Home Seller With $150K Cash Asks Reddit For Advice: 'Can I Make $1,000/Month Safely With SCHD, MSTY Or VTI?' – Experts Weigh In

For many people, selling a house is a good way to open up new financial opportunities. 

Rather than letting the money from the sale sit idle, some people start investing in the stock market to grow their wealth or create a reliable monthly income.

Popular funds like SCHD, VTI and MSTY have captured investors' attention for various reasons. While SCHD is known for its reliability when it comes to dividends, VTI offers broad exposure to the whole market, and MSTY is noted for being high-risk, high-return.

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Many dream of earning a few thousand dollars each month from investments. Whether through growth-focused stocks, dividend-paying stocks or a mix of both, reaching this objective requires careful planning, some risk tolerance and a good strategy.

One Redditor is trying to figure this out: after selling his property, he was left with $150K. However, he plans to move into a free apartment at his dad’s home to keep costs low, which will allow him to invest all that money in stocks.

His goal? To make around $1,000 per month while keeping his principal safe.

"How should I invest this capital in order to make, say, $1,000 a month? Is that even possible? I could basically live off that,” he wrote.

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Since he’s done his research, he’s considering investing in SCHD, MSTY, VTI and perhaps other funds, but he doesn’t know how to allocate his money to achieve his goal of earning $1,000 per month.

“I've been reading all about SCHD, MSTY, VTI and all the others. Looks like MSTY provides crazy returns,” the Redditor said.

Reddit members of the r/dividends community have shared their opinions and advice, so let’s dive into the comments to pick the most relevant and common suggestions.

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How to Invest $150K? Reddit’s Recommendations for the Home Seller

Be Cautious About Risky High-Yield Funds

Several Reddit members in the comment section warned the investor about funds like MSTY, which guarantee high returns but come with great risks.

“I’d avoid high-risk funds like MSTY. With those, you could double your money, or it could drop by 80%. It’s really that risky,” a comment reads.

“MSTY is a very risky play. Looks great now. But you really need to understand it and be prepared for huge losses,” says another Redditor.

On the other hand, one commenter pledged for MSTY, saying that every endeavor is risky, including opening a business.

“While people keep saying MSTY is risky and well sure it is, but has anyone opened a small business? Or heard of a stop loss? I've made consistently $2K a month with a DCA of 26, which also means I'm up 3 bucks a share on it as well. Set a stop loss and rake in money till it tanks,” he said.

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Invest in Both Growth and Dividend Stocks

According to the commenters, a balanced portfolio of dividend-paying ETFs and growth-focused ETFs is a great strategy.

“I’d suggest something like a 40% VOO, 35% SCHD, 10% XMMO & 15% AVUV and building wealth before you consider retirement,” a Redditor recommended.

A second Reddit member advised the investor to consider a mix of growth and dividend funds.

“If you wanna have stable income and long-term growth, look into the combination of VOO, SPYI, GPIQ, JEPQ/JEPI, SCHD and one or two aristocrat dividend stocks, such as PEP, ABBV or KO,” he said.

While most commenters suggested a combo of stocks, this Redditor recommended that the poster go all-in on growth ETFs because he's young.

“I assume you are still relatively young, probably somewhere between 20 and 35. I wouldn't put the $150K in dividends at all. A growth ETF would be more reasonable. I'm 99.99% sure if you put it into a growth ETF you will have way better results,” he wrote.

Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

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