Username or Email Address
Do you already have an account?
Forgot your password?
  • Log in or Sign up

    VWVortex


    Results 1 to 26 of 26

    Thread: What would you do with $500,000.00?

    1. Member
      Join Date
      Mar 28th, 2002
      Location
      Queens NY / Nutley NJ
      Posts
      6,235
      Vehicles
      2014 WRX
      03-19-2012 10:46 AM #1
      Lets say you had some rich uncle you never knew existed, he passes away and leaves you $500,000.00.

      Besides the inheritance- Your mortgage has been taken care of, you have no car payments, and your child/children have already had a trustfund established, so they're taken care of as well. Between you & your spouse's income, you're banking just under 200k a year, with basically no real expenses.


      What would you do with the money? Where would you put it, if you were told you had to double it as quickly as possible? What would you invest in?

    2. Geriatric Member ValveCoverGasket's Avatar
      Join Date
      Mar 20th, 2002
      Location
      powell's books
      Posts
      35,468
      Vehicles
      '67 rolls royce, '67 mgb gt, '13 tdi, '14 glk350
      03-19-2012 11:54 AM #2
      Quote Originally Posted by 1.8TIM View Post
      What would you do with the money? Where would you put it, if you were told you had to double it as quickly as possible? What would you invest in?
      i would put it all on red.

      seriously? double it as quickly as possible?

    3. Member
      Join Date
      Mar 28th, 2002
      Location
      Queens NY / Nutley NJ
      Posts
      6,235
      Vehicles
      2014 WRX
      03-19-2012 12:01 PM #3
      Quote Originally Posted by ValveCoverGasket View Post
      seriously? double it as quickly as possible?
      yeah- thats exactly what i said.

      your motivation to double it as quickly as possible, would be because at that point, you would be given more, on top of what you've just made.

    4. Member GeoffD's Avatar
      Join Date
      Aug 13th, 2001
      Location
      Killington, Vt & South Dartmouth, Ma
      Posts
      12,093
      Vehicles
      07 Fahrenheit GTI, 03 Mountaineer
      03-19-2012 12:07 PM #4
      I'm 53 so my answer is going to be different from others. I'd put it in residential income property. I'm not going to take on the level of risk where I could double it quickly.

    5. Member jnm2.0t's Avatar
      Join Date
      Oct 2nd, 2005
      Location
      Sunnyvale CA
      Posts
      16,966
      Vehicles
      List your car(s) owned here
      03-19-2012 12:16 PM #5
      That would get me about a 20% down payment for the neighborhood I want.
      They're steppin' on my rhythm and they're stealin' all my lines

      Every day on the bike is a day not in the Fusion.

    6. Geriatric Member ValveCoverGasket's Avatar
      Join Date
      Mar 20th, 2002
      Location
      powell's books
      Posts
      35,468
      Vehicles
      '67 rolls royce, '67 mgb gt, '13 tdi, '14 glk350
      03-19-2012 12:17 PM #6
      Quote Originally Posted by 1.8TIM View Post
      yeah- thats exactly what i said.

      your motivation to double it as quickly as possible, would be because at that point, you would be given more, on top of what you've just made.
      its odd that getting more is contingent on gambling with the first payment...

      lately ive been pretty jazzed on mREITs... check out NLY, AGNC, IVR, etc... $500k in a few of those would be a pretty nice side income

    7. Member
      Join Date
      Mar 28th, 2002
      Location
      Queens NY / Nutley NJ
      Posts
      6,235
      Vehicles
      2014 WRX
      03-19-2012 12:58 PM #7
      Quote Originally Posted by ValveCoverGasket View Post
      its odd that getting more is contingent on gambling with the first payment...
      yeah- i did make it confusing.

      I guess i should've worded my first post more like this-

      Lets say you had some rich uncle you never knew existed, he passes away and leaves you a large sum of money. Your first payment is for $500,000.00. Once you have doubled that, you will be entitled to your second payment of XXXXX.XX

      I hope that makes a little more sense. I guess I can also leave out the "as quickly as possible" part.
      Last edited by 1.8TIM; 03-19-2012 at 01:01 PM.

    8. 03-19-2012 01:11 PM #8
      Buy a condo, and rent it out. Sell in 15 years, and buy another in newer building. Repeat.

    9. Geriatric Member ValveCoverGasket's Avatar
      Join Date
      Mar 20th, 2002
      Location
      powell's books
      Posts
      35,468
      Vehicles
      '67 rolls royce, '67 mgb gt, '13 tdi, '14 glk350
      03-19-2012 01:17 PM #9
      Quote Originally Posted by AIRider View Post
      Buy a condo, and rent it out. Sell in 15 years, and buy another in newer building. Repeat.
      actually, going with that theme... id probably just try to buy an apartment building.

      $500k should be enough for a downpayment on something like that... maybe not the nicest one in town, but ive definitely seen ones for sale near me in the mid million or so range. being a college town here theyre nearly always full...

    10. Member
      Join Date
      Mar 28th, 2002
      Location
      Queens NY / Nutley NJ
      Posts
      6,235
      Vehicles
      2014 WRX
      03-19-2012 01:25 PM #10
      Quote Originally Posted by AIRider View Post
      Buy a condo, and rent it out. Sell in 15 years, and buy another in newer building. Repeat.
      Real Estate- Good idea! Like Tony Soprano always said- "Buy land, cuz God aint making any more of it".

      Probably a good idea to follow current trends and purchase condos in an area that's up & coming. 20% down, rent it out and let someone else pay it off while pocketing a little something in the meantime. Flip it in 15 yrs for some serious money.

      Thanks, guys.....keep it coming!

    11. Member
      Join Date
      Mar 28th, 2002
      Location
      Queens NY / Nutley NJ
      Posts
      6,235
      Vehicles
      2014 WRX
      03-19-2012 01:28 PM #11
      Quote Originally Posted by ValveCoverGasket View Post
      actually, going with that theme... id probably just try to buy an apartment building.

      $500k should be enough for a downpayment on something like that... maybe not the nicest one in town, but ive definitely seen ones for sale near me in the mid million or so range. being a college town here theyre nearly always full...
      Hmmm....thats another possibility. If the area isn't that great, just turn it into Section 8 and have the gov't send you a check each month. Might not be as much as renting it out yourself, but the checks will be guaranteed each month, even if the place is vacant.

    12. Member
      Join Date
      Feb 12th, 2001
      Location
      douglasville, GA
      Posts
      2,520
      Vehicles
      92 vw corrado
      03-19-2012 01:59 PM #12
      Yeah, no one has lost money in real estate lately......

    13. Member GeoffD's Avatar
      Join Date
      Aug 13th, 2001
      Location
      Killington, Vt & South Dartmouth, Ma
      Posts
      12,093
      Vehicles
      07 Fahrenheit GTI, 03 Mountaineer
      03-19-2012 03:21 PM #13
      Quote Originally Posted by twilk View Post
      Yeah, no one has lost money in real estate lately......
      Anybody who says this is likely to only buy things at the top of a bubble. You hear the same about the stock market after each big correction. The time to buy things is when nobody else is buying.

    14. Member
      Join Date
      Feb 12th, 2001
      Location
      douglasville, GA
      Posts
      2,520
      Vehicles
      92 vw corrado
      03-19-2012 04:18 PM #14
      Quote Originally Posted by GeoffD View Post
      Anybody who says this is likely to only buy things at the top of a bubble. You hear the same about the stock market after each big correction. The time to buy things is when nobody else is buying.
      I'm not saying it's not a good time to buy, but the idea of doubling money quickly in real estate may not be a great plan. I'm working on buying some now myself, but not with any expectation of doubling quickly.

      And the stock market drop did pretty well for me overall.

    15. 03-19-2012 07:54 PM #15
      I learned to realize that there is no such thing as quick money, or quickly doubling anything, unless you get lucky, but that's a very small probability.

      Wealth is created slowly. Richness comes and goes, but wealth stays for generations.

      So if you want to double your 500k, I say take it slow, and be smart.

      Real estate might not be the smartest now, then or in the future, but I'm thinking long term, 10,15,30 years.
      Last edited by AIRider; 03-19-2012 at 08:14 PM.

    16. Member cwescapexlt4x4's Avatar
      Join Date
      Jan 2nd, 2003
      Location
      Litchfield Park, AZ area (was Seattle)
      Posts
      949
      Vehicles
      2013 JSW TDI DSG Candy White, 2011 Kia Optima SX (Turbo) / 2011 JSW TDI 97 Jetta GT & 91 Passat wag
      03-20-2012 03:40 PM #16
      Quote Originally Posted by twilk View Post
      Yeah, no one has lost money in real estate lately......
      Now's the time to buy my friend... and you have the ability to buy with cash, even better time!
      We have purchased additional income properties as monthly income and for longer term investments .
      2013 JSW TDI, Nav, Kessy - White, Pano roof, Canvas Back dog/cargo liner
      13% tint, 30% on Pano, rear spoiler, mud guards.
      Replaced - Trouble free 2011 Sportwagen TDi Salsa Red. Oo>=====v=====<oO/
      2011 Kia Optima SX (Turbo) Corsa Blue - 13% Tint, LED interior lighting, "Big Boy" horn, T badge. BFGoodrich G-Force Sport Comp 2

    17. Senior Member
      Join Date
      Feb 17th, 2003
      Posts
      22,853
      Vehicles
      LG G2 / Notes 3 / Nexus 5
      03-20-2012 04:42 PM #17
      RE is rock solid. It's all about location.

      This is the best time to buy, in fact with 500k I wouldn't even use all that cash. I would borrow more to get a nice income property and rent it out. A nice purchase can last generations.

    18. Member
      Join Date
      Mar 28th, 2002
      Location
      Queens NY / Nutley NJ
      Posts
      6,235
      Vehicles
      2014 WRX
      03-21-2012 02:07 PM #18
      Quote Originally Posted by Vision33r View Post
      RE is rock solid. It's all about location.

      This is the best time to buy, in fact with 500k I wouldn't even use all that cash. I would borrow more to get a nice income property and rent it out. A nice purchase can last generations.
      the neighborhoods have already been chosen if that's the route that is followed. 400-500k can still purchase a condo in these areas that will easily be untouchable within another 10-15yrs.

    19. Member Matt15's Avatar
      Join Date
      Jan 11th, 2007
      Posts
      1,378
      Vehicles
      '97 BMW 540i, '09 Aprilia Dorsoduro 750
      03-21-2012 02:49 PM #19
      1) Ferrari 360 - $100k
      2) 2bdrm investment condo paid in full and rented out in up and coming area - $300k
      3) $100k in the bank
      4) Work and rent-to-live in desired location

      I'm 22 and would not hoard all of it under my pillow nor risk any of it to the market. Live a little

    20. Member
      Join Date
      Mar 28th, 2002
      Location
      Queens NY / Nutley NJ
      Posts
      6,235
      Vehicles
      2014 WRX
      03-22-2012 06:47 AM #20
      Quote Originally Posted by Matt15 View Post
      1) Ferrari 360 - $100k
      Purchasing a hundred thousand dollar car would be THE LAST thing I'd do.


      Quote Originally Posted by Matt15 View Post
      2) 2bdrm investment condo paid in full and rented out in up and coming area - $300k
      This would be a great idea. But for $300k, it would most likely be a 1bdrm. In up & coming neibhborhoods, a nice 2bdrm is alreadly in the 450-470k range (at least the areas around here).

      Quote Originally Posted by Matt15 View Post
      3) $100k in the bank
      $100k in a bank these days, is going to gain a little over a thousand dollars interest a year. How sad is that??

      Quote Originally Posted by Matt15 View Post
      4) Work and rent-to-live in desired location.
      That may be a good idea. Choosing to rent = Lots of options. Not being stuck and can get up & go if you'd like.

      Quote Originally Posted by Matt15 View Post
      I'm 22 and would not hoard all of it under my pillow nor risk any of it to the market. Live a little
      I'm 36 and would love for my wife (37) and I to retire, comfortably, in the next 10-12yrs while we're still young enough to enjoy our kids. I would also not want to risk it in the market. As far as "Live a little"- Maybe I'll build a '32 Ford roadster or something. Nothing too crazy- Just enough to get the spending out of my system. LOL

    21. Member BetterByDesign's Avatar
      Join Date
      Sep 7th, 2004
      Location
      morgan hill, ca
      Posts
      6,941
      04-04-2012 11:59 AM #21
      Not sure what you mean by "as quickly as possible," but with $200K income and little expenses the $500K is bascially "play"

      Its not enough to flip and dealing with a rental property imo is like watching paint dry (it is not "quick" by any means)

      Currency trade.

    22. 04-04-2012 12:28 PM #22
      I would go with the diversified spending
      take a 100k and just waiste it on self indulgence (probably some surf trips, a car, some fun)
      100k in gold and silver (physical)
      bank 100k

      and look around at real estate look for residence/vacation rental combo (I live on maui so that's possible)...... and see what you can get with a 100k down payment,
      keep the last 100k for keeping it all going

      but that's just me
      there are probably smarter ways to lose it all

    23. Member
      Join Date
      Mar 28th, 2002
      Location
      Queens NY / Nutley NJ
      Posts
      6,235
      Vehicles
      2014 WRX
      04-04-2012 12:49 PM #23
      Quote Originally Posted by BetterByDesign View Post
      Not sure what you mean by "as quickly as possible," but with $200K income and little expenses the $500K is bascially "play"

      Its not enough to flip and dealing with a rental property imo is like watching paint dry (it is not "quick" by any means)

      Currency trade.
      I probably should've left out the "as quickly as possible" part....but the whole point of wanting to double the amount, is because once that's been accomplished, you would be entitled to a second payment.

      I have to disagree with you on flipping property- That definitely depends on where you're buying. I know people who have bought property in up & coming areas and within a decade, have either flipped it for hundreds of thousands more, or now have some serious income from simply renting it out.

      I have a family friend who purchased a 2bdrm apt in Long Island City Queens in 1998. She lived in it for a couple of years, put a down-payment on a 1bdrm in the same building, currently lives in the 1bdrm, rents out the 2bdrm...and what she's charging in rent on the 2bdrm, completely pays the mortgage & maintanance on it and a huge chunk of the mortgage on the one she's currently in (2bdrm apts in this area are going for 600k+...people who rent them are paying like 3300-3500 a month).

    24. Member maskedSONY's Avatar
      Join Date
      Nov 7th, 2000
      Posts
      8,480
      Vehicles
      2007 Accord EX-L
      04-04-2012 01:10 PM #24
      http://www.macrobusiness.com.au/2012...umpy-recovery/

      While I'd normally say put that money to work in RE, have fun with it, considering the housing market is still screwed up beyond repair.
      Quote Originally Posted by Turbiodiesel!
      It really is the perfect, no excuses all-rounder for the rich guy who's accustomed to having it all - the Hybrid version especially. It's like an F-150 Raptor banged an M5 in the men's room of a biker bar. Nobody really wanted the results, but damn - what a set of genes.

    25. Member titleist1976's Avatar
      Join Date
      Feb 25th, 2002
      Posts
      10,152
      Vehicles
      Mini R55 S, Honda Pilot
      05-10-2012 07:36 PM #25
      - I'd have a solid downpayment on a new house.
      - Keep a surplus of money in an account to eat into while renting out my current upside down house and mortgage.
      - Buy a fun little car (hopefully somewhat inexpensive)
      - Diversify the rest.
      - max the hell out of an Ind K so I wouldn't get killed on the remainder.
      - Some Reg D stuff, a brokerage account,

      I'll be in this position in the future. My uncle has no other family and has a little house is Redwood Shores. That alone... I'm guessing is in the $700k range.

    26. Member SidVicious's Avatar
      Join Date
      Jun 13th, 2001
      Location
      Queentucky, AZ
      Posts
      15,100
      Vehicles
      66Bug, 05Cavvy
      05-10-2012 07:47 PM #26
      May answer will probably be a bit different than everyone else's, too.

      Tithe 15%
      Buy a house in the area I live in($180k or so if I couldn't get one at auction for mad cheap)
      Buy a decent car so I can
      Resto-mod my Bug
      Invest/CD/Money market the rest for a decent interest rate

      Wish we were making $200k per year....

    Posting Permissions

    • You may not post new threads
    • You may not post replies
    • You may not post attachments
    • You may not edit your posts
    •