Where to invest proceeds (by Tom [IL]) Apr 5, 2021 8:37 AM|
Where to invest proceeds (by Ray-N-Pa [PA]) Apr 5, 2021 8:42 AM
Where to invest proceeds (by Roy [AL]) Apr 5, 2021 9:04 AM
Where to invest proceeds (by Tom [IL]) Apr 5, 2021 9:21 AM
Where to invest proceeds (by Roy [AL]) Apr 5, 2021 9:32 AM
Where to invest proceeds (by WMH [NC]) Apr 5, 2021 10:00 AM
Where to invest proceeds (by Tom [IL]) Apr 5, 2021 10:11 AM
Where to invest proceeds (by Roy [AL]) Apr 5, 2021 10:24 AM
Where to invest proceeds (by Rick [IN]) Apr 5, 2021 10:55 AM
Where to invest proceeds (by Robert J [CA]) Apr 5, 2021 11:29 AM
Where to invest proceeds (by S i d [MO]) Apr 5, 2021 12:06 PM
Where to invest proceeds (by RentsDue [MA]) Apr 5, 2021 1:15 PM
Where to invest proceeds (by Roy [AL]) Apr 5, 2021 1:29 PM
Where to invest proceeds (by Deanna [TX]) Apr 5, 2021 2:04 PM
Where to invest proceeds (by Landlord ofthe Flies [TX]) Apr 5, 2021 2:11 PM
Where to invest proceeds (by Ken [NY]) Apr 5, 2021 2:16 PM
Where to invest proceeds (by Deanna [TX]) Apr 5, 2021 3:28 PM
Where to invest proceeds (by PG [SC]) Apr 5, 2021 6:19 PM
Where to invest proceeds (by bet [MA]) Apr 5, 2021 9:19 PM
Where to invest proceeds (by Dave [MO]) Apr 5, 2021 10:09 PM
Where to invest proceeds (by Small potatoes [NY]) Apr 5, 2021 11:56 PM
Where to invest proceeds (by Jean [OK]) Apr 6, 2021 12:19 AM
Where to invest proceeds (by Tom [IL]) Apr 6, 2021 10:14 AM
Where to invest proceeds (by Jim [OH]) Apr 6, 2021 11:25 AM
Where to invest proceeds (by OTC [TN]) Apr 8, 2021 8:28 AM
Click here to reply to this discussion.
Click Here to send this discussion to a friend
Where to invest proceeds (by Tom [IL]) Posted on: Apr 5, 2021 8:37 AM
Last year I sold 3 houses and have the profit just sitting in the bank. Does anyone have any suggestions of where you can put the money to get a good safe return? (besides real estate). I want to retire and plan on selling the rest of my houses also. --107.197.xx.xx
Where to invest proceeds (by Ray-N-Pa [PA]) Posted on: Apr 5, 2021 8:42 AM
Notes is where the normal path takes you....especially if you plan on selling.
You can sell a place faster and at a higher place. Instead of the money sitting around lazy in the bank, your money becomes the bank and you can be lazy instead. --24.154.xx.x
Where to invest proceeds (by Roy [AL]) Posted on: Apr 5, 2021 9:04 AM
Give me your definition of a 'good safe return' and then I will answer your question. --68.63.xxx.xxx
Where to invest proceeds (by Tom [IL]) Posted on: Apr 5, 2021 9:21 AM
I mean not in stocks in case the market goes way down. Right now I am getting .50 in interest. Are annuities a good idea? I have never invested in anything except real estate. --107.197.xx.xx
Where to invest proceeds (by Roy [AL]) Posted on: Apr 5, 2021 9:32 AM
Again, what is your definition of a 'good safe return'? Are you willing to settle for anything more 1/2% interest?
I get a consistent 20% return on my rental properties and I consider that a 'good' return but the safety of it depends on my ability to manage properly. If I allow any property to sit vacant, my return drops to Zero. --68.63.xxx.xxx
Where to invest proceeds (by WMH [NC]) Posted on: Apr 5, 2021 10:00 AM
Tom, one of the reasons we are in RE in the first place were the huge market crashes over the past few decades. I know they recovered, but if you are retired and need some money now, you can be forced into withdrawing in a down market, losing your shirt.
In RE, being forced to sell during a down market can produce the same results.
So for us, not knowing where else to put it, we keep our money in Rentals and just plod along. If we reach a point we can't do it, we'll hire someone to help. --50.82.xxx.xxx
Where to invest proceeds (by Tom [IL]) Posted on: Apr 5, 2021 10:11 AM
I have also had a great return in Real Estate except now I have 2 tenants (out of 10) that aren't paying because of taking advantage of Illinois covid moratoriums. My lawyer says I just have to wait and there is no way I can evict. I am just burned out. There is also a strong possibility that rent control is coming to Illinois.
By safe I mean you can't loose any of your principle. --107.197.xx.xx
Where to invest proceeds (by Roy [AL]) Posted on: Apr 5, 2021 10:24 AM
Hang in there Tom. 2 of 10 would irritate me too but it is not worth selling out for.
Where to invest proceeds (by Rick [IN]) Posted on: Apr 5, 2021 10:55 AM
Be a hard money lender? --50.229.xx.xxx
Where to invest proceeds (by Robert J [CA]) Posted on: Apr 5, 2021 11:29 AM
You should look into buying a business from a franchise at a deep discount and get the mall to reduce the rent reflecting the pandemic situation.
I signed papers to buy a location from a franchise (dirt cheap) and had the mall owner give me a 50% discount on the rent, so long as he get a percentage when the sales product major profits. Before I closed the deal, another franchisee wanted this location and made me a deal -- I did a flip on a restaurant. Now I get a free topping on any pizza for life.
Where to invest proceeds (by S i d [MO]) Posted on: Apr 5, 2021 12:06 PM
"Can't lose any of your principle."
No such investment exists.
Anything that is returning less than 3% per year means you are losing purchasing power due to inflation, so this past year you've already lost at least 2.5% of the purchasing power of your principle by parking it in a poor investment.
Even so called "safe" investments have some risks. Annuities are insurance contracts, and although they promise a certain rate of return they are again often lousy performers overall.
There is no rational reason to be afraid of the stock market. Over the past 72 years, it has averaged an annualized return of 10.8%. You can diversity your investments significantly in something simple like a Vanguard S&P 500 Index mutual fund, which mirrors that 10.8% annualized return. That fund is very low cost, and thru it you own shares of 500 of the most highly successful companies in our country, like Wal-Mart, Home Depot, Microsoft, Apple, etc.
Think of it like this...if all of those companies crash, the nation will be in chaos and money won't do you much good anyway. You'd need a machine gun and 20 years of survival food.
Keep a beefy emergency fund (6 months of expenses) on hand so that when the stock prices drop, you don't sell when the market is down. Doing that means you only take a loss on paper, but once the market comes back up you are back to making good returns. Also, maybe keep a couple of rentals to generate cash flow so you avoid selling when the market is down. Or if you're totally sick of rentals, you could also invest in dividend paying utilities or a professionally manage real estate syndication.
Where to invest proceeds (by RentsDue [MA]) Posted on: Apr 5, 2021 1:15 PM
The only way to keep it ď safeĒ is to put it in an actual fireproof safe. There is no reward without risk. I am going to save everything I can from current investments because the power of being a cash buyer is always better and the market will crash again. --75.133.xxx.xx
Where to invest proceeds (by Roy [AL]) Posted on: Apr 5, 2021 1:29 PM
'You'd need a machine gun and 20 years of survival food.'
Maybe this is why AR-15's are so popular,...LOL. I hear there is still an ammunition shortage though.
Tim-if the stock market is where you want to park your cash, what Sid said is what I would do also. I have been in the stock market before and because I chose the wrong broker, I lost money. --68.63.xxx.xxx
Where to invest proceeds (by Deanna [TX]) Posted on: Apr 5, 2021 2:04 PM
I'm in real estate because I wanted a safe place to put my money to work for me, better than it would if left in the bank or given to a stockbroker to play with. ;)
But if you're in a phase of your life, or in a situation where it makes sense to cash out part of your holdings, that's very sensible to do it on your timeline, rather than responding to an emergency. But then the question becomes--- you turned your money from the form into a house into a liquid form. How much of your liquidity do you need to preserve? The loss of your investment dollars working for you is the price you pay for the benefit of keeping it liquid and accessible.
A while back ago, I was driving a long distance and listening to one of those weekend shows on the radio. You always hear the teaser blurb--- "...and this easy secret investment doesn't suffer any loss when the stock market goes down!"
So, since I was stuck in the car for hours anyways, I went ahead and sat through the entire spiel to try and figure out what they were trying to sell. The first thing that became clear was that it didn't suffer any losses when the stock market went down, because it wasn't invested in the stock market in the first place, duh. ;)
They danced around the point for almost the entire show, and then finally sideways-mentioned what they were actually selling, in, like, five seconds. If you weren't paying attention, you totally missed it.
So, basically, you were investing in other people's life insurance as a third party. I think it's called viaticals. And a quick search into viaticals brings up---
"Viatical settlements allow life insurance policyholders to sell their policies to investors for an immediate cash benefit. In return, the buyer of the viatical settlement becomes the new owner of the life insurance policy, pays future premiums and collects the death benefit when the insured dies.
"If you are asked to put your money into this type of investment, it is critical that you understand the risks involved, know how your investment will be used and know what the likely return will be. Contact your state insurance department if you need more information."
So, if you're buying into the life insurance policy of a 75-year-old man, and he dies in the next 6 months, you come out very well. But if he lives for the next 25 years, you're paying 25 years' worth of premiums on someone else...
It wasn't my cup of tea, so I never pursued it. But if you're looking for a safe investment that doesn't go down when the stock market crashes... ;)
(Congrats, I just saved you listening to an hour-long radio show on a Saturday afternoon.) ;) --137.118.xx.xxx
Where to invest proceeds (by Landlord ofthe Flies [TX]) Posted on: Apr 5, 2021 2:11 PM
Definitely stay out of the hard money loan business. If you're worried about the real estate market, then loaning money to people in the real estate market is going to have the same risks as buying real estate. Actually it will be more risky because you don't own the house and have even more barriers between you, your money, and the asset that's securing your money. Once they beat up the landlords, they'll go to the real estate money lenders next.
I like the stock market and the municipal bond market. Learn from last year's experience. Which companies made the things your survival depended on. Invest in those companies. No matter how bad your life gets, you'll still want to brush your teeth and bathe. Those are the companies you want to invest in. When picking muni bonds, pick the states that have the least debt and best economies. Of course the Democrat controlled states can run their economy into the ground and get bailouts.
Don't fear the stock market. Also buy for the dividends. You'll get a check 4x per year regardless of the stock price. --108.69.xxx.xxx
Where to invest proceeds (by Ken [NY]) Posted on: Apr 5, 2021 2:16 PM
Roy,everyone should have been stocked up on ammo long ago.Deanna,if they dont tell me what they are selling in the first minutei dont listen any further,when friends ask me to go to a speech to make my life or my finances better if they wont tell me what it is for i dont go which makes a lot of people upset.I think it is terrible to be betting when someone will die although i realize you did not invest in it. --72.231.xxx.xxx
Where to invest proceeds (by Deanna [TX]) Posted on: Apr 5, 2021 3:28 PM
I agree on all three counts, Ken. :) --137.118.xx.xxx
Where to invest proceeds (by PG [SC]) Posted on: Apr 5, 2021 6:19 PM
What ever you decide make SURE you understand the RISK and the reward.
I would suggest you study the Stock Market for at least 2 or 3 months just to at least understand the basics. Maybe read a few books. Take out a Morning Star member ship $199 a year.
If you do as Sid suggested and decide to invest in the stock market in one of the Index funds, PLEASE understand as he noted AVERAGE return of about 10% - Markets do go up and down - SP-500 2008 down 38% BUT in two years it was back and normally goes higher. Problem is a lot of people who don't understand the market sell when it goes down and they never get back in.
I have a substantial amount in the market and now I use a Independent Advisor. I also have farm land with timber and few rental houses. I am 70 years old and I still study all three to make sure my knowledge is current.
I say again DO NOT invest in any thing until YOU understand the RISK and the REWARD.
Where to invest proceeds (by bet [MA]) Posted on: Apr 5, 2021 9:19 PM
Might I suggest Real estate but a turn key single family in a good neighborhood, bought with cash. We have been selling 2 properties and buying a better single one with cash. At least hopefully the value will go up and the money is not sitting in the bank. --45.19.xxx.x
Where to invest proceeds (by Dave [MO]) Posted on: Apr 5, 2021 10:09 PM
Another vote for the stock market, there are some quality companies that pay dividends and look for companies that have increased their dividends yearly. Do your home work and donít gamble.
More people sell to soon in the market, time is your friend. Youíve been given some good ideas from above.
I like Sidís idea of the S&P Vanguard fund. --173.216.xxx.xx
Where to invest proceeds (by Small potatoes [NY]) Posted on: Apr 5, 2021 11:56 PM
Tom, your timeframe is also important. The vanguard fund is fine if your horizon is ten years. The market will go up n down a few times. At some future point less would be in stocks this way. A CD is the only guaranteed investment as the rate is fixed and its backed by banks, but rates are low. Stay away from annuities unless you have more knowledge, check out what aarp says. If interest rates climb consider learning about laddering bonds.
Most of us should stick to things like vanguard w the lowest expenses and annual fees. --172.58.xxx.xxx
Where to invest proceeds (by Jean [OK]) Posted on: Apr 6, 2021 12:19 AM
Consider Vanguard Wellesley mutual fund for a portion -maybe a third to half - of your money. It has a bond component that cushions the fund from extreme price swings during market downturns. Iíve owned this fund for decades. --172.56.x.xxx
Where to invest proceeds (by Tom [IL]) Posted on: Apr 6, 2021 10:14 AM
Lots of good suggestions/advise. Thanks so much. --107.197.xx.xx
Where to invest proceeds (by Jim [OH]) Posted on: Apr 6, 2021 11:25 AM
Hold for the next six months.
You'll thank me then. --184.57.xxx.xx
Where to invest proceeds (by OTC [TN]) Posted on: Apr 8, 2021 8:28 AM
Hey Tom, Find someone that is good at renovations and form a Joint Venture for flipping houses. Form a partnership where you provide the capital and the partner provides the time. Of course, you would need to agree on the property that is being purchased. I have an arrangement where I get 63% of net profits and the JV partner gets 37%. You can get good short term returns until you figure what your next long term play will be. --68.169.xxx.xx
Click Here to send this discussion to a friend
Report discussion to Webmaster