10% returns on $500K ? Are you freaking kidding me? You’d be a FOOL to move that money, if in fact you are actually getting that return, which I DOUBT. Also, you’d be a FOOL to give up that return so that you can flip houses.
Also, there’s no way in hell your girlfriend can move her un-taxed money out of the US into a UK Bank without getting taxed up the asshole on it.
You think its so easy to make money?
First, what I would do is make your ‘long time girlfriend’ your ‘fiance.’
LOL, yeah, if your girlfriend has any sense at all, she’s keeping that money far from your investment schemes, and doing this on her own. Can’t wait to see the breakup.
[quote]pushmepullme wrote:
LOL, yeah, if your girlfriend has any sense at all, she’s keeping that money far from your investment schemes, and doing this on her own. Can’t wait to see the breakup.[/quote]
This… IN SPADES.
What if the OP had been a woman asking the same question about her boyfriend’s money?
I’m sure the reaction would be EXACTLY the same. Right.
I’ll reitterate what everyone else in this thread has said “your an idiot” and 10% is a great return.
Also you should have named this thread “My girlfriend will be coming into money next year, how can I mooch”
I suggest you go to a bodybuilding forum and ask them for advice on your girlfriend’s financial future.
I’m not going to even comment on the 10% ROI thing since everyone else covered it.
Personally, I’m handy so I’d spend about $350,000 - $400,000 on a 2 family house in Northern NJ and rent it out. I’d also spend about 10-20K on a classic car because I love them and diversify the other $100,000 between stocks and safer options.
I’m not a financial advisory, just pondering the thought of what I’d do if I could mooch a half’a mil.
Well first of all get the fuck out of here you aren’t coming into any sort of money what so ever… if your girlfriend is really just handing it over then I am absolutely shocked.
and like others have said… if you can get a consistent 10% return… run with it. If you’ve never flipped houses… be ready… its not simple(you will most likely fail)… My uncle does it and hes successful but it wasn’t always like that… my mom also covers the real estate side of it as well so it stays in house.
If I ever came into money like that I’d buy land though… but thats just because thats how I grew up and have always wanted my own plot. Land will also in the end gain value one way or another… and if you actually work the land then holy shit…
[quote]Jaybee wrote:
[quote]John S. wrote:
Coke and hookers[/quote]
As a bodybuilder I’m obviously not going near any pale powder, bad enough I like a glass or five of the good stuff without adding Charlie White to the mix…
But the hookers are all sorted, got me a VERRRRY understanding gal.[/quote]
She’d have to be pretty fucking understanding to give you cash for hookers. I wouldn’t get my hopes up on that one.
[quote]Steel Nation wrote:
[quote]Jaybee wrote:
[quote]John S. wrote:
Coke and hookers[/quote]
As a bodybuilder I’m obviously not going near any pale powder, bad enough I like a glass or five of the good stuff without adding Charlie White to the mix…
But the hookers are all sorted, got me a VERRRRY understanding gal.[/quote]
She’d have to be pretty fucking understanding to give you cash for hookers. I wouldn’t get my hopes up on that one.[/quote]
Been there and done it, she paid the agency direct last year for a call-out on my birthday, she wanted to watch but couldn’t make it over at the last minute. As for ‘flipping’ houses, it’s like the estate agents say - “Location, location, location”.
Anyway fellas, I’m not spending any time replying to shitty replies, can we just leave the jealousy crap out and concentrate on the matter of capital growth?
People these days… Whats wrong with a tissue?
[quote]Puddle wrote:
People these days… Whats wrong with a tissue?[/quote]
ZING!
[quote]Jaybee wrote:
[quote]Steel Nation wrote:
[quote]Jaybee wrote:
[quote]John S. wrote:
Coke and hookers[/quote]
As a bodybuilder I’m obviously not going near any pale powder, bad enough I like a glass or five of the good stuff without adding Charlie White to the mix…
But the hookers are all sorted, got me a VERRRRY understanding gal.[/quote]
She’d have to be pretty fucking understanding to give you cash for hookers. I wouldn’t get my hopes up on that one.[/quote]
Been there and done it, she paid the agency direct last year for a call-out on my birthday, she wanted to watch but couldn’t make it over at the last minute. As for ‘flipping’ houses, it’s like the estate agents say - “Location, location, location”.
Anyway fellas, I’m not spending any time replying to shitty replies, can we just leave the jealousy crap out and concentrate on the matter of capital growth? [/quote]
Shitty replies? Most of my family has more 500k in their wallets, let alone in investments. You don’t have 500k coming to you, son. Your girlfriend does.
I call troll.
[quote]Jaybee wrote:
[quote]Kawull wrote:
Being that I am a financial advisor, I gotta start by asking which country you are in (since your profile doesn’t say). Second, yes that’s a decent chunk of change but certainly not high in terms of accounts for active management. No, you’re not going to get a guaranteed 10%, anywhere.
Second, a fixed annuity comes to mind if you are so dead set on maintaining your principal, but annuities don’t pay shit right now. Active management fee’s (meaning I watch the market, buy/sell/etc. for you) shouldn’t be higher than 1% annual fee for an account that size.
PM me if you would like more information.[/quote]
Cheers, I’m in the UK but it’s my longtime US girlfriend who’s getting the cash when her family’s estate is divvied up, she’s in for about 500 large but could be a bit more.
Are there any tax implications? Also, what kind of performance could I realistically expect? Personally I could buy/sell houses, do them up, and make a lot better than 10% a year for not much work. [/quote]
Tax implications depends on how she gets it. If it’s willed to her, say bye bye to a large chunk. I don’t know how large, but large. If it’s in a well designed trust, there should be no loss what so ever. Hopefully that’s the case.
If you are handy, I think buying neglected properties in nice neighborhoods and fixing them up is a great idea. If you can fix them up quick, fix them up and rent them. If you’d be slow in restoring them, buy one at a time and live in it for at least two years before selling. (If in US for the two year thing)
If you’re thinking stock market, I like high dividend big pharma. These stocks should bounce back from big market dips because they are supported by aging baby-boomers who will need their drugs. I like energy because over the long run the cost of energy isn’t going down. Last, I like emerging markets such as Malaysia, Singapore, Thailand & India. They are demographically situated for growth, they’re small markets that will rise ridiculously when investors in the large US markets get tired of flat returns and start pouring large amounts of cash into these small foreign stocks. Finally, they are geographically suited to benefit from the growth of China but they don’t have the same degree of corruption that is in the Chinese financial system.
I hate the idea of buying a plot of land. Something that will just sit there producing no income and its value is at the whim of the market is just stupid. Buying an apartment or a couple of houses and collecting rent is so much smarter.
I live in Egypt at the moment.
7 year savings bond here pays between 9.75% and 11.25%…
My dad has $200,000 dollars in one with HSBC, pretty much every bank over here offers these bonds.
Interest is paid at 9.75% annually and is paid monthly into any account you choose. Pretty good imo.
[quote]on edge wrote:
[quote]Jaybee wrote:
[quote]Kawull wrote:
Being that I am a financial advisor, I gotta start by asking which country you are in (since your profile doesn’t say). Second, yes that’s a decent chunk of change but certainly not high in terms of accounts for active management. No, you’re not going to get a guaranteed 10%, anywhere.
Second, a fixed annuity comes to mind if you are so dead set on maintaining your principal, but annuities don’t pay shit right now. Active management fee’s (meaning I watch the market, buy/sell/etc. for you) shouldn’t be higher than 1% annual fee for an account that size.
PM me if you would like more information.[/quote]
Cheers, I’m in the UK but it’s my longtime US girlfriend who’s getting the cash when her family’s estate is divvied up, she’s in for about 500 large but could be a bit more.
Are there any tax implications? Also, what kind of performance could I realistically expect? Personally I could buy/sell houses, do them up, and make a lot better than 10% a year for not much work. [/quote]
Tax implications depends on how she gets it. If it’s willed to her, say bye bye to a large chunk. I don’t know how large, but large. If it’s in a well designed trust, there should be no loss what so ever. Hopefully that’s the case.
If you are handy, I think buying neglected properties in nice neighborhoods and fixing them up is a great idea. If you can fix them up quick, fix them up and rent them. If you’d be slow in restoring them, buy one at a time and live in it for at least two years before selling. (If in US for the two year thing)
If you’re thinking stock market, I like high dividend big pharma. These stocks should bounce back from big market dips because they are supported by aging baby-boomers who will need their drugs. I like energy because over the long run the cost of energy isn’t going down. Last, I like emerging markets such as Malaysia, Singapore, Thailand & India. They are demographically situated for growth, they’re small markets that will rise ridiculously when investors in the large US markets get tired of flat returns and start pouring large amounts of cash into these small foreign stocks. Finally, they are geographically suited to benefit from the growth of China but they don’t have the same degree of corruption that is in the Chinese financial system.
I hate the idea of buying a plot of land. Something that will just sit there producing no income and its value is at the whim of the market is just stupid. Buying an apartment or a couple of houses and collecting rent is so much smarter.[/quote]
I purchased about 300 acres of land 3 years ago and it has almost doubled in value and i get 55 dollars an acre rent.
most of these replies are pretty terrible. if you don’t know shit about what you’re going to invest in, don’t invest in it. as has been said, calling a 10% return bad is dumb. there’s no such thing as a risk free investment. even shit like TIPS has some risk of default, currency risk, etc. etc. S&P averages about 8% over its 50 or whatever years. You can call it average, but it’s still 100% equity and you get all the associated risks that come with it (i.e. fully subordinated ownership in the event it goes to hell). re. Egyptian bonds… pretty interesting and i haven’t looked at them (i work almost solely with equities), but off the top of my head i’d argue that there’s a higher default risk than say an equivalent U.S. bank. I can promise with 100% certainty that there is a mitigating factor that merits returns like that. Not saying that you won’t get your coupons, but I am saying there is absolutely a chance it won’t pay out.
if someone is going to flip houses, figure out what your time’s worth. most of the time it’s a waste (of time and money) for the risk associated. this will again fall under “invest in shit you understand.” same thing with “high dividend big pharma.” in general pharma is heavily based on its prospects, what’s in the pipeline, what’s left under monopoly (and how long), and other industry-specifics. the money primarily comes from the monopoly, and thus margins, on the drug for a limited period of time. just because a company pays a dividend today doesn’t mean it necessarily will tomorrow. if you just want the cash flow, look into preferred’s with a fixed dividend or a bond with a coupon.
please if you take nothing else away from this, realize that there is always a trade-off between risk and reward. you aren’t getting a risk-free 10% or even a low-risk 25%. if you see returns like that, someone is feeding you a crock of shit (e.g. there was an old scheme where an annuity would include principle repayments in the overall ROI, which is just plain wrong) or the risk is higher than what you think it is.
figure out the tax implications. in general, the #1 way to avoid paying the high rates in the US falls under LTCGs.
@ on edge - wanted to touch on a few things because it seemed like you were genuinely trying to be helpful (not that some others weren’t). touched on pharma. your theory on baby boomers is pretty standard in the financial industry, but it doesn’t necessarily need to focus solely on pharma. healthcare in general is set to make some moves in the next couple of years … i have some friends doing interesting work with life settlements. anyway, the theory’s okay, but don’t get laser focused on pharma if the baby-boomer play is what you want to make.
re. energy - even if it’s true that energy costs aren’t going down (not agreeing or disagreeing; i’m not heavy into energy right now because i believe there are better returns elsewhere), be aware of the affects that spec players have on the price. even if you’re theory is right, if the timing’s off you can still lose your ass. for energy, this happened to BP Cap not too long ago (correct long term view but still lost big).
re. EM - closed my positions here recently. i think in general they’re overbought. still have some room to grow, but i doubt if we’ll see the 25-35% YoY returns of recent. When talking about these sort of countries, i also feel there’s a huge difference between your standard EMs and the BRICs. There is a huge gap between say cambodia and brazil. [as an aside, i don’t see Singapore as an EM at all. I’d compare the city probably to HK, and it’s even more financially sophisticated in some respects.)] A lot of these plays with EM are impossible for traditional investors for legal reasons. often you’ll have to do a joint venture to even put money to work in the country, and more often than not it’s a total waste of time… the returns just don’t merit that much work. When money starts flowing in to these small markets, there’s a huge chance that it can be overbought quickly, so manage the investments accordingly. Investor sentiment is a scary thing. Can’t think of anyone who got really rich from following the market, but I can think of plenty who are by betting against (Paulson, Tudor, Soros, etc.). incidentally, flat returns (meaning no obvious longs OR shorts) are one of the only reasons i’ll invest in gold. also, re. corruption… China’s pretty bad but most other EMs are far and away from infallible. hell i’ll include the U.S. there too, albeit there is some oversight. if you want the oversights but still keep some exposure to the play, maybe look into ADR or equivalents for more fleshed out markets. Actually wrote a paper at around the time I graduated on getting exposure to China without an FDI in China for exactly that reason.
Not Cliffs, but close enough:
Buy an ETF and avoid mutual fund fees (rarely warranted, i can only think of 3 or 4 funds that are worth paying for off the top of my head) or read Greenblatt’s Stock Market Genius and convince yourself to put it all into special situations (only kind of a joke. Greenblatt makes a very good case).
Get interested in something and learn all about it, then put some of the money to work. Full disclosure, I’ve worked in hedge funds running anywhere between 100mm all the way up to a few bn. Running that kind of money is very different than a few hundred thousand. Focus on crap that the big guys won’t, or can’t, invest in (when dealing with that much money there are almost always decisions based on portfolio liquidity… this greatly limits the potential investment pool and so a lot of shit gets underanalyzed) and you can find some real gems. Don’t worry about diversification - again read Greenblatt - half a dozen or a dozen securities is plenty if you understand what you’re buying. I’d take that over 30 stocks picked out of a hat just because diversification says that cuts the nonsystematic risk. Especially if the stock market isn’t your life.
oh, coke and hookers was absolutely the right choice.
EDIT: you’re not going to get the kind of risk free guarantee you want with any kind of real return. If you want something like that, you’re pretty much looking at something like TIPS, which is the most risk-free asset I can think of.
[quote]TheBigV wrote:
I suggest you go to a bodybuilding forum and ask them for advice on your girlfriend’s financial future.[/quote]
LOL! Now this is a funny answer!
fuck you, pay someone for advice. lol, jk btw
[quote]TheBigV wrote:
I suggest you go to a bodybuilding forum and ask them for advice on your girlfriend’s financial future.[/quote]
this by far and away made me laugh harder than anything else on this fucked up thread