$100k Liquid, 21, no college education

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Topic Author
Prorsum
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Joined: Fri Aug 03, 2018 9:05 pm

$100k Liquid, 21, no college education

Post by Prorsum »

Hi all,

I started my own business in high school and deferred college. The business is profitable and I have retained majority stake throughout its 4-5 years of operation, and I receive a dividend of around $70K - $120K a year depending on its performance yearly. [Link removed by admin LadyGeek]

I've wasted some money over the past few years mostly due to financial negligence, but still managed to save around $100,000. I don't have any debt and wanted to know the best way to invest. I'm primarily debating between investing back into the business for further growth, or investing in more personal financial products.

Thank you,
Dottie57
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Re: $100k Liquid, 21, no college education

Post by Dottie57 »

Teakettle time to go to college now. Invest in yourself.
Bfwolf
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Re: $100k Liquid, 21, no college education

Post by Bfwolf »

Are you still running the business?
livesoft
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Re: $100k Liquid, 21, no college education

Post by livesoft »

Read this about investing in personal financial products: https://www.etf.com/docs/IfYouCan.pdf
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typical.investor
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Re: $100k Liquid, 21, no college education

Post by typical.investor »

Prorsum wrote: Fri Aug 03, 2018 9:13 pm Hi all,

I started my own business in high school and deferred college. The business is profitable and I have retained majority stake throughout its 4-5 years of operation, and I receive a dividend of around $70K - $120K a year depending on its performance yearly. [Link removed by admin LadyGeek]

I've wasted some money over the past few years mostly due to financial negligence, but still managed to save around $100,000. I don't have any debt and wanted to know the best way to invest. I'm primarily debating between investing back into the business for further growth, or investing in more personal financial products.

Thank you,
Nice!

Have you looked into how the business could structure a retirement plan such as a 401k?

Look into community college to get the requirements out of the way. Eventually get into a business school -part time even.
smectym
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Re: $100k Liquid, 21, no college education

Post by smectym »

No point going to college now unless you’re planning to major in Classics. Within the lens of this forum, if you’re making money doing what you’re doing, go right on doing it. The Boglehead Way

Smectym
Ron Scott
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Re: $100k Liquid, 21, no college education

Post by Ron Scott »

What is the business?
Retirement is a game best played by those prepared for more volatility in the future than has been seen in the past. The solution is not to predict investment losses but to prepare for them.
Cop51
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Re: $100k Liquid, 21, no college education

Post by Cop51 »

If the business is something that does not have a long term future, or something that someone may not find appealing bc you have no physical cridentals you may want to do local CC and or online college. You could sell the business or go out of business by 30 and now you’re eligible for a basic entry level job bc you can’t meet minimum job requirements without a degree.

I did not finish Community College until I was 22 and then did an online BA degree by 28. I had my carreer job at 22 but knew if I wanted to further myself or got hurt or sick and needed to do another job I had nothing to go off of so that’s why I went back to college.
student
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Re: $100k Liquid, 21, no college education

Post by student »

Speaking as a college professor, I would say there is no need to go to college at this point. It seems that your business is still viable. You make good money, so you should continue to save and establish an investment plan. You are still young.
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Snert
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Re: $100k Liquid, 21, no college education

Post by Snert »

Speaking as a community college dropout and entrepreneur of 20+ years, I agree with @student. If you figured out how to start and build a business, you don't need a college degree. You can continue to build the business you already have, you can build another business, you can consult, you can invest, or you can do all of the above. Need to learn a new skill to get something done? Information is free on the Internet (you can learn how to do almost anything on YouTube).

I think college is a great option for lots of people, but based on what you posted, it's entirely optional for you.
Don't listen to me, I'm just a dog!
Topic Author
Prorsum
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Re: $100k Liquid, 21, no college education

Post by Prorsum »

[OT comment removed by admin LadyGeek] We are a residential summer program for high school students. Link was removed by the admin. (sorry if I'm not as familiar with rules regarding link posting as I should be; new here).

Thank you all for the helpful responses. I'm considering going to college this fall solely for the experience; I'm not striving for the degree or any material benefit that college education can give. Is it worth going for the connections that college can provide to my business's growth?
Swimmer
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Re: $100k Liquid, 21, no college education

Post by Swimmer »

WOW! Just MHO but I think you’d be bored in college. Very impressive. Congratulations.
Swimmer
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Re: $100k Liquid, 21, no college education

Post by Swimmer »

Meant to add—nice job on the website.
MNS CA
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Re: $100k Liquid, 21, no college education

Post by MNS CA »

Prorsum wrote: Fri Aug 03, 2018 9:13 pm Hi all,

I started my own business in high school and deferred college. The business is profitable and I have retained majority stake throughout its 4-5 years of operation, and I receive a dividend of around $70K - $120K a year depending on its performance yearly. [Link removed by admin LadyGeek]

I've wasted some money over the past few years mostly due to financial negligence, but still managed to save around $100,000. I don't have any debt and wanted to know the best way to invest. I'm primarily debating between investing back into the business for further growth, or investing in more personal financial products.

Thank you,
Go to college.

https://trends.collegeboard.org/education-pays
https://www.bls.gov/emp/chart-unemploym ... cation.htm

And then graduate school, preferably either law school, business school, or medical school, or if you're in a tech-oriented business, possibly a masters of engineering or computer science.

It's great that you started your own business, but small businesses fail all the time. Educated people with marketable skills land on their feet.

There are two things that give startups a better chance at survival:
https://www.jstor.org/stable/2109594

1) A more highly educated entrepreneur
2) More capital

People (investors, employees, clients) will take you much more seriously with a law degree or an MBA or a Masters of engineering or computer science.

We might be in a bit of a tech bubble right now. You're too young to know what tech was like circa 2001 dot.com bubble bursting, but it was ugly.

Incubators, coder bootcamps, and summer camps are not really a defensible business model.

If Stanford or Berkeley gets wind of what you're doing and opens a similar camp for high school students, your business is toast.
Last edited by MNS CA on Sat Aug 04, 2018 5:33 pm, edited 3 times in total.
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celia
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Re: $100k Liquid, 21, no college education

Post by celia »

Going to college may help your business grow, plus that of others whom you mentor.

How can keeping up with the latest business processes/ developments/ tax benefits/ technology hurt? You need fresh ideas (lifetime learner) to stay ahead of your competition.
stoptothink
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Re: $100k Liquid, 21, no college education

Post by stoptothink »

Prorsum wrote: Sat Aug 04, 2018 4:43 pm Is it worth going for the connections that college can provide to my business's growth?
From a purely financial standpoint, probably not. What you've done, at such a young age, is super impressive. I have a PhD and a wife who is actually quite successful in tech sales who is currently finishing her undergrad degree (more for personal accomplishment than anything else); we are far from anti-higher education, but I think you are hearing the words of your former high school counselors in your ear about how everybody needs to go to college. You've proven that you can build a business, from a solely career standpoint, going to get an undergrad would very likely be a waste of your time and resources in terms of expanding your business. There are much more efficient means of establishing connections. If it is something you just want to accomplish, go ahead and do it.
Topic Author
Prorsum
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Joined: Fri Aug 03, 2018 9:05 pm

Re: $100k Liquid, 21, no college education

Post by Prorsum »

Thank you all for your replies. I am considering majoring in Computer Science at the University of Michigan on a half-scholarship this fall. Under the scholarship, I'll be responsible for paying just $10,000 a semester.

I'm currently considering "trying out" a semester to see if the experience is helpful to me personally and career-wise.
tibbitts
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Re: $100k Liquid, 21, no college education

Post by tibbitts »

Prorsum wrote: Sat Aug 04, 2018 4:43 pm [OT comment removed by admin LadyGeek] We are a residential summer program for high school students. Link was removed by the admin. (sorry if I'm not as familiar with rules regarding link posting as I should be; new here).

Thank you all for the helpful responses. I'm considering going to college this fall solely for the experience; I'm not striving for the degree or any material benefit that college education can give. Is it worth going for the connections that college can provide to my business's growth?
It would help to describe the business in detail and what your role in it is, just without the name. I have zero idea what a "residential summer program for high school students" does, and I expect there is a range of activities/objective, so it would help to know what your business does along those lines. I think it matters a lot when it comes to answering your question.
Topic Author
Prorsum
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Joined: Fri Aug 03, 2018 9:05 pm

Re: $100k Liquid, 21, no college education

Post by Prorsum »

tibbitts wrote: Sun Aug 05, 2018 5:23 pm
Prorsum wrote: Sat Aug 04, 2018 4:43 pm [OT comment removed by admin LadyGeek] We are a residential summer program for high school students. Link was removed by the admin. (sorry if I'm not as familiar with rules regarding link posting as I should be; new here).

Thank you all for the helpful responses. I'm considering going to college this fall solely for the experience; I'm not striving for the degree or any material benefit that college education can give. Is it worth going for the connections that college can provide to my business's growth?
It would help to describe the business in detail and what your role in it is, just without the name. I have zero idea what a "residential summer program for high school students" does, and I expect there is a range of activities/objective, so it would help to know what your business does along those lines. I think it matters a lot when it comes to answering your question.
Sure. The business is a four-week summer program for high school students that want an accelerated learning program focusing on CS and entrepreneurship. We charge $6,000 per session and typically have 50-60 students each summer. I'm the founder and my primary tasks are recruiting students, signing contracts with the program's facilities, and hiring staff to run the program. The business can be run without me during the year since the camp runs only during four weeks of the summer, but I need to physically be there during the summer. All other operations (marketing, etc.) I handle remotely.
stoptothink
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Re: $100k Liquid, 21, no college education

Post by stoptothink »

Prorsum wrote: Sun Aug 05, 2018 4:58 pm Thank you all for your replies. I am considering majoring in Computer Science at the University of Michigan on a half-scholarship this fall. Under the scholarship, I'll be responsible for paying just $10,000 a semester.

I'm currently considering "trying out" a semester to see if the experience is helpful to me personally and career-wise.
It is shocking what the price differential can be among universities. Your $10k/semester "half tuition" is 2yrs of full-cost tuition at my two local universities. One of my colleagues received his PhD at Michigan and he laughs every time his kids say they want to be Wolverines as well; he's not going to cover that tuition bill.
Topic Author
Prorsum
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Joined: Fri Aug 03, 2018 9:05 pm

Re: $100k Liquid, 21, no college education

Post by Prorsum »

I agree that university tuition has gotten out of hand. (They actually recently had me do a TEDx on this very subject)

I'll also be honest; I wouldn't go if I was personally 100% responsible for the tuition. My parents are helping me with 50% of tuition and living cost. I'm responsible for the other half. ($5K a semester + living).
IowaSon
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Joined: Tue May 15, 2018 9:18 pm

Re: $100k Liquid, 21, no college education

Post by IowaSon »

I would strongly encourage you complete an associates degree. I think the combination of an associates degree and your past work experiences would be sufficient for a lot of quality jobs if your current gig goes belly up.
pennylane
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Re: $100k Liquid, 21, no college education

Post by pennylane »

You don’t need to go to college.
keepingitsimple
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Re: $100k Liquid, 21, no college education

Post by keepingitsimple »

Prorsum wrote: Fri Aug 03, 2018 9:13 pm Hi all,

I started my own business in high school and deferred college. The business is profitable and I have retained majority stake throughout its 4-5 years of operation, and I receive a dividend of around $70K - $120K a year depending on its performance yearly. [Link removed by admin LadyGeek]

I've wasted some money over the past few years mostly due to financial negligence, but still managed to save around $100,000. I don't have any debt and wanted to know the best way to invest. I'm primarily debating between investing back into the business for further growth, or investing in more personal financial products.

Thank you,
Hi Prorsum. Regarding the two options you've posted, perhaps you could do a combination of the two. Invest a portion of your money for yourself via personal financial products and then the second portion towards expanding your business .

The personal investing would provide you a nest egg that you set aside for future ideas. These funds could also serve as a buffer allowing you to maintain your majority stake in your business, when additional growth capital is needed. The other half of your money could be used for growth of your business as you see it now. It seems your current business could grow organically to offer extended summer sessions or additional four-week sessions.

Additionally, I think a similar business concept geared towards college students and recent college graduates would prove beneficial. A program that could bridge the gap between college education and real-world entrepreneurship. For this reason, I think you should consider attending college. Not because I think you necessarily need the classroom instruction, but rather because I'm convinced it will lead to your next great idea or the natural expansion of your current idea. I benefited from reading about your company before the link was removed. For your privacy I won't make reference to the company name.
Last edited by keepingitsimple on Sun Aug 05, 2018 10:58 pm, edited 1 time in total.
student
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Re: $100k Liquid, 21, no college education

Post by student »

I am very impressed with what you have done. I would have thought that customers would want to see the founder have training in CS and entrepreneurship, since this is what the students will be learning. This just shows how little I know.
Topic Author
Prorsum
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Joined: Fri Aug 03, 2018 9:05 pm

Re: $100k Liquid, 21, no college education

Post by Prorsum »

keepingitsimple wrote: Sun Aug 05, 2018 9:16 pm
Prorsum wrote: Fri Aug 03, 2018 9:13 pm Hi all,

I started my own business in high school and deferred college. The business is profitable and I have retained majority stake throughout its 4-5 years of operation, and I receive a dividend of around $70K - $120K a year depending on its performance yearly. [Link removed by admin LadyGeek]

I've wasted some money over the past few years mostly due to financial negligence, but still managed to save around $100,000. I don't have any debt and wanted to know the best way to invest. I'm primarily debating between investing back into the business for further growth, or investing in more personal financial products.

Thank you,
Hi Prorsum. Regarding the two options you've posted, perhaps you could do a combination of the two. Invest a portion of your money for yourself via personal financial products and then the second portion towards expanding your business .

The personal investing would provide you a nest egg that you set aside for future ideas. These funds could also serve as a buffer allowing you to maintain your majority stake in your business, when additional growth capital is needed. The other half of your money could be used for growth of your business as you see it now. It seems your current business could grow organically to offer extended summer sessions or additional four-week sessions.

Additionally, I think a similar business concept geared towards college students and recent college graduates would prove beneficial. A program that could bridge the gap between college education and real-world entrepreneurship. For this reason, I think you should consider attending college. Not because I think you necessarily need the classroom instruction, but rather because I'm convinced it will lead to your next great idea or the natural expansion of your current idea. I benefited from reading about your company before the link was removed. For your privacy I won't make reference to the company name.
Wow. That was an interesting viewpoint to read. ("A program that could bridge the gap between college education and real-world entrepreneurship.") It may just swung me over the edge...
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