Ok,
Let's say you had $400,000 that you wanted to invest and grow. What would you do with it? Rental Properties, stocks, invest in land, what?

How would this change from what you would do with 50K?

5/19/2007 8:45:22 AM

two chicks at the same time

5/19/2007 8:50:51 AM

buy some land, divide it up into lots, sell the lots to builders for profit.

5/19/2007 8:58:36 AM

figure out what I did to get the first 400,000 or 50,000 and put my profits into making sure I can make it happen again, but faster the second time around

exception: if the money was given to me as an inheritance

5/19/2007 9:14:49 AM

^for the sake of discussion,

400K was inheritance, 50K was from working and lowerrisk mutual funds for savings.

I am curious to see how strategies change between the 2. And what people would do with certain amounts of money to try and make more.

5/19/2007 9:20:10 AM

with $400k, I'd put half of it in index funds and bonds, and buy real estate with the other half.

with $50k, I'd probably buy a couple of rental properties, since i already have plenty of exposure to the stock market, but very little in real estate.

5/19/2007 9:24:09 AM

if you buy real estate....

http://promo.realestate.yahoo.com/Vacation_Homes_Under_100k.html


I would invest most of it.....wouldnt want to risk it in real estate at this time

5/19/2007 9:45:47 AM

nobody is leaving any money to make it rain of some hoes?

5/19/2007 9:48:09 AM

400K, I would buy about 26 kilos and quickly turn it into about 2 mil.

5/19/2007 9:50:24 AM

400k: I'd incorporate and buy some homes in working class neighborhoods in landlord-friendly states.

50k: I'm not sure. Maybe look for an unsatisfied want and start my own biz. Sell overpriced crap to yankee immigrants with more money than brains?

5/19/2007 11:55:28 AM

^^ our very own tony montana.

[Edited on May 19, 2007 at 11:55 AM. Reason : karat]

5/19/2007 11:55:41 AM

play the ponies

5/19/2007 12:19:13 PM

Quote :

"Rental Properties"

and/or house flips.

5/19/2007 12:28:46 PM

Quote :

"two chicks at the same time"

but besides that:

400k: invest about half, the other half use as supplemental income, maybe buy a new car.
50k: invest that too, possibly a 401k for retirement or a college savings fund for future children

5/19/2007 1:00:42 PM

Short term or long term?

Short term- put the 400,000 in something interest yeilding (CD or some low-risk stocks), untill I had a solid financial plan for it. Take the 50K and use it to fix my car or get a new one, and otherwise get things I need/want as I'm finally done with being a poor grad student as of august. Vet bills, etc, etc, etc.

Long term- take remains of 50K and the 400K + what it's earned and use that to purchase some good land east of raleigh with the potential to be commercially logged to recoup some of the costs, as well as land/house nearer to RTP so i'm not renting. Invest what isn't spent on downpayments, probably some kind of IRA or 401k in addition to non-retirement accounts, but still low risk.


I'm not *personally* a financial risk taker though, for a variety of reasons.

5/19/2007 2:19:26 PM

stocks and bonds


and about 10 kilos

5/19/2007 2:45:15 PM

I would tie it all up in some type of investment by the end of the year so as to avoid paying taxes on it.

5/19/2007 2:54:11 PM

buy a nice modest house (~ 200,000) and invest the rest

my Dad is a financial planner - I'd let him manage it

5/19/2007 4:11:14 PM

pay off all debt and invest the rest

i know its better to invest than pay off debt but i'm just funny that way

5/19/2007 4:58:18 PM

400k would give you approximately 4 million dollars worth of buying power in the real estate market: considering you could swing the 10% down and get financed to make the payments.

just make sure you can make your payments on whatever you finance, through tennants/rent or your own money

5/19/2007 5:05:32 PM

400K: Buy two villas in Dubai, and sell them after 10 years (at least a million, plus 400K from 10-years rent)

50K: Mutual funds. (that invest in developing countries)

5/19/2007 5:36:10 PM

id spread it out all over the parmacutical companies.

5/19/2007 5:43:56 PM

i'm going to go with two chicks at the same time

5/19/2007 6:02:44 PM

your best bet is to invest in a racehorse

5/19/2007 7:09:59 PM

i'd buy property in a soon to be booming (wealthy) neighborhood with the 400K and hold onto it for a few years

5/19/2007 7:11:11 PM

I'd buy a bunch of rental properties and take silly peoples' money.

5/19/2007 7:50:15 PM

Quote :

"invest in land"

buy 200-300 acres of land in northeastern NC, improve the property(access roads, etc), enroll any of it that was eligible in easement programs(conservation easements and watershed easements), thin the trees and remove hardwood competition, burn the woods, clear between the rows of trees, harvest LL pine straw(lease the harvesting for $1-$2 per bale and not touch it), thin trees 2x times over the next 10 years, cut down and rotate after any reach 30 years of age to 40 years of age, if I keep it that long...

plus you're open to possibilities such as development down the road or just selling it and doing whats called a 1031 exchange and buy myself a larger or different tract or investment.


same thing for 50k also, just a smaller piece of land...

Quote :

"“Buy land, they’re not making it anymore.” ~ Mark Twain"

if you have any other questions, PM me




[Edited on May 19, 2007 at 8:03 PM. Reason : f]

5/19/2007 8:02:03 PM

The obvious right answer is: two chicks at the same time

5/19/2007 8:27:04 PM

ass-to-ass.

definitely.

5/19/2007 8:56:27 PM

i'm pretty sure you can get that down on tranny-lane for < $20 joe_schmoe

5/19/2007 8:59:32 PM

well, then i'll get it 2500 times.

5/19/2007 9:01:09 PM

if by "it" you mean syphillis

5/19/2007 9:03:53 PM

i dont think you understand the concept of "ass-to-ass"

did you never see "Requiem for a Dream?"

5/19/2007 9:04:33 PM

I did, but it was funnier to take it in the other direction, so to speak

5/19/2007 9:50:41 PM

Homie don't roll like that.

but hey, whatever works for you. who am I to judge?

5/19/2007 10:08:09 PM

5/19/2007 10:36:31 PM

At $50K, I'd be securing my financial footing (if you don't already own a home, you want a little less risk so some is available for a down payment)

With $400K, since it's inherited, I'd guess your gross income is still low enough to participate in tax-advantaged accounts...I'd set up a plan to systematically migrate the money into any/all available.

Hire a tax adviser. With that much money, this young, you could use income to pay for all your wants and practically leave that inheritance untouched...at 8%, that's about $8.6 million in 40 years (discounting for inflation, prob. the equivalent of $3 million today). The tax adviser should make sure you put the right investments in the right vehicles.

$40K in a high-yield cash account. Why so much? Well, your 20s involve a lot of high-cost events: wedding, home purchase, relocation for a better job, grad school, car repairs or replacement, etc. Considering that 2-3 of those could happen within the same year, I'd want ample cash on-hand. FNBO is currently paying 6%, through Sept.

Fund a 529 plan, with self as owner & beneficiary. Once the first child arrives, change beneficiary to the child's name. First $2k in annual contributions is eligible for a deduction on your NC tax return, if you choose NC's plan. [other states vary] You get a few extra years of tax-exempt growth this way. Alternatively, you can use it for your own continuing education.

Bump up 401k contributions to the max allowed, lowering AGI. You can dip into the cash account as needed, til you get used to the lower paycheck...since you're so young, the paycheck will grow so it's only an issue for a year or two

Max Roth IRA contributions...I like a mix of high-growth funds and those that pay dividends, set up on a DRIP. Throw in a solid REIT to add more exposure to real estate - preferably an international REIT.

Rental property - a four-apartment property is probably the best; it's not too large, but you will rarely have more than one unit vacant at a time. Decide up front whether you'll want to get up at 3am or take a day off work to deal with tenant lockouts or plumbing issues or other stuff, or if you'll hire a management company. Set up as an LLC or LLP so you don't lose personal assets if the business gets sued.
--Subtask: Find a great small business accountant.

INCREASE YOUR INSURANCE COVERAGE. Now that you have assets, you have more to lose. Increase coverage on auto, homeowner's/renter's, etc.

PRE-NUP

5/20/2007 11:52:40 AM

200k on black, 200k on odd

5/20/2007 6:18:11 PM

nah, 400 on red, if you're gonna go - go big

if you win, you'll never work again
if you lose, its not like anything will change

now....if you bet it on a column or number and win.....

5/20/2007 9:30:34 PM

"Always bet on black."

5/20/2007 9:50:12 PM

400,000 dollar crack party.

5/20/2007 10:37:04 PM

buy the condo we looked at today

5/20/2007 11:24:05 PM

Quote :

"INCREASE YOUR INSURANCE COVERAGE. Now that you have assets, you have more to lose. Increase coverage on auto, homeowner's/renter's, etc."

In general I'd agree, but unless you bought a new, more expensive car, why would you need to increase your auto insurance coverage?

5/21/2007 1:15:40 PM

Is coke and hookers too clichéd?

5/21/2007 1:18:45 PM

^^ liability arising from an auto accident. [Coverage to your own car, cheap or expensive, is already factored into your premiums. Your health insurance covers your body; your auto liability covers the other people's bodies when you're at fault for the accident.]

NC Minimum Requirements
In order to register/title your vehicle, by law, you must have a minimum of $30,000 worth of coverage for bodily injury for one person; $60,000 of bodily injury coverage for two or more people, and $25,000 of coverage for property damage.

Let's say you hit a car with 4 people in it - each person's medical bills are $25K, for $100K total. Your insurer stops paying after $30K for one person or $60K for all people...the money must come from somewhere. If the attorney figures out you've got some bank, he's going to go after as much of it as he can get for his client.

It's not hard for one bad accident to leave a person with $30K in medical bills - my friend wrapped his truck around a tree on an icy morning, and is still paying off twenty-something thousand in medical debt b/c he was uninsured.

Alternately, minimum insurance coverage will take care of $25K for the other person's property...but that's not going to cover damage you inflict on a high-end car, or on multiple cars.

[Edited on May 22, 2007 at 7:33 PM. Reason : F* I can't spell ]

5/22/2007 7:32:29 PM