Would you: 1. Invest into real estate and rent 2. Invest in a franchise/business 3. Invest into wall street such as stocks, mutual funds, options or futures.
I'm just wondering what you would do. If you would split it up and put it here or there or all into one thing.
Thanks.
My biggest loss was a Rolex Moonphase Watch I bought on ebay for $14000 last year, which turned out to be a very good fake and even confused a couple of Christies Specialists. So I learned my biggest lesson, if it is too good to be true walk away. Rolex Moonphase in Steel Case with Black Dial usually goes for > $250000 and I should have known better before paying $14000 for it.
Here is my advice on investing your money, start slow, study your market, keep a diverse portfolio, target 10-15% per year return, if you reach that you are already ahead of inflation and increasing your networth. With practice you will get better at it.
Getting good at investing takes time and effort, but its well worth it, for me antiques were a hobby which turned into good investments, for you it might be stocks, land, startups, commodities etc. But same principles apply to all of them, you have to be passionate about your investments, know your market, learn from your mistakes, never put all eggs in one basket and walk away if its too good to be true.
I would put 60k in risky, short-term investments such as early-stage startups and some Wall Street funds. The rest 40k would go into long-term safe bets.
Or sign up for AngelList - http://angel.co/
These numbers were set by old white men in 1982 to make sure the only other old white men could invest in this manner. The same rich old white men, and their rich white children are now trying to adjust that for inflation, which would mean something like $450k/year in gross income or $2.5m in assets.
Look up Rule 501 of SEC's regulation D. Then smash something. I did.
However, early-stage startups are multiple orders of magnitude away from Wall street funds on the risk scale.
You're probably 75% likely to lose your entire investment in a startup. Losing > 80% of a balanced Wall Street investment will only happen if another depression hits, and at that point everyone is screwed anyway.
What is your risk tolerance?
What other sorts of investments do you already have?
If it was me, and it was a long term investment, I'd put it in a S&P 500 Index fund.
https://personal.vanguard.com/us/FundsSnapshot?FundId=0540&#... (this fund has a 0.07% expense ratio)
Stay out of the risk game for a bit.
Then plan to spend the next 48-36 months watching and studying the real-estate market, and stay out of debt. When the shit hits the fan and prices hit rock bottom, those with liquidity will be king.
Right now is not the best time on dumping money into risky investments (unless you really are prepared to take that risk - dumping 60k into really risky startups is more likely to cause you to lose 60k than anything else. it's called risk for a reason)
The rationale behind that approach is that you'll save money by not paying interest, the amount you save is largely dependent on what you owe and the interest you're paying, but you're probably paying more mortgage interest than what you'd get out of most savings.
I'd also buy some precious metals (Gold, Silver etc.) and a safe. Not a gold bug, but it'd be good to fall back on if I need the funds, plus it will appreciate over time.
The large chunk (70-80%) goes into the core-part, which consists of Exchange-traded (index) funds, such as MSCI World. If you live in the US, I would not invest everything in S&P 500, as you already have enough of US exposure living there. Maybe 30% US, 30% Emerging Markets (MSCI emerging markets), 30% Europe, 10% something else.
Then with the satellite (20-30%), you can gamble a bit. Like investing in a startup, or in special market, (a index tracker in a special sector or in an emerging market for example).