I live in the US (Maryland) and make over 140,000 a year (is it bad that after I hit 6 figures I stopped paying attention to exact salary and so can't recall more accurately then that?). I'm lucky enough to be in a field where there aren't enough programmers to fill the need meaning I have a good amount of job security, if my entire company went bankrupt tomorrow I could find a new company with comparable salary within a few weeks. I'm also a cheap bastard, having shaved down my spending to the point when I live off of only a bit more then minimum wage. The net result is that I have a rather large net income after paying my living expenses, and sufficient savings that I can afford to give away a good amount of that extra income even after ensuring I have a sufficient nest egg.
I had been donating this excess income to charity, GiveWell to be exact, which I would recommend to everyone as one of the most efficient options for charitable donations. However, when Trump changed the tax law he drastically cut back on potential deductions for charitable donations, as such I'm looking to invest this money currently, with the intent of donating it in the future once a new president has taken office and hopefully has changed the tax law to make it more efficient to donate to charity. I'm looking for how best to invest this money in the meantime.
My original intention was to invest in real-estate by buying a home to live in while renting out extra rooms, with the intent to use the property primarily for renting income (I'd take the smallest room myself; I don't need much). I have some advantage here in that I can find roommates from an intranet that are ensured to have been rather thoroughly screened and have decent income; lowering the risk of lack of payment for rent and giving me further leverage for ensuring payment. However, I'm worried that I don't have the organizational skills to reliable handle the logistical hassles of managing real estate, and with my current company I already have more interesting opportunities to work beyond my regular 8 hour work week so even if I'm willing to commit to extra time managing real-estate there may be a more profitable means of spending extra hours earning profit.
I'm currently leaning towards the boring option of putting the money in index funds, though I'm not opposed to real estate if I can prove it has enough ROI to justify the extra hassles for me. However, it feels as if there should be some other investment options available to me.
Alternatively it may be better to bite the bullet and put my money in a donor advised fund (basically a 401k for charitable donations) now, despite paying far more taxes then I use to on the donation, so I can avoid paying taxes on the income in the future.
I currently 'only' have about 10,000 to invest, having already invested a good deal in a few investments, but the potential money to invest builds up fast since I live off of so little of my actual income.
Some of the key points that make my situation a bit different then the average investment advice:
- A willingness to invest a relatively high amount of money each month.
- Open to very high risk (if the potential ROI justifies it), this is all money I'm planning to give away eventually anyways, so a bad investment won't bankrupt me
- I Don't need the money to be liquid. In the end rather I donate the money to charity in 4 years or 30 doesn't matter so long as it eventually goes towards helping people. Higher liquidity is always preferable, if for no other reason then it means I could afford to invest a little more of my nest egg money into a high liquid option as opposed to having to keep more money back for emergency funds; but again a good ROI is worth lower liquidity.
- Since the investment is ultimately intended for charity any options that maximize my ability to support charity in the long term is acceptable, such as Donor advised funds or investing in areas where the investment can do more good while earning profits.
- I'm ADHD and have to plan accordingly. I know I'm not always the most organized and don't want to invest in any option where poor organizational skills could cost me significantly.
What sort of options should I be looking into investing?