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Tomorrow, someone hands you a check for $125,000. What do you do with this money? How would you invest it to become a millionaire? Oh, and btw, you no longer have a place to live, so you need to consider that as well...
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Pay off all my debts. Open a business.Christianity: The belief that a cosmic Jewish Zombie who was his own father can make you live forever if you symbolically eat his flesh and telepathically tell him you accept him as your master, so he can remove an evil force from your soul that is present in humanity because a rib-woman was convinced by a talking snake to eat from a magical tree... -
Pay off debts and bank most of the restComment
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Re: Someone hands you $125K...
Originally posted by bfg9000
Tomorrow, someone hands you a check for $125,000. What do you do with this money? How would you invest it to become a millionaire? Oh, and btw, you no longer have a place to live, so you need to consider that as well...
Well if I no longer have a place to live then $125,000 (£70,000) will just about buy me a rabbit hutch to live in as that is less than half the average dwelling price in the UK.Last edited by el freako; August 2, 2005, 08:24.19th Century Liberal, 21st Century EuropeanComment
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What kind of business?Originally posted by chegitz guevara
Pay off all my debts. Open a business.Comment
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It's a secret.Christianity: The belief that a cosmic Jewish Zombie who was his own father can make you live forever if you symbolically eat his flesh and telepathically tell him you accept him as your master, so he can remove an evil force from your soul that is present in humanity because a rib-woman was convinced by a talking snake to eat from a magical tree...Comment
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So you would just put the rest in a checking account?Originally posted by Zulu Elephant
Pay off debts and bank most of the restComment
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A secret business. Something illegal, perhaps. Don't use that money to deal drugs, CG. There has to be a better use for it..Originally posted by chegitz guevara
It's a secret.Comment
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Originally posted by bfg9000
What kind of business?
Mail order slimming pills.
Vive la liberte. Noor Inayat Khan, Dachau.
...patriotism is not enough. I must have no hatred or bitterness towards anyone. Edith Cavell, 1915Comment
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Re: Re: Someone hands you $125K...
Yeah, would make a nice deposit on a place though!Originally posted by el freako
Well if I no longer have a place to live then $125,000 (£70,000) will just about buy me a rabbit hutch to live in as that is less than half the average dwelling price in the UK.Jon Miller: MikeH speaks the truth
Jon Miller: MikeH is a shockingly revolting dolt and a masturbatory urine-reeking sideshow freak whose word is as valuable as an aging cow paddy.
We've got both kindsComment
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Do you want to be rich sooner or later? Would you rather be very very rich or just rich enough so that you don't have to work and can live at your current level? Would you mind if you lost some of it along the way and then got it all back in the end?
Meh?
If I had no debt?
Seeing that I'm only 30.
Take about $50k and sink into Real Estate in the form of REITs as well as into no load Large Cap Mutual Funds that aren't too bond heavy...
Take another $50k and structure a bond ladder with about 30-40% I bonds, 20-25% Treasuries, and the rest a blend of high to mid rated corporate bonds, and what the hell maybe even some GM junk rated bonds.
That leaves you $25k to invest in stocks, and/or Vegas.Comment
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Re: Re: Re: Someone hands you $125K...
Originally posted by MikeH
Yeah, would make a nice deposit on a place though!
What about dividing the amount to make a minimum deposit on a number of units, yourself living in one, and then rent out the rest until property values raise to the point where it makes sense to sell them off.. Perhaps this would work best in a University town..Comment
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A minimum depost usually doesn't bring the mortgage down enough to have competitive rents. So, if you mean mimium such that you cash flow cancels out payments, then ya that might be a good idea... if you don't mind being a landlord.Comment
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I would just want to invest in something where I have at least 25% growth in 5 years.. 5 years ago, real estate was a good way of doing that. I dont know if it still is. What is an REIT?Originally posted by Japher
Do you want to be rich sooner or later? Would you rather be very very rich or just rich enough so that you don't have to work and can live at your current level? Would you mind if you lost some of it along the way and then got it all back in the end?
Meh?
If I had no debt?
Seeing that I'm only 30.
Take about $50k and sink into Real Estate in the form of REITs as well as into no load Large Cap Mutual Funds that aren't too bond heavy...
Take another $50k and structure a bond ladder with about 30-40% I bonds, 20-25% Treasuries, and the rest a blend of high to mid rated corporate bonds, and what the hell maybe even some GM junk rated bonds.
That leaves you $25k to invest in stocks, and/or Vegas.
Thanks for the detailed answer. Do you work in finance?Comment
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No.Do you work in finance?
A REIT is a Real Estate Investment Trust, it is pretty much a mutual fund but instead of owning stocks and bonds it owns real estate. If you buy one, buy a publicly traded one.What is an REIT?
As for 25% in 5 years you should be fine, IMO. Especially if you consider the rule of 72, or that at 10% you will double your money in 7.2 years. Not too shabby.
REITs and Bond Ladders are good long term investments, more than 5 years. Especially in the case of a ladder you need a lot of money for it really to make a difference. However, once a bond ladder matures so that it is making in interest every year what it is you need to survive on you are set with that tax free income without losing you nest egg. I would pad the ladder with REITs mainly because I am riskier, which is also why I would go with Mutual Funds.Comment
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