Looking for options to invest $500k with it being relatively safe, with a good yield.
Anything better than renting out a house/apartment or US bonds?
Looking for options to invest $500k with it being relatively safe, with a good yield.
Anything better than renting out a house/apartment or US bonds?
A good S&P 500 index fund. Get the dividend compounding or take the dividends and use it for other investments.
What jobs are allowing folks to save up so much money? Truly. I wish to know. I know what to do with money it is just hard to get it. lol.
There will be dips but it averages about an 8 to 10% return per year.
Assuming you are in America, (this is not a political statement) expect big booms in the market in the upcoming 4 year administration because the market has boomed in his last administration.
Or you can start a small business and see if it becomes scalable and takes off.
It’s really about if you want passive or active investments.
Take 10 to 20K. Learn a skill to create something. Sell that thing. Trademark that thing. Then live off the royalties and company payments whenever they use your trademark.
See, you have money. So making more is just about being creative.
Either way, that money should be sitting in a high dividend yield savings account AT LEAST. (at 4 to 5% APY. Yes they have them.)
You are welcome. Now I require my 1% advice fee. LOL. JK.
I hope to achieve what you have achieved one day. Congrats!
@Riley
Finally some reasonable advice here. OP is better off going to another sub honestly.
@Riley
Those high yield savings accounts do sound nice right now. And yeah, would love to know these magical jobs where you can save 500k too lol
@Riley
not safe after two years with greater than 20% returns.
QDTE and sell calls on it
QDTE offers weekly dividends on Thursdays
Buy stocks and sell calls expiring monthly, collect premium and weekly dividends. If stock goes away, buy again. Rinse and Repeat
cubanmark said:
QDTE and sell calls on it
QDTE offers weekly dividends on Thursdays
Buy stocks and sell calls expiring monthly, collect premium and weekly dividends. If stock goes away, buy again. Rinse and Repeat
If you get assigned, aren’t you just rebuying the stock at a realized loss since the premium wouldn’t cover the stock price increase?
Curious how to deal with that as a CC seller
@Harley
When you sell calls, stocks go away from you when the call you sold expire in the money. Say you bought stock at $40, you sold call at $40 strike price itself for premium of $0.50. Then at the time of expiry stock is at $40.50, then option gets assigned and as a seller you are obligated to sell the stock at $40 (strike price).
You paid $40 for stock and you sold at $40. That’s break even.
But you already collected a premium which you get to keep it, that’s a profit of $0.50
And in case of QDTE, you might collected weekly dividends, so that’s a profit too. For QDTE, it’s a very good dividend.
@cubanmark
Now, with your example, if the price goes $3 over the strike price ($43), shares get called away and OP wants to buy the stocks back off the market.
Now that the price is $43, he’ll buy in at $43.
Even with the $0.50 premium, he’s now at a realized loss
@Harley
QDTE is not that volatile, that’s why I suggested QDTE. It’s an active ETF. As per the history of QDTE, very rarely it makes such big moves. Even if it does, it comes back soon.
cubanmark said:
@Harley
QDTE is not that volatile, that’s why I suggested QDTE. It’s an active ETF. As per the history of QDTE, very rarely it makes such big moves. Even if it does, it comes back soon.
How much premium are you making doing monthly CCs on QDTE?
@cubanmark
Do you mean $40 and $50?
Alva said:
@cubanmark
Do you mean $40 and $50?
Yes
Risk and yields go hand on hand
candise said:
Risk and yields go hand on hand
Yep. The no free lunch clause.
Believe in an investment plan based on goals for the investment proceeds. I have lived through the market crash after Nixon resigned, the panic of 1987, the crash of 2000, the 9/11 crash of 2001–2002. I have seen the results of housing busts in the late 1960s, late 1980s and late 2000s. I have seen interest rates from nearly zero to nearly 20%. I write all this to make the point that the most dangerous words in the investing world are, “This time it is different.”
For every person I have seen who has made some money trying to divine the tea leaves of the current year and make investment decisions, I have seen 100 go broke. Just go back and look at lists of “Best Stocks for Year X” written by highly paid experts.
So here is a secret to investment riches—MAKE A GOOD PLAN AND FOLLOW IT NO MATTER WHAT.
Right now my plan since 2020 has been to retire. That means I had to craft an investment plan which will generate income. I have done this primarily with three asset classes. Dividend paying stocks against which I also sell covered calls, rental real estate and rights to a hit song I purchased. I don’t care which stocks, what the real estate looks like or where it is located. I had never heard the hit song before I purchased it.
Tip for creating investment riches—EACH DEAL STANDS ALONE AND THE MATH DOESN’T LIE.
Something is profitable or it is not. Something has a history of paying a return or it does not. Past results are no guarantee of the future, but they are a better guarantee than an image in a crystal ball or a talking head on a television show giving a future outlook.
So if I had an extra $500k in 2024, I would invest it using the same plan I have been using since 2018 and will continue to use until I am 70 years old. I would allocate it between stocks in profit making companies that have a solid dividend history for at least 10 years, use some of it to either buy rental properties or lend it to real estate professionals so that they can buy rental properties and keep a portion in cash in case I find another hit song or other opportunity to invest for which the math works. I would also give a portion to charity and spend $10k–$20k on courses/seminars to make myself a better investor in the future.
That is my plan and I’m sticking to it. What year it is and what tea leaves or talking heads say doesn’t matter.
@Lior
May I ask how old you are at the moment? And what made you decide that you want to retire, and why since just 2020?
Zen said:
Put it in VOO
Isn’t there an ETF bubble right now?
Zen said:
Put it in VOO
Isn’t there an ETF bubble right now?
Care to elaborate? What do you define as a bubble? I’m really trying not to be offensive but damn it’s hard.
@Westley
On some metrics the stock market appears inflated in value. Eg. https://brockvalue.com