What would be the best way to invest a 3.5 million inheritance and use it to generate passive income? I'm thinking multifamily housing for rent but I'm open to all ideas and input. The goal is around $200k a year.
What would be the best way to invest a 3.5 million inheritance and use it to generate passive income...
John Martinez
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Asher Stewart
THIS is your home.
user, the outside world, it's a mess.
Yas Forums is better than anything they got out there.
The seaweed is always greener
In somebody else's lake
You dream about going up there
But that is a big mistake
Just look at the world around you
Right here on the ocean floor
Such wonderful things surround you
What more is you lookin' for?
Under the sea
Under the sea
Darling it's better
Down where it's wetter
Take it from me
Up on the shore they work all day
Out in the sun they slave away
While we devotin'
Full time to floatin'
Under the sea
Down here all the fish is happy
As off through the waves they roll
The fish on the land ain't happy
They sad 'cause they in their bowl
But fish in the bowl is lucky
They in for a worser fate
One day when the boss get hungry
Guess who's gon' be on the plate?
Under the sea
Under the sea
Nobody beat us
Fry us and eat us
In fricassee
We what the land folks loves to cook
Under the sea we off the hook
We got no troubles
Life is the bubbles
Under the sea (Under the sea)
Under the sea (Under the sea)
Since life is sweet here
We got the beat here
Naturally
Even the sturgeon an' the ray
They get the urge 'n' start to play
We got the spirit
You got to hear it
Under the sea
The newt play the flute
The carp play the harp
The plaice play the bass
And they soundin' sharp
The bass play the brass
The chub play the tub
The fluke is the duke of soul
(Yeah)
The ray he can play
The lings on the strings
The trout rockin' out
The blackfish she sings
The smelt and the sprat
They know where it's at
An' oh that blowfish blow
Yeah, under the sea (Under the sea)
Under the sea (Under the sea)
When the sardine
Begin the beguine
It's music to me
What do they got? A lot of sand
We got a hot crustacean band
Each little clam here
Know how to jam here
Under the sea
Each little slug here
Cuttin' a rug here
Under the sea
Each little snail here
Know how to wail here
That's why it's hotter
Under the water
Ya we in luck here
Down in the muck here
Under the sea.
Parker Gomez
Keep it in real estate. Be creative.
Jaxon Perez
build a giant tall grain silo like structure
convert the 3.5mill remained into all pennies
put coins into structure
swim
Jeremiah Carter
If you just let that sit somewhere with a 2-3% interest rate you'd have 70-100k of income without doing anything at all.
Kayden Robinson
All in XRP
Nathaniel Rivera
I don't mind working for a little extra. That's why managing rentals seems ideal so far and it's easily grown.
Cameron Ortiz
>what is inflation
Easton King
unless you are brilliant at timing bottom, investing in real estate right now is a poor idea. we are at the cusp of a second mortgage crisis.
i knew some doctors who invested their life savings in real estate in 2007. they thought they were so fucking smart too.
unironically user, talk to a financial planner. S&P 500 averages out 10% gains a year. that figure includes the Great Depression, the stagnant 1970s, the Dotcom Crash, and 2008 Recession. and its a lot safer than some rental properties.
Get your money invested in some safe shit. Diversely invested too.
Going all in on real estate is fucking dumb, because going all in on anything is dumb.
My family trust is absurdly diversified, super safe, and will probably average about 8% gains a year over the bull runs and bear claws.
But user, here's the final secret when it comes to passive investing: live off half of what you make (or less). That's how you actually retire. If you live off your full interest, every crash will force you to dip into the principle, and at 60 years old you'll have to unretire.
Luke Murphy
buy imperial
imperialtokens.com
Joseph Stewart
also, to discourage you once again from parking all your money estate:
my gf's parents rent 6 homes. one day a tenant accidentally burnt his house down, killing himself. his parents then proceeded to sue the landlord.
now, the landlords have:
1) lost a rental property
2) have to hire lawyers to defend themselves
eventually, they won. insurance covered the building of a new home. and the parents gave up on the lawsuit.
but in your case, user, that would still ruin you. because that would mean losing 1/3 to 1/2 of your income for the year. and you would have to come up with 6 figures in legal bills. you'd be forced to dip into the principle.
i suppose if all your money is in real estate, it means you'd have to mortgage the houses that didn't burn down.
once you have to dip into the principle substantially, you end up chasing it. you have to keep dipping in, because now you aren't making enough, and eventually you're ruined.
don't put all your money in real estate, user. diversify
Gavin Peterson
if you don't see the problem with this, you are an idiot
Blake Morgan
I just visit here from Yas Forums on occasion, dad. What, is there taxes on intrest accrued?
Sebastian Robinson
Taxes aren't even the problem. Interest rates literally aren't high enough to earn 2%-3% a year.
Sebastian Reyes
Just why? Really! Why?
Asher Cox
Easy user, head over to staking rewards and pick your poison. the top ones seem to be xtc, atom and fleta.
Andrew Bailey
He meant bonds or money market Boomer shit. Also the stock market does not average 10% a year. Someone said that up above.
The nice thing about having 3 mil is you can buy property outright. That means your rent generated isn't going towards paying off interest on a mortgage
Adrian Adams
I know it sounds gay but get a franchise. youll make 70 a year and be busy and help people get on their feeet. Do not be dick. Be a decent owner who wipes down the tables once and a while and throws out the garbage too. Youll feel good about yourself.
Christopher Perez
>He meant bonds or money market Boomer shit.
So did I. Interest rates are 0% or negative right now. I don't think you actually have money if you didn't know this.
>Also the stock market does not average 10% a year.
It's literally does.
>Someone said that up above.
Oh wow, the credulous and all-knowing user said something so it must be true
Liam Johnson
>buying a job
Justin Roberts
>He meant bonds or money market Boomer shit. Also the stock market does not average 10% a year. Someone said that up above.
yes, it does, dumbass
s&p 500 over about the last century averages 10% a year
which sounds unbelievable, until you realize how fast it rises during bull markets. 2019 it shot up 30%. the stock market is volatile, but averages out at 10%
Evan Howard
Yeah that's why I don't care all that much about the value going down cause I don't plan on taking a mortgage on them. I just want my rental income, use about half of it and save the rest or invest it in index or mutual funds.
Landon Rivera
>I don't care all that much about the value going down cause I don't plan on taking a mortgage on them
Grayson Cruz
mcbased and mcpilled
Carter Cruz
Don't listen to these idiots.
With $3.5M you get a professional to manage it for you. Unless you're going to quit your job and do that full time, having a professional service is going to pay for itself. There's lots of ways to collect a steady passive income easily, but if you listen to these idiots and fuck up you're going to kill yourself afterwards.
Adrian Peterson
10%
lmao
since 2000 sp500 has only a cagr of 3.3% before div reinvestment.
to get a cagr of 8% + 2% div yield from the current 2700 index, that implies a value of 70 000 on the index over the next 40 years; a typical long term investment horizon.
that's roughly 26x from where it is today. the implied index value would be even sillier if you try to make up the "lost" gains from year 2000 for a full 60 years of 10% average.
this is all premised on the backdrop of
-declining natural resources
-increasing pollution
-declining demographic trends
maybe the index will be at 70 000. only god knows what a jug of milk will cost then though.
Kayden Evans
yeah well, if what is going on lately with real estate is not indicative to you of the dangers residential and even commercial real estate might pose soon I don't know what to say. At least you won't depend on the rental income to live, r-right?
Isaiah Morris
3.5 mil is manageable solo if you've earned it yourself. If you've just been handed it though, and have no clue how to build and maintain wealth than yea it would be difficult.
Jordan Jenkins
Real estate will NEVER go down
They cannot allow it to go down
They will not allow it to go down
Rental market is totally unaffected by downturns as you need a place to live
Banks can repackage toxic mortgages over and over and over so long as the printers go brrrrr
Benjamin Ross
in the scenario where the entire economy is declining, theres no safe source of passive income. if you really think its only downhill from here, then real estate isnt safe either. nothing is.
also, the trend has held true for 100 fucking years. over recessions and wars.
fucking moron. real estate HAS gone down before and itll go down again.
and even if its guaranteed to rise on average (which it ISNT), that doesnt mean itll rise forever in OP's hometown. there was a time when Detroit was a very safe place to buy real estate in.
this is what OP deserves for going to Yas Forums instead of a financial planner
Jacob Thompson
the best laziest way with guaranteed returns that I can think of are annuities. only fixed. variable is a scam. but you'd have to gauge exactly when you think you're going to die, as the insurance company is betting that you'll die quick. pretty much the only risk you're taking is outliving the account but with the kind of amount you talking about you'll probably be comfy
Julian Cruz
1M divided between PCN and BCX right now would be 100k/yr in dividends paying out monthly. The rest you can wait for the housing market crash and buy some cheap real estate of off heavily leveraged real estate speculators when they default on their mortgages to rent out.
William Morris
>also, the trend has held true for 100 fucking years. over recessions and wars.
it's a good thing that OP will be 100 years old plus whatever age he is currently to gain this super 10% cagr.
btw do you know the index value needed to get a cagr of 10% from 2000 to 2060? the value needed to erase the 3.3% from the shitshow that was the 2 recessions of the 2000s.... the index would have to be 150 000.
so a person from 2000 extrapolating from then to 2060 would expect 150 000 sp500. do you see the fucking problem?
it's 2020. the person sitting in 2000 would expect the index to be at 6 000 currently.
the finance industry is shoving pure shit down your throat and you're loving it.
Brandon Edwards
just leave ur money at mr.shekelstein's fund, he will do it for u.