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HELP! 300k but no income- what should I do?

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oldguy
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quote:
So you recommend taking the 50k out and investing the 250k in stock.


I wouldn't waste $50k, I would invest the whole $300k. Re my earlier comment - the reason lottery winners do so badly is that they have never managed money, they fail to keep the "found" money intact.

quote:
I dont see anyway to make money to live on and raise a family for the next 30 years with only 50k to help me go back to school and get a job.


Whenever we hit a recession - such as 1979, 1987, 2001, 2008 - thousands of people elect to go back to school rather than take a job that doesn't fit into their dream-job category - I think that is a mistake. I see people sitting out of the workforce for for an extra 2 or 3 years, as opposed to working. When they come back to the workfarce they are still poorly prepared.

Why not go with the education that you already have? Not too hard to earn $40k or $50k at labor jobs, truck driver, equipment operator. Bank teller, finance office at a car dealership. Where I worked we had a Tech Writing Dept, they took the design sketches & write-ups that the engineers wrote and formatted them into 2-column magazine format, spaced the graphics, editted the text, changed the person, etc. We had writers, graphic designers, editors, book bosses - we prepared design proposals for our customers. Editors were making close to $100k.
Post Mon Jun 29, 2015 2:49 am
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christcorp
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Whatever choice you make, whether learning a trade or going straight into a labor job, don't let the $250-$300K you invest, be the only investment. Make sure you take a small amount 10-15% of whatever income you do make, and find a way to invest that also.

Remember, you can put the $250-$300K into a mutual fund, but it won't give you the take benefits of a retirement account. I.e. You're not allowed to just dump hundreds of thousands into a retirement account. But the 10-15% of the income you do make, you can put that into a retirement account like an IRA. You'll get a tax break for it and it will allow you to diversify beyond what the $250-$300K is in. If you don't think you'll need the tax break, you can still put it into a ROTH IRA. Wherever you get a job, see if they have any type of 401K, 457b, etc.
Post Mon Jun 29, 2015 3:15 am
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branchville
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Thank you for all this excellent advise.

There is something you should know, that i have family members that have much business experience that can help me run a business.

What about using 200-300k to buy a business or franchise, and additionally get a note from the current owner? This will give me 70-130k yearly, and I can re-sell the business in the future.

Doesn't this make more sense than investing the 300k and going into the labor market starting at $15 an hour?
Post Mon Jun 29, 2015 3:55 am
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christcorp
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I think you're looking at this "BACKWARDS". Stop looking at trying to take this $300K and turn it into an income that you can live on. You can't. You just said that if you invested it into a business, that you'd still need a note from the owner. If you can't own the business 100%, then it's not worth it.

And even if you did own a business with the $300K, even if you could make $50-$70K a year operating it; what happens if the business goes under? Normally you don't "Sell a Business". Not unless it's a business or idea that is relatively new and someone with more money believes they can expand on it to make even more. Any "FRANCHISE" that you buy comes with it's own set of rules by the owner of the company. E.g. If you buy a McDonalds, Burger King, Subway, etc. franchise, you MUST buy all your ingredients, supplies, food, etc. from THEIR SOURCE at THEIR PRICE. You have no choice. And as such, you can't just sell a franchise to another person. The OWNING Company; e.g. McDonald's HQ, decides if they will ALLOW the next person to take over for you.

All I'm saying is, don't look at it from the money towards an income. Think of a job, occupation, hobby, etc. that you are passionate about, and find a way to turn that passion into a money making idea. If you need to use SOME of the $300K as seed money, then go for it. But if it's a Business venture, you're better off starting an LLC company and getting a business loan. Keep your BUSINESS and expenses SEPARATE from your personal assets. This way if something happens and you go bankrupt, get sued, etc. they can't touch your personal assets. If you aren't incorporated some how with a business, then if something goes wrong with the business, they can also come after your personal holding.
Post Mon Jun 29, 2015 6:15 am
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oldguy
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quote:
Doesn't this make more sense than investing the 300k and going into the labor market starting at $15 an hour?


Not at all. Somewhere along the way it became urban legend that the way to wealth is "small business" - and that "working for the Man is a loser". But the facts are way different. Your $15/hr ($31000) will grow to $60,000 in a decade or so, you have something on the ball, a college edu, employers will see that. So, by putting the $300k to work at 11%/yr and earning $30k to $60k/yr to live on, you'll grow the $300k to $7M.

Tip. Risk & return are directly proportional - if you need a steady 6% or7%/yr you must stay in relatively safe vehicles. If you want 11%/yr you can use vehicles that average 11%/yr over 25 and 30 year blocks but vary wildly from yr to yr - eg, the stock market might go down 30% one yr, the up 40% nest yr, you cannot draw an annual 11% from that, you need to use your management skills to posture yourself to wait.




Conversely, the most you could hope for from $300,000 is about $25,000, and that will be variable
Post Mon Jun 29, 2015 1:32 pm
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