Shares/Stock Is it right to buy stocks worth $100,000?

[Alexandoy]

I know this is big money but I am in a sort of panic because the money is only in my bank account that earns very small interest. With the stocks I would certainly earn more even in the annual dividends alone. And I can earn a bigger profit if I would be trading my stocks. Real estate is my first option but it looks like a difficult procedure to buy a property now especially with the covid around us. At least with the stocks, all I need to do is to call the broker and give him instructions on what I want (to buy or to sell). When I need cash, I can easily sell the stocks although there is no assurance that I can gain because the profit would depend on the market price.

That big money will lose its value as years go by due to the inflation and my options are real estate and stocks for now. A friend is urging me to try crypto coin but I am not keen on that because for me, crypto is a pseudo investment because a digital coin is not exactly a coin but just a merchandise that is used to have a market value and be traded. Anyway, any suggestion would be appreciated.

 

[eldavis]

Personally I would say it is right and at the same time it is not. The choice is actually yours to make, I believe you know the risk and benefits found in any stock related investment. If you feel you can handle investing such amount, then go ahead. Though the logical thing to do would be not to invest all that you have on stocks, invest what you know you have no problem loosing, and so you won't get stranded in case something comes up.

 

[Deleted member 28127]

Even half what you have means by another term the money you keep for your essential spending must not be touched in forex or stocks trading or any other kind of investment.

 

[goodmoneygoodlife]

The stats say just shoving your $100K in SP500 or some diversified index in the long-term will yield optimal results.

As Ray Dalio says: 'cash is trash' and it's losing money every single day it's in your account.

You should avoid crypto if you only have the $100K. Crypto can go up/down/sideways, but mostly to $0. You should only invest in crypto if you're OK with turning the $100K to $.03. If you're OK losing like $10K of your $100K, then sure put $10K in crypto and save the rest of your $90K.

Real estate isn't hard to get into -- just purchase into syndications and you'll get 1) professional management so it's actually passive and 2) you don't have to look for deals yourself. Some require you to be accredited, but some don't, and some have like 30 slots for non-accredited. The only thing I'd suggest if you really wanna get into real estate (via syndications, which is the most optimal time/performance solution for me) is that you go read 'The Hands-Off Investor' (link to book is in my link above) so you can actually read the numbers properly and not get scammed by a novice team (i.e. go spend $14 on a book and educate yourself so you don't waste $100K on a bad investment).