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Investing $50,000

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DURABLEOILCOM

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What can I do with $50,000 to create monthly income? Where and how should I invest it? Is it better to go to Charles Schwab or Vanguard?
 

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The-J

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Odysseus M Jones

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I agree, tuna fetches a princely sum in the Tokyo wet market
Domo arigato J San
I'll wager ¥100 the OP doesn't even reply to this thread
 

ZCP

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What can I do with $50,000 to create monthly income? Where and how should I invest it? Is it better to go to Charles Schwab or Vanguard?
you've been here long enough to know to ask a better question after doing some of your own research.

rephrase and be more particular. what areas are on / off limits? what is your desired outcome?
 

ZCP

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What kind of business can you buy with 50k, that makes sense? Legit curious about this thread.
take a look around and report back.

there is a LOT of opportunity out there.

your response reads like a limited belief. do you think you need more or less money to buy a business?
 

Odysseus M Jones

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I'll wager ¥100 the OP doesn't even reply to this thread
My ¥100 is still safe.

The saddest part is when OP's don't reply, it discourages the experienced members like RCP & The-J from helping & when a genuine newbie asks a question it may go unanswered.

Not good @DURABLEOILCOM you've been online several times today & not even acknowledged the time people have taken to offer advice.
Same goes for your mobile phone thread that your also started today. :frown:
 

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DURABLEOILCOM

DURABLEOILCOM

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My ¥100 is still safe.

The saddest part is when OP's don't reply, it discourages the experienced members like RCP & The-J from helping & when a genuine newbie asks a question it may go unanswered.

Not good @DURABLEOILCOM you've been online several times today & not even acknowledged the time people have taken to offer advice.
Same goes for your mobile phone thread that your also started today. :frown:

I am trying to Safely generate supplemental monthly income without taking dangerous risk and losing it over night. Goal safely invest generate income.
 

Roughneck

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I am trying to Safely generate supplemental monthly income without taking dangerous risk and losing it over night. Goal safely invest generate income.
Everything comes with risk - lower the risk usually equates into a lower return. It's up to you to decide on what your risk appetite is.

As others have said, investing into the market (especially with low risk) will mean minimal returns - lucky to produce 5k a year.

You can always run a business that is inline with your expertise to reduce risk/failure. If it was me, I would be looking at creating or buying a business.

Please note that I am not a successful entrepreneur (Edit: not yet!), this is just my own opinion.
 
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Lucky Lu

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take a look around and report back.

there is a LOT of opportunity out there.

your response reads like a limited belief. do you think you need more or less money to buy a business?
Yes, I don´t deny that maybe comes with a little pinch of limited belief as a condiment but I was genuinely curious about what you guys were seeing on that range of money. I need to jump the gun on a real business not derived from my actual jobs. I managed to buy a little studio apartment in these rough times though. Seller was a construction company and they were willing to take one of our cars and a private parking space as half of the price and the other half in actual money, with a few installments using seller financing. I will tell all in detail in another thread. But I really want to set up or undertake an actual business.

Thank you for the input though, always someone more experienced and better is reading and ready to send something back. Cheers!
 

Dwight Schrute

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You could hire a coder to create a forum plugin that makes people's monitor/display explode if they post a 'I have $X, how should I invest' type of question.
Offer it to forum owners for free, and start selling monitors.

#instantfastlane
#moneyplease
 

PapaGang

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What can I do with $50,000 to create monthly income? Where and how should I invest it? Is it better to go to Charles Schwab or Vanguard?
Read this:
Amazon.com: Buy Then Build: How Acquisition Entrepreneurs Outsmart the Startup Game eBook: Deibel, Walker: Kindle Store

Then invest in yourself and acquire a business that you can add value to. If you make good decisions and do the real work, your returns will be a multiple of whatever returns you are thinking of receiving from the stock market.

MJ preaches control over your future finances, not outsourcing your future to Wall St. where you lose the commandment of control.
 
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PapaGang

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you've been here long enough to know to ask a better question after doing some of your own research.

rephrase and be more particular. what areas are on / off limits? what is your desired outcome?
Zane quoting directly from his engineering flowchart :rofl:
#truth
 

PapaGang

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What kind of business can you buy with 50k, that makes sense? Legit curious about this thread.
According to what I've been reading (I'm no expert), assuming you can procure an SBA loan or something similar and your finances are in order, conservatively you could use that 50k to buy a business in the neighborhood of 250 - 300k, with discretionary monthly earnings of 7 to 8k. All back of the napkin estimates.
 

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Kak

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What can I do with $50,000 to create monthly income? Where and how should I invest it? Is it better to go to Charles Schwab or Vanguard?
How you made the 50k matters too.

If you currently have a business that is generating more savings like that, is not crunched for working capital and already has money to grow, it might be a good time to take a look at traditional investing.

Otherwise I would amplify what is already working.

You could very easily park money in popular ETFs that track whatever you want

You could look at some real estate as well.

Someone in the crypto thread mentioned how bitcoin has basically outpreformed like 90 percent of the funds over the last 5 years. Something like that. Go check out that thread if that interests you. It interests me for sure. It has obviously proven itself as an asset class at this point.

I am personally with JP Morgan’s self directed platform and Ameriprise. Real estate is also something I am pretty passionate about.

I would avoid giving it to “money managers.” Self education on this goes a long way.
 

Kak

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According to what I've been reading (I'm no expert), assuming you can procure an SBA loan or something similar and your finances are in order, conservatively you could use that 50k to buy something in the neighborhood of 250 - 300k, with discretionary monthly income of 7 to 8k. All back of the napkin estimates.
This is not out of the realm of possibilities.
 
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DURABLEOILCOM

DURABLEOILCOM

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Oct 25, 2012
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How you made the 50k matters too.

If you currently have a business that is generating more savings like that, is not crunched for working capital and already has money to grow, it might be a good time to take a look at traditional investing.

Otherwise I would amplify what is already working.

You could very easily park money in popular ETFs that track whatever you want

You could look at some real estate as well.

Someone in the crypto thread mentioned how bitcoin has basically outpreformed like 90 percent of the funds over the last 5 years. Something like that. Go check out that thread if that interests you. It interests me for sure. It has obviously proven itself as an asset class at this point.

I am personally with JP Morgan’s self directed platform and Ameriprise. Real estate is also something I am pretty passionate about.

I would avoid giving it to “money managers.” Self education on this goes a long way.

I have had some minir success investing in the stock market picking great stocks was able to put in $1900 into the market and earn $4200+ but I do not feel comfortable investing $50,000 for fear of making a major mistake and losing it overnight.
 

Odysseus M Jones

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I have had some minir success investing in the stock market picking great stocks was able to put in $1900 into the market and earn $4200+ but I do not feel comfortable investing $50,000 for fear of making a major mistake and losing it overnight.
What stock goes to zero overnight?

If you do due diligence & invest accordingly it won't happen

That's where knowing where the economy is right now, what direction it's heading & what sectors benefit from that.

Then it's down to reading quarterly & annual reports, balance sheets & income statements.

But you said you wanted a passive income, this is proactive because you have to spend some time every week keeping on top of the companies you invest in.
 

Kak

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I have had some minir success investing in the stock market picking great stocks was able to put in $1900 into the market and earn $4200+ but I do not feel comfortable investing $50,000 for fear of making a major mistake and losing it overnight.
You could literally park all of your money in a fund like AOM, AOA or AOK and it will mimic what a money manager does without the fees and without the realized gains from them constantly moving stuff around.

AOK is the most conservative.
AOM is “moderate” but still conservative IMO.
AOA is considered “aggressive” but it is still very well diversified and I have left money sitting in it for years at a time without much worry.

Look into these ETFs and see if that helps ease your fears.

The biggest benefit to doing this yourself is having immediate access to your money. If you want to sock 20k into a down payment on a rental property there isn’t going to be a pest on the phone trying to talk you out of it.

The second biggest benefit is taxes. They buy and sell stuff constantly in the name of balancing your portfolio, when I would rather leave it and not pay realized realized capital gains.

The third biggest benefit comes when you are more experienced. Money managers and broad spec investing, IMO, is the new single stock exposure. Everyone buys and sells the entire market now. It will pay well to choose some high performers and leave out the losers.

Then, you can start exploring some options and leveraged investing.

The sky is the limit here, but with 20 more years under your belt you will be glad you started learning this today.
 
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OP
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DURABLEOILCOM

DURABLEOILCOM

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Oct 25, 2012
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You could literally park all of your money in a fund like AOM, AOA or AOK and it will mimic what a money manager does without the fees and without the realized gains from them constantly moving stuff around.

AOK is the most conservative.
AOM is “moderate” but still conservative IMO.
AOA is considered “aggressive” but it is still very well diversified and I have left money sitting in it for years at a time without much worry.

Look into these ETFs and see if that helps ease your fears.

The biggest benefit to doing this yourself is having immediate access to your money. If you want to sock 20k into a down payment on a rental property there isn’t going to be a pest on the phone trying to talk you out of it.

The second biggest benefit is taxes. They buy and sell stuff constantly in the name of balancing your portfolio, when I would rather leave it and not pay realized realized capital gains.

The third biggest benefit comes when you are more experienced. Money managers and broad spec investing, IMO, is the new single stock exposure. Everyone buys and sells the entire market now. It will pay well to choose some high performers and leave out the losers.

Then, you can start exploring some options and leveraged investing.

The sky is the limit here, but with 20 more years under your belt you will be glad you started learning this today.

Thank you! This is quality advice.
 
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PapaGang

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You could literally park all of your money in a fund like AOM, AOA or AOK and it will mimic what a money manager does without the fees and without the realized gains from them constantly moving stuff around.

AOK is the most conservative.
AOM is “moderate” but still conservative IMO.
AOA is considered “aggressive” but it is still very well diversified and I have left money sitting in it for years at a time without much worry.

Look into these ETFs and see if that helps ease your fears.

The biggest benefit to doing this yourself is having immediate access to your money. If you want to sock 20k into a down payment on a rental property there isn’t going to be a pest on the phone trying to talk you out of it.

The second biggest benefit is taxes. They buy and sell stuff constantly in the name of balancing your portfolio, when I would rather leave it and not pay realized realized capital gains.

The third biggest benefit comes when you are more experienced. Money managers and broad spec investing, IMO, is the new single stock exposure. Everyone buys and sells the entire market now. It will pay well to choose some high performers and leave out the losers.

Then, you can start exploring some options and leveraged investing.

The sky is the limit here, but with 20 more years under your belt you will be glad you started learning this today.
Smart advice. Fees & capital gains kill you in the long run. Death by a thousand cuts.
 

P3HSB

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Smart advice. Fees & capital gains kill you in the long run. Death by a thousand cuts.
you got to take money off the table at some point, fees and short term capital gains tax is part of the game unless your investing withing your retirement account
 

PapaGang

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you got to take money off the table at some point, fees and short term capital gains tax is part of the game unless your investing withing your retirement account
Right, you will never escape fees. I was more referring to @Kak 's statement concerning fees due to having a manager actively trading your account. And he knows that on average, if you have an active trading manager, you probably won't do as well as indexed funds, as referenced by the result of this well-known 2 million dollar long bet by Warren Buffet V. Protege Partners:


...passive investors, will by definition do about average. In aggregate their positions will more or less approximate those of an index fund. Therefore the balance of the universe—the active investors—must do about average as well. However, these investors will incur far greater costs. So, on balance, their aggregate results after these costs will be worse than those of the passive investors.

Costs skyrocket when large annual fees, large performance fees, and active trading costs are all added to the active investor’s equation. Funds of hedge funds accentuate this cost problem because their fees are superimposed on the large fees charged by the hedge funds in which the funds of funds are invested.

A number of smart people are involved in running hedge funds. But to a great extent their efforts are self-neutralizing, and their IQ will not overcome the costs they impose on investors. Investors, on average and over time, will do better with a low-cost index fund than with a group of funds of funds.

- Warren Buffet

Kak is advising a more passive investment through ETFs, which I believe to be the smart move with 50 grand, unless you go the route which I mentioned earlier in this thread.
 
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