Ask HN: What would you do with $100K cash?
I will try to shortly give you a crash-course about how to invest.<p>First of all. Warren Buffet, on his whole life made around 17% p.a. average returns. With 17% on your 100k, it&#x27;s okayish money, but won&#x27;t take you anywhere, even in a few decades. And his average will be much higher than yours, don&#x27;t try to compete with him or a have high return. So, first give up that you can get rich by investing or that you can outperform the market by a wide-margin, or that you will even outperform it. What makes you rich is how much you can save and then convert it into assets that makes you money. With a few decades of saving an okay amount, investing like an adult you will get rich. So, focus on making more money and saving more.<p>So, now, what to buy with the money you make?<p>Don&#x27;t try to make those calculations people do: Hmm. I will get this investment or this other because the other pays me 1% a.a. more.<p>Instead, your goal is to beat inflation, always. That way, you aren&#x27;t at least losing money.<p>Now, there are different investment products. Stocks, ETFs, REITs, crypto, all the stuff you said.<p>Do some small research and find all the stuff you are excited about: tesla, play monopoly(REITs?) etc.<p>Get like 20 options at least, diversify a lot. Get also some government bounds and keep a percentage of your money as USD, so you can take opportunities. Go very diversified. Returns doesn&#x27;t matter, losing money(vs inflation) does.<p>Now, invest 5%(and strive to get even lower) on each. If you aren&#x27;t confortable with stocks, get ETFs, multiple ones. Buy the obvious stuff: not the one everybody is buying, but also not the one not anybody wants to buy(only crazy people that feels it is a casino). Do the obvious.<p>The more you diversify in different products, the better. Also, having money in your bank account is also good, as if the stock market crashes, your overall assets will definitely feel less pain.<p>Avoid selling. Once you buy something, stick to the end. Does it sound stupid? Yes it does, but it will make sure you are always very diversified. If something keeps you awake at night because you fear losing more money, or any money at all, it just means you aren&#x27;t diversified enough.<p>Avoid trading, buying and selling or whatever, because that gives money to who owns the broker. The market will try to make you rotate your assets, don&#x27;t fucking do it. It is a terrible idea.<p>I&#x27;ve been doing the above and learning more about fundamental analysis of companies(stocks). I know how to read balances well and have had a performance better than S&amp;P 500 on my overall assets, but I consider it partially luck. I only invest in stocks which can give constant profits, have a good free-float this and that. You don&#x27;t need to learn this crap unless you want to. I do it for fun.<p>If I do very well, I might make 2% p.a. than you, and this makes absolutely no difference in that amount of money. If I would instead learn how to do make wooden tables and sell them, I would make more money than what do I get 2% a.a. on my assets(and by now, I think I&#x27;ve accumulated a lot).<p>Never buy into those early retirement schemes frugal lifestyle people try to sell you. It is all bullshit, it won&#x27;t make you happy.<p>Also, the most important thing: DO SPORTS. This is the best investment advice you will ever get. Get at least 3x a week physical activity, maybe even more.<p>You can make muchhhhhhh more money by being alive for longer.<p>Time will always beat returns, always! Also, having assets invested means you will carry some risk and the best way to deal with anxiety of risk is to practice sports. You might think that risk has to do with losing money, but it also happens when winning. Once I&#x27;ve made so much money with crypto(like years worth of work, even more!) that I couldn&#x27;t sleep well, even though I do my sports and all and barely have any anxiety previously. Same happened other times, with AAPL stock... also lost some. So things will go up and down, if you are diversified, it won&#x27;t hurt you much.<p>With diversification, you can even safely take from the ATM 1% of your portifolio from the ATM and burn it in a party, just because you can, as it barely makes any difference as the market will slide up or down. But don&#x27;t do it.<p>There will be people and studies whatever that will tell you that diversifying too much is bad. It only is if you are paying too much to your broker to do it for you, as everytime you buy something, you pay some dollars for it. Those people who works for and own investment funds frequently don&#x27;t even beat the market and charge lazy rich people that don&#x27;t want to manage their own money. Don&#x27;t trust them, ever! Just trust yourself. Don&#x27;t buy the magazines that tell you what to buy, always do your own research and if you are to lazy, just diversify a lot.<p>My 2 cents.