No Wife, No Kids, $250K To Invest—'I Don't Need This Cash For 5-7 Years'—Reddit Battles Over The Best Long-Term Stock And ETF Strategy

Investing in stocks and funds is one of the most powerful ways to build wealth over time, but choosing the right assets and strategy can be overwhelming, especially if you’re dealing with a large sum of money.

While some investors prefer high-risk, high-reward plays, others swear by the reliability of long-term holding. Besides individual stocks, ETFs have become a popular option for investors looking for long-term stability, thanks to their diversification, low costs, and ease of access.

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With $250,000 to invest and confused about which assets to buy, one Reddit user turned to the online discussion board to seek advice. The Redditor has no immediate need of that money, no wife, no kids, and a full-time job that leaves him with little time to dive deep into investment research.

His main goal is to maximize the returns in five to seven years but he’s unsure about the best approach to deploy his funds.

“I’ve also spoken with a few financial advisors and just wanted to get varying points of view. I don’t need this cash for 5-7 years. So maximum return on that timeframe I suppose?” he wrote.

The poster has mentioned a preliminary plan, which includes monthly investments into individual stocks and ETFs, such as NVIDIA Corporation NVDA, Microsoft Corporation MSFT, Alphabet Inc GOOGL GOOG)), Vanguard S&P 500 ETF VOO, Schwab U.S. Dividend Equity ETF SCHD, and even cryptocurrencies like Bitcoin and Ethereum.

He’s also considering dollar-cost averaging around $12,000 monthly over the next 12 months, but isn’t sure about the best investment interval and whether his current allocation is too broad or too concentrated.

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Reddit has offered plenty of suggestions in the comments, so let’s dive into those.

No Wife, No Kids, $250,000 to Invest and Little Time to Study Investing – Reddit Advises the Poster

Lump Sum Vs. Dollar-Cost Averaging

The thread has seen a debate between some users recommending investing the whole sum and those suggesting dollar-cost averaging. Some even suggested a hybrid approach.

“You can put half in now and then the rest over 6-12 months. A good compromise between lump sum and dollar-cost averaging,” a comment says.

A commenter mentioned the fact that he asked the same question about dollar-cost averaging vs. lump sum in another community on Reddit, and users have suggested he invests all the money at once.

“I asked this very question in the investing sub a week ago. Decided to hold off and, oh boy, am I glad I did. I’ll probably wait another week and reassess. By the way, in the other thread, people were posting stats about how you’re better off just putting everything in at once over [dollar-cost averaging]. A two in three chances you’ll be better off,” he said.

On the other hand, this Redditor advised the poster to ignore those suggesting him to go all in.

“Please. Ignore the lump sum advocates. Historically, it works out well 66% of the time. But that might not be in this time of unprecedented government incompetence and maliciousness,” the user wrote.

“[Dollar-cost averaging] is perfectly acceptable and "not timing the market" is not 100% foolproof. If Joseph Kennedy took your advice in 1929, there would be no Kennedy fortune, but because he was inspired to sell right before the crash, they preserved their wealth,” another comment reads.

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Balance Your Portfolio

The poster’s initial plan included allocations to a mix of ETFs, individual stocks, and cryptocurrency, and Redditors had diverse opinions on whether this type of diversification is a good approach.

“If I were entering the market now, I would go for a balanced exposure with some bonds in the mix (60/40 or 70/30 if you can really stomach the risk over 5 years), and avoid any single market concentration. The bond component of your portfolio would not be there to raise any potential returns (it likely won’t) but rather to minimize volatility over the 5-7 year period you indicated,” a commenter suggested.

“Don't put it all in VOO. Diversify,” another Redditor advised.

A comment pointed out that diversification should expand beyond equities and should include assets that offer a broader market exposure.

“Diversification should go beyond equities. Consider some other asset types to give you broader exposure. You can also weigh your contributions, they can vary based on metrics of your choosing,” the comment says.

“All in on stocks during the start of a trade war/recession/depression is moronic. [SPDR Gold Shares IBIT] are your friends for diversifying,” another diversification suggestion reads.

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