Personal Finance

Would like advice on how to best invest $150,000 given my situation

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  • Aug 4th, 2020 9:26 pm
[OP]
Newbie
Nov 2, 2017
87 posts
5 upvotes

Would like advice on how to best invest $150,000 given my situation

Good Afternoon,

I have $150,000 I would like to invest. I know that most people would recommend that I invest it in real estate, however, I do not even know which province/state (Or country for that matter that I will be living in for the next two years) .

I am not sure how realistic it would be to rent it out, while I am 1000km away.

Therefore I am considering other investment options.

I would like to keep $50,000 in a fairly liquid investment (in case I see a good deal on a house), and the remaining $100,000 I would like to earn as much interest as possible whilst still remaining relatively safe.

I am thinking of this “portfolio”:

1) Property Development Startups: Invest $ 80,000 in some sort of property development project, hope to earn at least 30% ( Just an idea a colleague suggested), I havent done much research into it yet)

2) $20,000 in Lending Loop (relatively safe investments – aiming at 8% return)

3) The remaining $50,000 I will put in a high interest Savings Account, earning 3% interest, but it will be on ‘standby’ in case I see a good deal on a property.


So dear reader, What do you think of my idea? And most importantly; what would you do in this situation?

Serious replies only please.

Thank You.
25 replies
Deal Expert
User avatar
Jan 27, 2004
43419 posts
6659 upvotes
T.O. Lotto Captain
Getbread wrote: Good Afternoon,

I have $150,000 I would like to invest. I know that most people would recommend that I invest it in real estate, however, I do not even know which province/state (Or country for that matter that I will be living in for the next two years) .

I am not sure how realistic it would be to rent it out, while I am 1000km away.

Therefore I am considering other investment options.

I would like to keep $50,000 in a fairly liquid investment (in case I see a good deal on a house), and the remaining $100,000 I would like to earn as much interest as possible whilst still remaining relatively safe.

I am thinking of this “portfolio”:

1) Property Development Startups: Invest $ 80,000 in some sort of property development project, hope to earn at least 30% ( Just an idea a colleague suggested), I havent done much research into it yet)

2) $20,000 in Lending Loop (relatively safe investments – aiming at 8% return)

3) The remaining $50,000 I will put in a high interest Savings Account, earning 3% interest, but it will be on ‘standby’ in case I see a good deal on a property.


So dear reader, What do you think of my idea? And most importantly; what would you do in this situation?

Serious replies only please.

Thank You.
Blow and hookers.
Only because you said “ Serious replies only please. ”

Jk

1 & 2 actually entail a lot of risk. Not to say its not possible to make money. But there is quite a bit of risk with these types of Companies. Same with the lending loop... why lend money to some random people, even if theres checks and balances?
Why not “ lend “ money to Enbridge...? a multi billion dollar public traded company that gives 8% dividends ... thats 70 years old and has never missed a dividend. Now that sounds like a good “person” to lend money to. It doesnt move too much ... so capital gains might be lacking.

I would much rather invest in large billion dollar corporations.

I mean everything has risk. So evaluate your investment accordingly.

Gic & high interest savings accounts are fine. Those will for sure maintain your principal.
Deal Addict
User avatar
Nov 18, 2007
3487 posts
548 upvotes
Valleywood
Please let us know where you find HISA giving 3%.
Member
Nov 3, 2015
237 posts
77 upvotes
Victoria, BC
Btw, I apologize for the long post. It wasn't intended. I just happen to talk a lot in person and I also have a strong interest in financial independence.
Member
Mar 7, 2011
395 posts
243 upvotes
Ottawa
Getbread wrote: 1) Property Development Startups: Invest $ 80,000 in some sort of property development project, hope to earn at least 30% ( Just an idea a colleague suggested), I havent done much research into it yet)

2) $20,000 in Lending Loop (relatively safe investments – aiming at 8% return)

3) The remaining $50,000 I will put in a high interest Savings Account, earning 3% interest, but it will be on ‘standby’ in case I see a good deal on a property.
You wanted "relatively" (this is very subjective..) safe investment, but 1) and 2) most likely are not.

For 1).. There is no such thing that is "safe" and gives you 30% return on 2 years. I don't know what it is, but if such thing exists, no one would be buying stocks/ETFs/etc.
I'm not saying that startup is good or bad, but just be wary.

I had used Lending Loop in the past, and I wouldn't recommend it to others. I have invested in around 20 different borrowers, and 5 of them were either in default or charged-off. They were all between B+~C+ grade. Again, not really "safe".

Here's a link to RFD HISA thread
The current best rate is 2.1%.. After Covid-19 happened and BOC cut the rate so much, there is no 3+% HISA any more.

Given that you might want to take the funds out in 2 years, I would keep most of them in HISA and find GIC with better return, but nothing else.. Mutual funds/ETFs are for much longer timeframe IMO.
[OP]
Newbie
Nov 2, 2017
87 posts
5 upvotes
Hi

Thanks for the information.

Regarding Lending Loop, the five borrowers who defaulted, did you ever get your money back?

Maybe I will just invest like $25k in the less safe investments.

Cheers
Deal Fanatic
Dec 5, 2006
8331 posts
3776 upvotes
Markham
willowmaze wrote: Btw, I apologize for the long post. It wasn't intended. I just happen to talk a lot in person and I also have a strong interest in financial independence.
I found your post is helpful :)
Member
Nov 3, 2015
237 posts
77 upvotes
Victoria, BC
Add TFSA, GICs, Tangerine and/or EQ bank to your portfolio. Smiling Face With Open Mouth
Member
Mar 7, 2011
395 posts
243 upvotes
Ottawa
Getbread wrote: Hi

Thanks for the information.

Regarding Lending Loop, the five borrowers who defaulted, did you ever get your money back?

Maybe I will just invest like $25k in the less safe investments.

Cheers
Only a little portion of the principal, like 5% of total charged off amount.
I used them for about 4 years (actually stopped committing to new loan since 2 years ago after seeing the multiple accounts going default..), and my net profit is like -5% due to the defaulted loans.
Deal Fanatic
User avatar
Oct 16, 2008
7674 posts
2458 upvotes
Maple
Getbread wrote:
1) Property Development Startups: Invest $ 80,000 in some sort of property development project, hope to earn at least 30% ( Just an idea a colleague suggested), I havent done much research into it yet)

2) $20,000 in Lending Loop (relatively safe investments – aiming at 8% return)

3) The remaining $50,000 I will put in a high interest Savings Account, earning 3% interest, but it will be on ‘standby’ in case I see a good deal on a property.
LOL at 1 and 2. You want safe but still make money.

High risk - > 50% return
Medium risk - 25%-49% return
Low risk - 10%-24% return
Conservative - 5% return
Safe - 2% return

All depends on age. Can you take the stress?

My 2 cents.
Deal Expert
User avatar
Jan 27, 2004
43419 posts
6659 upvotes
T.O. Lotto Captain
teoconca wrote: LOL at 1 and 2. You want safe but still make money.

High risk - > 50% return
Medium risk - 25%-49% return
Low risk - 10%-24% return
Conservative - 5% return
Safe - 2% return

All depends on age. Can you take the stress?

My 2 cents.
Yeah... options 1 & 2 are marketed as low risk/high return.
But its really high risk low return. Possibly high return.
Member
Dec 27, 2006
417 posts
204 upvotes
Canada
Getbread wrote: Good Afternoon,

I have $150,000 I would like to invest. I know that most people would recommend that I invest it in real estate, however, I do not even know which province/state (Or country for that matter that I will be living in for the next two years) .

I am not sure how realistic it would be to rent it out, while I am 1000km away.

Therefore I am considering other investment options.

I would like to keep $50,000 in a fairly liquid investment (in case I see a good deal on a house), and the remaining $100,000 I would like to earn as much interest as possible whilst still remaining relatively safe.

I am thinking of this “portfolio”:

1) Property Development Startups: Invest $ 80,000 in some sort of property development project, hope to earn at least 30% ( Just an idea a colleague suggested), I havent done much research into it yet)

2) $20,000 in Lending Loop (relatively safe investments – aiming at 8% return)

3) The remaining $50,000 I will put in a high interest Savings Account, earning 3% interest, but it will be on ‘standby’ in case I see a good deal on a property.


So dear reader, What do you think of my idea? And most importantly; what would you do in this situation?

Serious replies only please.

Thank You.
Don’t take this the wrong way but I’ll be very honest: you need to do some reading and research on how to invest or hire someone to invest for you. Your current idea of a portfolio seems like a disaster waiting to happen. Lendingloop is definitely not a good idea for beginners.
Deal Addict
Sep 2, 2009
1003 posts
707 upvotes
Ottawa
m5love wrote: TFSA > stonks = profit
I can't tell if you are saying a TFSA is better than stocks, or to put stocks in the TFSA (misuse of >).
[OP]
Newbie
Nov 2, 2017
87 posts
5 upvotes
How would you invest it if you were in my situation?

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