[BIGINJAPAN]

(10-24-2012 11:51 AM)presidentcarter Wrote:  

(10-24-2012 11:45 AM)Aliblahba Wrote:  

This thread is retarded, but I beg to question? Don't think "what will you Do" but what "did you did". When you get this kind of money, write me. Emech knows, and maybe hotwheels. but easy come easy go. The way it is. I ned one fucking member that has made money. Tell me how you save?

Ali, I see where you're coming from. When you have or are making decent bank, dropping thousands here and there is an afterthought. I'm talking thousands and thousands at clubs, gambling, car, trips, etc. Been there done (and still doing) all that.

You are totally right in saying easy come easy go. Everyone thinks they will become Warren Buffett when given some decent change, but the money will disappear before your animal spirits do. But I think $500k, while not a fortune, can get you well on your way to something meaningful if you put some thought into it.

Dude that is so wrong. When you have a lot of money you think twice about dropping thousands in a club or gambling and hoes. Granted there are billionaires who don't give a fuck, but most of the guys who do that have a huge salary and live paycheque to paycheque. They don't really have any assets except maybe an overpriced mortgage.

Guys that have built up businesses or are self made some other way don't really do that shit. I used to drop a lot of money on my buddies in the club when I was 25-27. Then one day it hit me, why am I doing this ? These guys will probably never make as much as me and will never return the favour. I even get pissed off the next day if I dropped $500 on a night out, unless I am in a different city. I don't gamble, except the odd time I will play in vegas, otherwise I fucking hate myself for days after. Why would I waste money on something so trivial ?

The key to making money and keeping it is two things: Don't spend money on useless shit and try to pay as little tax as possible. Even if you don't make alot of money, you can save up quite quickly with those 2 methods. It does involve sacrifice at first, but after a 3 years you will be on the way to easy street.

[el mechanico]

Ok Are we talking having 500 from saving your entire life or right now lottery money?

[Moma]

(10-24-2012 12:03 PM)BIGINJAPAN Wrote:  

Dude that is so wrong. When you have a lot of money you think twice about dropping thousands in a club or gambling and hoes. Granted there are billionaires who don't give a fuck, but most of the guys who do that have a huge salary and live paycheque to paycheque. They don't really have any assets except maybe an overpriced mortgage.

Guys that have built up businesses or are self made some other way don't really do that shit. I used to drop a lot of money on my buddies in the club when I was 25-27. Then one day it hit me, why am I doing this ? These guys will probably never make as much as me and will never return the favour. I even get pissed off the next day if I dropped $500 on a night out, unless I am in a different city. I don't gamble, except the odd time I will play in vegas, otherwise I fucking hate myself for days after. Why would I waste money on something so trivial ?

The key to making money and keeping it is two things: Don't spend money on useless shit and try to pay as little tax as possible. Even if you don't make alot of money, you can save up quite quickly with those 2 methods. It does involve sacrifice at first, but after a 3 years you will be on the way to easy street.

So what do you have the money for? What is trivial to you is priceless to another? Isn't the idea of money to do what you want to do? Doesn't money bring mobility?

[MikeCF]

(10-24-2012 12:29 PM)Moma Wrote:  

So what do you have the money for? What is trivial to you is priceless to another? Isn't the idea of money to do what you want to do? Doesn't money bring mobility?

Money allows you to be who you really are.

If I had 500K tomorrow, I would not go ball so hard all the time. That's just not my personality. I wouldn't drop 20K in the DR.

I would rather spend 20K on an African safari.

But even then I wouldn't take the 20K from principal. I'd let the 500K grow and pull the trip from the interest.

For work I'd just find a side hustle, because I'm over working long hours and all that shit.

But everyone will have a different answer.

[Samseau]

Anyone who would use this 500K to pay off their student loans doesn't know what they are doing. Student loans are probably one of the safest investments you make right now because of the "income based repayment" plan + inflation.


Here's what I would do with this 500K:

- Rack up as much low-interest debt as possible. Anything under 7% is fair game.
- Start buying rental properties. Throw some of my broke-ass relatives in there to manage them for me while I travel around the world banging babes.
- Spend about 5K on clothes.
- No need to buy state of the art technology, I build my own computers and it costs me less than 1000 bucks every three years to upgrade.


Really, that's all anyone needs to do. I could coast on 500K for an easy 10 years or more.

[Moma]

If I had 500K, I would want some sort of principal that starts to generate passive income. I am very big on money just appearing in my account (as opposed to disappearing).

Once I had that passive income, I would like to travel to a few different countries and get a taste of what I really like. I haven't travelled as voraciously as the others here so I don't know totally which environment works IDEALLY with my temperament and my beliefs.

I'd hit up several countries on the lowkey tip and see how the vibes are. Then I would look to putting up some roots there.

[Moma]

(10-24-2012 11:38 AM)MikeCF Wrote:  

Invest in a diversified portfolio seeking 6-8% returns. That's 30-40K a year.

Get a part-time job at Whole Foods or bartend. That gives extra cash and access to women.

Between the job and the dividends, I'd have plenty of cash and plenty of hos.

why a part time job at Whole foods?

[Dr. Howard]

I'm just going to answer the original question and avoid the arguments.

1. Clean up about $30k in business debt
2. Spend $400k on a 4 plex somewhere, rent out 3 of the units, partner with a property management company and keep the 4th apartment as a safehouse. Always nice to have somewhere to flee to in the event of chaos, bad business deals, angry husbands or a sour divorce.
3. $70k goes for negotiating lifetime memberships/benefits with a gym, barber, house keeping service and any other personal service providers I can think of. I hate paying for that stuff out of pocket each month

[BIGINJAPAN]

I use my money to travel. I use it to live in different cities all over Canada for parts of the year. I use it to take a lot of different classes. I buy guns and ammo like it is going out of style. I use it so I don't have to worry about getting up in the morning to go to a job. It gives me the freedom to do what I like. But if I was dropping a ton of cash on partying then my lifestyle wouldn't be sustainable when I reach 40 or 50 because I would be dipping into the principle most likely.

It is pretty hard to have it all, so I cut back on the things that don't have the greatest ROI.

[el mechanico]

(10-24-2012 12:47 PM)Moma Wrote:  

(10-24-2012 11:38 AM)MikeCF Wrote:  

Invest in a diversified portfolio seeking 6-8% returns. That's 30-40K a year.

Get a part-time job at Whole Foods or bartend. That gives extra cash and access to women.

Between the job and the dividends, I'd have plenty of cash and plenty of hos.

why a part time job at Whole foods?

Grocery store lots of ass and easy. It would be way easier to buy and sell cars from auction to auction with that kind of backing. When you have 100+ k you can buy 40k cars and make a couple grand a piece no problems and you don't have to touch them.

[BIGINJAPAN]

(10-24-2012 12:56 PM)el mechanico Wrote:  

(10-24-2012 12:47 PM)Moma Wrote:  

(10-24-2012 11:38 AM)MikeCF Wrote:  

Invest in a diversified portfolio seeking 6-8% returns. That's 30-40K a year.

Get a part-time job at Whole Foods or bartend. That gives extra cash and access to women.

Between the job and the dividends, I'd have plenty of cash and plenty of hos.

why a part time job at Whole foods?

Grocery store lots of ass and easy. It would be way easier to buy and sell cars from auction to auction with that kind of backing. When you have 100+ k you can buy 40k cars and make a couple grand a piece no problems and you don't have to touch them.

Hey do they have giant car auctions from government seizures ? I know the treasury, FDIC and FED do this with property.

[OldRich]

Simple. I would invest 500k to make 5 million then invest that 5 million to make 50. There are things money can't buy and there are things A LOT of money can buy like get my ass to the moon. I don't think I'll be satisfied with having enough money to just travel and experience cultures without doing something really meaningful.

I don't agree with putting money in the bank and live off interest, that's scarcity mentality. The money that you don't spend on growing is the money that you will lose over time to depreciation. There are many start ups and entrepreneurs out there that wishes for half of 500k to invest in their business that the though of 500k just sitting there is something I can't comprehend.

In the end it all comes down to ambition. Some people are satisfied with chasing poon until they can't get a hard on anymore and there are some that strive for more.

[Excelsior]

(10-24-2012 10:58 AM)Aliblahba Wrote:  

@Athlone- Fuck man, get a life. Your post depressed me to no end.

My bad.

Quote:

I blew $20K or more in the DR. Fuck. Do you think the U.S. will be around in 50 years?

Yes. I'm not ready to count America out just yet. You can do so if you'd like-your call.
Regardless, the question has no bearing on the subject at hand. My post was about what I'd do with $500k cash right now. I don't need to wait 50 years.

Even in real life (where that money would have to be saved over time via work), I'm confident I stand a good chance of making use of that kind of money well before I turn 71.

Quote:

Son, get into the real world. Party like a rockstar.

I'm not a big party guy.

Quote:

Oh wait, your parent's told you to save up until you're 65? FUCKKKKKKKK man. The fuck can you do when you are that old?

My mother didn't tell me about saving until 65. She taught me about fiscal responsibility in general.

What I learned from her, my grandfather and the rest of the adults in my life was the value of a dollar and the value of land. They taught me to avoid the pretense of debt slavery and control my own destiny if I can.

By eliminating any remaining portion of my home loans (no longer beholden to mortgage company), student loans (no albatross on my neck post grad-school), and personal family debts (no collectors calling my mother and making her life difficult), I put my destiny further into my own control.

The plan I outlined here leaves me with no undergrad/grad school debt to sap my earnings, a decent used car (up to $15k, probably an Infiniti or something similar) that's completely paid for, a home in a desirable little development (one of the few to withstand the housing price crash in my area) that I own outright, a safe and debt-free mother (the least I could do for her, half her debts were taken on to help me), a sizable savings account ($27k for whenever I need it quick), and a small but reasonable amount of cash ($20k or so) to begin investing and growing.

I can enter the working world with fewer debt worries and much better credit (which I could in turn use to do/get more loans and other things if I absolutely need to). If I have solid earning from work, I'll be in an even better position 10 years down the line.

Your idea ("party like a rockstar") leaves me with nothing I value more than any of the things I listed above. It's probably a good idea for you and I won't knock it (it'd be your money, not mine), but I have other ideas. $15k in my budget is set aside for fucking around anyway-a handful of two-week millionaire trips to the Philippines over time will take care of that.

[el mechanico]

Athlone got 'd big time

[LonerWithABoner]

This isn't theoretical for me. I have approximately that amount in liquid assets. It's divided between 5 different mutual funds.

Meanwhile, I keep working.

[Bad Hussar]

One idea would be to spend a few years building up a series of relatively low investment franchise businesses in your particular town. Keep an eye out for a trusted friend/relative/employee who would be able to run the business in your absence. Once you have a good income coming in from the franchises and you have installed a trusted manager you should be able to physically leave for long periods of time. Provided you're not a control freak who thinks the world will stop turning without your intervention.

I mention franchises, rather than other types of businesses, because it's easier to leverage that $500,000, when you are running an established franchise rather than a completely new business. i.e. a bank is more likely to olan you money. Say you have 5 franchise locations where your investment is $100,000 into each, while you raise another $400,000 in loans for each location. You do your due dillgence and work your arse off to make sure each franchise is returning more than the interest rate you're paying on the loans and you're leveraging your $500,000 to give you a great return. A lot less dangerous than real estate, which in my opinion is way over-leveraged.

[MikeCF]

500K means you never run the rat race again.

You'd have to work some job, or start a small business, or run some hustle. You'd need some cash.

But you'd never have to worry about paying your bills again.

That, to me, is huge.

[MikeCF]

(10-24-2012 12:46 PM)Samseau Wrote:  

Anyone who would use this 500K to pay off their student loans doesn't know what they are doing. Student loans are probably one of the safest investments you make right now because of the "income based repayment" plan + inflation.

Here's what I would do with this 500K:

- Rack up as much low-interest debt as possible. Anything under 7% is fair game.
- Start buying rental properties. Throw some of my broke-ass relatives in there to manage them for me while I travel around the world banging babes.
- Spend about 5K on clothes.
- No need to buy state of the art technology, I build my own computers and it costs me less than 1000 bucks every three years to upgrade.

Really, that's all anyone needs to do. I could coast on 500K for an easy 10 years or more.

Your relatives would steal the copper out of your apartments to sell at the scrap yard to pay for meth.

Broke people are broke for a reason.

First thing to do if you come into 500K? Don't tell your family.

My family knows I "do OK" and are left guessing what that means.

My closet friends know my situation. But I choose my friends.

People who say blood is thicker than water should see what happens when a rich family member dies without a will.

Blood might be thinker than water but it's not thicker than money.

[Excelsior]

(10-24-2012 01:12 PM)el mechanico Wrote:  

Athlone got 'd big time

Maybe, but I think the point was worth making regardless.

[Moma]

(10-24-2012 01:20 PM)MikeCF Wrote:  

Your relatives would steal the copper out of your apartments to sell at the scrap yard to pay for meth.

Broke people are broke for a reason.

First thing to do if you come into 500K? Don't tell your family.

My family knows I "do OK" and are left guessing what that means.

My closet friends know my situation. But I choose my friends.

People who say blood is thicker than water should see what happens when a rich family member dies without a will.

Blood might be thinker than water but it's not thicker than money.

Doesn't the relative thing depend on who's family it is? Some families are useless and others are not. I would personally hook my family up but it would be selective of course. Not EVERY single family member needs to know but it's not bad letting some know.

[MikeCF]

Really interesting thread because it shows a lot of the bad thinking (my own included) we suffer from. This bad thinking is what makes us go broke.

All this, "Start a business stuff...."

Guys, do you know what starting a business entails?

Let's say you love coffee. I do. I have a passion for it. I was gonna start a coffee joint. Researched it.

LOL at me!

Running a coffee shop ain't go shit to do with coffee. It means living in an Excel sheet. How many cups you gonna order each day? How many plastic lids? Liability insurance. Disability access. Thieving employees. Employees fucking up orders. Water bills. Real estate swings. Landlords squeezing you once you've set up a good location and are making a profit. Customers clogging your toilet because they flush paper towels. Cleaning up shit. Customers falling down and trying to sue you. Homeless people smearing shit all over your restrooms. (If you're not prepared to clean up shit and be a janitor, do not start a coffee shop!)

This idea that you just start a business is a dangerous one. Opening your own business means working harder than you ever have.

Plus you don't need 500K to start a business.

If you love coffee, set up a coffee kiosk. That will run you 1K tops.

EliteFTS is a huge weight lifting/power lifting company. Dave Tate started it on a fold-out desk.

So if you do wanna start a business, don't lie to yourself about needing 500K.

You can start a business today with no money.

[MikeCF]

(10-24-2012 01:25 PM)Moma Wrote:  

Doesn't the relative thing depend on who's family it is? Some families are useless and others are not. I would personally hook my family up but it would be selective of course. Not EVERY single family member needs to know but it's not bad letting some know.

"Three people can keep a secret if two are dead." - Benjamin Franklin

[presidentcarter]

They say a fool and his money are soon parted. I'm just trying to make sure the fool in me is out-earned and out-lived by the frugal and profitable part of me. It's a constant tug of war.

[el mechanico]

(10-24-2012 01:25 PM)Moma Wrote:  

(10-24-2012 01:20 PM)MikeCF Wrote:  

Your relatives would steal the copper out of your apartments to sell at the scrap yard to pay for meth.

Broke people are broke for a reason.

First thing to do if you come into 500K? Don't tell your family.

My family knows I "do OK" and are left guessing what that means.

My closet friends know my situation. But I choose my friends.

People who say blood is thicker than water should see what happens when a rich family member dies without a will.

Blood might be thinker than water but it's not thicker than money.

Doesn't the relative thing depend on who's family it is? Some families are useless and others are not. I would personally hook my family up but it would be selective of course. Not EVERY single family member needs to know but it's not bad letting some know.

People change when you have money even tight relatives. They start doing shit like buying big tvs instead of paying rent because you don't need the money in their eyes also even if it's your cousin they're going to have a wife or husband brainwashing them 24/7.

I don't trust mine too much because I see what they try and pull at my work when they owe me money daily.

The best purpose 500k would serve is streamlining your life. Rentals are problems, flipping homes could be a problem too. You need people to help and deal with realtors and insurance etc.

[LonerWithABoner]

(10-24-2012 11:45 AM)Aliblahba Wrote:  

This thread is retarded, but I beg to question? Don't think "what will you Do" but what "did you did". When you get this kind of money, write me. Emech knows, and maybe hotwheels. but easy come easy go. The way it is. I ned one fucking member that has made money. Tell me how you save?

I went to college and got a business degree. Immediately went to work in corporate America and worked my ass off for the last 15-16 years. For most of that time I lived well below my means and saved up as much money as possible, all of it going into various stocks and mutual funds which I actively manage to varying degrees.

I avoided many of the pitfalls that struck some of my peers: Getting a girl pregnant, buying a house at the wrong place and time, becoming addicted to marijuana, chasing longshot dreams of fame and fortune. Instead I've gone about working and saving in a very practical and logical way.

My focus is primarily on my corporate career, and I have a very good income. I'd like to retire at age 50, and if things continue as they are, I will be quite comfortable and secure. Not rich or wealthy, but comfortable and secure.

This isn't the only way to do it, but this is how I've done it.

Also, no offense, but you guys who talk about how you'll spend the money are using the wrong mindset. You need to think in terms of how to make money and how to make your money work for you.

My way of thinking is that money buys security so that one day I won't have to worry about it and I won't have to work.

But that's just me. Everybody is different.