i currently have 6 months till i recieve 21k from a structured settlement. These last few days ive been contemplating on what i should even do with it. Part of me says go to trade school and gain a career so that i won't have to worry too much about finances. On the other hand i want to own just a piece of property and live to be self sufficient. since i cannot make up my mind, i find myself in the need of a third party advice. All advice will be taken into consideration.
Spending some funds
Other urls found in this thread:
I've done some research onto the "buy and live off the land" and it's largely a meme. Most off-gridders still have at least a side job to get money coming in and only make a small bit off of what they can grow and sell.
I'd put that whole thing into VTSAX or some kind of passive income investment.
you can't just farm on any property because of zoning, read the laws wherever you live, probably also have to pay some property taxes, join the electric grid and pay a minimum etc.
i'd assumed the whole "self sufficient" thing to be a joke but the idea is so intoxicating, i can't seem to get away from it. The passive income idea isn't that bad but i'm just not sure on how or where to even approach that concept.
i don't intend to just go planting on any lose piece of property. i mainly would like to focus more on the ranching aspects of agriculture rather than the horticulture. There's laws/regulations to follow anywhere you go so that im not worried on. There is two certainties in life: death and taxes
>the idea is so intoxicating
Oh, I know, I know. Seems so easy, right? Buy up some cheap land (I've looked, and you can literally buy a small lot for a few hundred), plop a trailer on top of it and boom, you're done. But, regardless, you'll still need CASH to make anything happen. Insurance, car maintenance, internet, utilities, taxes, they all cost.
So, instead, I'd focus on growing that nest egg and becoming financially free. The easiest way is probably just buying into an index fund, but if you want to get creative, you can put some cash down on a 3-4 br home, live in one room and rent out the others. In some cases, that will pay all your mortgage. Or, you can even look at duplexes, triplexes and quads and do the same thing.
And, if it's your first home, you don't need much to put down, generally about 5%. But you not only need the cash, but also a decent credit score and some type of regular income to qualify for the loan. I've been doing rental real estate for a long while now, it's a great way to go.
Rental real estate seems likes a low risk high reward outcome. ill keep that in mind. thank you.
FIND a walk in mutual fund store in your area like scottstrade or fidelity. Park that shit in index funds. And have time to think. Education loans are easy to get and cand be differed with little or no interest. You can bum for free and you have an incomplete definition of self sufficient if you think you need to run out and by a place. That is a fine idea but its gonna take you growing that money. Turn that 20 into 200 in ten years. It is a rare opportunity to have enough money to get the ball rolling on your future.
dream bigger, OP
>Park that shit in index funds.
imo we're due for a crash.
It don't really matter over ten years and I know that you know that. What should I do with the 200k I have kicking around?
>21k inbound, need ideas
Personally your idea of trade school is fantastic. Nothing is more valuable than knowledge and experience. Jump on that opportunity man, I wish I would have.
I would set aside at least 5k to either invest into stocks/bonds or put that 5k into a "rainy day" savings account that isn't meant to be used unless its an emergency. That savings acct can (with the proper banks/options) gather interest over time at NO cost to you so you are making money while doing nothing.
Don't invest into stupid ideas or pyramid schemes, go through an investor like JP Morgan or something along those lines. Go for low risk investments for larger sums or go for broke and go high risk, great stocks are world leading companies like Apple or Google.
>spend spend spend!
Don't go for broke though! Pay bills in advance if you have an option to. Buy a good vehicle (somewhere between 7-10k) if you want to. Just don't go gambling with excess money. Its easy to lose it all in a blink of an eye. Use your best judgement and if all else fails, get a fuckload of blow and hookers.
elaborate on index fund please. im all ears
Context please, i would like to be in the know
Trade school is already a priority so thank you on that part. To be fair i hadn't let you know the full amount in which my structure settlement is. which is 80k, in total, stretched within my age incrementally. i had 10k when i was 18, 21 i should be getting at least 21k, 25 is 25k and at last is 30 with 29k. All of the money is somewhat a burden to think about so i hope that i can get at least a broad idea of what to do with it all.
There's not much to say about them, from a practical standpoint. Here's the best simple guide to them that I've found
Index funds are wannabe microcosm of the market and are meant to increase as the market. 8.5 per year (on average) there are ups and down but eventually there are more ups. You can round trip trade when it is up and move money to stability. Move it back when it falls. Dollar cost averaging is when you by for ten, drops to five, average 7.5. When it drops you buy. Drop more, buy more. Cost average goes down. Not an expert but I fell ill and started trying in a hurry for my family I got an extra 200 in four years. Wish I could do more but too sick now.
Thank you for the article and the response.
Thank you for the short,concise synopsis. i wish you well on whatever endeavor you are currently facing.
best advice is to take all of it and put it into a fund that doesn't get touched unless you NEED it
add to that fund until you get your last bit at 30. by that time you'll have a much better idea on how to spend that money. you could buy a nice house somewhere, or just put it into an incremental fund with a nice 80k jumpstart (so it starts making decent money pretty quick).
if you think it's gonna burn a hole in your pocket, you can take out a small amount to blow on something fun (say, 1k for a trip to somewhere cool, especially if it's an event or something where you can meet people).
otherwise I would just save literally all of it.
Man you are set up for success.
I still suggest investing in general. Its quite rewarding in the long run, and if everything works in your favor you could turn thousands into hundreds of thousands plus. But ultimately its all up to what you feel confident and comfortable with. Good luck in your adventures and god speed you That magnificent bastard.
Education loans are actually disadvantageous to the lender. A small trade school type loan is one of the few types of loans that actually make financial sense to get as the money from educated income will offset the cost. Watch out! If you go in halfass and bomb out of school. They will want to collect their money.
Duly noted, thanks for the advice.
you're not gonna own a piece of property and live to be self-sufficient thru to death from $21,000 lol
could you go more into detail on the small trade school loans? are they somewhat grant related or will i have to pay back with an interest?
that wasnt the plan in its entirety, more of a goal in which i can pursue. who knows what the future can tell, that uncertainty is why i wanted advice from this side of the board. thanks for your comment ill take it to heart.
also referee to this post i made just a few moments ago
investing will now be a concept into my memory banks, thank you
Get a good job with the money. If you want to become a NEET, look into FIRE (financial independence, retire early). Save a shit ton. Invest wisely. Live frugally when you retire.
I've been short-term investing for so long I forgot about long-term. This user is right.
If you have 200k right now I'd invest it in bitcoin and hold it until the next halving. And I'm not saying this as a meme.
You've got like, the mindset of a poor man. That will keep you poor moreso any any other struggle in life.
If I said go to the store and buy a bar of chocolate, could you do it? Almost certainly, because you believe that you can
But if I said to make a million dollars in the bank, could you do it? You seem hesitant with a mere 21k. You probably don't think you can.
Somewhere in-between the small and the big is this idea of believing in yourself. It switches from on to off after things reach a certain difficulty. You can raise your ability by thinking bigger.
You got a tiny sum of 21k and you're already dreaming of how little you will accomplish with it. So just think bigger, even if it's a little bigger.
Just shooting from the hip. Some of it Is grant, a portion is tax free if paid on time and some is low tax for like the first six years. I don't know all the ins and outs but the school will have a knowledgeable financial person who hates banks and governments as much as the next guy. They do want their money though. Its usually a good idea to pay your debts but you can carry education loans around with low or no interest and have tax advantages for it to boot. Money paid will not be included in AGI and can put you in a lower bracket and actually make you money.
I know you are right too. Since I got worthless ill (I think half is psychological.) I've been hanging here for a month or so and my advice never intercepts with yours. I'm just old and red neck enough that I fear techno shit. Thanks for the push. I wish we were bros in real life.
>If you have 200k right now I'd invest it in bitcoin and hold it until the next halving.
no wonder everyone on this board thinks you're a retard
I sometimes said tax when I should say interest. Radiation in brain. It still works pretty good tho.
im just a realistic person from a poverty stricken family. its hard to look at any amount of money and not think its a life changer.i have unrestrained ambitions but the world around me can be cruel so my outlook of life is very small scale. i don't want to take more than what i need, essentially.
It is a life changer. Like the man says, "think bigger." That can be scary or boring. That money can change you life. But not so much from just spending it on something.
not to belittle your point at the end but if i spend a few grand on the trade school option; wouldn't that be a useful change in the upcoming future?
I'm rich IRL. If I'm a retard, I'm a rich retard and couldn't care less about what you think of me.
Yeah, that's a good feeling that brings a bad consequence. I guess my last piece of advice for you is pragmatism. Try and shed what you used to know, and focus (even autistically) on outcomes above all else.
>I wish we were bros in real life.
Thanks for the kind words, I love posts like this.
>Thanks for the push.
If you proceed, you can learn all about bitcoin by
1) reading the book "Mastering bitcoin" by andreas antonopoulos, make sure you buy the second edition. Then you will understand everything you need to know.
2) Register at an exchange (Gemini is the best american exchange, bitstamp is the best european)
3) Buy a trezor to safely store your coins (www.trezor.io)
best wishes to you!
No. Get financing for that shit. And avoid financing for anything else. Just make your mind up that you will finish before you start.