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- May 1, 2011
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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.
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.