Yes, I realize the markets are kinda doing well right now if you completely ignore how much they dropped earlier this year. But if we get a second wave (and we very most likely will) consumer confidence will go through the floor and take the market along with it. That's the bottoming out I'm expecting to happen, and am preparing to take advantage of.
I'm doing pretty much this exactly right now. A lot of my cash that could be on stocks is sitting there waiting for that bottom side. All my current trades are with money that's already in the market.
I suggest to read "The Elements of Investing". It's a quick read and will help you have a broader (and more sane) perspective.
But in general, ensure sufficient diversification and time horizon, then add more over time. If you're all in one stock - diversify asap.
- invest into overseas quality real estate.
- buy physical gold.
- invest on cryptos.
In that order.
We need to protect assets from potential inflation, likelyhood of high taxes and overall instability caused by politics and social unrest.
Basically my (untraditional approach) is DO NOT keep any liqud assets in USA. In addition - leverage low interest rates and mortgage the hell out of your real estate assets and do the above.
If inflation will hit - let bank have a problems, not you.
If it is I’d first look at your current positions and see if you owe any tax and how to minimize that. Then I would think about what goal you are investing for and what your risk tolerance is. This basically explains it http://www.simplestockinvesting.com/SP500-historical-real-to... Put it all into large cap index funds and/or international too and leave 30k for your cash emergency fund. Dollar cost average over the next year if you are worried about Covid related market instability.
This is what I did and I only have 1/2 the money you have but it will be enough to retire on when I’m ready barring unforeseen events.
If it was $300k I could afford to lose, I’d put it all in income-producing assets like rental properties or private equity.
Do you want more risk or less risk now?
I'm worried about inflation and considering starting a business. So I'm looking at inflation hedges that are still pretty liquid.
If you don't need liquidity fast you might want to buy real estate to ward off inflation.
The market looks fine right now but after today we may chop a bit.