Best place to park money?

[DeletedUser394]

And no, 'a business' is not the answer I'm looking for. I've got that down and the money isn't needed.

I'm sitting on a lot of cash that isn't needed for at least the next year or two or longer.

My risk tolerance would be moderate. I'd be fine to lose a max of 10%, but having something safe isn't bad either.

Too short a time frame to really re enter the market, so what's a decent alternative?

I found a bank that will pay me 3% on the money (tax free) and I can liquidate at any time.

That's not huge or anything, and you can argue I lose with inflation, but 3% on $250,000 is still $7.5k.

Does anyone have alternative ideas or places where they like to park cash in between projects?

I'm looking at a 2.. possibly 3 year time horizon.

Gracias por todos mi amigos

 

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[MoneyDoc]

Go all in on red.

 

[DeletedUser394]

Go all in on red.

I prefer black. Red means losses.

But seriously, not helpful, thanks for imparting your wisdom.

 

[MoneyDoc]

I prefer black. Red means losses.

But seriously, not helpful, thanks for imparting your wisdom.

Haha, I'm sorry man.

 

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[jon.a]

Fund a house flip?

 

[DeletedUser394]

Fund a house flip?

I'm likely going to buy my own place in 2 or 3 years time.

 

[jon.a]

I'm likely going to buy my own place in 2 or 3 years time.

Do a duplex and live in half, rent the other.

 

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[Trivium iz rC]

Does anyone have alternative ideas or places where they like to park cash in between projects?

I'm looking at a 2.. possibly 3 year time horizon.

Tough place since your only looking to park your cash for two to three years. Why don't you invest it for the long term?


I just exited some of my positions in the stock market because everything is over valued.

If I were you,

Put 10% of that money in physical gold bullion, 90% in physical silver bullion. I know a lot of people hate on investing in physical precious metals. Look into the fundamental and you'll see why, Silver has out preformed everything since 00" yes there has been a pull back from 2011 till now, but it can only go up from here. If your interested to know anything further why i feel so strongly about this PM me and i'll go into further details.

 

[Ravens_Shadow]

I wouldn't trust my money with silver, I personally have had fair bit, but its not worth it. Price fluctuates far too much and getting people to buy it for the actual current spot price is near impossible unless you sell via ebay.

 

[jpmartin]

I wouldn't trust my money with silver, I personally have had fair bit, but its not worth it. Price fluctuates far too much and getting people to buy it for the actual current spot price is near impossible unless you sell via ebay.

Why not buy gold... if volatility is the issue?

 

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[Trivium iz rC]

its not worth it. Price fluctuates far too much and getting people to buy it for the actual current spot price is near impossible unless you sell via ebay.

Interesting point, I mean it's been fluctuating from $19-21 per once for about a year now so it's not much different then an stock. Do you buy from a private bullion dealer? I haven't sold any of my silver because it's a long term investment for me. I've just been accumulating more and more when it dips down to $18-19 a ounce.

Interest to see everyone else's opinion related to data on silver and gold.

 

[Stubbers]

You're in Canada still? A friend of mine has been recommending I invest in arms length mortgages. Second mortgages for those who for some reason need more money but cannot get it through the bank etc. the investment is secured by the property and they agree to pay back 12% + http://www.mr-arms-length-mortgage.com/2010/05/arms-length-mortgages/ explains more

 

[CZ_Voyager]

In the UK you can invest in a self-storage and make 8-10 % per year with quite a low risk. However I think you'd need to pay some taxes if you make a profit. Check it out if it's available in your country as well.

 

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[Jake]

and getting people to buy it for the actual current spot price is near impossible unless you sell via ebay.

Can sell to www.apmex.com for spot or higher in most cases

 

[ArthurDayne]

The advice on here to invest in silver if you can't afford a >10% price swing is laughable.

Can't stomach volatility >10%? Buy some GICs and beat inflation by a bit. Stocks will never guarantee that little volatility, and bonds will only lose you money for the next several years. So there's really only the one option given your constraint I'm afraid.

 

[MJ DeMarco]

IMO, If time horizon is < 2 years I wouldn't recommend anything illiquid. Precious metals, real estate holdings, and business interests are not liquid. I am preferential to MLPs, ultra-short bonds, tax-free munis, public REITs, and div stocks. Other than that, a .01 money market is the only real place to park money besides a bank and a mattress.

 

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[DeletedUser394]

Thanks for all the insight everyone.

I should have elaborated a bit. As it stands now my business is generating an excess amount of capital, and as I'm a student (and no longer traveling) my expenses are really low.

Unless I come across a new opportunity in the near term my plan is to continue to add to the 'stash' until I'm at or near graduation. There is no situation short of critical illness where I would drop out (already making enough money that a job at graduation is irrelevant). At that point I intend to buy some real estate as mentioned by Jon.a and live in a portion while renting out the rest. I'll also be looking into purchasing some franchises around that time.

MJs point about liquidity is right on the money. I'm also looking for something that doesn't take up much time as my focus is my current business as well as school.

It's looking like the 3% is my best bet at this point. I'll look into higher yielding bonds and might allocate a smaller portion to div stocks.

 

[jon.a]

Thanks for all the insight everyone.

I should have elaborated a bit. As it stands now my business is generating an excess amount of capital, and as I'm a student (and no longer traveling) my expenses are really low.

Unless I come across a new opportunity in the near term my plan is to continue to add to the 'stash' until I'm at or near graduation. There is no situation short of critical illness where I would drop out (already making enough money that a job at graduation is irrelevant). At that point I intend to buy some real estate as mentioned by Jon.a and live in a portion while renting out the rest. I'll also be looking into purchasing some franchises around that time.

MJs point about liquidity is right on the money. I'm also looking for something that doesn't take up much time as my focus is my current business as well as school.

It's looking like the 3% is my best bet at this point. I'll look into higher yielding bonds and might allocate a smaller portion to div stocks.

You can look into Hard Money lending. There are brokers that can get you in the 10-12% range for about a year. I have no contacts for you. Deals are a little slow to find around here.

 

[DeletedUser394]

Do a duplex and live in half, rent the other.

Cheapest multi unit I've found costs $707,000.

For a bachelor (1 room, 1 bathroom, 1 bedroom) you're starting at $125,000 and up.

Needless to say I'll be looking for a two bedroom condo or more and renting out rooms haha.

 

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[jon.a]

Cheapest multi unit I've found costs $707,000.

For a bachelor (1 room, 1 bathroom, 1 bedroom) you're starting at $125,000 and up.

Needless to say I'll be looking for a two bedroom condo or more and renting out rooms haha.

That could work. Some one else here said that's how they got started.

 

[Deleted21704]

Take a look at P2P lending. High finance is all over it. Returns in excess of 7% and if you diversify, it's not very risky.

 

[Ravens_Shadow]

Interesting point, I mean it's been fluctuating from $19-21 per once for about a year now so it's not much different then an stock. Do you buy from a private bullion dealer? I haven't sold any of my silver because it's a long term investment for me. I've just been accumulating more and more when it dips down to $18-19 a ounce.

Interest to see everyone else's opinion related to data on silver and gold.

I bought most of mine when it was in the $30's and I figured it'd go higher, but it didn't, i'm interested in seeing if it'll ever get back that high. With that said, i believe it is a long term investment, but really long term. I do like to pick up a few pieces here and there when I have the bug bite me.

I buy from a company called jm buillion, you'd find them online kinda like apmex.

Some other threads on silver/gold.

https://www.thefastlaneforum.com/co...scussions-of-gold-and-silver-investing.41986/

https://www.thefastlaneforum.com/community/threads/silver-the-poor-mans-gold.23720/

 

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[Silverhawk851]

I bought most of mine when it was in the $30's and I figured it'd go higher, but it didn't, i'm interested in seeing if it'll ever get back that high. With that said, i believe it is a long term investment, but really long term. I do like to pick up a few pieces here and there when I have the bug bite me.
I buy from a company called jm buillion, you'd find them online kinda like apmex.

I bought xx,xxx worth at $38, so I feel your pain, lol. I agree, it's not an investment for short term at all, to me it's more of an insurance policy against inflation. Super long-term if you want to see gains.

Hard-money lending is a great way, you can make 10-15% returns no problem on a second mortgage, and even buy into equity of homes.
With the right clauses your pretty much 100% covered in the case they default, PM if you go down this route might have some cool insights

 

[RElifestyle21]

If you know any experienced real estate investors near you you could lend directly and they should give very good returns. And it would be completely passive for you after your due diligence on the investment

 

[DeletedUser394]

If you know any experienced real estate investors near you you could lend directly and they should give very good returns. And it would be completely passive for you after your due diligence on the investment

I'm actually in talks with a team out in Arizona. Although Arizona is nowhere near me.

Might even go with one of those time share type things in the mountains as well.

 

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[GlobalWealth]

It is really a matter of time frame, risk tolerance, and how much you want to work for it.

If you are currently covering all your bills, why worry about a 2-3 year timeframe?

You state you may want to buy a house then, but what if your investment portfolio is earning you 8, 10 or 12% per year? Do you want to take out your capital and park it in a house?

If you had $250k (is this your amount?), then 10% is $25k/y or just over $2k/m. That should be able to rent you a nice place giving you an asset that pays for your housing.

At your age I would focus on income and set aside any cash for investments. No need to concern yourself with buying a home yet. You may end up with a business opportunity requiring you to move after 1 year then you are stuck with an illiquid liability (a home is not an asset).

If you want to keep it liquid though, I would consider some things like MJ mentioned like MLP's, REIT's, muni bond funds, and dividend paying stocks.

You can relatively easily create a portfolio paying 5-8% dividend yield.

I wouldn't consider more than 10% in precious metals.

If you are interested in more work, consider real estate directly and not thru REIT's. You will earn more but work more too.

Jon's suggestion of a duplex/triplex is a good idea as you may be able to structure it to live rent free.

I don't know where you live, but if you are in a place that attracts a lot of tourists, buy a small apartment and rent it on airbnb. I have one yielding about 12% after PM like this.

 

[DeletedUser394]

Regarding a house (condo essentially) is a lot more to do with the mental aspect of it. I structure my life in a such a way that I minimize my need to rely on outside entities. It bothers me a little bit when renting.

I live in Western Canada where real estate is absolutely astronomical from what I'm used to. Average sale price in 2012 was $427,912. Places are going for $500-$600/sq. ft.

The cheapest property on the mls right now is $119,900 for a 1br 1bth basement apartment in an 'undesirable' area of town. Only 5 total properties under $150,000 in a city of over 1.1 million people.

Real estate alone is reason enough for me to get out of here soon enough.

I really like the idea of using AirBNB as I live near the Rockies. I've had an idea to do that for a while now.

 

[The-J]

$250,000... i'm not sure if this insight will help but I got the idea from a certain dolphin who used to swim around these parts.

$250,000. Put $50k in the bank. $200,000

Buy a distressed property (in any area) in all cash. So try and get a, say, $300,000 house for $200,000. I can't help with finding one of those, ask someone else.

Take your house, rent it out. Depending on the area, it could CF $1k-$1.5k a month. (Someone else do the numbers for me, I don't real estate, I'm parroting what someone else said)

So, you have an asset value of $300k and a CF of $1-1.5k a month. That should cover basic expenses.

Take your $50,000 and use it to build, make profitable, or scale your venture. Then, take out a HELOC for however much the bank will give you. That might be 100%, might be 80% of home value. Then, use your HELOC to scale your business, paying every month or however often your bank wants you to.

So, you have a basic cash flow, a $300,000 asset, and a ~$300,000 line of credit to spend on scaling a business to a big level, as well as $50,000-(whatever you spent) in the bank.

It's creative, I don't know if it will work. Don't PM me about this, ask the dolphin: I'm sure you have his number somewhere.

 

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[Villain]

The same people who predicted the 2008 financial crisis in vivid detail are forecasting a sovereign debt crisis and possible collapse of the US dollar.

So if I had any savings I would be pretty concerned about that, and make sure to invest accordingly.

 

[RElifestyle21]

I am not a lender myself but just make sure you do a good job vetting the team you end up investing with, and have a lawyer look things over to give yourself proper protection in case there is a need for litigation down the road. If possible check past projects of theirs, and also if the people have past or pending lawsuits against them (failure to pay, foreclosures, etc.).

Please if you don't mind keep us posted on what you end up doing. Investing is a very interesting topic with many routes and I enjoy hearing peoples expectations of the investment and then to hear about the performance of it.