If you guys had 20k to invest that probably has a two year lifespan until needing it but possibly longer. How would you go about investing it?
I was thinking of starting a CD hierarchy, and doing 4 CD’s at different terms, 6, 12, 18, and 24 month CD’s all with 5k. That would give me a decent average return, and keep the cash somewhat accessible during certain points, and then once the first one is up just renew it for 24 months.
Another idea I’ve been looking at is investing into a small house, not locally (bay area is too pricey) as a down payment to rent out a house.
Any other ideas?
Playing the stock market is sort of out of the question for me just because with my limited knowledge playing the market I’d probably just lose it all.
[quote]jewishthunder wrote:
If you guys had 20k to invest that porbably has a two year lifespan until needing it but possibly longer. How would you go about investing it?
I was thinking of starting a CD hierarchy, and doing 4 CD’s at different terms, 6, 12, 18, and 24 month CD’s all with 5k. That would give me a decent average return, and keep the cash somewhat accessible during certain points, and then once the first one is up just renew it for 24 months.
Another idea I’ve been looking at is investing into a small house, not locally (bay area is too pricey) as a downpayment to rent out a house.
Any other ideas?
Playing the stock market is sort of out of the question for me just because with my limited knowledge playing the market I’d probably just lose it all. [/quote]
Small working interest in a horizontal play, if you could find someone who would let you in for a very very small amount. Preferably Wolfberry production.
I’ve never made less than 30% per year, even in 2009 (a bad year for oil).
They will let friends and family in for $10K or $20K, but it’s usually secretaries or someone who works on a deal. Going heads up, it’s usually at least 5-6 million to play and you get promoted a little from the prospect finder.
I would take 20 gs and invest in real estate oil, old folks homes, water companies, cemeteries all shit people need. Then again I have never had more then 2gs to my name, faccck.
Sounds like a good gig, lots of oil up here well on the west coast. Currently every one is up in arms over the safety of such drillings and the use of pipelines that do spill occasionally. Canadians are hypocrites though they want a high standard of living with no ecological damage which as you probably know is not possible I would say that most people are for it because it makes everyone who is involved better off financially.
CDs won’t even keep up with the true rate of inflation.
The stock market is at an all time high and probably won’t crash until the fed starts to turn off the QE tap. If you can predict this event, you can make a lot of money. Good luck beating the insider’s though.
After this Obamacare fiasco, a hilarious one at that, is thrown in the garbage, I’m putting money into diabeetus medication, old folks homes, and end of life medical care for the boomer’s. I’m still working on exact angles to play.
I also just read an article about guy’s going to Cyprus to purchases businesses at firesale rates. Everything is for sale over there.
You can look for foreclosure listing and police auctions for seized vehicles and foreclosed properties. A lot of the foreclosures, I’ve been watching are going for the minimum possible bid. You have to go ghetto though to get in under, $20k, and recouping your investment is a bit of a gamble. If you’re good with a wrench, you can probably flip a vehicle or two pretty easily.
[quote]theuofh wrote:
I’m putting money into diabeetus medication, old folks homes, and end of life medical care for the boomer’s. I’m still working on exact angles to play.
[/quote]
I’m a fan of this play. I own NHI, LTC and OHI. I’ve owned NHI for over 3 years and I couldn’t be happier. The share price has consistently risen until just a few months ago and the dividend has been good and also consistently risen. My quarterly dividend started out under 60 bucks, now it’s over 80 bucks. There’s also been a modest special dividend once a year. I just recently bought LTC & OHI. They should perform just as well as NHI baring a market correction.
I’m not sure these are ideal plays for OP though. Almost all the ideas so far in this thread have been wrong for a two year play. Buying a house is a terrible 2 year idea. I don’t know exactly what TTR is suggesting but I’m sure OP’s 20 grand will never get into whatever the play is.
I’m not sure I’ve got better ideas. CD’s won’t match inflation, as mentioned earlier, but it might be the best option. There are some oil REITS/LPs that are interesting. I own one called VNR it pays over 8% in a tax sheltered equity and the share price HAS BEEN STABLE between 26 and 30 but that could change depending on the whim of the market.
Not sure what your career is, but you could invest it in some classes that would give you better credentials and hopefully the ability to command a higher salary - two years would be a realistic ROI for that, and the dividends would last for the rest of your career.
You could invest in a small business, either directly taking one over and improving it, or as a partner and then sell the business, or your stake in it, later. This can be risky, but I’ve made lots of money this way. If you don’t understand how small businesses work, don’t do it.
You could buy low and sell high for plenty of commodities, products or equipment. I used to buy cars and ship them to South America and sell them for double what I paid. One could theoretically pack the sea container with other items as well (wink wink) Ipads go for over a thousand dollars in other parts of the world.
You could purchase some items from China or invest in a widget factory and sell them directly here or in other countries - it didn’t used to be THAT expensive to get a Chinese factory UL listed. Or just choose items like shoes or women’s clothing.
There are LOTS of ways to invest 20K and get a decent ROI. Your imagination is your only limitation. But whatever you come up with, run it by someone you trust first.
You won’t get much from two years unless you like a little risk and know what you are doing.
I would probably personally look at some form of real estate, either a first home of your own or holiday house that you rent out year round. You should be able to find some real coastal gems for under $100k, usually in some sort of holiday park preferably a well known one. Even if you can get 40% occupancy year round you will be in a decent position.
I would probably look from a longer term standpoint and without question aim to have the loan paid off well before maturity. This is key. Of course, completely dependent on your current financial position and what income you can generate as this will determine your borrowing power.
[quote]professorgym wrote:
precious metals. gold value keeps climbing. silvers not doing too bad either. its just not very liquid.[/quote]
Metals have done rather poorly, actually.
You would think they’d do well, given the qualitative easing (read: money printing) going on, but they haven’t. I really don’t know why. I think because, while metals have industrial use, they are really a luxury item, and that market is flat because the economy sucks.
Oil has been more-or-less steady, leaning higher, but I think it is kept down simply because there has been a revolution in the US domestic market because of crazy fucks like Ruffian and Angry Bird who have just managed to get the impossible done, so the domestic supply is up.
Lumber has been interesting to me, and I think it shows what qualitative easing is really doing — supply and cost of supply is pretty flat and building is mediocre, but prices have climbed steadily with each QE.
I’m generally a fan of a broad range of commodities and non-US equities, if you go public market.
Any meaningful rate of return has to be some sort of small private venture.
I have been reluctant to look in here. Couldn’t help myself.
I am big on Real Estate, but we are heading upward pretty quick. I am actually thinking of selling all of mine next year.
I like tangible assets. Jewbacca is on the right track with different types of commodities.
With silver now below $20 I might be picking up some soon, and maybe some Gold if the Silver to Gold ratio is less than 40:1.
Now lets look at your $20k. What are you needing it for in 2 years? If you need the entire $20k in two years then do not put it in something too risky. Your Laddered CD deal looks pretty good. Then when one matures put it in to another 6 month CD till your entire $20k plus interest is in the last 6 month CD. Look at Money Markets or Online Savings accounts also. You might actually get a higher rate of interest. If the $20k is going to be needed in chunks over a couple of years (school tuition) then real estate might be a way to go. That Monthly cash flow will pay the tuition over a couple years, and then when you are done with school then you still have the house. Try to find something that will pay you real money.
Small working interest in a horizontal play, if you could find someone who would let you in for a very very small amount. Preferably Wolfberry production.
I’ve never made less than 30% per year, even in 2009 (a bad year for oil).
They will let friends and family in for $10K or $20K, but it’s usually secretaries or someone who works on a deal. Going heads up, it’s usually at least 5-6 million to play and you get promoted a little from the prospect finder.[/quote]
You know anyone? I have $100k burning a hole in my pocket, and would like to invest it in oil.
Small working interest in a horizontal play, if you could find someone who would let you in for a very very small amount. Preferably Wolfberry production.
I’ve never made less than 30% per year, even in 2009 (a bad year for oil).
They will let friends and family in for $10K or $20K, but it’s usually secretaries or someone who works on a deal. Going heads up, it’s usually at least 5-6 million to play and you get promoted a little from the prospect finder.[/quote]
You know anyone? I have $100k burning a hole in my pocket, and would like to invest it in oil.[/quote]
$100K is really not enough to invest in O&G working interest (cost bearing interest) unless you are in the business — a well is $5-6 million and people typically want you to participate for no less than 5% or so — otherwise, the accounting is a pain the ass.
The people who take small investors are usually crooks.
I think the better approach is to purchase ROYALTY interest — that is, an interest in a mineral estate where you get payment for oil and gas produced. I’ve been doing this since 1998 (when oil was $9/bbl) and have really gained a nice portfolio.
Royalty interest are not cost bearing, and typically have a very good return.
Just go to a royalty auction site and start small — $5k, $10k and get your feet wet.
A lot of interesting ideas in the thread thus far. A few answers:
Didn’t steal the money.
Using it for class/degree is a good idea but my work pays for that when I decide to go back and get my MBA.
2 years was more of a general timeline, I could not need it for a far longer period, but it was more of a what if I only had two years to play with it.
Dmaddox, I like the idea of real estate because of the tangible and frequent cash flow, it’s just hard to jump into out here. I know you’re big on real estate so I appreciate the insight.
I’ve talked with several friends who have tried to get funding for tech start ups here in the bay, and when one of them has a good idea, I’ll jump at the opportunity to fund it’s earliest stages partially if possible.
Money Market accounts through who handles my current stock assets is another option I’ve been throwing around which I already have some running in my portfolio, but I was just looking for a more out of the box investment idea I guess.