How Would I Invest $100,000 Today?

This question comes up a lot during my one-on-one coaching sessions with students. They all want to know: if I were starting over, how would I invest?

A student recently told me that he has received some inheritance and he is looking to start invest. So he asked, “Pete, if you were to start over with $100k, how would you invest it?

This question comes up a lot during my one-on-one coaching sessions with students. They all want to know: if I were starting over, how would I invest?

There are two main paths you can take: stock picking or index investing.

If you're a confident investor who can consistently identify winning companies, then stock picking might be for you. But for most people, index investing is a safer bet. It allows you to track the overall market performance without the risk of picking individual stocks that underperform.

However, the current market climate is a major consideration. With the market hovering near all-time highs, I'm taking a cautious approach before jumping in. One indicator is the Buffett indicator where it shows the US stock market vs the total GDP.

In the meantime, I would putting the $100,000 into secure instruments like money market funds. This allows me to earn returns that outpace inflation while I wait for better investment opportunities.

The key advantage of money market funds is their liquidity. I want my money to be readily available so I can seize opportunities when they arise. That's why bonds or fixed deposits aren't ideal for me in this situation.

One platform that offers both money market funds and brokerage services is Betterment. This allows you to earn interest and invest in stocks all in one place.

It's also worth checking out their current promotional rates for their money market funds. They could be a great way to park your money and earn some returns while you wait for the right investment moment.

Make your money rise and grind while you sit and chill, with the automated investing and savings app that makes it easy to be invested.

Learn more.

Hope this helps you in your investing journey!

🤩 But for those of you who prefer stock picking (like me), I am working on something now! Will share with you soon!

May Your Profits Grow!

Pete
Invest with Pete

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing