Rentals are still hot. There are certain things you will need to do to protect yourself with renters and there are no guarantees but you can reduce your risks with credit check, references, deposits, and a well written lease.
I'm speaking from experience.
I know nothing about renting out.
Too many variables of countless things that could go wrong.
Then again, maybe I watch too many landlord/tenant disputes on Judge Judy to count?
I do know there’s money to be made there, IF one is very educated and experienced in such things.
That being said, how to protect against the great unpredictables?
Case in point, SO many landlords got seriously goosed on the COVID federal mandate prohibiting evictions.
Back to the OP’s topic, lots of good info already posted.
Best I can offer without more OP specifics is: Pay off all interest bearing debt, have a 8 to 12 month rainy day, easy accessible account.
Then, off to investing. A low cost S & P index fund is an excellent choice. If you are talking serious money, you may want to “dollar cost average” your way in. Fidelity FSKAX is an excellent choice.
Beyond that, a lot has been mentioned about global insecurity across multiple fronts. So very true.
My only advise is DIVERSIFY as much as possible.
My own investments are pretty much across the financial spectrum.
If I say I’m tilted in favor of anything in particular, it’s the defense sector (FSDAX), utilities (primarily AEE and NÉE). Telecom (T and recently spun off WBD… mainly as dividend holds), QCLN (a renewable energy play which has not done me well since purchase, but I still have long term hopes).
All my other stuff is scattered all over, one broker managed (an inheritance), the rest self managed. I’d say 50/50. Stocks, bonds, mutual funds, ETF’s, cash, etc.
On the other end of the spectrum.. I hold a fair amount in (gasp!) laddered CD’s. Hard silver and gold, and even old EE US Savings Bonds.
I often explain to wifey how even simple cash can burn you. Hello Inflation? 1940’s Germany anyone?
People often ask my financial advise. Like another poster said earlier..: I hold no formal financial title, but have read and learned a ton. Many thanks to my now deceased father, a career CPA and self investor.
I no longer give specific advise in these complicated times. Other than DIVERSIFY, DIVERSIFY, DIVERSIFY!
It’s all I know to do right now…
