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Investing extra business income

Anything related to investing, including crypto

Ecom man

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I've reached a spot in my business where it is throwing off some extra money. I am reinvesting half of it back into the business but would like to invest the rest for my family's future. Does anyone have any recommendations on what would be the best place to put it?
 
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EvanOkanagan

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Firstly I'd invest in educating yourself about the investments you want to get into.

After that, Real Estate would be a good vehicle for long term hold.
 

snowbank

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I've reached a spot in my business where it is throwing off some extra money. I am reinvesting half of it back into the business but would like to invest the rest for my family's future. Does anyone have any recommendations on what would be the best place to put it?

This question is too broad for anyone to give any good advice.

It's like if someone posted to the forum and said they just got athletic gear and they're ready to play a sport which one should they play? :)

Without your goals, time you want to spend on it, risk tolerance level, etc... only answers you'll get are not ones I'd bet on.
 

Ecom man

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This question is too broad for anyone to give any good advice.

It's like if someone posted to the forum and said they just got athletic gear and they're ready to play a sport which one should they play? :)

Without your goals, time you want to spend on it, risk tolerance level, etc... only answers you'll get are not ones I'd bet on.
That's really the point though. We are a group of people with tons of different perspectives. Some people who are risk averse will suggest one thing while a huge risk taker might suggest buying/ selling options. I was hoping there were a few people that have been in a similar situation who could chime in with what they did right/wrong in their investing.
 

IGP

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Personally, I would stay liquid at the moment...

However, as others have stated you have to make that decision yourself.
 

lowtek

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quick... I got a cousin in Nigeria that needs help getting his inheritance. I'll cut you in!
 
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The-J

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If you're still not convinced on options... the thread is by @MJ DeMarco. He and @IceCreamKid are major contributors in the thread, both of which make incomes from options that would classify as 'passive'.

You obviously have at least considered selling options, I'd take a deeper look into it if I were in your situation.
 

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Tax free munis
Invest in upcoming business people .... hard money
Rentals
Buy existing business w/ cashflow that is ancillary to your existing one
 
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MTF

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I'm in a similar situation. Perhaps you'll find my thoughts useful, though I'm not by any means an expert when it comes to investments.

Most people will suggest investing in what they find suitable for them. Since the stock market is the first thing that most people consider when they think about investing, you'll get a lot of advice about it.

I wouldn't say that selling options, which has become one of the trendiest things on this forum, is passive, easy or suitable for everyone. In fact, quite the contrary. It's extremely difficult and time-consuming to learn it and if you've never invested in the stock market, you'll find it confusing as hell. I wouldn't also say it's passive, or at least not as passive as classic value investing where you hold stocks for years or forever.

Real estate will be another popular recommendation, and that's yet another thing that can either work for you or not. If you live in a place with low yields or excessively high prices, tough luck, unless you decide to invest in another city, state, or country. Investing outside of your city will be more challenging and time-consuming, though.

You said in your post you want to invest the rest for your family's future. If long-term wealth preservation is your primary goal, your approach should be different than if you're after maximizing your returns. You should be after investing in something that stores value well, but not necessarily appreciate a lot IF it comes with extra risk.

With my investments I do a mix of wealth preservation and growth, though I'm mostly focused on fast growth. For the wealth preservation part, I'd invest in precious metals (stored outside of your country, ideally Singapore or Switzerland), and stay relatively liquid so that you can always cover any emergency expenses of your family (keep some of your money in physical cash and some in different currencies in a few countries).

I would also consider arable land as a good long-term store of value. To get a bit more out of your investment, perhaps plant a few fruit trees or something low maintenance that will provide you with some food. I'm not suggesting to become a crazy survivalist. It just makes sense to get at least a small return on your investment, especially if you're into growing your own food. Leasing the land is another option.

As for other investments, I'm partial to P2P lending because I find it simple and super easy, but that might not be a good option for you if you don't tolerate higher risk and alternative investments.

If you're good at growing businesses, consider investing in a private business if you have access to good deals (I'm not talking about investing in BS social media startups and apps).

Don't forget that there's usually always a way to reinvest more in your business, and then in the future have even more to set aside (in cash, precious metals, etc.).

Last but most definitely not least (that should actually be the first thing), invest in yourself - new skills, contacts, travel, fitness. In the end, the more valuable you are as a person (and that includes health, skills, contacts, experiences, insight, instinct, etc.), the more satisfying your life will be.

I personally decided to stick to cash, precious metals, P2P lending, and possibly real estate (apartments for rent and maybe some farmland) in the nearest future. I don't feel comfortable with the stock market so I stay away from it.

Find what suits you, educate yourself about it, and invest. It will be an exciting new chapter in your life.
 

Ecom man

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I'm in a similar situation. Perhaps you'll find my thoughts useful, though I'm not by any means an expert when it comes to investments.

Most people will suggest investing in what they find suitable for them. Since the stock market is the first thing that most people consider when they think about investing, you'll get a lot of advice about it.

I wouldn't say that selling options, which has become one of the trendiest things on this forum, is passive, easy or suitable for everyone. In fact, quite the contrary. It's extremely difficult and time-consuming to learn it and if you've never invested in the stock market, you'll find it confusing as hell. I wouldn't also say it's passive, or at least not as passive as classic value investing where you hold stocks for years or forever.

Real estate will be another popular recommendation, and that's yet another thing that can either work for you or not. If you live in a place with low yields or excessively high prices, tough luck, unless you decide to invest in another city, state, or country. Investing outside of your city will be more challenging and time-consuming, though.

You said in your post you want to invest the rest for your family's future. If long-term wealth preservation is your primary goal, your approach should be different than if you're after maximizing your returns. You should be after investing in something that stores value well, but not necessarily appreciate a lot IF it comes with extra risk.

With my investments I do a mix of wealth preservation and growth, though I'm mostly focused on fast growth. For the wealth preservation part, I'd invest in precious metals (stored outside of your country, ideally Singapore or Switzerland), and stay relatively liquid so that you can always cover any emergency expenses of your family (keep some of your money in physical cash and some in different currencies in a few countries).

I would also consider arable land as a good long-term store of value. To get a bit more out of your investment, perhaps plant a few fruit trees or something low maintenance that will provide you with some food. I'm not suggesting to become a crazy survivalist. It just makes sense to get at least a small return on your investment, especially if you're into growing your own food. Leasing the land is another option.

As for other investments, I'm partial to P2P lending because I find it simple and super easy, but that might not be a good option for you if you don't tolerate higher risk and alternative investments.

If you're good at growing businesses, consider investing in a private business if you have access to good deals (I'm not talking about investing in BS social media startups and apps).

Don't forget that there's usually always a way to reinvest more in your business, and then in the future have even more to set aside (in cash, precious metals, etc.).

Last but most definitely not least (that should actually be the first thing), invest in yourself - new skills, contacts, travel, fitness. In the end, the more valuable you are as a person (and that includes health, skills, contacts, experiences, insight, instinct, etc.), the more satisfying your life will be.

I personally decided to stick to cash, precious metals, P2P lending, and possibly real estate (apartments for rent and maybe some farmland) in the nearest future. I don't feel comfortable with the stock market so I stay away from it.

Find what suits you, educate yourself about it, and invest. It will be an exciting new chapter in your life.
Very helpful. I appreciate the insight. I am looking to invest long term but I am not against having a little bit higher risk if the returns warrant it.

It's funny you mentioned P2P lending as I was actually doing some research on it last night. I spent about an hour on lendacademy.com. The guy seemed relatively knowledgable but has only been averaging returns around 10% after defaults etc. That seems to be a little low on the return side for the risk.

If you don't mind me asking what kind of returns have you averaged on your P2P investing?
 

MTF

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@Ecom man, I invest in European P2P lending with a buyback guarantee (if a loan defaults, they buy it back from you with interest) and my ROI is around 12-13% a year (just got back into it after a break when I needed money for something else). I stay very liquid with them, though, because at the moment I only invest in 1-month loans I can always sell on the secondary market.

I probably wouldn't do it without a guarantee or collateral for 10%, but that's because I don't have to (there are at least three good European P2P platforms offering around 12% each). 10% from an almost passive investment is still a lot (especially since you probably wouldn't be able to achieve such returns when investing in stocks; or at least not while taking on almost the same risk).
 

biophase

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Since you are welcome to just random opinions from people without knowing your goals I'd suggest using the money to purchase real estate. Every 6-8 months you purchase a piece of real estate in cash. In 5 years you would have amassed $1.5M in real estate free and clear, giving you and your family cashflow of approximately $100k/yr for the rest of your life.

Obviously this isn't the way to get maximum returns. But it's a way to get good returns with fairly minimal effort.
 
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Ecom man

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Since you are welcome to just random opinions from people without knowing your goals I'd suggest using the money to purchase real estate. Every 6-8 months you purchase a piece of real estate in cash. In 5 years you would have amassed $1.5M in real estate free and clear, giving you and your family cashflow of approximately $100k/yr for the rest of your life.

Obviously this isn't the way to get maximum returns. But it's a way to get good returns with fairly minimal effort.
Great idea thanks.
 

Ecom man

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@Ecom man, I invest in European P2P lending with a buyback guarantee (if a loan defaults, they buy it back from you with interest) and my ROI is around 12-13% a year (just got back into it after a break when I needed money for something else). I stay very liquid with them, though, because at the moment I only invest in 1-month loans I can always sell on the secondary market.

I probably wouldn't do it without a guarantee or collateral for 10%, but that's because I don't have to (there are at least three good European P2P platforms offering around 12% each). 10% from an almost passive investment is still a lot (especially since you probably wouldn't be able to achieve such returns when investing in stocks; or at least not while taking on almost the same risk).
I didn't know any p2p companies offered any guarantees. I'll have to check that out. Thanks
 

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I didn't know any p2p companies offered any guarantees. I'll have to check that out. Thanks

Twino.eu and Mintos.com do. Granted, if they go bust, their guarantee means nothing, but there's risk everywhere. Each time one of my loans defaulted they always bought it back automatically (and paid all of the interest, including interest for the delay).

Estateguru.eu offers real estate as a collateral.

I'm actually surprised that guarantees aren't more common. It makes a lot of business sense to reduce the risk for the investor.
 
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Josh Shogren

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If I were in your shoes I would look into purchasing a website as an investment vehicle. I know this type of investment is not for everyone, but if you think you might be interested in it let me know and I will explain a little bit more!
 

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