Quote:
Originally Posted by RandomHero
I started multi-quoting every ridiculous response in this thread and realized that pretty much every post aside from 2 or 3 was complete crap.
In this hypothetical situation, are we assuming that the rest of your finances are in line and this extra $20k would not be put towards a tax advantaged investment vehicle (you’ve maxed out your 401k, IRA, and Roth)?
Assuming that you already have an emergency fund and you’re putting away plenty of money towards your retirement, I’d suggest finding something that you know a lot about and investing some of your money in that.
If you decide to take the traditional investment route (trading securities) that’s the Peter Lynch method of investing.
For me personally: I “invest” in pens, watches, and antiques. I have large wealth of knowledge about all three which allows me to take on very little risk, but with the potential for very large returns (comparatively).
I buy below market value and re-sell at market value. It’s very simple. It’s not glamorous, but I spend time at estate sales, antique stores, craigslist, ebay, and everything in between. Technically, I make more money an hour with this side business than I do in my regular job.
It may not be “investing” in the traditional sense, but it takes up very little of my time, I enjoy it, and it’s become so successful that I’ve almost debated on doing it full time.
Now I’m not saying that you should go do the exact same thing, but figure out what you’re good or know a lot about and find a way to make money on it.
Aside from my tax advantaged investment vehicles (401k, Roth, and IRA) I invest very little in the market. It’s impossible to yield a 100% return in 2 weeks without taking on a significant amount of risk (or breaking the law). On average, I make over 100% on each pen I sell and about 50% on each watch I sell. Antiques vary greatly from 10% all the way up to over 1000%.
Investing takes a great deal of time. That’s why I suggest getting into something you know a lot about. You can step a few steps and save time educating yourself. Don’t jump into anything blindly: real estate, securities investing, cars, etc.
The educated and disciplined investor always comes out ahead. Find a way to make your money grow whatever way that may be and capitalize on that.
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Everything he said is awesome! I flip cars and do some commercial RJ45 wiring (it helps that I'm already in the IT world). Pick things you enjoy and you will be able to make money from it if you think hard enough.