Mobiaz

10+ Year Member
Jan 7, 2009
12
0
Status
Resident [Any Field]
I recently posted about buying a 300,000 rental property (cash) then repeating with $5k per month until I had a multiple rentals owned.

My question now is what would you on the forum do if you had $300,000 to invest and $5,000 per month ($60,000 per year) to add to that investment. Before I jump into the world of real estate I just want to research all of my options and give myself the best chance to build long term wealth.

Thanks for the advice.
 

sliceofbread136

7+ Year Member
Nov 5, 2011
4,889
2,807
Max out Roth IRA for year. If I was planning for kids put a chunk in 529. If I had a high deductible health plan I would think of putting some in a hsa. Rest in taxable account. Since I’m young I’d put it all in index funds with a mix of large and small cap, some international. If I was older I’d start having some money in bonds as well.

Real estate seems like such a headache to me and the prices right now are so high.
 
  • Like
Reactions: XenophonMD

Tee Cell

10+ Year Member
Aug 17, 2006
77
14
Status
Attending Physician
I recently posted about buying a 300,000 rental property (cash) then repeating with $5k per month until I had a multiple rentals owned.

My question now is what would you on the forum do if you had $300,000 to invest and $5,000 per month ($60,000 per year) to add to that investment. Before I jump into the world of real estate I just want to research all of my options and give myself the best chance to build long term wealth.

Thanks for the advice.
First I would pay down any high interest debt.
 
About the Ads
Aug 20, 2019
10
1
Status
Resident [Any Field]
Max out Roth IRA for year. If I was planning for kids put a chunk in 529. If I had a high deductible health plan I would think of putting some in a hsa. Rest in taxable account. Since I’m young I’d put it all in index funds with a mix of large and small cap, some international. If I was older I’d start having some money in bonds as well.

Real estate seems like such a headache to me and the prices right now are so high.
agree 100%
I would start with 401k>Roth IRA>HSA & 529>taxable.
At least that's how I've seen done
You can add a small slice of REIT if you want real state exposure.
 

tartesos

Medalaganario
7+ Year Member
Jan 24, 2011
7,461
8,373
Next to the middle of nowhere.
Status
Attending Physician
I recently posted about buying a 300,000 rental property (cash) then repeating with $5k per month until I had a multiple rentals owned.

My question now is what would you on the forum do if you had $300,000 to invest and $5,000 per month ($60,000 per year) to add to that investment. Before I jump into the world of real estate I just want to research all of my options and give myself the best chance to build long term wealth.

Thanks for the advice.
REIT are a good hands off dip into real estate.
A good management company is a must, you don’t want the headache.
You have a sound plan, make sure you maximize your 401k yearly and can also add a solo 401k for the income from real estate in the future up to 54k( including your job 401k).

Multi family, duplex, triplex quadplex is a great start!


Sent from my iPhone using SDN
 
Apr 10, 2018
433
141
Status
Non-Student
Invest in low cost etf and wait for the market to crash again. When it does leverage into luxury vacation properties and rent them out. Once the market rises again sale them and repeat.
 
Oct 18, 2019
143
47
Status
Attending Physician
After maxing our all your tax deferred options, consider vandguard municipals that are tax free and provide a 3-4% return (equivalent to 6-7% return pre tax). Minimal fixed cost and very safe. After this option(1mm) move onto real estate . As a physician you don’t have the same tax write off like a real estate flipper...
 

Baron Samedi

7+ Year Member
May 30, 2010
682
414
Hell
Status
Attending Physician
1. Contribute enough into 401k/403b to maximize match
2. Pay off any high interest debt
3. Maximize self and spouse IRA(Roth or traditional)
4. Max out 401k/403b
5. Use other tax sheltered investment platforms such as 529
6. Invest rest in a diversified portfolio consisting of passively managed index funds. Depending on your risk tolerance, divided between a US Stock index, International index, and Bond Index.
 
  • Like
Reactions: XenophonMD

ThoracicGuy

5+ Year Member
Jun 11, 2013
9,784
24,029
Status
Attending Physician
1. Contribute enough into 401k/403b to maximize match
2. Pay off any high interest debt
3. Maximize self and spouse IRA(Roth or traditional)
4. Max out 401k/403b
5. Use other tax sheltered investment platforms such as 529
6. Invest rest in a diversified portfolio consisting of passively managed index funds. Depending on your risk tolerance, divided between a US Stock index, International index, and Bond Index.
Just a note, but regarding 6, putting money into a taxed account would affect what find choices you should do. Something that was low on dividends and churn would be ideal. I use the vanguard total market index fund for mine. I put other funds into my tax advantaged accounts.
 
  • Like
Reactions: Baron Samedi

Baron Samedi

7+ Year Member
May 30, 2010
682
414
Hell
Status
Attending Physician
What you are speaking of is tax efficient investing. I sort of agree with what you're saying but want to clarify. Income is income and you shouldn't be scared of dividends. Its taxes more heavily, but it still nets you money, which is really all that matters.

What you can do, though, is make use of investments that are predominantly income based(dividends) by preferentially utilizing them in tax advantaged accounts and using your more tax efficient investments in a standard brokerage account.

If you have $10000 to invest and want to put half in a REIT(tax inefficient) and half in a US market index fund(typically more tax efficient), from a tax standpoint you might be better off buying the REIT in your Roth IRA and the market index fund in your typical brokerage account.

Even index funds pay dividends. They are a good thing, not a bad thing -- but you can utilize your tax advantaged accounts to shield them from taxes.
 
Oct 18, 2019
143
47
Status
Attending Physician
These are great investment recommendations for average net worth earners . I believe the thread question is $300k Investing options in high net worth individuals that have maxed all these tax deferred options. That’s when the real fun begins...
 

Baron Samedi

7+ Year Member
May 30, 2010
682
414
Hell
Status
Attending Physician
I would treat it like a windfall -- invest 90% of it in my above mentioned strategy and use the remaining 10% for a nice vacation or something.
 
  • Like
Reactions: ThoracicGuy
About the Ads