nurkvinny Posted February 20, 2019 Report Share Posted February 20, 2019 Asking for a friend. If you came into 40-50k, where would you invest it? Whiskey and whores aside. Assume early 40s with kids, with an ok 401k already. Quote Link to comment Share on other sites More sharing options...
STEVE-O Posted February 20, 2019 Report Share Posted February 20, 2019 Asking for a friend. If you came into 40-50k, where would you invest it? Whiskey and whores aside. Assume early 40s with kids, with an ok 401k already. Property Quote Link to comment Share on other sites More sharing options...
iwashmycar Posted February 20, 2019 Report Share Posted February 20, 2019 Weed stocks. LS Swaps. Firearms. Wonder if anyone invests in gold anymore? Quote Link to comment Share on other sites More sharing options...
Dharris89 Posted February 20, 2019 Report Share Posted February 20, 2019 Depending on the situation: 1 pay off debt 2 put money into kids college funds 3 set up emergency fund 4 assuming 1-3 are done spend a small percentage on silly stuff and invest the rest for retirement. Good luck Quote Link to comment Share on other sites More sharing options...
Geeesammy Posted February 20, 2019 Report Share Posted February 20, 2019 Debt reduction, CC first, pay off mortgage if it is at or below that, then look into investing. $50k is a lot, but I’d use it to get mostly debt free first. Can tell them NOT to go out and buy a new car, boat, motorcycle or other dumb shit. Quote Link to comment Share on other sites More sharing options...
Cordell Posted February 20, 2019 Report Share Posted February 20, 2019 Put it in a CD until a really good investment deal came along. Just opened a new CD at Ally, 12 months at 2.75%. Honestly I’d probably play harder in the stock market with options, but that’s all I’ve been studying lately and isn’t for very many people. Quote Link to comment Share on other sites More sharing options...
Fiji ST Posted February 20, 2019 Report Share Posted February 20, 2019 Bitcoin. Or black at the roulette table. Quote Link to comment Share on other sites More sharing options...
10phone2 Posted February 20, 2019 Report Share Posted February 20, 2019 Put it in a CD until a really good investment deal came along. Just opened a new CD at Ally, 12 months at 2.75%. Honestly I’d probably play harder in the stock market with options, but that’s all I’ve been studying lately and isn’t for very many people. Care to share an links for insight into this. The problem with the current cd/savings account rates is it's still not enough for someone to live off of if they have a million or more with 0 effort. The flip side is that if the prime rate is higher to support that for the wealthy, then the 1st time home buyers are hosed. I can't be all in for the wealthy when the 1st time home buyer is how we financially stabilized after starting over in Columbus with just luggage off a plane with alot of work. Quote Link to comment Share on other sites More sharing options...
PsychoticGaming Posted February 20, 2019 Report Share Posted February 20, 2019 Rentals Quote Link to comment Share on other sites More sharing options...
unfunnyryan Posted February 20, 2019 Report Share Posted February 20, 2019 heroin seems pretty popular with the kids these days Quote Link to comment Share on other sites More sharing options...
Geeto67 Posted February 20, 2019 Report Share Posted February 20, 2019 Care to share an links for insight into this. The problem with the current cd/savings account rates is it's still not enough for someone to live off of if they have a million or more with 0 effort. The flip side is that if the prime rate is higher to support that for the wealthy, then the 1st time home buyers are hosed. I can't be all in for the wealthy when the 1st time home buyer is how we financially stabilized after starting over in Columbus with just luggage off a plane with alot of work. I think what Cordell is suggesting is park the money until the right real investment opportunity comes along, not that the CD was the investment. Since inflation averages 2% per year, having it sitting there at any interest rate below 2% means the money's natural spending power is going to erode, even at 2.75% it's ahead of the inflation average even if it's not making you any "real" money. It's a smart way to park the money short term until an investment opportunity with a higher yield comes along. Quote Link to comment Share on other sites More sharing options...
Cordell Posted February 20, 2019 Report Share Posted February 20, 2019 I think what Cordell is suggesting is park the money until the right real investment opportunity comes along, not that the CD was the investment. Since inflation averages 2% per year, having it sitting there at any interest rate below 2% means the money's natural spending power is going to erode, even at 2.75% it's ahead of the inflation average even if it's not making you any "real" money. It's a smart way to park the money short term until an investment opportunity with a higher yield comes along. I wasn’t even considering inflation, but this was what I meant, park the money until a worthwhile investment comes along. A CD with a decent yeild (given todays market) is what makes sense to me. https://www.ally.com/bank/high-yield-cd/ Quote Link to comment Share on other sites More sharing options...
Franchi Posted February 20, 2019 Report Share Posted February 20, 2019 Depending on the situation: 1 pay off debt 2 put money into kids college funds 3 set up emergency fund 4 assuming 1-3 are done spend a small percentage on silly stuff and invest the rest for retirement. Good luck Debt reduction, CC first, pay off mortgage if it is at or below that, then look into investing. $50k is a lot, but I’d use it to get mostly debt free first. Can tell them NOT to go out and buy a new car, boat, motorcycle or other dumb shit. Winner winner chicken dinner. 50k is a good chunk of change for sure so use it to set yourself up for long term success. Obviously factors such as how old are the kids, are they going to college, do the parents want to help with college costs, ect. Quote Link to comment Share on other sites More sharing options...
TurboRust Posted February 20, 2019 Report Share Posted February 20, 2019 be a partner in smokeout bbq for 2020 Quote Link to comment Share on other sites More sharing options...
Miller Posted February 20, 2019 Report Share Posted February 20, 2019 Weed stocks is actually brilliant but it's already saturated because Wall Street put a light on it and there's been a ton of acquisitions in the space. Finding a local agribusiness to invest in privately would be a great move. Medical went live this year in Ohio and only four dispensaries are serving the entire state. There's already shortages in product occurring, wait until 15+ more store fronts open. Long-term, when the state goes rec, the payoff for such an investment will be huge. There's already big companies like Scott's Lawn-care buying up pesticide and nutrient companies specifically for growing marijuana. Big insurance providers are trying to get their arms around underwriting the crops. It's an emerging market. Quote Link to comment Share on other sites More sharing options...
Wease Posted February 20, 2019 Report Share Posted February 20, 2019 I've been self managing my 401K and rollover accounts for about 7-8 years now with Vanguard. I'm primarily in their Vanguard Total Stock Market Index Fund. In those 7-8 years, I've averaged a 13.26% gain each year. The only year that I was down was last year, and it was -4.50%. I've been as high as 23.21% and even 31.53%. I'm up 12.16% already this year. Other than paying off debt, I'd be dumping more money into my investments such as this, if I had an extra $50K. Quote Link to comment Share on other sites More sharing options...
Robochan Posted February 20, 2019 Report Share Posted February 20, 2019 Datsun 240z. Integra type R, any GT Porsche, 99-00 civic SI. The right one will go up in value for sure. Quote Link to comment Share on other sites More sharing options...
Franchi Posted February 20, 2019 Report Share Posted February 20, 2019 I've been self managing my 401K and rollover accounts for about 7-8 years now with Vanguard. I'm primarily in their Vanguard Total Stock Market Index Fund. In those 7-8 years, I've averaged a 13.26% gain each year. The only year that I was down was last year, and it was -4.50%. I've been as high as 23.21% and even 31.53%. I'm up 12.16% already this year. ) That is pretty stout. And I think just about everybody was down from 4Q of 2018. lol Quote Link to comment Share on other sites More sharing options...
LJ Posted February 20, 2019 Report Share Posted February 20, 2019 Put it in a CD until a really good investment deal came along. Just opened a new CD at Ally, 12 months at 2.75%. Honestly I’d probably play harder in the stock market with options, but that’s all I’ve been studying lately and isn’t for very many people. Vanguard Prime Money Market is liquid and paying 2.5% Quote Link to comment Share on other sites More sharing options...
Wease Posted February 20, 2019 Report Share Posted February 20, 2019 That is pretty stout. And I think just about everybody was down from 4Q of 2018. lol Yup. I was up until about September, then things went to hell. But I've more than made up for it this year. No worries. Back when the market really tanked like maybe 10 years ago, people were freaking out and selling everything and getting into safer investments. I stayed the course and stayed heavy into aggressive funds. Hence my +31% year. "Everybody's selling? Then BUY BUY BUY..." Quote Link to comment Share on other sites More sharing options...
coltboostin Posted February 20, 2019 Report Share Posted February 20, 2019 Depends on your debt. If you have higher interest short term debt- pay that first. After that, there is NO, and I mean NO investment that has the return of rental properties right now (besied flips, but that is very much case by case and profits are labor cost/personal skills based). Buy at 40-50k Rent $8-900. 1200-1400 if you find a good double. Typically 20% rate of return on the low end YEAR ONE and in my opinion, safer than the stock market in terms of depreciation. This also does not take into effect market appreciation, this is just profit. Also much easier to shelter profits with write offs. ALSO able to leverage to attain MORE investments.........the list goes on there. Quote Link to comment Share on other sites More sharing options...
Wease Posted February 20, 2019 Report Share Posted February 20, 2019 Depends on your debt. If you have higher interest short term debt- pay that first. After that, there is NO, and I mean NO investment that has the return of rental properties right now (besied flips, but that is very much case by case and profits are labor cost/personal skills based). Buy at 40-50k Rent $8-900. 1200-1400 if you find a good double. Typically 20% rate of return on the low end YEAR ONE and in my opinion, safer than the stock market in terms of depreciation. Also much easier to shelter profits with write offs. ALSO able to leverage to attain MORE investments.........the list goes on there. So I'm curious: How stressful is it to deal with renters / morons / people breaking shit, etc.? My father did that when he was my age / younger and he always had a hell of time with it. He advised me never to do it. I personally enjoy the stress free life of just sitting on my money in the aggressive funds I manage while making an average of 13+%, compare to say 20% and dealing with renters... Quote Link to comment Share on other sites More sharing options...
coltboostin Posted February 20, 2019 Report Share Posted February 20, 2019 So I'm curious: How stressful is it to deal with renters / morons / people breaking shit, etc.? My father did that when he was my age / younger and he always had a hell of time with it. He advised me never to do it. I personally enjoy the stress free life of just sitting on my money in the aggressive funds I manage while making an average of 13+%, compare to say 20% and dealing with renters... 20% is the LOW end. Also consider I can take a loan out on any of them at 4.75% today and in theory invest it like you and get 13%. For example I am about to move on a double- 48k. Rented at $1300/mo. Both renters have been there 5+ years and a new 2 year lease is part of my purchase agreement terms. That's going to guarantee me 30% over the next 2 years. I personally have never had an issue. I don't do section 8. All of my renters have come though word of mouth which I think helps. I also don't have a huge portfolio. Once you get to 10+ units its almost impossible to have your sphere of influence bring in your renters. Its all risk reward. If you don't want to deal with it is not for you. I agree dealing with people can sometimes be a pain, but you fix that buy finding the RIGHT renters. I'd wait an extra month to find the renter I want vs. taking the first call I get from bubba and his GF and their 4 kids and 3 dogs..... I suppose that's like picking the right mutual funds to invest in. Quote Link to comment Share on other sites More sharing options...
LJ Posted February 20, 2019 Report Share Posted February 20, 2019 So I'm curious: How stressful is it to deal with renters / morons / people breaking shit, etc.? My father did that when he was my age / younger and he always had a hell of time with it. He advised me never to do it. I personally enjoy the stress free life of just sitting on my money in the aggressive funds I manage while making an average of 13+%, compare to say 20% and dealing with renters... It can be a pain in the ass, or it can be nothing but sitting back and collecting checks. 2 or 3 units will be nothing more than a few weekends per year, as long as all your mechanicals are in good shape. Small tricks like leaving a bunch of clean furnace filters and such goes a long way to keeping your property in good shape. Quote Link to comment Share on other sites More sharing options...
zeitgeist57 Posted February 20, 2019 Report Share Posted February 20, 2019 So I'm curious: How stressful is it to deal with renters / morons / people breaking shit, etc.? My father did that when he was my age / younger and he always had a hell of time with it. He advised me never to do it. I personally enjoy the stress free life of just sitting on my money in the aggressive funds I manage while making an average of 13+%, compare to say 20% and dealing with renters... Hire a property manager. Going rate is 7-10% per month. Mine charges 6%, but she's also a realtor and I've been working with her since 2004. I get the margin that the prop mgr takes, but... - The contractors they get to work on repairs are much faster and cost way less than you doing it on your own (commercial garbage disposals for $160 installed, new dishwashers for $185 installed, etc.) - They keep the place occupied: background/credit checks, marketing, keeping an eye on comps, HANDLES LEGAL CONTRACTS. The first month or two your place isn't rented pretty much negates the prop mgr fee for a year or more. - You don't have to deal with the renters. Once a renter finds out you're the owner, get ready for a phone call everytime a bulb burns out or the cable shuts off. Prop mgr will assist, but communicates the fee schedule for service visits. TRUST ME...your dad lived through hell because renters know the system and will run an owner ragged knowing they have'em by the short and curlies. Definitely get qualified investments working (401(k), IRA) first, but I highly recommend the income and tax-benefits of real-estate investment>>> I make W-2 money at my full-time job, but my CPA verifies my LLC showing a loss every year (despite getting a check every single month from prop mgr) and that is a reduction in my taxable income. TRUMP WARNING: I haven't completed my 2018 taxes thru my CPA yet...up to this year (since 2000) I've never had to pay. Will be curious to see what happens with the tax changes everyone's whining about... I personally have never had an issue. I don't do section 8. Also this. Had a tough time in 2008/9 with a vacant home during winter...glad I didn't go Section 8. The horror stories... Also - I love Derek, and his delicious meat - but don't do private-placement investments in businesses unless there's a clear contract agreed upon regarding what your money would be put to use in the company (i.e. equipment that you could have a lien on, or a specific percentage of shares) with the expectation of repayment...either through ongoing profit-sharing or a planned liquidity event when the business sells assets. Lotta great recommendations. For your friend, I highly recommend engaging: - CPA - Financial Advisor If they have them, make sure there's trust in their abilities and recommendations. If there isn't, that should be your friend's first act is getting both. You should make suggestions to both CPA and FA about what the $50k could do, but you'll get more tailored responses back to your friend on what they SHOULD do from these trusted professionals. Quote Link to comment Share on other sites More sharing options...
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