump in the real estate market. Prices got too high and haven't come down substantially with the increasing interest rates.

Another word of warning I'll put out there, short term rental has become a very saturated market. I'm sure there are areas that continue to see growth, but our 2023 results have been lackluster and the experts are citing an over saturation of supply. Basically a ton of people came onboard during the pandemic and with current economic anxieties for travelers, rentals are just not filling up.

One investment that I do like that I haven't seen mentioned is market-linked notes (also seen it called structured debt investment). You invest/loan for a certain time period (I've done 1yr, 5yr and am currently in a 4yr) and if the underlying market is up at the end of the time period; you get your investment plus a premium. If it is down you get your money back so you have downside protection (this is oversimplified but the gist is a return if the market goes up at all plus downside protection if it doesn't). I've gotten an 8% premium and 12% premium, but the earnings and amount of downside limitation is all up to the specific note. Our financial advisor has gotten us in through Goldman Sachs, UBS, Morgan Stanley etc. I'm not sure if an individual can participate but might be worth looking into.

Can you tell me what syndicate/group means here? I’m not planning any real estate investing (we have one STR and that’s plenty) but I’m just curious and wanting to learn.

A syndicate is basically a group that invests in a large scale real estate project. A developer organizes the project and acts as the general partner and investors come on as limited partners. (Unlike a REIT where you buy shares in a company that invests in many different projects).

I added the “/group” because my project is small in the world of syndicates and local to me. Our group is about 12 investors and we raised $8M total on a total project cost of about $12M. But the general framework is the same.

[jordylee]

I am boring - Vanguard index funds all the way. I like to keep it simple and it has been serving me well.

[ohgillian]

Jun 12, 2023 15:10:59 GMT -5 jwright said:

Jun 12, 2023 11:41:22 GMT -5 ohgillian said:

Can you tell me what syndicate/group means here? I’m not planning any real estate investing (we have one STR and that’s plenty) but I’m just curious and wanting to learn.

A syndicate is basically a group that invests in a large scale real estate project. A developer organizes the project and acts as the general partner and investors come on as limited partners. (Unlike a REIT where you buy shares in a company that invests in many different projects).

I added the “/group” because my project is small in the world of syndicates and local to me. Our group is about 12 investors and we raised $8M total on a total project cost of about $12M. But the general framework is the same.

Thank you!