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Re:Ask HN: I have $450K cash, what should I do to maximize m... by egsmi on Saturday August 01, 2020 @05:41PM (#24024127)
On average this analysis makes sense but cash flow is also important to consider. If the thing you’re investing in to get 7% doesn’t make payments, or has a single bad year and doesn’t yield like it’s supposed to, you could be up the creek.
Re:Ask HN: I have $450K cash, what should I do to maximize m... by arcticbull on Saturday August 01, 2020 @05:50PM (#24024185)
Indeed, I was basing the 7% return on the S&P hence assuming liquidity in the investment. Liquidity matters and, yeah, YMMV. Still works if you invest in CDs instead but it’s not nearly as attractive.