Originally posted by mlac
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What would you invest in with 100K? SERIOUS answers only
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A low cost index fund for s&p, Nasdaq or Dow jones
I can suggest Charles schwab index funds, that's what I personally use.. expense rate is .01 so basically one-tenth of a penny for every dollar and they charge no commission if u invest in their funds..
Reinvest dividends and just let it sit there... with in 25 years it will be worth a few hundred thousand dollars.. in 40 years it will be a million+..
In retirement, stop reinvesting dividends and take cash..
3% yield of over a million will be a nice 30k+ a year in income and will give you a cushion
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I flip houses on the side.. im in the hardwood/construction business so properties go hand in hand..
Ive been buying broken down houses and have my guys remodel it and out on the market quick.
If you know about the business, properties are the way to go.
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Vanguard index fund.
Rental properties are a good idea, too. If you can buy enough of them and pay them off by the time you retire that would be an excellent stream of income for you to have in your old age.
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I've always liked the idea of buying into a franchise. You're buying into an established business with, arguably, a proven business model and hopefully a supportive franchisor who cares about your success just as much as yourself.
If you are good at management, quality control, marketing, finance, business administration then the franchise route may be easier than starting a business from scratch and creating/building a brand. However, you will have to follow a specific set of guidelines, policies/procedures as required by the franchisor. I think there's a little latitude but if you think of a franchise like McDonald's - the products, service and brand are almost ****geneous from store to store.
If you're OK will this arrangement then look for a franchise who's products and services interest you - something that you can get passionate about. Not just any old business that you can sink a $100K into.
For a long time I wanted to buy into a Quiznos franchise because I liked their sandwiches, liked that they grilled them and thought that they had a good product - much superior to Subway, which I hate. Anyway, Quiznos went bankrupt many years ago and I don't know if they are still a going concern. The stores that were around me closed. Even with you being passionate about your business, there is a significant amount of risk involved. There's risks that you fail as a business or in Quiznos case, the franchisor fails, and takes you down with it.
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