$5.5K to invest - best strategy

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
WanderingDoc
Posts: 347
Joined: Sat Aug 05, 2017 8:21 pm

$5.5K to invest - best strategy

Post by WanderingDoc » Thu Oct 12, 2017 12:52 am

If you have $5.5K to invest at the end of the year (ie. nowish), would you throw it into a Roth IRA or buy 1 Bitcoin and 1 Etherium? I signed up for Coinbase, linked my bank account, verified ID etc. but so far chickened out to buy any cryptocurrency.

I probably wouldn't notice either way, as I have been fortunate to save approx. $10K/mo. which I can invest, due to moderate W-2 income and $4K net income from real estate.

It seems like.. if I DON'T put $5-10K in Bitcoin now, and it 10X or 100X in a few years (very possible) I would feel like an idiot not investing money that I don't mind losing. Anyone else take the plunge? Thoughts?
One day it suddenly dawned on me that I had won the real estate lottery. | I'm not looking to get rich quickly. I'm not looking to get rich slowly. I'm looking to get rich for sure.

User avatar
Fudgie
Posts: 122
Joined: Sun Oct 11, 2015 12:01 pm

Re: $5.5K to invest - best strategy

Post by Fudgie » Thu Oct 12, 2017 12:58 am

:oops:
Last edited by Fudgie on Fri Dec 08, 2017 6:58 am, edited 1 time in total.
"That's entertainment!" - Vlad the Impaler

software
Posts: 23
Joined: Tue Apr 18, 2017 2:02 pm

Re: $5.5K to invest - best strategy

Post by software » Thu Oct 12, 2017 1:11 am

Why have you been investing 10k per month and have not funded your Roth IRA already? That is always a better choice than a taxable investment.

minimalistmarc
Posts: 139
Joined: Fri Jul 24, 2015 4:38 pm

Re: $5.5K to invest - best strategy

Post by minimalistmarc » Thu Oct 12, 2017 1:27 am

Best to buy bitcoin. It is 95% likely that all bitcoin holders will be rich in a few years.

WanderingDoc
Posts: 347
Joined: Sat Aug 05, 2017 8:21 pm

Re: $5.5K to invest - best strategy

Post by WanderingDoc » Thu Oct 12, 2017 1:45 am

software wrote:
Thu Oct 12, 2017 1:11 am
Why have you been investing 10k per month and have not funded your Roth IRA already? That is always a better choice than a taxable investment.
Good question. I have been out of mutual funds entirely since 2015. Now will fund the TSP last 3 months $15K 50 % trad. 50% Roth.

I have been funding large apartment syndications as a passive investor. Should be looking at a 8-12% return on cash and a 2-3X equity exit.

Trying to decide if funding a Roth IRA as well makes sense in addition to the TSP this year.
One day it suddenly dawned on me that I had won the real estate lottery. | I'm not looking to get rich quickly. I'm not looking to get rich slowly. I'm looking to get rich for sure.

User avatar
LiveSimple
Posts: 894
Joined: Thu Jan 03, 2013 7:55 am

Re: $5.5K to invest - best strategy

Post by LiveSimple » Thu Oct 12, 2017 1:57 am

Seems like you make a lot of money.
Just invest in passive index funds, you will be better in a decade.

People lose money, when they are greedy to multiply the money more.
Slow and steady wins the race.

YMMW :sharebeer

WanderingDoc
Posts: 347
Joined: Sat Aug 05, 2017 8:21 pm

Re: $5.5K to invest - best strategy

Post by WanderingDoc » Thu Oct 12, 2017 2:05 am

Fudgie wrote:
Thu Oct 12, 2017 12:58 am
I'd fully fund the IRA (LifeStrategy Growth), but I'm something of a Boglehead. Can you buy BTC in the IRA?
Right now, my Roth IRA contains only 4 figures in VFFVX (2055 Target fund). Would you suggest using the LifeStrategy instead?

Thats an interesting question. I would imagine you could hold cryptocurrency in a self-directed IRA. Although I didn't see a feasible way to do so with the Coinbase platform. They basically let you use a bank account or CC to buy the coin, then it is stored on their exchange or wallet. A lot of folks recommend to get your own hardware wallet after you have a significant amount of net worth in Bitcoin etc.
One day it suddenly dawned on me that I had won the real estate lottery. | I'm not looking to get rich quickly. I'm not looking to get rich slowly. I'm looking to get rich for sure.

User avatar
Fudgie
Posts: 122
Joined: Sun Oct 11, 2015 12:01 pm

Re: $5.5K to invest - best strategy

Post by Fudgie » Thu Oct 12, 2017 2:22 am

:oops:
Last edited by Fudgie on Fri Dec 08, 2017 6:58 am, edited 1 time in total.
"That's entertainment!" - Vlad the Impaler

rosylenm
Posts: 66
Joined: Mon Aug 29, 2016 5:51 pm

Re: $5.5K to invest - best strategy

Post by rosylenm » Thu Oct 12, 2017 2:28 am

What are your goals? If anything, your goals should be driving your investments.

Iorek
Posts: 868
Joined: Fri Mar 08, 2013 9:38 am

Re: $5.5K to invest - best strategy

Post by Iorek » Thu Oct 12, 2017 7:13 am

If you would feel worse in 1o years not investing in bitcoin and having it go up 5x than investing it bitcoin and having it go to 0 and you don't need the money then I could see investing in bitcoin. Otherwise a Roth.

MotoTrojan
Posts: 861
Joined: Wed Feb 01, 2017 8:39 pm

Re: $5.5K to invest - best strategy

Post by MotoTrojan » Thu Oct 12, 2017 8:03 am

There are some funds you can use for BTC in an IRA but they are trading at 80%+ premiums (you pay 80% more than the value of coin you get). No thanks.

You can buy partial coin. Maybe $500 of each to calm your itch, then max that Roth.

aristotelian
Posts: 3158
Joined: Wed Jan 11, 2017 8:05 pm

Re: $5.5K to invest - best strategy

Post by aristotelian » Thu Oct 12, 2017 8:10 am

minimalistmarc wrote:
Thu Oct 12, 2017 1:27 am
Best to buy bitcoin. It is 95% likely that all bitcoin holders will be rich in a few years.
Tulips, definitely tulips. What can possible go wrong?

David Scubadiver
Posts: 522
Joined: Thu Mar 24, 2016 8:40 am

Re: $5.5K to invest - best strategy

Post by David Scubadiver » Thu Oct 12, 2017 8:15 am

There are literally thousands of investments you can not make and feel terrible about having failed to make 10 years down the road.
Cryptocurrency is only one of many roads not taken.

If you have a strong rational basis for believing that cryptocurrency is undervalued right now (i.e., all the people who understand it and are investing in it, are not paying what it is truly worth, but you know better than them....) versus a pure hope that that it will continue to go up because, what the hell, everybody says it will go up, I would say go for the investment in cryptocurrency. Otherwise, look at it like tulip bulb mania and invest in something more traditional.

w33ps
Posts: 3
Joined: Thu Sep 21, 2017 4:40 pm

Re: $5.5K to invest - best strategy

Post by w33ps » Thu Oct 12, 2017 8:16 am

WanderingDoc wrote:
Thu Oct 12, 2017 12:52 am
If you have $5.5K to invest at the end of the year (ie. nowish), would you throw it into a Roth IRA or buy 1 Bitcoin and 1 Etherium? I signed up for Coinbase, linked my bank account, verified ID etc. but so far chickened out to buy any cryptocurrency.

I probably wouldn't notice either way, as I have been fortunate to save approx. $10K/mo. which I can invest, due to moderate W-2 income and $4K net income from real estate.

It seems like.. if I DON'T put $5-10K in Bitcoin now, and it 10X or 100X in a few years (very possible) I would feel like an idiot not investing money that I don't mind losing. Anyone else take the plunge? Thoughts?
As of this morning, you can no longer buy 1 Bitcoin and 1 ETH for $5.5K. :wink:

jb1
Posts: 142
Joined: Sun Nov 27, 2016 8:33 am
Location: NC

Re: $5.5K to invest - best strategy

Post by jb1 » Thu Oct 12, 2017 8:41 am

w33ps wrote:
Thu Oct 12, 2017 8:16 am
WanderingDoc wrote:
Thu Oct 12, 2017 12:52 am
If you have $5.5K to invest at the end of the year (ie. nowish), would you throw it into a Roth IRA or buy 1 Bitcoin and 1 Etherium? I signed up for Coinbase, linked my bank account, verified ID etc. but so far chickened out to buy any cryptocurrency.

I probably wouldn't notice either way, as I have been fortunate to save approx. $10K/mo. which I can invest, due to moderate W-2 income and $4K net income from real estate.

It seems like.. if I DON'T put $5-10K in Bitcoin now, and it 10X or 100X in a few years (very possible) I would feel like an idiot not investing money that I don't mind losing. Anyone else take the plunge? Thoughts?
As of this morning, you can no longer buy 1 Bitcoin and 1 ETH for $5.5K. :wink:

I have about 4k in BTC, 3k in ETH and 2k in LTC. Not checking until 2022 when im 32...

Hope to be rich! lol

w33ps
Posts: 3
Joined: Thu Sep 21, 2017 4:40 pm

Re: $5.5K to invest - best strategy

Post by w33ps » Thu Oct 12, 2017 8:47 am

jb1 wrote:
Thu Oct 12, 2017 8:41 am
w33ps wrote:
Thu Oct 12, 2017 8:16 am
WanderingDoc wrote:
Thu Oct 12, 2017 12:52 am
If you have $5.5K to invest at the end of the year (ie. nowish), would you throw it into a Roth IRA or buy 1 Bitcoin and 1 Etherium? I signed up for Coinbase, linked my bank account, verified ID etc. but so far chickened out to buy any cryptocurrency.

I probably wouldn't notice either way, as I have been fortunate to save approx. $10K/mo. which I can invest, due to moderate W-2 income and $4K net income from real estate.

It seems like.. if I DON'T put $5-10K in Bitcoin now, and it 10X or 100X in a few years (very possible) I would feel like an idiot not investing money that I don't mind losing. Anyone else take the plunge? Thoughts?
As of this morning, you can no longer buy 1 Bitcoin and 1 ETH for $5.5K. :wink:

I have about 4k in BTC, 3k in ETH and 2k in LTC. Not checking until 2022 when im 32...

Hope to be rich! lol
Lol solid plan. I am also long on BTC and ETH. Because you aren't obsessively checking the tickers like me, you'll be happy to know BTC smashed the all time high last night.

jb1
Posts: 142
Joined: Sun Nov 27, 2016 8:33 am
Location: NC

Re: $5.5K to invest - best strategy

Post by jb1 » Thu Oct 12, 2017 10:28 am

w33ps wrote:
Thu Oct 12, 2017 8:47 am
jb1 wrote:
Thu Oct 12, 2017 8:41 am
w33ps wrote:
Thu Oct 12, 2017 8:16 am
WanderingDoc wrote:
Thu Oct 12, 2017 12:52 am
If you have $5.5K to invest at the end of the year (ie. nowish), would you throw it into a Roth IRA or buy 1 Bitcoin and 1 Etherium? I signed up for Coinbase, linked my bank account, verified ID etc. but so far chickened out to buy any cryptocurrency.

I probably wouldn't notice either way, as I have been fortunate to save approx. $10K/mo. which I can invest, due to moderate W-2 income and $4K net income from real estate.

It seems like.. if I DON'T put $5-10K in Bitcoin now, and it 10X or 100X in a few years (very possible) I would feel like an idiot not investing money that I don't mind losing. Anyone else take the plunge? Thoughts?
As of this morning, you can no longer buy 1 Bitcoin and 1 ETH for $5.5K. :wink:

I have about 4k in BTC, 3k in ETH and 2k in LTC. Not checking until 2022 when im 32...

Hope to be rich! lol
Lol solid plan. I am also long on BTC and ETH. Because you aren't obsessively checking the tickers like me, you'll be happy to know BTC smashed the all time high last night.
Your comment before saying you can no longer buy 1 BYC and 1 ETH for 5.5 made me check.. :)

User avatar
flamesabers
Posts: 1562
Joined: Fri Mar 03, 2017 12:05 pm
Location: Rochester, MN

Re: $5.5K to invest - best strategy

Post by flamesabers » Thu Oct 12, 2017 10:40 am

I would suggest putting the $5.5k in a Roth IRA. After all, you can only invest so much in retirement accounts and once the deadline has passed you can't make retrograde investments in retirement accounts for prior years.

WanderingDoc
Posts: 347
Joined: Sat Aug 05, 2017 8:21 pm

Re: $5.5K to invest - best strategy

Post by WanderingDoc » Thu Oct 12, 2017 2:07 pm

rosylenm wrote:
Thu Oct 12, 2017 2:28 am
What are your goals? If anything, your goals should be driving your investments.
Goals are $10K/mo. passive income by 12/31/19 and $3M net worth by 12/31/20.
One day it suddenly dawned on me that I had won the real estate lottery. | I'm not looking to get rich quickly. I'm not looking to get rich slowly. I'm looking to get rich for sure.

User avatar
flamesabers
Posts: 1562
Joined: Fri Mar 03, 2017 12:05 pm
Location: Rochester, MN

Re: $5.5K to invest - best strategy

Post by flamesabers » Thu Oct 12, 2017 2:35 pm

WanderingDoc wrote:
Thu Oct 12, 2017 2:07 pm
rosylenm wrote:
Thu Oct 12, 2017 2:28 am
What are your goals? If anything, your goals should be driving your investments.
Goals are $10K/mo. passive income by 12/31/19 and $3M net worth by 12/31/20.
When you're striving to build up your net worth I don't think speculating on bitcoins (or any other individual asset) is a good way to achieve your goal. Look at what happened with the housing crash last decade. A number of people thought they could get rich by flipping houses. Some people did get rich in this manner, but there were a lot of people who got burned financially when the bubble finally burst. $5.5k of bitcoin today might be worth $50k in a few years or it might go down to $500 or even $50.

You already have a Roth IRA setup with Vanguard. Contribute the $5.5k to the Roth IRA and be done with it. While you may feel like an idiot for not investing in bitcoin at the present, you may end up feeling like a bigger idiot if you make the investment and the value of bitcoin crashes outright.

WanderingDoc
Posts: 347
Joined: Sat Aug 05, 2017 8:21 pm

Re: $5.5K to invest - best strategy

Post by WanderingDoc » Thu Oct 12, 2017 6:57 pm

I wussed out and put $5500 into vanguard Roth IRA.

On another note, it looks like funds just came out of my paycheck for traditional and Roth TSP mid-month. Is this normal that contributions are made in the middle of the month and again at the end? I just assumed it would all be deposited the end of the month.
One day it suddenly dawned on me that I had won the real estate lottery. | I'm not looking to get rich quickly. I'm not looking to get rich slowly. I'm looking to get rich for sure.

TheHouse7
Posts: 236
Joined: Fri Jan 13, 2017 2:40 am

Re: $5.5K to invest - best strategy

Post by TheHouse7 » Thu Oct 12, 2017 8:11 pm

minimalistmarc wrote:
Thu Oct 12, 2017 1:27 am
Best to buy bitcoin. It is 95% likely that all bitcoin holders will be rich in a few years.
:twisted:
"PSX will always go up 20%, why invest in anything else?!" -Father-in-law early retired.

User avatar
flamesabers
Posts: 1562
Joined: Fri Mar 03, 2017 12:05 pm
Location: Rochester, MN

Re: $5.5K to invest - best strategy

Post by flamesabers » Fri Oct 13, 2017 8:38 am

WanderingDoc wrote:
Thu Oct 12, 2017 6:57 pm
On another note, it looks like funds just came out of my paycheck for traditional and Roth TSP mid-month. Is this normal that contributions are made in the middle of the month and again at the end? I just assumed it would all be deposited the end of the month.
Yes, it sounds normal. TSP contributions are just another payroll deduction which is typically made with every paycheck.

Post Reply