Nice problem to have

[neglect]

Hi folks. I'm not much of a poster on this particular forum, but I've just spent a highly pleasurable time reading your posts and advice.

So I did amazingly well this year (for a neurologist). This was not entirely unexpected. We have have maxed out our retirement for the year. We're left with a six figure sum that's currently in the bank. I have about 200K of mortgage debt.

So that's my problem. I don't know what to do with a windfall. With the insanity of Trump and markets the way they are, I'm very unsure I want to put that money into any stock market fund. I'm comfortable with the 401 stuff in there, but this feels more like 'real money' (if you know what I mean and I realize it is silly).

Any comments or recommendations now that markets are high and Trump is a risk. If he puts punitive tariffs in place, then emerging markets, the developed and developing world and the US will be adversely affected. I'm very much considering buying noncommercial real estate. Thoughts?

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[tartesos]

Don't invest in companies that outsource jobs abroad. #maga or die trying.




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[tartesos]

That is a nice problem to have, I'm working towards having that problem in 5 or 20 years.
I'll tag @ThoracicGuy and wait for his wisdom, for when I'm ready.


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[sazerac]

Try this: if your windfall was already invested in funds with an appropriate asset allocation for you, would you sell it based on what you're reading in the newspapers this week?

Everybody underestimates the risk of NOT being in the market at appropriate levels for them.

 

[ThoracicGuy]

Hi folks. I'm not much of a poster on this particular forum, but I've just spent a highly pleasurable time reading your posts and advice.

So I did amazingly well this year (for a neurologist). This was not entirely unexpected. We have have maxed out our retirement for the year. We're left with a six figure sum that's currently in the bank. I have about 200K of mortgage debt.

So that's my problem. I don't know what to do with a windfall. With the insanity of Trump and markets the way they are, I'm very unsure I want to put that money into any stock market fund. I'm comfortable with the 401 stuff in there, but this feels more like 'real money' (if you know what I mean and I realize it is silly).

Any comments or recommendations now that markets are high and Trump is a risk. If he puts punitive tariffs in place, then emerging markets, the developed and developing world and the US will be adversely affected. I'm very much considering buying noncommercial real estate. Thoughts?

Once you have maxed out any 401k/403b/457 type vehicles, then your backdoor Roth, what you have left is only taxable accounts to invest in. Smart money says that over time you'll still make money even if there is a temporary drop. You never know when the market will change and when the highs and lows are at. That would be timing the market and you generally won't win on that one.

A couple of links that could be useful for your situation are:

https://www.bogleheads.org/wiki/Managing_a_windfall
https://www.bogleheads.org/wiki/Tax-efficient_fund_placement
https://www.bogleheads.org/wiki/Tax-efficient_fund_placement
I would make sure your emergency fund is fully funded. Then invest into tax efficient funds for the long term. If you have a large purchase upcoming (car, new home, etc), then perhaps keep that in savings or another short term sort of investment like a CD.

 

[neglect]

Once you have maxed out any 401k/403b/457 type vehicles, then your backdoor Roth, what you have left is only taxable accounts to invest in. Smart money says that over time you'll still make money even if there is a temporary drop. You never know when the market will change and when the highs and lows are at. That would be timing the market and you generally won't win on that one.

A couple of links that could be useful for your situation are:

https://www.bogleheads.org/wiki/Managing_a_windfall
https://www.bogleheads.org/wiki/Tax-efficient_fund_placement
I would make sure your emergency fund is fully funded. Then invest into tax efficient funds for the long term. If you have a large purchase upcoming (car, new home, etc), then perhaps keep that in savings or another short term sort of investment like a CD.

The bit on managing a windfall was terrific, thanks for that. I really liked the emotional piece. Although it seems squishy, this is weirdly right on. I've never really concentrated on money at all, and now these assets makes me feel fiscally responsible. Emotions are dangerous things in this situation.

 

[Postictal Raiden]

nvm, @sazerac answered my question

 

[sazerac]

I'm sure he meant real money as in money not tied up in some holding tank like a retirement account or health savings account. Money that is extremely liquid.

 

[keifernny2]

Muni bond funds are an option for better yield than checking and tax free income in a taxable account, but there is significant downside risk if interest rates rise.


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[The White Coat Investor]

Once you have maxed out any 401k/403b/457 type vehicles, then your backdoor Roth, what you have left is only taxable accounts to invest in. Smart money says that over time you'll still make money even if there is a temporary drop. You never know when the market will change and when the highs and lows are at. That would be timing the market and you generally won't win on that one.

A couple of links that could be useful for your situation are:

https://www.bogleheads.org/wiki/Managing_a_windfall
https://www.bogleheads.org/wiki/Tax-efficient_fund_placement
I would make sure your emergency fund is fully funded. Then invest into tax efficient funds for the long term. If you have a large purchase upcoming (car, new home, etc), then perhaps keep that in savings or another short term sort of investment like a CD.

All reasonable. So would be paying down the mortgage. Or split the difference between a taxable account and the mortgage. No wrong answer here.