50K cash right now to invest. What to do?

[MJ DeMarco]

To be honest, $50K is not enough to generate any substantial amount of passive income via market investments. A 5% dividend is $2,500 a year or just north of $200 a month. Any type of higher yield investment would put the principle at risk.

I would keep the $50K in a highly liquid brokerage account and have it invested in either A) Cash or B) Something low yielding.

This way the cash remains as an option on assets. (This is as Warren Buffet says, and generally I don't quote him because I think he's full of shit, investing one way, and telling the public to invest another way)

However method you used to accumulate that $50K, I would continue doing that, or use the cash to leverage into higher returning ventures that you can leverage and control, namely, your own business ventures. Say a great business opportunity comes along and you have a chance to get a piece; with cash handy, you have that option. Without cash, you do not.

IMO, the stock market is always a dangerous investment, and right now with the indexes trading at all time highs, the level of risk is higher than normal. Don't let the mainstream media fool you into thinking otherwise... If you are willing to stomach the risk, I like MLPs, REITS, and old stalwart dividend payers.

And as always, this is my opinion and should not be construed as professional and/or financial advice. Such advice should come from a "trained" professional, you know, the one barely getting by with a shit ton of credit card debt and a 800K mortgage. LOL.

 

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[Kak]

I'd use it to light my cigars.

 

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[GlobalWealth]

What do the rest of your finances look like?

Is the $50k your only cash? Do you have 12 months (minimum) of cash saved up?

If so, then do you have other investments? Is the $50k 5% of your portfolio for speculation? Or is it 100% of your portfolio?

If this is your only cash, then you need to stay liquid.

If you have opportunity to invest in your own business for return, this may be your best option. Most successful business people can generate very high ROI in their own company, but struggle for 6-8% in passive investments.

If you have no investment options in your own company and 12 months cash, then maybe consider other passive investments.

For $50k, what is your risk profile? Are you willing to lose 100%? How would that feel?

My point is your question is too vague to get a real answer. Your situation varies greatly from mine and probably everyone else on this forum.

Personally, for $50k I would probably either buy gold and silver or put that into a real estate deal.

But I already have a business generating cash flow, more than 3 years worth of cash, some gold and silver, an investment portfolio that generates enough investment income for annual living expenses, and just bought some real estate. So my focus is now on hard assets that produce cash flow (ie rental real estate).

 

[Runum]

I have 50k to invest right now. Most people say " Man, if I just had X amount of money I could easily turn that to X amount ". What would you invest in if you had 50k RIGHT NOW purely to invest. I am looking forward to the discussions and ideas. Thanks

I think that if you have to ask then you stand a big chance of loosing it.

If you were smart enough to accumulate $50K then I would think you would know how to make it grow. Maybe I have something to learn as well.

In answer to your question, it depends on your risk/reward tolerance level and what you expect out of the money. It also depends on how active you want to be in making it grow.

Edit: Up until this year I would have put the money into my real estate business. From what I have learned this year I would be building a sales business selling products for 100-300% profit. Lots of threads about this on the forum.

 

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[socaldude]

If you dont know what or how to invest it then you don't invest the money. Keep it safe in a bank account. Never invest in something you don't understand. Chances are you will lose money.

 

[Silverhawk851]

Quote Originally Posted by Silverhawk851 View Post
I personally love the silent JVs on a land development/RE deals; getting 100% ROI or more within a couple months isn't half bad. Most people will have their eyeballs fall out when they hear that, but believe it or not there are even better ROIs out there.
Silverhawk, can you explain more about this?

Sure.

if I had 50,000 right now to invest, the first thing I'd do is market myself to Real Estate Investors. I'd look for the deals that require capital, which the person may not have, but the deals is solid.

For example, one deal I'm working on, one of my buddies brought me a deal on a 12 acre property that is being rezoned from agricultural to residential, where we are putting a 10-13 house subdivision in.
He did all the work, finding the property at 50% of FMV, checking the zoning, speak to city about rezoning, contacting owner, getting the property under contract, checking for Leins and all the background work. He needed certain amount of cash to close the deal, I helped provide that. We will flip it to a Land developer within 6-12 months once it is rezoned for possibly 500-1200% profit.

We can develop ourselves, longer process, but bigger profits of course.


There are thousands of deals like this going on. How many Real Estate Investors right now have the deals but need money to put in? a HUGE amount.

You do no work, multiply your money buy multiples IF you know what your doing.

It's about Networking with the right people and Marketing.

I'm just getting comfortable with doing these now, and by no means a master at this but one thing I have learnt is:


If you have a lack of Deals in Real Estate, your either lacking in Marketing or Education.

 

[EvanOkanagan]

Care to share the details of this deal?

Definitely, it was 3 deals actually. And the money I put in was 53k.. Since I'm a Realtor though I got back around 13k of it so in total I've put in about 40k.

I made a progress thread about it here:

https://www.thefastlaneforum.com/fa...ans-progress-thread-real-estate-fastlane.html

In short, the first was a house I purchased all on my own credit. I converted it to a college rental. It has 7 bedrooms and I also rent the detached garage. It totals $3,900 in income every month and after all expenses, insurance, taxes I make around $1500/mo positive cashflow. The down payment & fees were about 20k.

The other two deals are rent-to-own investments that I partnered with someone else since I couldn't get approved for any more mortgages. My monthly cashflow on these is approx $480/month. The first cost me $8,600 and the second was $24,000 to cover down payment and closing fees.

 

[smartman]

I would buy something worth 75k

 

[Kak]

Just go double it 10 times, 50 mil. Then I'd light MY cigar with it.

You would make more money in interest in that 15 seconds than the hundred your burned lighting your cigar.

 

[Kak]

This thread is three months old. Im sure the op already went on a spending spree at rent a center and then bought a 1999 ferrari with 640 thousand miles on it.

There is only $12 left.

 

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[Rickson9]

I have 50k to invest right now. Most people say " Man, if I just had X amount of money I could easily turn that to X amount ".

That's because most people are idiots.

Let me translate:

"The excuse I'm using to explain why I'm not rich is because I don't have $x."

And to be honest, they will never have $x because they will always need that excuse to explain their lack of desire to become rich.

No offense.

 

[MJ DeMarco]

I never understand the "I have $X and I need to invest it... like NOW!"

There's nothing wrong with cash laying around earning 5% and being an option on opportunity.

 

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[Silverhawk851]

I personally love the silent JVs on a land development/RE deals; getting 100% ROI or more within a couple months isn't half bad. Most people will have their eyeballs fall out when they hear that, but believe it or not there are even better ROIs out there.

Comes back to the key; Knowledge is POWER my friend. Get educated first and foremost.

 

[OzzieRob]

Don't be too keen to spend it. Make a pillow with it and sleep easy !

 

[Talisman]

Just go double it 10 times, 50 mil. Then I'd light MY cigar with it.

 

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[Nick]

If i were you, I would invest it in the business that you have expertise on and you are currently working in, and probably how you made the first 50k in the first place.

If there were no opportunities for scaling there, or you want something else more passive or to diversify as a source of income, i would invest it in a secondary domain of interest to you where you have some sort of expertise at least enough to see there might be a good ROI, probably something you have dabbled with in the past.

For instance, in my case, i would invest it to grow my outsourcing app development company, because this is the business i am currently working on and have current ongoing expertise.

My second choice would be to invest it in a content publishing model (building websites, posting content, and monetizing with ads/affiliates) because this is something that i have experimented with in the past, and i had success, and i know i can at least find some good opportunities and have enough good domain knowledge to know that it can turn into something passive.

I would never invest that amount of money in an industry that i did not work in or have experience with, unless i would find a very trustworthy partner to run the show.

 

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[biggeemac]

My wife and I just invested a little over $2k into our new startup business. I FULLY expect to turn that $2k into $50k before the end of the year. The ways exist.....its all about finding ways to get people to HAPPILY open their wallets and keep 'em coming back for more. Good luck.

 

[EvanOkanagan]

I second GlobalWealth on Real Estate, as long as you have a bit of knowledge in that field and that it doesn't consume too much of your time for maintenance, etc. Also, you'll have to joint venture with an income partner if you can't get approved on a mortgage(s).

In total I've invested just shy of 50k this year in Real Estate and getting around $2k/month cashflow. Can be a great return if you know what you're doing.

 

[Elif]

I have 50k to invest right now. Most people say " Man, if I just had X amount of money I could easily turn that to X amount ". What would you invest in if you had 50k RIGHT NOW purely to invest. I am looking forward to the discussions and ideas. Thanks

The best short term investments to protect your money and limit your risk:

1. Lending Club
2. Savings Accounts
3. Cash Back Rewards Offers
4. Roth IRA
5. Certificate of Deposits (CD)
6. Money Market Accounts
7. Checking Accounts
8. Short-Term Bond Funds and ETFs
9. 5-Year Treasury Inflation Protected Securities
10. Municipal Bonds and Corporate Bonds
11. Pay Off High Interest Debt
12. Bonus Idea: Prosper

 

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[Johnny boy]

Easy

50k would buy 2 more trucks and trailers

The rest would go into facebook ads

We have 80 customers on contract for one crew. We have a second truck and trailer that I bought.

I'd spend my spring signing up customers. (I will anyways but not to the same extent) I could sign up 240 people if I spent most of my spring giving quotes. Just a couple a day wouldn't be hard.

We would have 320 customers paying an average of $150 a month. That's 48,000 a month. We would profit about 20,000 a month for the next year, and those customers are recurring so as long as they stay signed up it would continue indefinitely.

Our advertising cost per customer acquired is very low, so it's 100% feasible, and we did it on a smaller scale last spring with only a few grand to sign up about 50 customers. We could definitely do it again with more capital.

Without any additional funding we will be signing up another 80 customers to get the two crews' schedules filled up this spring.

But man it would be nice to throw some more cash at it.

 

[hughjasle]

What do you want out of 'investing' it? What would you prefer to do with it? What are your current finances (working making 30k a yr?/college/broke/trust fund baby/etc)? In short tell us more on where you are, where you plan to go, and how you plan to get there in life and then we can give you some suggestions.

BTW I believe there was a thread almost identical to your post (but with a larger amount I believe), would be beneficial for you to check out the responses there as well.

 

[KidMoney]

What do you want out of 'investing' it? What would you prefer to do with it? What are your current finances (working making 30k a yr?/college/broke/trust fund baby/etc)? In short tell us more on where you are, where you plan to go, and how you plan to get there in life and then we can give you some suggestions.

BTW I believe there was a thread almost identical to your post (but with a larger amount I believe), would be beneficial for you to check out the responses there as well.

I think that if you have to ask then you stand a big chance of loosing it.

If you were smart enough to accumulate $50K then I would think you would know how to make it grow. Maybe I have something to learn as well.

In answer to your question, it depends on your risk/reward tolerance level and what you expect out of the money. It also depends on how active you want to be in making it grow.

Thanks for the responses. To give some info on me, I own one business. This is my second business. Started from the lint in my pocket with very very little help. 24 years old with no kids, no house payment, etc. I work for my money but with this 50k I would more or less like to invest into something less labor intensive. I was asking you guys what YOU would do with 50k RIGHT NOW to put into anything that you know could turn a decent profit. Of course I have ideas and I will keep investing and turning a profit accordingly if those play out to be the best option. I am emotionally detached from this money and I will be as active as I need be if the ROI is right. Basically what I was getting at was that a lot in life people sit back and go " I know if I had enough money to buy/invest in ______, I KNOW I could flip/turn/make a good profit". I have ideas but i'm asking you if you set aside 50k where would be your best bet in investing it? Im just looking to brainstorm a few possible ideas. Thanks again

 

[Rawr]

I'd get a Winnebago and go cross county with a camcorder. Does this help?


Mods, might be a good idea to sticky one of these threads.

 

[GuestUser8117]

I have 50k to invest right now. Most people say " Man, if I just had X amount of money I could easily turn that to X amount ". What would you invest in if you had 50k RIGHT NOW purely to invest. I am looking forward to the discussions and ideas. Thanks

Gold, real estate.

 

[Kak]

I use JP Morgan. They consulted with me about what I wanted and have preformed pretty well. Much better than a bank account...

 

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[cdrag]

Invest in high CGC graded silver age comics

 

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[Capital]

Bitcoin. :coolgleamA:

 

[CPisHere]

Thanks Silverhawk.

I'll tell you what I would do - find local businesses for sale at good valuations. Just today on bizbuysell.com I found 2 businesses near me for sale - each generating $50k profit/year with absentee owners, with $50k in fixtures/inventory - with an asking price of $150k. Without even considering owner financing and/or price negotiations, I could put $30k as down-payment and get a loan for the rest. Then I would improve the marketing, cost costs, etc to make the business more profitable.

 

[Tom.V]

I have 40k saved up and I am wondering the same thing. I have no idea what to invest in. I'm 21 btw

A fastlane business of course.

Really, if had 40-50k right now, it would be going straight into my business. Outsource some work, speed things along. Things would just be moving so much faster.

 

[jilla82]

A lot of people here telling him to get educated first. What kind education?

figure out what you want and learn.

Your money doesnt mean much w/o the know how.
There is a reason some people can go from poor to rich, back to poor, and then rich again.