About to inherit 200k, how do i invest and live comfortable?

GoogleCat
GoogleCat

This may seem like a stupid question, and i would not be surprised if nobody answered me.

About to inherit about 200k, first thing im going to do is pay off 31k worth of student loans, the rest is going to be open to me. How the fuck do i make a good investment? Does anybody know where i should start? Stock market? Mutual fund? Opening a small business? Buying houses?

what the fuck do i do, im smart and really good with computers, but i have no idea where to start. I would be happy with making 2-3% a month off of my money, is this possible?

what are some good resources to start my research? Books, websites podcasts?

thank you for any input.

All urls found in this thread:
http://investopedia.com/
http://www.dailykos.com/story/2005/11/19/166496/-
http://www.cnbc.com/2015/08/27/the-inspiring-story-of-the-worst-market-timer-ever.html
Stupidasole
Stupidasole

buy kneepads and lip balm

Nojokur
Nojokur

is this possible?
no

establish an emergency fund
the remainder is a great foundation for a portfolio and no more, you're not going to be able to live off it

Spazyfool
Spazyfool

Buy an apartment. Rent it out to tenants.
Throw about a grand in stocks.
Figure out your expenses and turn them into assets by buying bulk.

You're a lucky guy user. My parents are poorfags.

Supergrass
Supergrass

@Stupidasole
tfw I started that meme

Need_TLC
Need_TLC

@Spazyfool

was considering buying a duplex

i live on the westcoast and prices for real estate are fucking expensive in my area (i dont live in california)

what happens if something goes wrong and i end up paying 30,000 for repairs?

MPmaster
MPmaster

Do you have an existing income? If you got student loans do you have a degree? If you have income you could borrow and buy a house.

You can't make 2-3% a month, risk free. If you're willing to play with leverage you can. MORL pays 2% a month, but they borrow at a low rate, and then buy mortgage debt that pays a high rate. Conceivable if you bought 150k of it you could make 34k a year. If there was another housing shortage you would be fucked though.

How tied to where you live are you? If you're willing to go to somewhere cheap like SEA you would be set for life.

Soft_member
Soft_member

@Need_TLC
You're best bet is to own. Do your research on the area, city politics can effect how much money you make. Chances are you might lose money for the first couple months, after you break even though it's smooth passive income. You could hire a realtor, and just build property from scratch and let them handle it for like a 7% which would actually be easier.

lostmypassword
lostmypassword

@MPmaster

thanks for the advice,

as part of this inheritance (of which i get 200k) my moms about to inherit over a million and would be willing to help loan me money on a house (so i wouldnt have to deal with banks) so thats a real option for me.

i have a decent job, i dropped out of college and am 10 credits short of a bachelors degree

not really tied to living anywhere

are you saying seattle is cheap? King county is fucking expensive lol.

JunkTop
JunkTop

Your best bet is to put into index funds. Personal experience from myself, I started investing in stocks in 2011 and that time had wishful thinking that I could probably "time" the market and obtain superior returns. At 2015, after 4 years, and "only" after total of ~25 transactions, I only managed to gain ~10% (2.41% CAGR). Most of the stocks involved were tech blue chips such as AAPL, GOOG, AMZN etc. The gains would have been much worse if I performed more transactions, say 50-100 transactions.

If I had put into SPY (S&P 500 index) during the same period, returns would have been 51.24% (10.87% CAGR)!

Mutual funds will most likely not probably beat index performance, since they will have stuff like loading fees, operating fees etc. Furthermore there are many types of index funds to choose from, for example value, growth or industry based such as biotech etc.

Having 2-3% per month is not probably going to happen, that means 27%-43% of total returns after compounded. Hedge funds do not come even close to this (if u can afford in first place). Would be considered lucky if can get ~10% per year, that translates to 0.8% per month, compounded.

Opening small biz? I don't think 200k is probably enough, and brick and mortar biz has its own risks as well. Also very location dependent, what if your place has little customers? You will probably burn a lot money if your biz doesn't survive. Since you're still young, and thinking of striking rich, you might as well go and pitch startup ideas and do some kind of software/apps/fintech whatever hype that's currently going on.

If I were you I will stick with property. Property is physical asset, is a scarce resource and you can rent out for recurring income. Interest rates are very low now, and assuming your location is good your rental rates may be able to cover your monthly mortgage expenses in future.

Other ways of making $ ex FX - u better check out the image (from the Hedge Hogging book) on the probabilities.

Ignoramus
Ignoramus

@GoogleCat
Video games. Just shut the fuck up and do video games and anything dealing with digital currency, trust me you'll be a billionare like that fat swedish fuck who made Minecraft in 6 days.

Oh deal in comic books and animation too.
Produce as much digital content as possible and then sell it, because you can sell it for infinite times.

Physical business are hard because only a handful of people can enter your joy ride and pay only 1 at a time. You'd need something like 200.000 rollercoasters running at the same time in order to become a gorrilion rich primate.

Illusionz
Illusionz

@GoogleCat
I would be happy with making 2-3% a month

We all would kiddo.

Spazyfool
Spazyfool

@lostmypassword
dropped out of college
10 credits short

Nude_Bikergirl
Nude_Bikergirl

@GoogleCat
200k is nothing compared to your loans, keep paying the monthly rates build up your credit score, stock market will make you lose money dont forget too so unless youre really good i wouldnt invest a lot in it especially if yo uhave no job. i would just work and keep a savings account.

MPmaster
MPmaster

@lostmypassword
If you just had the 200k I'd say don't buy a house, but with the bank of your mom I'd consider buying one.

I meant South East Asia. Seattle real estate sounds pretty fucked for prices.

If you're in Washington, maybe get a house out in Pullman? Could rent out rooms to college kids for a premium. Otherwise I'd look around Olympia or a military base. If you're going to buy property, make sure it's a place with a steady population.

viagrandad
viagrandad

@lostmypassword
10 credits short of a bachelors degree

Go back, finish your last semester at the very least.

ZeroReborn
ZeroReborn

Pick a good index fund and forget about until you want to retire.

Look into Vanguard

Need_TLC
Need_TLC

start a roth ira put in 5500

you can then put the rest in indexes and get a real job because you can't live off of 200k for 60 years

Deadlyinx
Deadlyinx

@GoogleCat
If you do not fear fucking it up and losing most of it in the stock market you should be.

Do not even attempt to invest $200,000 worth of shekels until you've been fucking up for 2 or 3 years with a smaller sum.

Snarelure
Snarelure

Real estate or index fund

StonedTime
StonedTime

http://investopedia.com/
http://www.dailykos.com/story/2005/11/19/166496/-

read this shit, buy index funds, don't touch them until you're in your 50s, move to bonds, retire. That's the safest thing to do for a complete ignorant person, if you bother to educate yourself more, you could try doing more advanced investing, but the safest and smartest thing is index funds.

FastChef
FastChef

@StonedTime
fuck, linked the wrong thing, this is what I meant:

http://www.cnbc.com/2015/08/27/the-inspiring-story-of-the-worst-market-timer-ever.html

BunnyJinx
BunnyJinx

@GoogleCat
Donate $20k to the Trump campaign

GoogleCat
GoogleCat

@Need_TLC
Inspection and insurance. Don't buy a house without both.

Firespawn
Firespawn

All in on Bitcoin.

FastChef
FastChef

@Firespawn
@BunnyJinx
Put $200k in trumpcoin

massdebater
massdebater

@GoogleCat
Don't listen to these fucking memes user. I'll tell you, buy an appartment in Dubai or 2 or 3, they are expecting a huge influx of people to arrive and stay for the Expo 2020 and are already making plans for more residential area for the ammount of people moving every day.

MPmaster
MPmaster

@massdebater
put all your money in the middle east
ever

Nude_Bikergirl
Nude_Bikergirl

@Supergrass
Prove it

5mileys
5mileys

@Nude_Bikergirl
I can't, unfortunately. I simply shitposted something to the effect of "spend that money on some kneepads and lip balm instead" to some guy in a thread a long time ago, I didn't really think twice about it and I had no idea it would become so prevalent. I mean what kind of autist would screenshot their every insult in the hope that one of them becomes popular?

likme
likme

@5mileys
Uhh defineatly not me

SniperGod
SniperGod

@massdebater

Wouldn't that expected abundance of visitors already be reflected in the apartment prices if that knowledge is public?

VisualMaster
VisualMaster

Stack CDs
Live off interest.

You will be living in a cardboard box behind a dumpster though.

takes2long
takes2long

3%? that's not that difficult there are currency treasuries and shares that are already known to pay that much, maybe you would consider them to risky, but they're not as risky as owning dollars tho

likme
likme

@JunkTop
invested in Apple, Google, and Amazon
all these outperformed the index by a wide margin since 2011 (respectively 90%, 162% and 233%, against 52% for the S&P 500)
somehow you only gained 10%!!!!!

You'd better find a good explanation for this.

Sharpcharm
Sharpcharm

@likme
Yes user, you are right that they outperformed the S&P by wide margin. I only gained that little because I was foolish/naive that time thinking I could time the market (hence changing hands in the stocks I held) and temptation was great in adjusting your portfolio when stocks don't seem like performing well.

Also went into hypes like Alibaba which ended a loss for me. Amazon was abnormal I think in terms of performance, having gained ~100% in 2015 despite its extremely high PE etc. If u bought them then good news for u, otherwise don't expect this kind of thing happening anytime soon again. I hope this could be a useful lesson for you or others.

Thanks.

whereismyname
whereismyname

@GoogleCat
31k worth of student loans
People like you don't deserve to get inheritance. Consider me triggered.

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