Sell all stocks and buy a land?

**BuckyBadger** · 03-10-2014, 07:39 AM

Originally posted by emanon1501 View Post

I bought some stocks and ETFs back on 2008 - 2010, but I never felt comfortable about that as I do not really understand how to invest properly for long term. I have not bought any shares for over 4 years. However, I am maxing out my 401k and my wife's traditional IRA and I am good with that.

I was wondering if I should sell them all and buy a few acres of land for retirement which is about 20 years later. Or am I better off leaving my investment alone and sell it in 20 years and then buy a land when we retire?

What do you think?

I'm confused. If you're maxing out your 401k and an IRA, what are you investing that money in if not "stocks and ETFs?"

Investing properly is astoundingly easy. It takes only three cheap index funds (Total US Stock, Total International Stock, and Total US Bond). You can look at them as infrequently as you want - a couple times a year would probably be a good idea. Pick an asset allocation that lets you sleep at night and glide it toward being more conservative (i.e. more bonds) as you approach retirement age.

Even easier - use a target date retirement fund and never have to look at it again for the next 20 years!

I wouldn't cash it all in and buy land, as that makes you VERY un-diversified. You never want to have all your money tied up in one asset class, much less in one single property. That's why those three index funds are great - you get global diversification.

**emanon1501** · 03-10-2014, 07:51 AM

Originally posted by BuckyBadger View Post

I'm confused. If you're maxing out your 401k and an IRA, what are you investing that money in if not "stocks and ETFs?"

In 401K and IRA, I am using Target year thing. I guess it is made up of stocks, ETFs, etc..

I just don’t feel that I need to invest using Share Builder when I have IRA and 401k. To me, that feels un-diversified. Buying a land will help diversify a little bit and still have 401k and IRA. Just get rid of my investing using Share Builder.

Any feedbacks or suggestions are appreciated.

Thanks

**bjl584** · 03-10-2014, 08:04 AM

What percentage of your overall portfolio does the stocks and ETF's that you bought represent? How much money are we talking about?

**emanon1501** · 03-10-2014, 08:10 AM

Originally posted by bjl584 View Post

What percentage of your overall portfolio does the stocks and ETF's that you bought represent? How much money are we talking about?

80% in US stocks and total is about 17K, so it is not a lot.

**T1985** · 03-10-2014, 07:07 PM

I am not expert but I so go for it. You are not touching IRA or 401K. Plus, if you KNOW you will end up there why not. There will always be plus/minus but just my .2 cent

**danielhermann** · 03-10-2014, 09:58 PM

A person should invest in instruments he can understand. Never fully depend on a financial expert. Secondly, you need to have some money liquid, some invested in defined benefit schemes, some invested in fixed instruments where capital protection is guaranteed, some invested in a residential property which serves as a primary residence. After this, he may choose to invest in stocks/shares/ land/ bullion etc. Bear in mind however that real estate has its own set of problems and is not so easy to dispose off. You may however have to churn your investments too from time to time. Evaluate the market value of what you have vis-avis the original investment and then take a call.

**ua_guy** · 03-11-2014, 06:57 AM

Buying land seems easy, but it's not. It has its own set of complicated factors much like the stock market and requires a lot of time/knowledge/understanding just the same. While it's true land becomes more valuable over time, you want to pick the right piece and also have a goal in mind. Do you want to physically live on it in retirement? Do you want to turn it over in a sale and have the proceeds fund your retirement? There's a lot to consider.

There's a lot of junk land out there that really won't be worth any more in 20 years than it is now; in fact in that scenario you'd be better off just investing your money in cash (or traditional retirement funds) since the land will cost you in property taxes for as long as you own it.

**SavingSteve** · 03-11-2014, 10:50 AM

Buying land with no improvements/house on it is highly speculative. You will have to pay property tax for empty land. Why not buy a book about ETF's and become an expert? If you're going to buy property it would be better if there was something useful like a house on it.

**kenp11** · 03-12-2014, 01:11 PM

Originally posted by emanon1501 View Post

I bought some stocks and ETFs back on 2008 - 2010, but I never felt comfortable about that as I do not really understand how to invest properly for long term. I have not bought any shares for over 4 years. However, I am maxing out my 401k and my wife's traditional IRA and I am good with that.

I was wondering if I should sell them all and buy a few acres of land for retirement which is about 20 years later. Or am I better off leaving my investment alone and sell it in 20 years and then buy a land when we retire?

What do you think?

Sell some(NOT ALL) and buy a small lower unit condo in convenient small town next stores that are walking distance. AZ NV TX and other states all have 2 br condos under 100k and not much maintenance.
Raw Land is a headache but worth it if you can build & rent for 20 years

Sell all stocks and buy a land?