Am signing docs on financing of on a rental property later in the week. Will be getting a fair bit of cash in hand. I had not really thought about what to do with the money as the project dragged on a lot longer then i expected. What’s people’s recommendations on what to do with the cash? just DCA into an index fund?
Depends when you need the money back. If you need cash in a short while (3-6 months) then it is not available for investment really.
I don’t plan to touch the money any time soon. so at least 1-3 year horizon
Is this a test question? Thought you have decided on index fund long ago.
Yah, just not sure if I should keep adding to it. Plus I always like to check for new information periodically
International markets aren’t nearly as stretched as the US market and, with the credit for foreign taxes paid, yield about 3%. VEU is one. Or, emerging markets also trade at lower multiples and higher yields. Unless you think coronavirus is going to turn all the Asians into zombies.
For me, DCA into VOO is simple solution.
My neighbor, who does not have any investment knowledge, told me that he got 25% return with mutual fund last year (fidelity managed the investments). VOO is much better and higher than this.
My relative, again no investment expert, earned 35%-38% from FDGRX. we may not even get such returns normally.