Need Investment Advice

[2highpsi]

The information posted by 2highpsi does not constitute investment advice or an offer to invest or to provide management services and is subject to correction, completion and amendment without notice. Any such offer, if made, will only be made by means of a confidential prospectus or offering memorandum or management agreement. It is not his intention to state, indicate or imply in any manner that current or past results, when stated, are indicative of future results or expectations. A prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment.

[Sledhead36]

The information posted by 2highpsi does not constitute investment advice or an offer to invest or to provide management services and is subject to correction, completion and amendment without notice. Any such offer, if made, will only be made by means of a confidential prospectus or offering memorandum or management agreement. It is not his intention to state, indicate or imply in any manner that current or past results, when stated, are indicative of future results or expectations. A prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment.

 

lol, you are now covered.

[Forrest Gump 9]

Sorry for late to the party, but I would put it on the Heat for game 1.

[Zx2guy19]

Sorry for late to the party, but I would put it on the Heat for game 1.

 

I would have been fucked. Lol

 

 

Awesome advice everyone, I will respond tomorrow when I'm not on my phone. Lots to ask about! Thanks for everything.

[Forrest Gump 9]

I would have been fucked. Lol

 

 

Awesome advice everyone, I will respond tomorrow when I'm not on my phone. Lots to ask about! Thanks for everything.

 

Well, consider yourself lucky. Now take that $10k you didn't lose and go on a vacation. Seriously dude, you're 23 years old, enjoy your youth, there will be plenty of time to make money.

[Tractor]

Stay out of gold/silver right now for long term though right now might be a good time for some quick profit 2-3 months. Summer is upon us so the market is at its peak right now and will settle over the next couple of months as people take vacations, schools are closed and some smart money will be protecting assets in gold etc until fall. Summer typically is a time of reduced trade volume which causes stocks to lose value during smaller movements.

 

You could probably put your money into a very aggressive mutual fund or similar that tracks the S&P500. Weighted heavily in mid and large cap US companies. You'd probably do alright and you could pull it out anytime you wanted. Personally I think we're gonna see a continuing slow rise in the economy. I'd say recovery is mostly over and we are somewhere in the middle so there will be corrections and even recession at some point, but I don't have any data to support any of that at this time. I do believe the changes to US health care will be a catalyst to possible recession.

 

 

As always my expertise is in intraday trading and I only keep a loose eye on long term situations to determine market direction and DO NOT typically make long term investments (I call long term "holding over night")

 

If you want to go super risk I got some insider knowledge of the current oil drilling occuring in Eastern and Southeastern Ohio and we could probably come up with a company involved that could remain legit long enough to make some good profit, but you could just as easily lose a good portion of your investment.

[Tractor]

If you do go the mutual fund route pm me for a good entry point. I wouldn't say now is the best time, but a few weeks will change things.

[Zx2guy19]

Leverage that 75k into 2 rentals @100k. Then re-leverage your rentals through a HELOC and use that cash to get your flips. If you are careful with your flips, you should always be able to get that equity back into your rentals. This is how all the big guys got started back in the day

 

I am still thinking th rental route, and a HELOC would definitely have to come into play. I couldn't imagine going from 75k to nothing.

 

I actually walked with just over 110k, but I promised myself I would pay off 20k worth of debt at a minimum AND I loaned 15k from my dad to get the house because I was short. I am going to surprise him with $16.5k for letting me loan the money.

 

Walk into Hollywood Casino and throw it all on Black.

 

*end sarcasm

 

Fucking wild you say that. Prior to posting this thread I told my co-worker I was feeling lucky and was going to do 25k on.....black. Maybe that's a sign haha. Fortunately, I got my head straight before I did it.

 

 

You should most definitely diversify it if you want to play in the market.

If you want to make big money on short term semi liquid investment you need A LOT of money. 75k just isn't much nowadays. Don't get me wrong, you are in GREAT shape for someone your age. Just don't get ahead of yourself, and don't look for stuff that sounds too good to be true.

 

Stick with what you know. Sometimes the answer is to leave the money on the sideline (ie. a money market account, or online savings that has a decent yield on it) and wait for an opportunity. Some of my best investments were because I had fast access to cash that no one else did at that given time.

 

Clay and Doc have given you solid advice

 

I've quickly learned how much 75k is...it doesn't go nearly as far as it used to. I also understand that one wrong move and it's back to ground zero. A harsh reality.

 

I have no problem holding onto the money for a bit, but I will say it is very difficult not to spend it on stupid stuff.

 

^^ this. Wife and I started in property at a very young age and now have several in different areas all doing very well for us. Go slow and steady and you can reap some very nice rewards.

 

Do you mind saying how many you have? My initial goal was 10 properties by age 30. It sounds like these are my safest and best long term asset.

 

I'm 21, with a few thousand..

Someone show me the way?

 

Good luck!

 

Thanks man. I started out flipping cars. That is how I got my initial investment. My only advise, take CALCULATED RISKS and be smart with the money. Again, one wrong move and you have to start over. Good luck to you as well!

 

Well, consider yourself lucky. Now take that $10k you didn't lose and go on a vacation. Seriously dude, you're 23 years old, enjoy your youth, there will be plenty of time to make money.

 

Haha thanks man. Trust me when I say, I enjoy myself. I am leaving for a 10 day trip to Panama City, Panama in 3 weeks where I will enjoy myself. My philospophy is if I work hard now, it will pay off later. Right now, I don't have kids and am not married (engaged) so I have the time to do that. As you get older your time becomes a premium.

[Sledhead36]

Well, consider yourself lucky. Now take that $10k you didn't lose and go on a vacation. Seriously dude, you're 23 years old, enjoy your youth, there will be plenty of time to make money.

 

There is an article from Money magazine, that details twin brothers.....

 

Brother one, invests $2k in a Roth IRA for 10 years starting at age 20. He stops investing after 10 years.

 

Brother two, invests $2k. In a Roth. IRA, starting at age 30 and continues until age 62.

 

Who has more money at Age 62?

 

Remember: time is your friend, brother one has more.

 

Invest now, play later. To many people are living for today and not using the advantage of time compounding interest. I invested all I could until I was 35, it paid off. Don't get caught up in the catch up game. If you don't have money to spare, just do the max you can in a IRA. Once you have some extra cash, then take some chances. The formula is not magic or get rich quick, but solid.

[Zx2guy19]

If you do go the mutual fund route pm me for a good entry point. I wouldn't say now is the best time, but a few weeks will change things.

 

Will do, I am probably going to narrow it down to 2 rentals or a mutual fund.

 

Thanks!

 

There is an article from Money magazine, that details twin brothers.....

 

Brother one, invests $2k in a Roth IRA for 10 years starting at age 20. He stops investing after 10 years.

 

Brother two, invests $2k. In a Roth. IRA, starting at age 30 and continues until age 62.

 

Who has more money at Age 62?

 

Remember: time is your friend, brother one has more.

 

Invest now, play later. To many people are living for today and not using the advantage of time compounding interest. I invested all I could until I was 35, it paid off. Don't get caught up in the catch up game. If you don't have money to spare, just do the max you can in a IRA. Once you have some extra cash, then take some chances. The formula is not magic or get rich quick, but solid.

 

100% agree. I have the money and the time now. I am getting the experience.

 

I believe if I work my ass off now, I can relax in 10 years. By relax I mean not work a corporate job and live off my investments/rentals.

[Tractor]

Will do, I am probably going to narrow it down to 2 rentals or a mutual fund.

 

Thanks!

 

 

 

100% agree. I have the money and the time now. I am getting the experience.

 

I believe if I work my ass off now, I can relax in 10 years. By relax I mean not work a corporate job and live off my investments/rentals.

 

I got off to a slow start in my earlier years, but always had some money to learn the market with. Now I'm on the same road as you and have 5, 10 years and beyond plans laid out and working. It will be an interesting story that I'll someday tell, but for now I can't say much.

[zeitgeist57]

The information posted by Columbus Racing does not constitute investment advice or an offer to invest or to provide management services and is subject to correction, completion and amendment without notice. Any such offer, if made, will only be made by means of a confidential prospectus or offering memorandum or management agreement. It is not his intention to state, indicate or imply in any manner that current or past results, when stated, are indicative of future results or expectations. A prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment.

 

Fixed that for ALL OF US.

 

(Though my FINRA registration is expired anyway)

[wagner]

This makes me feel stupid and poor

[Trouble Maker]

Is that all of your money?

 

I have no good investment advice beyond what many have said here. Except for if that is all of your money put a chunk back for a safety net, in case shit hits the fan you have money to live off of. The typical '6 months of bills' idea. Granted it's not our only (relatively) liquid money, but our safety net is in relatively safe mutual funds (through a financial advisor) so they don't sit in a bank losing money.

[Zx2guy19]

I got off to a slow start in my earlier years, but always had some money to learn the market with. Now I'm on the same road as you and have 5, 10 years and beyond plans laid out and working. It will be an interesting story that I'll someday tell, but for now I can't say much.

 

That's great man, rentals are something that should be around forever. Excellent asset to have, I'm just impatient.

 

Fixed that for ALL OF US.

 

(Though my FINRA registration is expired anyway)

 

Haha trust me, I know that any advice I take is at my own risk. No worries there.

 

Is that all of your money?

 

I have no good investment advice beyond what many have said here. Except for if that is all of your money put a chunk back for a safety net, in case shit hits the fan you have money to live off of. The typical '6 months of bills' idea. Granted it's not our only (relatively) liquid money, but our safety net is in relatively safe mutual funds (through a financial advisor) so they don't sit in a bank losing money.

 

It isn't all of it, I'd never not have a safety net. I'm not naive enough to think I am unreplaceable at work haha. I am also factory in that in almost exactly 1 year from today my future wife will be quitting her job to finish her Master's full time so I will have to support her.

 

One question I can't seem to find the short and sweet answer to:

 

Can Mutual funds be cashed out at any time? If so, at what point are they considered short and long term assets (tax rate).

[Tractor]

Mutual funds do have a small penalty for being withdrawn within I think 90 or 180 days. I don't think ETFs have any penalty. I'm not real familiar with either though.

[Trouble Maker]

Can Mutual funds be cashed out at any time? If so, at what point are they considered short and long term assets (tax rate).

 

You would have talk to a tax and financial advisor for the final word. Iirc like tractor said with most companies you have to have an account with them for a certain amount of time before withdraw or face a penalty. I'm sure that amount of time can vary. After that you pay taxes on gains at cap gains rates on gains when you sell the funds. But gains on sales of cash assets inside of the funds are sometimes passed off onto the fund holders so you have to pay cap gains taxes every year on that.

[Tractor]

Good point, the IRS treats mutual funds held and sold within the same year as income rather than capital gains rate (15%). Looks like any other penalties/fees will be in the prospectus of each mutual fund and should be reviewed before purchase. These will vary by fund.

 

I'm not sure if annuities have penalties or long time limits, but if your looking for something safer than a mutual fund (with obviously lower gains) then you might look at those at your favorite bank. Typically the one making the money with them is the bank though and your supposed to enjoy a small gain plus relative safety.

 

Personally if you want reasonably managed risk I'd still go with a highly aggressive fund with one of the top rated fund companies. In a recovering economy such as this 15-85% gain is possible, no guarantees though. Most of the time mutual funds are spread well enough to minimize downside, except in the case of our recent bubbles. Even then a top mutual fund probably lost 15% yearly while the broad market was cut by 2/3's in the housing recession.

[1fast5gp]

n/m...

 

 

Good luck

Edited June 9, 2013 by 1fastSTI