HACKER Q&A
📣 m3t4lh3ad

You have $300k in stocks. What would you do?


You have $300k in stocks. What would you do?


  👤 ksaj Accepted Answer ✓
I would keep a chunk of it on hand for day-to-day, and leave the rest in an interest free banking account, if your country has those, or a high interest banking account if our country doesn't have those, and just sit on it until the market bottoms out from covid. Then pour the saved money into a "safe" stock such as a major bank and enjoy the ride out of the doldrums as the markets become invigorated.

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.


👤 alltakendamned
What terrible advice in this thread - bitcoin, single stock/industry portfolios, gold, overseas real estate, option trading etc are all highly risky investments.

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.


👤 Trias11
Sell stocks and:

- 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.


👤 Brett_S
This is hard to answer without more context. For example: where in the world do you live, do you have a family or other dependents, are you employed, if so what, do you have any other sources of income, how old are you, what is your tolerance for risk, what is your IQ & EQ level etc. A good financial advisor would take all of these things into account before giving advice.

👤 rayhendricks
I’m going to assume this is a serious question, although if not serious go to r/wsb and have fun making Robinhood founders & Big Daddy Elon even more wealthy.

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.


👤 alexmingoia
If that was all the money to my name I’d put 10% in bitcoin, 40% in large-cap leading tech stocks (Apple, Microsoft, etc.), and 50% in cash in a bank.

If it was $300k I could afford to lose, I’d put it all in income-producing assets like rental properties or private equity.


👤 sethammons
Index fund for most. “Rule #1 investing” for a smaller portion. Also consider rental properties depending on your total portfolio.

👤 jklein11
I would write far out of the money puts on TSLA. Look at the options chain! If you were to sell 1 put on TSLA with a strike price of $1200 and maturity date of 7/24 you would collect $780! That means that if TSLA doesn't drop from 1600 to 1200 by Friday you get to keep that $780! Only issue is you need to put up ~120k in collateral

👤 LUmBULtERA
I guess I'm old school for here, just VTI.

👤 Sevii
What is your allocation?

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.


👤 kanobo
Sell all stock, save enough to cover taxes, then buy a tiny plot of land with access to water and electricity. I will build and live in a yurt while I plan my next move.

👤 rdtwo
Why not just pay down your mortgage? You’ll get 3-4% risk and tax free where else are you gonna get that kind of guarantee?

👤 giantg2
October VIX calls

👤 marketgod
Trade options. Hold TSLA/AAPL. In essence continue doing what I have been doing.

The market looks fine right now but after today we may chop a bit.


👤 logicslave
FAANG Stocks. Dont over think it

👤 person_of_color
Sell covered calls.

👤 aj_icracked
I would go to Reddit WSB pag and buy $3000 TSLA calls