What Would You Do With $100,000?

ConsiderAgain_IHB

New member
Hypothetically, if you had 100 large sitting around and you:



- have no interest in sinking the cash in CA real estate,

- no interest in an expensive car (because you?ve already owned several and its out of your system),

- have several hundred already in the stock market,

- currently do not own a home but have the additional reserves to buy one whenever,

- have zero debt,

- have already made significant contributions to charities



Some ideas:

- use the cash to buy/finance a couple of rentals outside CA,

- start your own business,

- day trade for living,

- invest in someone else?s business,

- ??





What would you do with the $100k?
 
Sit on it, Potsie.



<img src="http://profile.ak.fbcdn.net/object3/1362/22/n14029985484_3565.jpg" alt="" />



(I mean that literally, not in a pop-culture, snarky, 4chan-eque way. You'll need it sooner or later. 100 dimes liquid isn't too much to have around just 'sitting'.)
 
I'm sorry to derail, I just don't understand the "California" room very well. However, I visited CPK in Huntington Beach this week and I've never in my life seen a room that I'd love to have as my living room/life space more than the entire restaurant at CPK. A TV area, a bar, a kitchen, a wine cellar, lounging space and a REALLY cool vibe. My mind wandered as I ate dinner in that place imagining this as my space, I have truly never done that anywhere. Have you been there, BK? (I'm guessing, no), but anyway, this is my imagination's view of a "California Room". Just for the record, I have no idea what I'd do with 100K extra, probably just sit on it they same way I do with most of my money. Maybe I'd ask BondTrader what to do.
 
I don?t get the ?California Room? or the ?Potsie? reference. In most cases money should work harder than you do, which was the thought behind the initial question. I was interested in what others think here. One thing about Southern California that impresses me is the quantity of high-value entrepreneurial activity.
 
[quote author="ConsiderAgain" date=1258380409]I don?t get the ?California Room? or the ?Potsie? reference. In most cases money should work harder than you do, which was the thought behind the initial question. I was interested in what others think here. One thing about Southern California that impresses me is the quantity of high-value entrepreneurial activity.</blockquote>


I'm sorry, it's a good question but the parameters you set are exceptionally limiting as far as the population that will honestly respond.
 
[quote author="tmare" date=1258381094][quote author="ConsiderAgain" date=1258380409]I don?t get the ?California Room? or the ?Potsie? reference. In most cases money should work harder than you do, which was the thought behind the initial question. I was interested in what others think here. One thing about Southern California that impresses me is the quantity of high-value entrepreneurial activity.</blockquote>


I'm sorry, it's a good question but the parameters you set are exceptionally limiting as far as the population that will honestly respond.</blockquote>


Concur.



Not to be a thread Nazi, but most folks looking for investment suggestions post in the Economy / Finance thread. In fact, you might find the info you are looking for already posted.



If it were me and I had a $100K and little need for it, I would probably donate the money to the local food bank because with all the unemployment out there, the food banks are doing a brisk business. :down:



If you are looking for an entrepreneurial investment, maybe you could create a program at a local business school for a start-up competition.
 
[quote author="ConsiderAgain" date=1258372101]Hypothetically, if you had 100 large sitting around and you:



- have no interest in sinking the cash in CA real estate,

- no interest in an expensive car (because you?ve already owned several and its out of your system),

- have several hundred already in the stock market,

- currently do not own a home but have the additional reserves to buy one whenever,

- have zero debt,

- have already made significant contributions to charities



Some ideas:

- use the cash to buy/finance a couple of rentals outside CA,

- start your own business,

- day trade for living,

- invest in someone else?s business,

- ??





What would you do with the $100k?</blockquote>


Pay no attention to the thread nazis, this is a good "what if" question, perfect for the water cooler.



As for me... I'd start a scholarship. I'd put some complete stranger through college with books and tuition, provided they majored in something productive (no, the world has enough art history majors, thank you) and met abunch of other criteria that I think are important. Think about it, your $100k (as detailed out earlier) isn't really going to make a big of difference to you now. But a free college education to a bright kid with good grades and no money... it would change the course of their life forever. How many chances do we get to profoundly affect the world around us? This is that kind of chance.



It's either that or blow it on hookers and beer.

<img src="http://randazza.files.wordpress.com/2009/03/quagmire-stripper.jpg" alt="" />
 
[quote author="ConsiderAgain" date=1258380409]I don?t get the ?California Room? or the ?Potsie? reference. In most cases money should work harder than you do, which was the thought behind the initial question. I was interested in what others think here. One thing about Southern California that impresses me is the quantity of high-value entrepreneurial activity.</blockquote>


Sit on it = camp out on it till you find something worth putting it into.



I am of the opinion that "your money should work harder than you do" isn't appropriate right now given the wash of liquiditiy running around looking for a home. The risk of not getting your principal back is very high. JIMO.
 
Make two $50,000k loans or four $25,000 second TD loans to solid buyers to help them avoid PMI. You could get 8 - 9 pct rate of return. What? put a loan on California Real Estate??? Depends how you do it. If Mom and Dad are wanting to help their kid get a home, put the loan on the parents house, not on the kids. Pick your stable borrower well and you'll get a fat ROI.



My .02c



Soylent Green Is People.
 
[quote author="Nude" date=1258388635]Pay no attention to the thread nazis, this is a good "what if" question, perfect for the water cooler.</blockquote>


I agree, but as CA clarified his / her request for Tmare, it became clear it was more an investment question than a "what if."



Anyway, for about $5K and a job, you could make a big difference in the life of a person right now. I went out for a walk this morning and walked by a homeless person sleeping in his / her car. At least he / she (I couldn't tell and didn't want to stare) found a relatively safe place to sleep.
 
[quote author="Soylent Green Is People" date=1258420676]Make two $50,000k loans or four $25,000 second TD loans to solid buyers to help them avoid PMI. You could get 8 - 9 pct rate of return. What? put a loan on California Real Estate??? Depends how you do it. If Mom and Dad are wanting to help their kid get a home, put the loan on the parents house, not on the kids. Pick your stable borrower well and you'll get a fat ROI.



My .02c



Soylent Green Is People.</blockquote>


My business partner did this with a REIT in California. Great 10% returns.

<a href="https://rescapfunds.com/secure/home.asp">https://rescapfunds.com/secure/home.asp</a>



His $ 265 Large is now Vaporware.



Anytime somebody offers you those kinds of returns on Real Estate. RUN AWAY FAST.
 
Save & invest it for retirement. Because if you think Medicare and Social Security are going to be there for you when you are too old to work ... you haven't been watching the national debt patterns lately. As an elderly person in Japan put it (Japan's debt is huge, and the seniors population high, so it's sort of like the US of the future), the govts attitude towards seniors seems to be "You are welcome to die".



<A href="http://www.pgpf.org/about/nationaldebt/">http://www.pgpf.org/about/nationaldebt/</A>



<A href="http://www.bloomberg.com/apps/news?pid=20601109&sid=as80aWlHdA1M&refer=home">Poverty, Pension Fears Drive Japan's Elderly Citizens to Crime</A>
 
[quote author="bltserv" date=1258424950][quote author="Soylent Green Is People" date=1258420676]Make two $50,000k loans or four $25,000 second TD loans to solid buyers to help them avoid PMI. You could get 8 - 9 pct rate of return. What? put a loan on California Real Estate??? Depends how you do it. If Mom and Dad are wanting to help their kid get a home, put the loan on the parents house, not on the kids. Pick your stable borrower well and you'll get a fat ROI.



My .02c



Soylent Green Is People.</blockquote>


My business partner did this with a REIT in California. Great 10% returns.

<a href="https://rescapfunds.com/secure/home.asp">https://rescapfunds.com/secure/home.asp</a>



His $ 265 Large is now Vaporware.



Anytime somebody offers you those kinds of returns on Real Estate. RUN AWAY FAST.</blockquote>


I don?t doubt it. I like the idea of real estate, but within boundaries I am comfortable with. That is to say direct ownership of property I can afford outright if need be. I will probable buy a rental property in the next year with 20-40% down and see how that goes.



The RE model I put together does not generate significant cash flow for 10 yr (my pay-off schedule). Assuming a 30% down payment, that is a ~12.8% equity return over the 10-yr period, less out of pocket costs. The more realistic expectation would be ~10% return with 2-3% out of pocket over the period.



Nude, I like the thought of sponsoring a scholarship to a deserving (in my opinion of course), college student. Also agree about the history/arts majors. Chemical engineering is not likely to make one the most popular at parties, but the under grad program is a great foundation for just about anything that would follow. I also benefited for a little grant money in college. That said, I am currently more interested in ideas to grow the crop rather than harvest it early.
 
If I had a 100 large sitting around, assuming you have maxed out your 401k..



1. Invest a part of it in a good 529 plan for the children, say 20k.

2. Take a vacation to some exotic place.

3. Buy some jewelry that will appraise in value over time.

4. Save some in long term holdings for the care of elderly.

5. Give. You have already done your part, but this time don't pick a charity. Pick someone you would want to help. A school may be? Or play a secret Santa to a bunch of kids whose parents have lost their jobs?

6. Donate to Uncle Sam!! What better use of money ;-) (http://money.cnn.com/2009/11/11/news/economy/national_debt/)
 
[quote author="awgee" date=1258378144]Feed people.</blockquote>


If you are going to spend that big an amount to feed people, I would say split it into 75-25, use 75 to enable people to feed themselves long term, and use 25 for feed right now.
 
[quote author="ConsiderAgain" date=1258372101]Hypothetically, if you had 100 large sitting around and you:



- have no interest in sinking the cash in CA real estate,

- no interest in an expensive car (because you?ve already owned several and its out of your system),

- have several hundred already in the stock market,

- currently do not own a home but have the additional reserves to buy one whenever,

- have zero debt,

- have already made significant contributions to charities



Some ideas:

- use the cash to buy/finance a couple of rentals outside CA,

- start your own business,

- day trade for living,

- invest in someone else?s business,

- ??





What would you do with the $100k?</blockquote>


The parameters are so specific sounds like the question is really, what should I do w/ my extra 100k and here's my exact situation. I don't really want to give it to charity, so let me write that contributions are not an option because it's already been done. Reminds me of, "uh, ok, so I have a friend of a friend and..."



If you really can't think of what to do with your extra 100k, give it to me and find satisfaction in knowing that I'll use it well.



EDIT: Just reread my post and it sounds bitter...all jokes and that's a great situation to be in. Now let's hit up the strip club and make it rain, on you of course mr 100k
 
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