I’m a 39 year-old male, at the moment I have about 120 shares of SPYI, seven shares of VOO, nine shares of SCHD, 30 g of fine gold, and 25 ounces of fine silver.
And about 27,000 cash.
My original plan was to buy a little bit of land with that cash prep it for a mobile home and rent out the land for 200 a month while I’m still in a good living situation to where I can save and let the land do its thing while I save, but unfortunately, it would basically tap me out.
I’ve almost abandoned that plan and I don’t know if I’m crazy or not. I don’t really have anybody to bounce ideas off of except for ChatGPT and it sucks.
So my other idea would be to open a Roth IRA every two weeks put in a little over $250 which would max it out by the end of the year”100% VOO” I would park 25K in SPAXX. In addition to my Roth, every two weeks I would invest $400 split 40% VOO, 30% SCHD and 30% SPYI DIRP enabled on everything. The interest from SPAXX would keep emergency fund one full my bank account topped off and if all of those are good and it’s still at 25K then I would relocate 50% of it investing in the previously mentioned 40 – 30–30 and the rest would be true surplus so I guess fun trying to avoid burnout. I get bonuses too so I would be able to accelerate that but I guess I would rock it for five years and then reassess. I’ll probably be lowering that SPYI percentage have to tell you the truth. It’s heavily weighted.
I know my system is not optimal, but given my age, I need to start trying to supplement my income i’m trying to build something that would function in the real world. Something that I can do and not get burned out because we’re talking 30+ years. of course I would reassess every 5 to 10 years. I’m trying to build something durable practical. My emergency fund number one it’s capped at $1500 bank account cap that $1300 anything over those numbers is considered surplus.
Thank you all for reading this.
Posted by SPY-Talk
9 Comments
I’d get rid of the metals
Well, first off you are choosing between different ways to try to build wealth, not choosing between building wealth and something else. Unless you have any particular expertise or skill in land development it’s probably more prudent to put the money into diversified equities. It’s less work and doesn’t lever the majority of your net worth to a single illiquid asset.
Personally I would keep stacking your investment portfolio until you’re ready and decide to move on that hypothetical land yourself.
Otherwise it might just become a money sink with ownership costs you’re not factoring into your plan as opposed to leaving it in the market where it will keep growing into a nice nest egg for your future plans. Being a landlord sounds like a headache half the time and when everything is considered.. doesn’t always offer you better returns.
Depending on the area, land value goes up over time. Add rent on that, income. I would say go for it and keep some stocks.
IMO – you are over complicating this a bit. I would just focus on savings rate and throwing that into good index or mutual funds.
It’s not too complicated in my opinion not complicated enough to hire a fund manager or anything I could manage it myself. And I’ve already built structure around how to deploy capital I don’t have to actually make decisions. It’s an if this then that system.
Easy mode, accumulate the mutual funds, but keep an eye out for good deals on zillow or something. Whatever the cool kids are using these days. I was scrolling zillow basically daily for about a decade when really nice property in an ideal area popped up, and I grabbed it. Super happy with the purchase. It generates a solid income on airbnb, is an awesome vacation spot for the family, and will be a great place to retire to when the time comes.
Your land will almost certainly attract Capital Gains Tax, whilst your investments – presumably in L-ISA or S&SISA? – will not. Best of luck!
It varies from person to person. My answer is always Land.