Whats the best way to invest 50k per year?

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MoneyMike111
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Whats the best way to invest 50k per year?

Post by MoneyMike111 » Sat Mar 01, 2014 10:01 am

Im looking at gettting 2 jobs in the future and will be living at home with my parents with practically no bills. So how would you invest 40-50k per year over the course of say 10 years?

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Summit111
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Re: Whats the best way to invest 50k per year?

Post by Summit111 » Sat Mar 01, 2014 10:09 am

Take the money and buy a house...

Summit

kerplunk
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Re: Whats the best way to invest 50k per year?

Post by kerplunk » Sat Mar 01, 2014 10:32 am

Invest $23,000/year ($17,500 in 401(k) and $5,500 in a Roth IRA) and then take the rest of the money to move out of your parents' house. Create a life for yourself. Get a girlfriend. Get a pet. Travel. Your youth is more valuable than anything that money can buy.

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mhc
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Re: Whats the best way to invest 50k per year?

Post by mhc » Sat Mar 01, 2014 10:36 am

If the money is for retirement, then max out all available tax advantaged accounts (401k, IRA, Roth, HSA). Invest the rest in tax efficient index funds.

If you are going to need the money in 10 years, the advice may change.

Make sure you spend some time reading the Wiki, especially: http://www.bogleheads.org/wiki/Getting_started

MoneyMike111
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Re: Whats the best way to invest 50k per year?

Post by MoneyMike111 » Sat Mar 01, 2014 11:25 am

kerplunk wrote:Invest $23,000/year ($17,500 in 401(k) and $5,500 in a Roth IRA) and then take the rest of the money to move out of your parents' house. Create a life for yourself. Get a girlfriend. Get a pet. Travel. Your youth is more valuable than anything that money can buy.

get a girlfriend....hahahah...thats like losing all your money 101. Anyone looking to get married in todays world is a sucker!!! period! im 25 years old. No way am I moving away from my family just so I can be "like everyone else - wife, kids, house with white pickett fence, and a dog.

I want to be single all my life with a condo in battery park city, a yacht, season tickets to the cowboys, etc etc.

How can I invest to make more money in the future so I can have all that stuff?

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baw703916
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Re: Whats the best way to invest 50k per year?

Post by baw703916 » Sat Mar 01, 2014 11:31 am

MoneyMike111 wrote:
kerplunk wrote:Invest $23,000/year ($17,500 in 401(k) and $5,500 in a Roth IRA) and then take the rest of the money to move out of your parents' house. Create a life for yourself. Get a girlfriend. Get a pet. Travel. Your youth is more valuable than anything that money can buy.

get a girlfriend....hahahah...thats like losing all your money 101.
More precisely, get a Boglehead girlfriend who will also make a good salary and max out her 401(k) and Roth...

I'm being a little bit tongue-in-cheek, but the saving vs. spending issue seems to be a big compatibility issue in many relationships.

As to how you should invest, since you are young and don't have many financial obligations, you should hold a large percentage of equities in your portfolio; this is what will generate the highest return. Maybe something like 50% US stocks, 30% international stocks, and 20% bonds would be a pretty aggressive portfolio, particularly if you invested a good portion of the US in smallcaps, and a good portion of the international in small caps and emerging markets.

Remember though, the possibility of high returns also brings with it the possibility of large losses. If something like 2008 happens again, you will need to just keep investing and stick to your plan even though things look really bad--that is really THE most important rule of investing.
Last edited by baw703916 on Sat Mar 01, 2014 11:38 am, edited 1 time in total.
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rccrfan
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Re: Whats the best way to invest 50k per year?

Post by rccrfan » Sat Mar 01, 2014 11:33 am

[OT comment removed by admin LadyGeek]

aquifer
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Re: Whats the best way to invest 50k per year?

Post by aquifer » Sat Mar 01, 2014 11:36 am

I think you need to sit down and create an investment policy statement so you can clarify your goals. Then invest according to those goals. I don't know how to link to the wiki, but if you type ips in the google box in the upper right it will take you there to get started. Then come back with more specific questions.

poker27
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Re: Whats the best way to invest 50k per year?

Post by poker27 » Sat Mar 01, 2014 11:36 am

MoneyMike111 wrote:
kerplunk wrote:Invest $23,000/year ($17,500 in 401(k) and $5,500 in a Roth IRA) and then take the rest of the money to move out of your parents' house. Create a life for yourself. Get a girlfriend. Get a pet. Travel. Your youth is more valuable than anything that money can buy.

get a girlfriend....hahahah...thats like losing all your money 101. Anyone looking to get married in todays world is a sucker!!! period! im 25 years old. No way am I moving away from my family just so I can be "like everyone else - wife, kids, house with white pickett fence, and a dog.

I want to be single all my life with a condo in battery park city, a yacht, season tickets to the cowboys, etc etc.

How can I invest to make more money in the future so I can have all that stuff?
Make more then 40-50k.

MoneyMike111
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Re: Whats the best way to invest 50k per year?

Post by MoneyMike111 » Sat Mar 01, 2014 11:40 am

but how?

Every job I ever worked at, nobody has ever bumped me into management so I can climb the ladder. Im not a corporate guy. So my only way of making a higher salary is by investing...real estate, stocks, bonds, etc....

MoneyMike111
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Re: Whats the best way to invest 50k per year?

Post by MoneyMike111 » Sat Mar 01, 2014 11:42 am

baw703916 wrote:
MoneyMike111 wrote:
kerplunk wrote:Invest $23,000/year ($17,500 in 401(k) and $5,500 in a Roth IRA) and then take the rest of the money to move out of your parents' house. Create a life for yourself. Get a girlfriend. Get a pet. Travel. Your youth is more valuable than anything that money can buy.

get a girlfriend....hahahah...thats like losing all your money 101.
More precisely, get a Boglehead girlfriend who will also make a good salary and max out her 401(k) and Roth...

I'm being a little bit tongue-in-cheek, but the saving vs. spending issue seems to be a big compatibility issue in many relationships.

As to how you should invest, since you are young and don't have many financial obligations, you should hold a large percentage of equities in your portfolio; this is what will generate the highest return. Maybe something like 50% US stocks, 30% international stocks, and 20% bonds would be a pretty aggressive portfolio, particularly if you invested a good portion of the US in smallcaps, and a good portion of the international in small caps and emerging markets.

Remember though, the possibility of high returns also brings with it the possibility of large losses. If something like 2008 happens again, you will need to just keep investing and stick to your plan even though things look really bad--that is really THE most important rule of investing.
20% bonds sounds great...I had an idea of 10-20k a year for the next 10-15 years so my money would be 20-40k back in 10-15 years and just keep cutting what I get back in half to put back in so I can make solid 10-20k a year off that. So lets say I work and make 40k net. Now im at 50k.

Are dividend stocks the best way to invest? I was thinkiing of putting the rest into stocks and just holding on to them for dividends. I could have 400-500k invested in stcoks in 10 years. But will I get more than 5-10k a year back off them?

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baw703916
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Re: Whats the best way to invest 50k per year?

Post by baw703916 » Sat Mar 01, 2014 11:44 am

MoneyMike111 wrote:but how?

Every job I ever worked at, nobody has ever bumped me into management so I can climb the ladder. Im not a corporate guy. So my only way of making a higher salary is by investing...real estate, stocks, bonds, etc....
Entrepreneurship? Most people who achieve a high net worth do so by starting their own business, not by climbing the corporate ladder.
Most of my posts assume no behavioral errors.

MoneyMike111
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Re: Whats the best way to invest 50k per year?

Post by MoneyMike111 » Sat Mar 01, 2014 11:47 am

baw703916 wrote:
MoneyMike111 wrote:but how?

Every job I ever worked at, nobody has ever bumped me into management so I can climb the ladder. Im not a corporate guy. So my only way of making a higher salary is by investing...real estate, stocks, bonds, etc....
Entrepreneurship? Most people who achieve a high net worth do so by starting their own business, not by climbing the corporate ladder.

True. I just dont know what business to go with. Like i stated earlier i thought maybe fedex routes and buy like 4-5 of them. They typicsally are 135-150k for each one! Could have my first one within 5 years and then just grow. Have drivers work for me and just manage but its gets complicated when people start calling out.

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baw703916
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Re: Whats the best way to invest 50k per year?

Post by baw703916 » Sat Mar 01, 2014 12:02 pm

MoneyMike111 wrote:True. I just dont know what business to go with. Like i stated earlier i thought maybe fedex routes and buy like 4-5 of them. They typicsally are 135-150k for each one! Could have my first one within 5 years and then just grow. Have drivers work for me and just manage but its gets complicated when people start calling out.
I don't really think that's a particularly good business model. 1)it's already established, so there aren't really huge profit margins (the market price of the route reflects the income potential), 2) large up-front cost, which puts someone starting out in a highly leveraged position.

Ideally something that is unique or new will provide the best opportunities (of course, there's a larger risk the idea won't take off). Also, something that can be started as self-employment with minimal up-front expenses, then adding employees as thing develop is probably the best situation.

I should point out that I've never been an entrepreneur, so take everything I say with many grains of salt.
Most of my posts assume no behavioral errors.

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Re: Whats the best way to invest 50k per year?

Post by abuss368 » Sat Mar 01, 2014 12:03 pm

rccrfan wrote:[OT comment removed by admin LadyGeek]
Priceless.
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MoneyMike111
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Re: Whats the best way to invest 50k per year?

Post by MoneyMike111 » Sat Mar 01, 2014 12:05 pm

baw703916 wrote:
MoneyMike111 wrote:True. I just dont know what business to go with. Like i stated earlier i thought maybe fedex routes and buy like 4-5 of them. They typicsally are 135-150k for each one! Could have my first one within 5 years and then just grow. Have drivers work for me and just manage but its gets complicated when people start calling out.
I don't really think that's a particularly good business model. 1)it's already established, so there aren't really huge profit margins (the market price of the route reflects the income potential), 2) large up-front cost, which puts someone starting out in a highly leveraged position.

Ideally something that is unique or new will provide the best opportunities (of course, there's a larger risk the idea won't take off). Also, something that can be started as self-employment with minimal up-front expenses, then adding employees as thing develop is probably the best situation.

I should point out that I've never been an entrepreneur, so take everything I say with many grains of salt.
i got ya. Like i said though...i dont got nothing, :( . Those fedex routes actually gross 90k a year after all operating expenses. Pay a drive 45k and you rmaking 45k a year off each route before taxes. Get 5 thats like like 230kish a year before taxes. Not bad!

Plus i dont have to market or do any sales. Just manage. Its like owning your own business but not owning your own business. It SEEMS like a safe medium??!?

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Re: Whats the best way to invest 50k per year?

Post by abuss368 » Sat Mar 01, 2014 12:08 pm

I would consider a few items that I do not see you noting in your original post.

1) Cash - do you have significant cash balances such as an emergency fund to provide liquidity and funds as needed.

2) Debt - student loans, credit cards, automobile, etc?

3) Roth IRA - have you established a IRA?

4) Taxable account - another possibility.

To me there are broader more important questions on the table than simple what is the best way to invest $XX to make $XX.

This is the Boglehead way.

Please consider providing some additional information and clarification. You will receive much better response that may be useful.

Best.
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

MoneyMike111
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Re: Whats the best way to invest 50k per year?

Post by MoneyMike111 » Sat Mar 01, 2014 12:12 pm

abuss368 wrote:I would consider a few items that I do not see you noting in your original post.

1) Cash - do you have significant cash balances such as an emergency fund to provide liquidity and funds as needed.

2) Debt - student loans, credit cards, automobile, etc?

3) Roth IRA - have you established a IRA?

4) Taxable account - another possibility.

To me there are broader more important questions on the table than simple what is the best way to invest $XX to make $XX.

This is the Boglehead way.

Please consider providing some additional information and clarification. You will receive much better response that may be useful.

Best.
1.) I live with my parents. so my emergency fund wouldnt have to be too big.
2.)im about 20k in debt. I was just gonna pay everything off in the first 6months-1 year
3.)no...i dont have an roth ira.
4.) What do you mean taxable account, sorry still a newbie :)

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Re: Whats the best way to invest 50k per year?

Post by abuss368 » Sat Mar 01, 2014 12:16 pm

MoneyMike111 wrote:
abuss368 wrote:I would consider a few items that I do not see you noting in your original post.

1) Cash - do you have significant cash balances such as an emergency fund to provide liquidity and funds as needed.

2) Debt - student loans, credit cards, automobile, etc?

3) Roth IRA - have you established a IRA?

4) Taxable account - another possibility.

To me there are broader more important questions on the table than simple what is the best way to invest $XX to make $XX.

This is the Boglehead way.

Please consider providing some additional information and clarification. You will receive much better response that may be useful.

Best.
1.) I live with my parents. so my emergency fund wouldnt have to be too big.
2.)im about 20k in debt. I was just gonna pay everything off in the first 6months-1 year
3.)no...i dont have an roth ira.
4.) What do you mean taxable account, sorry still a newbie :)
1) Cash - is essential. Parents will not be there forever to provide support. You want to start building a Balance Sheet and cash is an important part of that. I would open a simple bank savings account and add to it each pay period with stated amount.

2) Pay off your debt or have plan to do so. You did not provide the type of debt, interest rate, etc.

3) I would open a low cost Roth IRA at Vanguard. You can do this online. Before April 15th, you can contribute $5,500 for the 2013 tax year and another $5,500 for the 2014 tax year to a total of $11,000. I would place this in a low cost "Target Retirement Fund" based not on a year, but the underlying asset allocation to stocks and bonds. The 2025 Fund has 25% - 30% bonds. This may be a good start.

4) After the above is completed, if you have more funds to invest, a taxable account could be opened at Vanguard.

5) Employer plan - no mention of this.
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

MoneyMike111
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Re: Whats the best way to invest 50k per year?

Post by MoneyMike111 » Sat Mar 01, 2014 12:20 pm

abuss368 wrote:
MoneyMike111 wrote:
abuss368 wrote:I would consider a few items that I do not see you noting in your original post.

1) Cash - do you have significant cash balances such as an emergency fund to provide liquidity and funds as needed.

2) Debt - student loans, credit cards, automobile, etc?

3) Roth IRA - have you established a IRA?

4) Taxable account - another possibility.

To me there are broader more important questions on the table than simple what is the best way to invest $XX to make $XX.

This is the Boglehead way.

Please consider providing some additional information and clarification. You will receive much better response that may be useful.

Best.
1.) I live with my parents. so my emergency fund wouldnt have to be too big.
2.)im about 20k in debt. I was just gonna pay everything off in the first 6months-1 year
3.)no...i dont have an roth ira.
4.) What do you mean taxable account, sorry still a newbie :)
1) Cash - is essential. Parents will not be there forever to provide support. You want to start building a Balance Sheet and cash is an important part of that. I would open a simple bank savings account and add to it each pay period with stated amount.

2) Pay off your debt or have plan to do so. You did not provide the type of debt, interest rate, etc.

3) I would open a low cost Roth IRA at Vanguard. You can do this online. Before April 15th, you can contribute $5,500 for the 2013 tax year and another $5,500 for the 2014 tax year to a total of $11,000. I would place this in a low cost "Target Retirement Fund" based not on a year, but the underlying asset allocation to stocks and bonds. The 2025 Fund has 25% - 30% bonds. This may be a good start.

4) After the above is completed, if you have more funds to invest, a taxable account could be opened at Vanguard.

5) Employer plan - no mention of this.
1.) you mean like budget? Sounds good.
2.)interest rate are around 5-6% - carl loans and 2 student loans
3.) probably wont have $11,000 by april 15th, maybe next year...but thanks for the advice will try for next year.
4.) you mean lik ean account where all my invetments come together?
5.) 2 jobs at the local casino! Just got hired as a slot attendant, looking to moonlight as a valet attendnat or anything else that allows me to moonlight.

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baw703916
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Re: Whats the best way to invest 50k per year?

Post by baw703916 » Sat Mar 01, 2014 12:26 pm

In terms of investing, dividend stocks don't seem to really be all that, at least in the U.S. Large companies tend to pay higher dividends than small companies, but small companies tend to have higher returns (because they're more risky--in investing returns are almost always associated with risk).

I would recommend you read some of the recommended books on portfolio construction. http://www.bogleheads.org/wiki/Books:_R ... nd_Reviews

Here's one that you can read online, for free (the author, Rick Ferri, is a frequent poster on this board):

http://www.rickferri.com/sites/default/ ... t-Talk.pdf

The first ten chapters of the book discuss how NOT to invest, and the last six discuss how to invest. The book has been around a while, but the more things change, the more they stay the same--the book's take-home lessons still stand.
Most of my posts assume no behavioral errors.

MoneyMike111
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Re: Whats the best way to invest 50k per year?

Post by MoneyMike111 » Sat Mar 01, 2014 12:28 pm

baw703916 wrote:In terms of investing, dividend stocks don't seem to really be all that, at least in the U.S. Large companies tend to pay higher dividends than small companies, but small companies tend to have higher returns (because they're more risky--in investing returns are almost always associated with risk).

I would recommend you read some of the recommended books on portfolio construction. http://www.bogleheads.org/wiki/Books:_R ... nd_Reviews

Here's one that you can read online, for free (the author, Rick Ferri, is a frequent poster on this board):

http://www.rickferri.com/sites/default/ ... t-Talk.pdf

The first ten chapters of the book discuss how NOT to invest, and the last six discuss how to invest. The book has been around a while, but the more things change, the more they stay the same--the book's take-home lessons still stand.
thanks man. Im not much of a reader, but its only a hundred and fifty or so pages. So ill try.

Im gonna try to talk to the high rollers down the casino when i start and try to get advice from them too!

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Re: Whats the best way to invest 50k per year?

Post by hiddensee » Sat Mar 01, 2014 12:36 pm

Is it really plausible you will work two jobs while living with your parents for ten years? The only reason I can think to do this would be to retire in your early 30s, and the numbers look a bit tight if you expect to maintain the sort of lifestyle most on this board consider adequate.

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Re: Whats the best way to invest 50k per year?

Post by juliewongferra » Sat Mar 01, 2014 12:38 pm

MoneyMike111 wrote:but how?

Every job I ever worked at, nobody has ever bumped me into management so I can climb the ladder. Im not a corporate guy. So my only way of making a higher salary is by investing...real estate, stocks, bonds, etc....
With all due respect, this is a passive and lazy way to think of things. Don't go thru life waiting for people to bump you up. Pull yourself up. Take charge of your life. Thoughts about entrepreneurship are good, but don't be self-defeating. You said Fedex might be good, but you're already defeating yourself by worrying about people calling out. (That's going to happen in any business; it's not specific to Fedex.)

You have an advantage of 40-50K extra that a lot of people don't have. Take some risks.

Also, not in this conversation is your parents. Be sure that you living at home isn't preventing them from enjoying life. I'm all for people doing whatever they want and whatever makes them happy as long as they don't infringe on other people's happiness. Is the fact that you are home stopping them from enjoynig their lives? (For example, if you weren't livng at home, would they take longer bubble baths together or be more experimental in the kitchen with foods/odors that you find repulsive? Would they use their home to entertain more? Would they convert your room to a spare office or exercise room?

MoneyMike111
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Re: Whats the best way to invest 50k per year?

Post by MoneyMike111 » Sat Mar 01, 2014 12:38 pm

hiddensee wrote:Is it really plausible you will work two jobs while living with your parents for ten years? The only reason I can think to do this would be to retire in your early 30s, and the numbers look a bit tight if you expect to maintain the sort of lifestyle most on this board consider adequate.
I know a guy that is 57 and works 3-4 jobs. Im sure I can do 16 hours 5 on2 off for 10 years. If not i should still have around 20k a year to invest. but im gonna sure as hell try. Im not looking to retire ealier. Im just trying to give myself a bright future...you know that 100k a year NET salary at 35-40 years old!

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Re: Whats the best way to invest 50k per year?

Post by hiddensee » Sat Mar 01, 2014 12:41 pm

MoneyMike111 wrote:
hiddensee wrote:Is it really plausible you will work two jobs while living with your parents for ten years? The only reason I can think to do this would be to retire in your early 30s, and the numbers look a bit tight if you expect to maintain the sort of lifestyle most on this board consider adequate.
I know a guy that is 57 and works 3-4 jobs. Im sure I can do 16 hours 5 on2 off for 10 years. If not i should still have around 20k a year to invest. but im gonna sure as hell try. Im not looking to retire ealier. Im just trying to give myself a bright future...you know that 100k a year NET salary at 35-40 years old!
But for what purpose? If all you do is live with your parents with no girlfriend, no plans to buy a house, etc. you could fund that working part time or maybe not at all.

MoneyMike111
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Re: Whats the best way to invest 50k per year?

Post by MoneyMike111 » Sat Mar 01, 2014 12:43 pm

juliewongferra wrote:
MoneyMike111 wrote:but how?

Every job I ever worked at, nobody has ever bumped me into management so I can climb the ladder. Im not a corporate guy. So my only way of making a higher salary is by investing...real estate, stocks, bonds, etc....
With all due respect, this is a passive and lazy way to think of things. Don't go thru life waiting for people to bump you up. Pull yourself up. Take charge of your life. Thoughts about entrepreneurship are good, but don't be self-defeating. You said Fedex might be good, but you're already defeating yourself by worrying about people calling out. (That's going to happen in any business; it's not specific to Fedex.)

You have an advantage of 40-50K extra that a lot of people don't have. Take some risks.

Also, not in this conversation is your parents. Be sure that you living at home isn't preventing them from enjoying life. I'm all for people doing whatever they want and whatever makes them happy as long as they don't infringe on other people's happiness. Is the fact that you are home stopping them from enjoynig their lives? (For example, if you weren't livng at home, would they take longer bubble baths together or be more experimental in the kitchen with foods/odors that you find repulsive? Would they use their home to entertain more? Would they convert your room to a spare office or exercise room?
Am i really being self defeating or reaslitic? IDK....but i do agree with you...i have an opportunity and I want to make the best of it. I just dont have much else to go with for business. Im not being negative, but im not sports guy, or a fighter who can train, or a musiciean, or artist or anything. All i ever really did was lift weights and get in good shape! Just dont have any business ideas really. And I never learned construction so it would be hard to flip houses..

And my parents dont care. My mom actually gets sad when I talk about moving out and my dad said he dont have a problem with anyone living at home. My brother and sister still live at home but they are just saving for houses. I want to invest in something that will make me dough in the future so a mortgage will be no big deal!

MoneyMike111
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Re: Whats the best way to invest 50k per year?

Post by MoneyMike111 » Sat Mar 01, 2014 12:45 pm

hiddensee wrote:
MoneyMike111 wrote:
hiddensee wrote:Is it really plausible you will work two jobs while living with your parents for ten years? The only reason I can think to do this would be to retire in your early 30s, and the numbers look a bit tight if you expect to maintain the sort of lifestyle most on this board consider adequate.
I know a guy that is 57 and works 3-4 jobs. Im sure I can do 16 hours 5 on2 off for 10 years. If not i should still have around 20k a year to invest. but im gonna sure as hell try. Im not looking to retire ealier. Im just trying to give myself a bright future...you know that 100k a year NET salary at 35-40 years old!
But for what purpose? If all you do is live with your parents with no girlfriend, no plans to buy a house, etc. you could fund that working part time or maybe not at all.

Im not being ignorant but I dont party, and I dont like being tied down with girlfriends and kids. I have a great family and parents and we go down the shore every summer. we live for it man. My goal is to have a life at age 35 or older when I have money. I dont want to live the life I have now - NO MONEY TO DO ANYTHING!

Atleast I have achance at changing it in the future. Unless I want to spend all my money now and not be able to withstand my liufestyle when i do move out. I mean 50k a yearis a mortgage, car payment, and bills with nothing extra. Ho wwill I get th ebeach house, the boat, the travel money then?

rccrfan
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Re: Whats the best way to invest 50k per year?

Post by rccrfan » Sat Mar 01, 2014 12:52 pm

How about buying a rental property while still living home? This will bring money in and someday be yours outright once it's paid for.

hiddensee
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Re: Whats the best way to invest 50k per year?

Post by hiddensee » Sat Mar 01, 2014 12:54 pm

MoneyMike111 wrote:
hiddensee wrote:
MoneyMike111 wrote:
hiddensee wrote:Is it really plausible you will work two jobs while living with your parents for ten years? The only reason I can think to do this would be to retire in your early 30s, and the numbers look a bit tight if you expect to maintain the sort of lifestyle most on this board consider adequate.
I know a guy that is 57 and works 3-4 jobs. Im sure I can do 16 hours 5 on2 off for 10 years. If not i should still have around 20k a year to invest. but im gonna sure as hell try. Im not looking to retire ealier. Im just trying to give myself a bright future...you know that 100k a year NET salary at 35-40 years old!
But for what purpose? If all you do is live with your parents with no girlfriend, no plans to buy a house, etc. you could fund that working part time or maybe not at all.

Im not being ignorant but I dont party, and I dont like being tied down with girlfriends and kids. I have a great family and parents and we go down the shore every summer. we live for it man. My goal is to have a life at age 35 or older when I have money. I dont want to live the life I have now - NO MONEY TO DO ANYTHING!

Atleast I have achance at changing it in the future. Unless I want to spend all my money now and not be able to withstand my liufestyle when i do move out. I mean 50k a yearis a mortgage, car payment, and bills with nothing extra. Ho wwill I get th ebeach house, the boat, the travel money then?
One possibility would be to live with your parents and spend your salary on travel and a boat now. Ten years is a long time to basically write off and do nothing. At 25, it is between a quarter and a fifth of your remaining healthy lifespan.

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Re: Whats the best way to invest 50k per year?

Post by MoneyMike111 » Sat Mar 01, 2014 12:56 pm

rccrfan wrote:How about buying a rental property while still living home? This will bring money in and someday be yours outright once it's paid for.
thought about this! just one or more??? I mean after taxes and maintnance id only make around 3-5k off each house.

Then if people dont pay rent your stuck with them for 3-6 months trying to get em out!

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Re: Whats the best way to invest 50k per year?

Post by MoneyMike111 » Sat Mar 01, 2014 12:57 pm

hiddensee wrote:
MoneyMike111 wrote:
hiddensee wrote:
MoneyMike111 wrote:
hiddensee wrote:Is it really plausible you will work two jobs while living with your parents for ten years? The only reason I can think to do this would be to retire in your early 30s, and the numbers look a bit tight if you expect to maintain the sort of lifestyle most on this board consider adequate.
I know a guy that is 57 and works 3-4 jobs. Im sure I can do 16 hours 5 on2 off for 10 years. If not i should still have around 20k a year to invest. but im gonna sure as hell try. Im not looking to retire ealier. Im just trying to give myself a bright future...you know that 100k a year NET salary at 35-40 years old!
But for what purpose? If all you do is live with your parents with no girlfriend, no plans to buy a house, etc. you could fund that working part time or maybe not at all.

Im not being ignorant but I dont party, and I dont like being tied down with girlfriends and kids. I have a great family and parents and we go down the shore every summer. we live for it man. My goal is to have a life at age 35 or older when I have money. I dont want to live the life I have now - NO MONEY TO DO ANYTHING!

Atleast I have achance at changing it in the future. Unless I want to spend all my money now and not be able to withstand my liufestyle when i do move out. I mean 50k a yearis a mortgage, car payment, and bills with nothing extra. Ho wwill I get th ebeach house, the boat, the travel money then?
One possibility would be to live with your parents and spend your salary on travel and a boat now. Ten years is a long time to basically write off and do nothing. At 25, it is between a quarter and a fifth of your remaining healthy lifespan.
I thought about this too. But im not sure what to do....enjoy the money now or invest so I have something int he future. I dont plan on going back to school if i work 2 jobs so Im only gonna have an associates degree i just dont want to live the life now and move out at 35 and have nothing then.

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Re: Whats the best way to invest 50k per year?

Post by rccrfan » Sat Mar 01, 2014 1:03 pm

Buy an established rental property with a tenant(s) already in place. Buy in a desireable area. Don't become a slum lord or anything lol. In ten years you'll have paid down 10 years worth of mortgage while making a few bucks at the same time. Then if need be you can move in and be that much ahead towards owning a home. 10 years at home is gonna go by regardless, so you should think about steps to having another housing option at 35 years old. A rental would suit you well depending on where you live.
Last edited by rccrfan on Sat Mar 01, 2014 1:08 pm, edited 1 time in total.

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Re: Whats the best way to invest 50k per year?

Post by MoneyMike111 » Sat Mar 01, 2014 1:06 pm

rccrfan wrote:Buy an established rental property with a tenant(s) already in place. Buy in a desireable area. Don't become a slum lord or anything lol
great area doesnt exactly have to be expensive though right? Say 100-150k house? Charge 1200-1500 a month? Or is that too small of an invetsment?


edit - how about a duplex? 2 incomes right?

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Re: Whats the best way to invest 50k per year?

Post by rccrfan » Sat Mar 01, 2014 1:12 pm

Focus on a desireable area of town, somewhere near public transport, universities, shopping, etc.
we plan on keeping our house when we move south as a rental. Property management companies deal with the upkeep and tenants. They aren't cheap, but they remove the landlord headache from us.

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Re: Whats the best way to invest 50k per year?

Post by MoneyMike111 » Sat Mar 01, 2014 1:14 pm

rccrfan wrote:Focus on a desireable area of town, somewhere near public transport, universities, shopping, etc.
we plan on keeping our house when we move south as a rental. Property management companies deal with the upkeep and tenants. They aren't cheap, but they remove the landlord headache from us.
really? never knew you could have someone else handle the upkeep and tenants. So lets say I buy a 150k house and charge 1400k a month rent. How much would the property management cost be? an estimate?

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Re: Whats the best way to invest 50k per year?

Post by rccrfan » Sat Mar 01, 2014 1:31 pm

It all depends, my coworker has a rental in a Florida gated community that charges 15%. He stays there only a couple months a year. It all depends on the area. You can save substantially if you became the landlord but then you're a landlord..

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Re: Whats the best way to invest 50k per year?

Post by Kosmo » Sat Mar 01, 2014 1:33 pm

So your goal in life is to be a 35 year old single guy who lives with his parents and has a $100k+ income with minimal effort?

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Re: Whats the best way to invest 50k per year?

Post by MoneyMike111 » Sat Mar 01, 2014 1:33 pm

rccrfan wrote:It all depends, my coworker has a rental in a Florida gated community that charges 15%. He stays there only a couple months a year. It all depends on the area. You can save substantially if you became the landlord but then you're a landlord..
im thinking wildwood, nj...i live in philadelphia, pa area. but go to wildwood, nj every summer.

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Re: Whats the best way to invest 50k per year?

Post by MoneyMike111 » Sat Mar 01, 2014 1:33 pm

Kosmo wrote:So your goal in life is to be a 35 year old single guy who lives with his parents and has a $100k+ income with minimal effort?
actually at 35-40 id be moving out. i just dont want to be 35-40 making 60k a gross and thats it.

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Re: Whats the best way to invest 50k per year?

Post by tainted-meat » Sat Mar 01, 2014 1:50 pm

MoneyMike111 wrote:
Kosmo wrote:So your goal in life is to be a 35 year old single guy who lives with his parents and has a $100k+ income with minimal effort?
actually at 35-40 id be moving out. i just dont want to be 35-40 making 60k a gross and thats it.
This thread is wrong on so many levels. :twisted: Move out of the parents house!

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Re: Whats the best way to invest 50k per year?

Post by MoneyMike111 » Sat Mar 01, 2014 1:55 pm

tainted-meat wrote:
MoneyMike111 wrote:
Kosmo wrote:So your goal in life is to be a 35 year old single guy who lives with his parents and has a $100k+ income with minimal effort?
actually at 35-40 id be moving out. i just dont want to be 35-40 making 60k a gross and thats it.
This thread is wrong on so many levels. :twisted: Move out of the parents house!
okay. everyone has different lifestyles. lets just say i got an extra 30-50k a year to invest. thast the purpose of this thread.

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Re: Whats the best way to invest 50k per year?

Post by rccrfan » Sat Mar 01, 2014 2:12 pm

60k a year gross isn't bad considering if you get married and she makes the same. You now make 120k gross and have some redundancy built in. If you can't get by on that and still save a considerable amount for old age then I don't know what to say.

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Re: Whats the best way to invest 50k per year?

Post by MoneyMike111 » Sat Mar 01, 2014 2:15 pm

rccrfan wrote:60k a year gross isn't bad considering if you get married and she makes the same. You now make 120k gross and have some redundancy built in. If you can't get by on that and still save a considerable amount for old age then I don't know what to say.
what id you dont want get married...you do no not everyone is the same right?

I dont HAVE to get married just because evryone else!

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Re: Whats the best way to invest 50k per year?

Post by dbc47 » Sat Mar 01, 2014 2:20 pm

tainted-meat wrote:
MoneyMike111 wrote:
Kosmo wrote:So your goal in life is to be a 35 year old single guy who lives with his parents and has a $100k+ income with minimal effort?
actually at 35-40 id be moving out. i just dont want to be 35-40 making 60k a gross and thats it.
This thread is wrong on so many levels. :twisted: Move out of the parents house!

I sure hope that you'll be contributing funds to your parents by helping to buy food, etc. Maybe even some dollars to help with house maintenance, utilities, and all the other stuff that it costs to maintain a home. If you don't contribute at least to those things then you are just being a slug. :-?
Last edited by dbc47 on Sat Mar 01, 2014 2:57 pm, edited 1 time in total.

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Re: Whats the best way to invest 50k per year?

Post by abuss368 » Sat Mar 01, 2014 2:21 pm

MoneyMike111 wrote:
rccrfan wrote:It all depends, my coworker has a rental in a Florida gated community that charges 15%. He stays there only a couple months a year. It all depends on the area. You can save substantially if you became the landlord but then you're a landlord..
im thinking wildwood, nj...i live in philadelphia, pa area. but go to wildwood, nj every summer.
You and me both. Most weekends in Wildwood Crest, NJ.

If you invest in real estate in Wildwood, I would look at the Crest. Wildwood needs a lot of attention.
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Re: Whats the best way to invest 50k per year?

Post by rccrfan » Sat Mar 01, 2014 2:23 pm

No you dont have to but if you find someone who you can tolerate and who can tolerate you then combined income is a nice bonus. I fought to hold onto my single guy independence at 25 too. Eventually, after seeing my buddies get hitched and disappear, it was only natural to follow suit. Getting old sucks, getting old alone sucks even more. Choose the lesser of the two evils.

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Re: Whats the best way to invest 50k per year?

Post by placeholder » Sat Mar 01, 2014 2:34 pm

tainted-meat wrote:Move out of the parents house!
My opinion is that parents do their children a disservice by allowing this so once a kid graduates and gets a real job it should be "out the door see you for Sunday dinner maybe" so the kid can learn to be a full adult.

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Re: Whats the best way to invest 50k per year?

Post by cfs » Sat Mar 01, 2014 2:37 pm

Wow, life can be so simple and rewarding.
Continue working as hard as you can.
Continue investing as much as you can.
Max out the Roth IRA.
Look for a low-cost apartment in a good neighborhood.
Move out of your parents home.
Get married to a hard working lady.
Love, support, and respect your wife for the rest of HER life.
Save or invest 100 percent of your wife's salary.
Have kids.
Have grand kids.
Love, support, and respect your kids and grand kids for the rest of YOUR life.
Let me say it again, wow, life can be so simple and rewarding.
~ Member of the Active Retired Force since 2014 ~

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Re: Whats the best way to invest 50k per year?

Post by LadyGeek » Sat Mar 01, 2014 2:38 pm

Please stay on-topic, which is on investing 40-50k per year.

I also removed one off-topic comment.
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