Summary: I have a mid-six figure net worth, mostly in index funds. With a post-tax bonus of $175k, should I diversify with a rental property down payment or invest it all? Your insights are welcome.
diversifying into property can add stability even tho tenant hassle is real. i’d consider spliting your bonus - part for a downpaymnt, part to stick with stocks for liquidity. it’s about balancing risk with hands-on management.
Really fascinating dilemma! I lean towards pure stock investments but can’t help wonder how steady rental income might hedge against market volatility. What do you think about holding some property for diversification over time?
Based on my experience, a balanced diversification strategy could serve as a prudent approach. Investing a portion of the bonus in property can bring the benefit of a relatively stable income stream, even if it does come with the challenges of property management and market cycles. Simultaneously, maintaining your investment in stocks ensures liquidity and growth potential over time. A measured allocation can help hedge against fluctuations in either market. Consider your capacity to manage property-related responsibilities and the long-term implications of each option before committing to a strategy.
hey, im thinkin property provides a real hedgin vs market swings. stocks are liquid, so if u dont enjoy landlord hassle, maybe stick with bonds. mixing could be smart if u know your cashflow is good.