I am selling a duplex I own (it has become too stressful) and want to invest $45,000 which is the majority of the proceeds I will be receiving when I close next week. Due to the money I have into the property I won’t owe much capital gains tax on this if any. Here is my situation:
At a minimum I will not touch the money for 3 years, but likely it will end up being 7. I have 3 more years left of dental school, and then I owe the navy 4 years as a navy dentist for the full ride scholarship they are providing me. I plan to use this money in 7 years to put towards purchasing a dental practice.
I worked hard during under grad to purchase 10 doors of residential real estate but no longer am able to work since I am a full time dental student. Getting approved and purchasing more units is not in the cards right now. My wife, child, and myself are living off of the cash flow from my other properties, her income and my scholarship stipend from Uncle Sam. We have no other debt other than mortgages for investment properties.
Where should I put this money? I will likely get roasted but originally planned to put it in acorns on the aggressive setting. I am not confident enough in my own understanding to create my own portfolio, nor do I have the time to stay on top of it. I want something that is low maintenance and hand off. I have used acorns in the past with smaller amounts and enjoyed how it is all automatic for me and I don’t have to think about it.
What would you do with $45,000? I am 27 years old
byu/carlsjr1776 inMilitaryFinance
Posted by carlsjr1776
4 Comments
Just put it into something like schwab or vanguard and buy low expense ratio total stock market index fund such as VTI or SCHB. Total stock market funds are the best zero effort way to ensure you are diversified while also achieving fantastic historical returns.
Keep 15 for me to develop a deeper “uh oh fund”
And the other 30 ill throw on VTI and let it ride
Invest that shit
Depends on how much risk (uncertainty) you’re willing to accept.
I’d go with a combination of total US stock index fund (e.g. VTSAX) and intermediate tax exempt bond fund (eg VTEAX), although with the inverted yield curve and your low earnings (and therefore low income tax rate), you could just keep that portion in a MMF until rates fall below 4.5%.
How you divide the money is dependent upon how much money you need to open up the practice and what’s your plan if the fund underperforms.