3 ms·

I'd far rather hear about where to put that $100k than where to build it.

by Slimbo 10y ago

Alupis 10y ago
> I'd far rather hear about where to put that $100k than where to build it. Typically, you'd put the money someplace where it does work for you (ie. earns more money). Parking it somewhere where it does nothing can actually harm you since inflation will eventually diminish the value of your parked money, even if it's the same number of dollars. This is even true in most savings accounts since they pay so little interest. Essentially, the author's advice is generally the opposite of what you'd normally want to do.
- milesvp 10y ago
  so, a cd. You can't buy an index fund, because for the timeframe we're talking there's a high risk the market will be down when a big opportunity presents itself. My problem with the article is that it's missing the important piece, which is the types of opportunities this guy is talking about. My personal experience, is about once or twice a decade a good investment (10% APR or better with low risk) comes my way. Housing is an obvious one in a several areas, but I've also seen business opportunities as well. I'd say it's not great advice in general for most people though. You have to be vigilant for opportunities, and for most people, if you already have a mortgage, 401k is often better than IRA since it's matched (be careful of 401k with >1% annual fees, there's an inflection point where lifetime fees costs more than the matching).
  - Alupis 10y ago
    I agree completely with you. However, one minor nit-pick: > 401k is often better than IRA since it's matched Some IRA's are matched as well. SIMPLE IRA's for example, are effectively like a 401k for the user; your company still matches up to some percentage, although you gain some freedoms in being able to take your IRA account to any investment company, not just the one your company chose. SIMPLE IRA's are cheaper and easier for a small business to run for their employees.

I'd far rather hear about where to put that $100k than where to build it.

by Slimbo 10y ago

I'd far rather hear about where to put that $100k than where to build it.

> I'd far rather hear about where to put that $100k than where to build it. Typically, you'd put the money someplace where it does work for you (ie. earns more money). Parking it somewhere where it does nothing can actually harm you since inflation will eventually diminish the value of your parked money, even if it's the same number of dollars. This is even true in most savings accounts since they pay so little interest. Essentially, the author's advice is generally the opposite of what you'd normally want to do.

milesvp 10y ago
so, a cd. You can't buy an index fund, because for the timeframe we're talking there's a high risk the market will be down when a big opportunity presents itself. My problem with the article is that it's missing the important piece, which is the types of opportunities this guy is talking about. My personal experience, is about once or twice a decade a good investment (10% APR or better with low risk) comes my way. Housing is an obvious one in a several areas, but I've also seen business opportunities as well. I'd say it's not great advice in general for most people though. You have to be vigilant for opportunities, and for most people, if you already have a mortgage, 401k is often better than IRA since it's matched (be careful of 401k with >1% annual fees, there's an inflection point where lifetime fees costs more than the matching).
- Alupis 10y ago
  I agree completely with you. However, one minor nit-pick: > 401k is often better than IRA since it's matched Some IRA's are matched as well. SIMPLE IRA's for example, are effectively like a 401k for the user; your company still matches up to some percentage, although you gain some freedoms in being able to take your IRA account to any investment company, not just the one your company chose. SIMPLE IRA's are cheaper and easier for a small business to run for their employees.