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Hello,
Age 32, married with 1 YO kid
All tax advantaged savings (401k, Roth, HSA, FSA) are maxed out - about $335k in MF's, index ETF etc.,
Educational account has $17k
Emergency savings 8 months of expenses in CD's (want to increase it to 12mo) - savings apart from these numbers
Taxable investment accounts about - $125k - in stocks and index funds, Precious metals, numismatics etc.,
Mortgage balance $220k,  equity ~$160k - do not want to pay off mortgage
Rental mortgage balance - 85k, equity ~$130k - net cash flow $5k/year - do not want to pay off mortgage
no auto loans etc

We have about $125k cash saved up. 

Our majority of portfolio is tied to stock and bond markets (~$430k). I want to diversify and intelligently start investing the $125k. I feel little wary in dropping this $125k again into equity markets.

Do I buy another rental with some cash flow? Thinking of out of state rental as I do not want to put all RE in same location. -- is the RE market hyped now?
Buy high yield tax free Muni bonds / funds that pay a decent dividend every month? - Again its tied to markets!
Private equity ? but how? I might not be accredited investor yet, if its needed.
Do I hold off until elections?

I am looking for suggestions, pointers, time-lines (invest all or slowly invest) and ideas to intelligently profit from this savings of $125k? 

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WalletFatKing said:   Hello,
Age 32, married with 1 YO kid
All tax advantaged savings (401k, Roth, HSA, FSA) are maxed out - about $335k in MF's, index ETF etc.,
Educational account has $17k
Emergency savings 8 months of expenses in CD's (want to increase it to 12mo) - savings apart from these numbers
Taxable investment accounts about - $125k - in stocks and index funds, Precious metals, numismatics etc.,
Mortgage balance $220k,  equity ~$160k - do not want to pay off mortgage
Rental mortgage balance - 85k, equity ~$130k - net cash flow $5k/year - do not want to pay off mortgage
no auto loans etc

We have about $125k cash saved up. 

Our majority of portfolio is tied to stock and bond markets (~$430k). I want to diversify and intelligently start investing the $125k. I feel little wary in dropping this $125k again into equity markets.

Do I buy another rental with some cash flow? Thinking of out of state rental as I do not want to put all RE in same location. -- is the RE market hyped now?
Buy high yield tax free Muni bonds / funds that pay a decent dividend every month? - Again its tied to markets!
Private equity ? but how? I might not be accredited investor yet, if its needed.
Do I hold off until elections?

I am looking for suggestions, pointers, time-lines (invest all or slowly invest) and ideas to intelligently profit from this savings of $125k? 
 

While you have done very well, especially for your age, your current net worth and 125k is nowhere close to venturing into private equity.

On the one hand you say "I feel little wary in dropping this $125k again into equity markets" and on the other hand you are talking about private equity. The risks involved (and perhaps potential return) are significantly higher in private equity compared to say a boring diversified index fund investing. I would say, invest in the market for the long term --- looks like you can afford to have a long-term horizon. Do not try to time the market. If you decide to invest the 125k in stocks, go all in if you are o.k. with a potential short term decline. If a correction (say a 10-15% decline) right after you invest would make you lose sleep or worse, sell your position, you are probably not suited for investing in the market.

RE is all local. Without knowing your location, it is not possible to say whether "is the RE market hyped now". If you want to buy rental properties, that is certainly one way to diversify as long as you know what you are doing. Being a long distance LL is not easy. Think about the logistics and costs involved if you do pan to buy rental property in a different state.
 

I feel like you are perfectly positioned for this market/election. If I were you I would keep it in cash until the end of the election. If Hillary wins, then your existing investments are safe and you can put your cash back to work for continued abnormal market gains. If the other guy wins, conventional wisdom is that there will be short term market turmoil - at which point you will have the choice with your liquid cash to put into the markets or into real estate. JMHO.

Thanks for the 2 responses, any other ideas?

You could also look at investing in REITs. You would be investing in real estate. It would give you income from dividends and you'd have a more diversified investment. They are more volatile but also more liquid.

I personally don't like out of state direct real estate investments. We own one and its a pain. Its hard to manage long distance, finding a good PM has been hard, I can't do work myself, its harder to pick good tenants, etc. I recommend against it. Local rentals are fine for me on the other hand.

WalletFatKing said:   numismatics
 


Could be a combination of fun hobby and investment if you enjoy it. Personally, I don't have any interest and would be concerned about theft.

If I were in your shoes, I'd drop it all into index funds at Vanguard or Schwab, maintain the balance through quarterly contributions, and otherwise never think about it.

Read Bogleheads carefully and wait a few months before doing anything.



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