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What would you do with $500,000?

Discussion in 'Business, Investment and Economics' started by ferretbiter, May 15, 2011.

  1. ferretbiter

    ferretbiter

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    A hypothetical question here,
    What would you do if you were say...20 years old and came into ownership of 500k?
    Stocks, managed funds, property, bonds,ETF's,index funds,businesses, companies, what would you pick?
    Would you pick one option or many?Play it safe and use compound interest to do the work or go for the big bucks?

    Just a hypothetical question here, no-one should use this thread or any replies for advice, nor does this person actually exist.
     
  2. tothemax6

    tothemax6

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    ARGH, not another 'what would you do with $X', <asset classes>? blah blah.
     
  3. ferretbiter

    ferretbiter

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    If you get bored of these threads, then don't reply, let the thread die, if you do not bump it and will drop into the netherworld of the forums.

    But seriously, what would you do?There's a large difference between investing at 20years old then say at 40years old.I was just wondering if this would change peoples investing tactics.
     
  4. tech/a

    tech/a No Ordinary Duck

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    Make it work.

    Business will supply continued growth and stead you fast for all the other forms of investment available.
    For me I would be looking at something NET based.
    Minimum staff,maximum exposure.
     
  5. ferretbiter

    ferretbiter

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    Thanks tech/a, now for some pretty silly questions with some most likely obvious responses, By NET you mean internet based?
    Do you believe someone could achieve a more stable growth through business than a managed fund, at say 7.2% per annum?:confused:
     
  6. tech/a

    tech/a No Ordinary Duck

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    (1) Internet yes.

    (2) Absolutely. An average business should return 10% (Nett) on investment. A good business 30% and a very good business more. Net based businesses have the capability of doing just that.Google,MySpace, Facebook, E bay,Car Sales.com all started with less that $500K not that you need anything remotely close to the caliber of these enterprises.
     
  7. ferretbiter

    ferretbiter

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    Oh christ, now someone in this situation has actually got to be creative.

    Hmmmm.....I'VE GOT AN IDEA!! A place where people go online and bid for various products that other users are willing to sell?Genius ill make millions!!...oh wait.:banghead:
    Anything you would recommend in the meantime?
    Note that this advice is not for me nor should it be followed by anyone else.
     
  8. tech/a

    tech/a No Ordinary Duck

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    Its pretty simple
    Find something which is in demand. Warehouse it if its a commodity (you have $500K) and make it available.
    Protect it if its intellectual property and make it available.
     
  9. ferretbiter

    ferretbiter

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    Will anything in demand do?Video games?Iphones/ipads?Movies?How about tv's/Cars?
    Sorry for being so ignorant, but well.....I'm ignorant.
     
  10. Glen48

    Glen48 Money can't buy Poverty

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    Fly over seas and open a Bank of China account and deposit a few k into it , buy PM's and keep some cash handy if a bargin comes along such as farm land in a foreign country were you can live as things get worse..
     
  11. pixel

    pixel DIY Trader

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    Anything "iWHATEVER" that you buy today will be worth half what you paid for in a month and stuff all in 2 years' time. That's because technology moves so fast.
    (In 1998, I bought a dozen 4GB hard drives for a mini computer. Cost me $85,000.)

    If you want to stay ahead, it has to be an application - yes, you have to be creative and pay somebody to write the app for you or, better still, study the language and DIY.

    now... that's given me an idea ... :cool:
     
  12. ferretbiter

    ferretbiter

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    Not sure if you are being entirely serious, why bank of china?

    Damn google, no I don't want to know about prime ministers or what they advocate investing.
    Im guessing PM's have something to do with commodities?

    Also what do you guys think of a managed fund at 7% per annum? Too risky?Too low return rate?

    Note this advice is not intended for myself or anyone else to use.

    P.S. Whats to stop someone from, say buying 500k worth of silver?Obviously the risk that the price drops, but what else?
     
  13. Sdajii

    Sdajii Sdaji

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    Beer and hookers.
     
  14. ferretbiter

    ferretbiter

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    Fixed that for you.

    Wait, hookers rolled in coke.Done.There goes 500k of the best money thats ever been spent.

    Note this is intended for use as advice and in everyway should be followed by others.
     
  15. Glen48

    Glen48 Money can't buy Poverty

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    They reckon the Chinese currency is undervalued by up to 25% and as the USD tanks over the yrs it will increase also BOC or any Chinese bank is safer than USA based one and you can open a chinese bank account in other countries other than China.
    Me I woul,000 on Silver rest cash in the bank over a few different banks.
    Beer Hookers and a oxygen tent
     
  16. Glen48

    Glen48 Money can't buy Poverty

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    better fix that 75,000 in gold 25 in silver
     
  17. Glen48

    Glen48 Money can't buy Poverty

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    Watch PM they reckon it will tank silver more than Gold silver down to 20 -25 nad then 75+
    now who has the 500K
     
  18. ferretbiter

    ferretbiter

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    Why put cash in a bank when most mutual funds offer greater returns?

    Why would you buy into gold?Most people are saying its not likely to rise much further.
     
  19. ferretbiter

    ferretbiter

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    Forgive me, but whats PM?Are you saying both gold and silver are going to drop hard?Then one is going to go to $75+ per ounce?
    And no-one has the 500k ;) this is not advice being given to me or anyone that reads it, as it would break forum rules.:p:
     
  20. Glen48

    Glen48 Money can't buy Poverty

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    PM precious metals,, No the word in silver could go down to 20 25$ an oz ounce when QE 2 finished 30/06 and when they start QE 1662 or what ever it will be called people will realise the economy is stuffed and look at PM's some have quoted gold to 36K and oz silver 500K
     
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