What to do with $110K

[Frugalchicos]

Good problem to have:

Just sold the condo and have $110k. The question is: what would you do with your money in the US or in Europe?

Some background: currently living in the US but going back to Spain for good in 8 months. Have about 65k in 401k and retirement plan, have 165k invested in stocks and bonds and 20k in cash.

[unemployable]

Some $30-40K in VEMAX or a similar emerging markets fund (10% of your portfolio)

The remainder biased towards high-dividend US bluechips. The 2017-18 rally was largely tech; quite a lot of larger-cap US stocks are sitting around a 12-15 PE and a decent yield. If the economy continues to be strong I believe they'll catch up, and if we go into a recession they will typically hold their value.

I think GE has bottomed out, but no one really knows what it should be worth.

This advice comes with a full money-back guarantee: I'll refund you what you paid for it.

[Mister Imperceptible]

Ben Hunt on Emerging Markets

[OTCW]

What will be your housing situation in Spain? Applying the $110k to that would be my first priority. Dip into or add to your cash buffer for the deficit or surplus.

[Sclass]

What will be your housing situation in Spain? Applying the $110k to that would be my first priority. Dip into or add to your cash buffer for the deficit or surplus.

This actually sounds intriguing. I just saw a video on YouTube about minimalist retirement in Portugal. Is Spain a similarly good place to retire? (Portugal video cited low cost of housing, low cost medical care, low cost fresh food etc.).

With any windfall I try to resist the temptation to try to put it all to work immediately. I shouldn’t really call it a temptation because that has a bad connotation. There exists a desire to get the cash invested away quickly that is a good but it shouldn’t be rushed.

[Frugalchicos]

Thanks for all the answers guys. We are actually going back to my hometown in the Basque Country (Spain). And we will be living in a condo my parents have (rent free).
We will not have to buy a car right away either since everything is very walkable and I can borrow a car for the first couple of years

@Sclass
Yes, it is true everything is way cheaper. Healthcare and education is basically free for residents. Housing is the part that is a little tricky. But you can get a decent 2 bed condo for $110,000

[Kriegsspiel]

I'd put it in t-bills.

[Nomad]

I think the Spanish property market may take a hit due to the effects of Brexit. So I would probably rent somewhere for six months of
more to see how that pans out etc. If property prices are dropping - keep renting until you get a good feel for the market and the areas where you are
thinking of buying. View lots of properties.
With regard to your money, I would invest it in a diversified portfolio containing,
US or Global
Asia or Emerging Markets
Gold
Real Estate / Real Estate Investments Trusts
Bonds

[Jason]

How much of the 110K will be subject to capital gains? Do not forget your tax liability. You might want to speak to your tax person to know what the hit will be next year before investing. I am assuming that because you are moving to a foreign country, a 1031 Exchange could not be utilized.

[Frugalchicos]

No capital gains Jason.

I decided to invest 30% of it in Betterment (90%stocks,10% bonds) and the other 70% in a saving account yielding 2.20% (I will decide what to do with it later).

[prognastat]

What's your reasoning for going with Betterment? I haven't invested that much with them, but have been quite disappointed in their performance compared to my own investments in Vanguard(which most of their investments go to too).

[2Birds1Stone]

Betterments exposure is nearly 50% international on the equities side, SO has her Roth IRA in there, and it's under-performed mine (Vanguard VTI/VXUS/BND) the past 3 years. That said, international could outperform US any time in the future.

[prognastat]

I'm going on 4 years with far worse returns. It's to the point where I've stopped additional contributions to the account and will probably roll over the account to vanguard at some point.

[Frugalchicos]

To be honest, I just liked Betterment because it was an easy way to start investing. I also liked the diversity and international exposure. As you said, most of the investments are in Vanguard, Ishares, Schwabb...

I just think it is an easy/passive way of investing without driving myself nuts and becoming an expert (which I am far from being). I also like the different goals you can set in the account and its format.

[FRx]

I've been going back and forth to Spain as well and lived there long enough to appreciate the subtle difference of baseline expenses. To enjoy a standard lifestyle in Spain you don't have to spend much. Groceries are cheap and the quality good enough that organics aren't usually necessary. Healthcare is solid and either free of 55 euro a month for a Cadillac plan for an expat. Public transportation is solid and it's a walking town. There isn't a massive difference from a bad neighborhood to a good neighborhood- not like, say in, Los Angeles or Detroit or Oakland. Once you own a home the ongoing costs aren't as steep as they are in countries.

[Frugalchicos]

You are right FRx. Where have you been in Spain? I'm originally from the Basque Country.

[FRx]

I lived in Barcelona for a few months and then the second time around I lived in Sevilla. Basque would be my choice but the cost of living is a little prohibitive. I'm sure if I stayed there long enough I could find some reasonable living accommodations and a cheaper city/neighborhood.

[Frugalchicos]

Anywhere except San Sebastian is quite affordable (way cheaper than Barcelona). The more inland you go, the cheaper.

I see you are in Oregon, there is a large community of Basque around the Jordan Valley and in the border with Idaho.