Quote:
Originally Posted by CyberCubed
The problem with having extra money on hand is...well, you don't know what to do with it. You can go on a splurge spending spree and buy a whole bunch of new things you don't particularly need, but then after you do that, you kinda realize you wasted your money.
As I said before in my late teens and early 20's I really did spend my money on countless toys, videogames, comics and DVDs and blu-rays. Then about a decade later I realized how much money I wasted buying all that stuff. Later I sold roughly half of it on ebay just to get rid of it all, not even to make money back (although some did sell for a pretty penny), and now I realize I'm pretty much "over" material possessions. I think everyone goes through a phase like that, you suddenly have a lot of money you never had before and realize you can finally buy whatever you want...and then later on you realize it wasn't really stuff you needed.
I don't know what it is, but I don't care about owning stuff anymore. I still have all my old stuff but I don't feel the need to buy new things much anymore.
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Take the money you've squirreled away and prepare to invest it buy 2nd quarter 2021. You can't just do this on a whim so you should do it now. For example, you can't just open a brokerage account with Charles Schwab - you have to go through their compliance measures (checking boxes, sending them ID scans, all basic stuff but it doesn't happen in a day).
Then move your money into your new brokerage account so that it is ready to deploy for initial positioning during a market crash or correction which everyone feels is coming next year.
Normally I'd say that dollar cost averaging is better than waiting for a market crunch, but it's different when you are making a foothold on initial positions and you have the situation that you have. But the point is to create a growth situation where the magnitude of money you have now creates money that you can
use.
And that's the bottom line. It's not that you have
that much money, but do you have a nice little chunk. I would use that money to create more money for reasons x, y, & z.