Thread: investment advice needed

First of all, welcome to the forum.

Assuming you are basically starting from scratch, having $2 million post-tax dollars to your name in 10 years will be a challenge at a savings rate of $5k per month. I hate to say it--and I am clearly not an omniscient god by any means--but you will probably have to start a business despite your wish to not do so.

If you don't want to quit your job (as you stated), you can always look into being a "chicken entrepreneur" and running your business on the side.

A killer investment may come your way in the next 10 years. With the global economy going through financial implosion, fire sales will appear more commonly. But you may or may not be exposed to them, be able to take advantage of them, know the right people, whatever. You should always keep your eyes open for opportunities, as they will begin to appear more and more, but a business is something you can put time and effort into now.

Thanks for you advice Rain.

I've always dream of becoming a successful business man and living the high life. However, i don't have clue on what business i know and what i can do plus the fact that i am earning a reasonably comfortable income( 5 figure) which makes giving it all up at 40 years old a big challenge.

I do have other assets such as properties now but my aim is to create another 2 milion by investing my salary. What kind of business is worth doing which won't take too much time off my day job? any suggestions?

Have you read The Millionaire Fastlane (or any other similar book, such as Think and Grow Rich)?

Why not save all the money and do nothing?

If your goal is to go to $2 million and you're willing to save for 20 years, then do that instead. You said yourself you didn't want to start a business. Then take that $2 million (you'll be 60 at the time) and invest it into 'safe' investment that yield 5% return on your money. Bam, annual retirement income of $50k at age 60.

Maybe Get Rich Slow is the option for you.

LMAO. Dude I don't even have to pull out my HP financial calculator to tell you that the return you are looking for doesn't really exist in investments. And thats ASSUMING a constant return for 10 years which is unheard of.

The only way you can get that kind of return is through a thriving business system. And you can prob do it in 5-7 years.

Originally Posted by sirrichard

HI everyone,

I need advice from experienced members here on how I should be investing my montly salary to reach my goals.

i am 40 years old and I would like to achieve 2million by the time i reach 50 yeras old. After my expenses, i have around USD 5k per month for investment purpose. Quitting the job and start a new biz is out of the question for me as i find it too much a risk to do so moreover I don't have ideas on what biz to do.

Can someone help me suggest the best type of investment instruments to bring me to my goal in 10 years time?

Assuming you have $100,000 cash right now, and you start with it and put $5,000 in every month non stop for 10yrs. You will have $2million in 10 yrs if you maintain a yearly interest rate of around 16.5%.

If you are starting out with $0, your interest rate will need to be around 21.5%.

Now, your duty is to go find an investment instrument that will bring you 21.5% year after year. If you do, not only will you get your $2million, but millions of people will be dying to give you their money to invest. I got dibbs, first in line!

Originally Posted by EastWind

Assuming you have $100,000 cash right now, and you start with it and put $5,000 in every month non stop for 10yrs. You will have $2million in 10 yrs if you maintain a yearly interest rate of around 16.5%.

If you are starting out with $0, your interest rate will need to be around 21.5%.

Now, your duty is to go find an investment instrument that will bring you 21.5% year after year. If you do, not only will you get your $2million, but millions of people will be dying to give you their money to invest. I got dibbs, first in line!

This is good if you can find another Berkshire Hathaway to invest in. But do you really wanna relinquish control to the markets? So the markets can make you a victim? An index fund or mutual fund returning 17 percent year after year in that amount of time is unheard of. I am not saying an amazing return is not possible in the stock market, but lets face reality, it rarely ever happens if not ever. Oh yeah and don't forget to add an inflation premium to that rate of return.

All of this sounds good in THEORY. But it rarely ever works out.

Look at what happened to all the people who lost 40% or 35% of their retirement account in 2008 and 2009. And what if you were gonna retire in that time? Ouch. It will take them forever to get back to where they originally where.

Seriously this is total Slowlane garbage. Which honestly I'm so sick of hearing: "put $100 in an index fund every month and you'll be rich in 40 years!".

The Fastlane is about calling the shots and building a business, not like the slowlane where you are the one getting shot!

Originally Posted by EastWind

if you maintain a yearly interest rate of around 16.5%.

Funny stuff. The kinds of returns were offered by Ponzi, Madoff, and Rothstein.

Q:Why do people still think the stock market is a foolproof way to create wealth?
A: Because it takes 40 years to find out that it doesn't, and by then, dead men tell no tales.


Beating A Dead Horse When the World Thinks It’s Alive

Seriously, You don't have the TIME and you relinquish CONTROL. Hell i can die in my late 20s and do i wanna do it working a shit job I hate and mindless saving? But then imagine doing this for 30 or 40 years and then have it explode in your face in 40 years. You better start practicing your wal mart greeting at age 65.

I think you may need another forum,

suzy orman comes to mind. or rich dad, or hell anyone else,

you may stick out like a sore thumb here if you not willing to start a business.

and frankly you have no business investing in other startup businesses with that kind of money, and low tolerance of risk.

good luck to you.

Z

Guys, thank you all for your advice.

I guess the reason why i don't have the balls to jump into biz is partly due to the fact that i'm in my "complacent" zone now because my salary gives me reasoable comfort ( 13k per month). It is not alot i know but it's not going to be easy to replace that plus the fact that i have commitment to support.

let's forget about the 2 million goal if it is impossible return to achieve, what are the good investment to do in this economy, any suggestion?