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HOT TOPIC If you had 1 million dollars, how would you invest it?

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strick

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I'm curious about how Fastlane entrepreneurs would invest one million dollars. Would you put it in stocks? Invest in real estate? Bootstrap a business from scratch? Buy an existing business?
 

JohnForte

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Put it into an high-interest accounts like a wealth front or ally, then pull it out to inject into a business. So it is still liquid, but making me money.
 

Kevin88660

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I'm curious about how Fastlane entrepreneurs would invest one million dollars. Would you put it in stocks? Invest in real estate? Bootstrap a business from scratch? Buy an existing business?
Everything in liquid financial market securities

Mainly Value and yield play with emerging market focus, with a small north American oil and gas exposure and a small inflation hedge

-Emerging market etf with exposure to Chinese A shares. ( 50 percent)
-Emerging market debt etf (20 percent)
-Master Limited Partnership etf (20 percent)
-silver mining stocks/etf (10 percent)
 

Kevin88660

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Everything in liquid financial market securities

Mainly Value and yield play with emerging market focus, with a small north American oil and gas exposure and a small inflation hedge

-Emerging market etf with exposure to Chinese A shares. ( 50 percent)
-Emerging market debt etf (20 percent)
-Master Limited Partnership etf (20 percent)
-silver mining stocks/etf (10 percent)
Sell call options or trade against price movement (reduce positions on rally and increase positions on price decline) to gain extra edge, target for 10-15 percent annual return.
 

Kak

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Your money is YOUR'S. There are countless ways to capitalize a business without putting your money on the line. If it was a sure thing, debt would be a way better move. If it isn't a sure thing, why are you risking all of your money?

Every single multimillionaire I know is invested in many things outside of their core businesses. Of course some money is reinvested, but this notion of constant reinvestment is going to get people in trouble.


The law of deminishing marginal returns. You will hit it one day or run out of finger in the wind guesses for blowing your money on the business. The music will stop.

I like to make money and grow the money I have made. Markets, real estate, and business. Folks, learn to invest BEFORE you make your money. Examine the opportunity cost of various investments against your business.
 
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MJ DeMarco

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I'm curious about how Fastlane entrepreneurs would invest one million dollars. Would you put it in stocks? Invest in real estate? Bootstrap a business from scratch? Buy an existing business?

I would repeat the same manner in which allowed me to obtain $1M in the first place.

If it was inherited, I'd invest in a business, or buy one with an existing track record of net earnings.
 

Envision

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Raise another 2M with my 1M in the pot and buy underperforming assets - ecommerce companies, apartments, self storage.

Turn the 3M into a diversified 10-20M portfolio through repositioning the assets.

Pull my money out of the real estate and pay back the investors.

Now you have secured real estate and a business that makes cash flow to scale your REI.
 

sparechange

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Angel investing would be a neat idea. Shark tank without the cameras.
 

WJK

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I'm curious about how Fastlane entrepreneurs would invest one million dollars. Would you put it in stocks? Invest in real estate? Bootstrap a business from scratch? Buy an existing business?
Aren't you curious about how millionaires on the forum are invested? People who don't have the money can only project what they would MAYBE do -- but, they haven't earned and grown that pot of money. And, what about people who have more than just one million? I figure it takes 3 million in order to retire comfortably. Most millionaires do a little bit of all of your list of investments. It's called balancing their portfolio.
 

BlueMoon

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Assuming it's capital free to invest and I already have a business generating profits that I can reinvest in the business itself:

50% index funds
10% cryptocurrencies
15% precious metals (gold)
25% real estate
 

strick

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I would repeat the same manner in which allowed me to obtain $1M in the first place.

If it was inherited, I'd invest in a business, or buy one with an existing track record of net earnings.

I have a friend who made it working as a software developer in someone else's startup, but he is tired of being an employee and wants to start his own business. He doesn't feel like the 1 million is enough money to leave his job to work on his biz full-time, so he is working on the biz part-time to get traction. The job + his family is taking up the majority of his time though, and he's also not interested in raising money and giving up equity in his business.

I'm not sure how to advise him. I think he should invest most of the money in stocks, stay at his job until he proves that he can get paying customers and validate his business idea, then leave his job and use ~$100k to work on his business full-time for a year. If it doesn't work out he has the skills to find a great programming job.

Thoughts?
 

BlueMoon

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I have a friend who made it working as a software developer in someone else's startup, but he is tired of being an employee and wants to start his own business. He doesn't feel like the 1 million is enough money to leave his job to work on his biz full-time, so he is working on the biz part-time to get traction. The job + his family is taking up the majority of his time though, and he's also not interested in raising money and giving up equity in his business.

I'm not sure how to advise him. I think he should invest most of the money in stocks, stay at his job until he proves that he can get paying customers and validate his business idea, then leave his job and use ~$100k to work on his business full-time for a year. If it doesn't work out he has the skills to find a great programming job.

Thoughts?

lol is this a joke? this guy doesn't dare to make the proverbial jump with $1m and with probably an excellent background to always go back to a six figure job? people like this are not entrepreneurs nor will they ever be. Ive know people, including myself, who started out on a $5k creditcard withdrawal with no safety net whatsoever. Shows again that money provides security but it can't buy taste nor courage.
 

strick

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lol is this a joke? this guy doesn't dare to make the proverbial jump with $1m and with probably an excellent background to always go back to a six figure job? people like this are not entrepreneurs nor will they ever be. Ive know people, including myself, who started out on a $5k creditcard withdrawal with no safety net whatsoever. Shows again that money provides security but it can't buy taste nor courage.

I think he would have jumped a long time ago if he didn't have a family to support. I think that being young and broke with no family may be more of an advantage for an entrepreneur starting up than many realize. Unfortunately, most young people don't realize this. They have nothing to lose!
 

BlueMoon

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I think he would have jumped a long time ago if he didn't have a family to support. I think that being young and broke with no family may be more of an advantage for an entrepreneur starting up than many realize. Unfortunately, most young people don't realize this. They have nothing to lose!

I agree but still, unless he lives in one of the premier metropolitan areas and has his kids going to private school and a wife with a particularly expensive taste in designer handbags is still a lot of money as a back up. Could give numerous examples of people who had families to support with less than 25k in the bank. This guy is just making excuses which emphasizes my point once more, if you are not an entrepreneur in his comfy position, he most likely never will be and should stick to his job.
 

Cancakir

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1m after taxes:

I would take 50k put it aside to use it to build companies. Some of which wont work out hence the large sum.

Buy 1 multi family house in germany where i am from, or 3-5 flats to rent out (500k maybe, 4-5% ROI = 25k a year)

400k in etfs. Goal is to have 5-6%ROI every year. (20k)

The other 50k in cash. Has no rational reason and may be stupid, but i like what you can do with cash money. Also as a backup for my new businesses.

Good luck.
 

Ing

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You are all wrong. The clear answer is "hookers and blow". Best value-to-return of anything else out there. By far
first I thought “coke and hookers“! :)

No, I would buy etfs and go on like I do now. With a bit easier life!
 
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strick

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$4m worth of Real Estate
Can you elaborate on this? That seems like a risky thing to do. You'd tie up all of your capital in an illiquid asset and take on a ton of debt.
 

BellaPippin

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Can you elaborate on this? That seems like a risky thing to do. You'd tie up all of your capital in an illiquid asset and take on a ton of debt.

Not if it cashflows and gives you income every month
 

minivanman

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I think he would have jumped a long time ago if he didn't have a family to support. I think that being young and broke with no family may be more of an advantage for an entrepreneur starting up than many realize. Unfortunately, most young people don't realize this. They have nothing to lose!

That was me..... I had nothing to lose and luckily I gained everything! I didn't even have a goal or any type of experience. I have no clue how I did it but I just kept pushing forward not knowing what my goal was or what my next step would be. My best tool was that I am a whiz at math.
 

Bones81

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I'm actually about to be in this situation. Leaving my slow lane banking job to take some time to travel, relax, and focus on health and happiness. Once my house sells, I'll be sitting on about this much in liquidity.

Presently almost all my net worth outside the equity in my house is in the stock market in various diversified ETFs.

The plan at present is to buy an established profitable business (e.g. a baby boomer owner looking to cash out and retire). It needs to be large enough to have leadership and processes already in place so I'm not replacing one job with another. I know the business will require some time commitment but I'd like to minimize that as much as I can. Goal would be to grow it with the intent to flip it in a few years with enough money to ride off into the sunset.

In the meantime, during my time off, I'm going to take a small amount of capital and explore option trading as a potential fastlane as others here have done. This is appealing on many levels, particularly as it's much less cumbersome than owning a business. That being said, I have no delusions of grandeur given the risk involved and the discipline it takes to do it smartly.
 

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