[quote]toughcasey wrote:
FormerlyTexasGuy wrote:
toughcasey wrote:
FormerlyTexasGuy wrote:
toughcasey wrote:
FormerlyTexasGuy wrote:
toughcasey wrote:
For one, he is asking for balance.
From the OP: "what can one do to earn the most interest on it while keeping it from being lost(insurance)?
"
small business doesn’t fit the criteria. He will maximize gains while minimizing risk with a diversified, blue chip stock portfolio. Especially if buying stocks at current discounted pricing.
For all the statistics on success rates of small businesses, his risk would be allocated better with high risk, high yield stock anyways, but return isn’t his only concern.
He is also wanting to live on dividends afforded by the money he has. A small business would require work, and much much more than even a typical 40 hour weekly schedule to pull any kind of profit, franchise or not. His money is not working for him in a small business as it is on a financial market.
A small business in no way fits the bill for what he is looking for.
COngrats on your small business success, but your results are atypical.
You probably have earned more than my 401k, but I would challenge that statement across the board on total investments & assets I own, even with current value considered and hands down future value. I’m not going to get in to that pissing contest though. Neither of us will be posting the necessary and sensitive documentation for proof online.
Hell, corporations diversify for security and additional income by purchasing stock in other corporations.
Anyways, as we are discussing who understands what on the question here, the OP wants to know how to earn dividends while securing his money long term and as mentioned, small business doesn’t meet both criterion and more often than not, won’t meet either.
so here is a good example of balance:
open a small business, contrary to what has been said, that is still a very safe venture, that employs you and your family. use that salary to buy into mutual funds and blue chip stocks. and when you are ready to retire, sell the business, which should appreciate, and even if not, your equity will basically have been built for free through revenues from the operations.
i will take that option over 30 - 40 years in the workforce with slow, low risk investing any day!
agreed? :)[/quote]
No. With 500k properly invested in financial and stock markets, the guy could spend more like 5-10 years corporate, affording his life and supplementing his investment, and retire with millions to draw dividends from in an annuity or with dividend producing stock at apparently an very early age.
Corporate jobs aren’t all small pay either. Every rule has is exception. Small business rule is failure with occasional exceptions. Corporate “machine” rule is mid level pay with exceptions.
Anyways, we are pretty far off topic but my vote to work as little as possible and make the most secure money at the same time in playing the already existing markets.
Even with a small business, it will take years to put 500k (spent on the small business) in the market when he has a lump sum to do it with already.
He could be a silent partner in a small business but I still say financial markets are his best bet.
Or he could flip your priorities, use his resource to build up millions for an annuity first and then become a small business silent partner. If it goes bottom up as it statistically will, he still has his annuity built on his secure investments and will not lose his nest egg and planned income never to be returned.
I would add that starting a small business can potentially be a great way to start building wealth, but with a lump sum of 500k at hand, there are better options. Especially if he is looking for a strategy that allows his money to work for him.