$250,000.00 cash dilemma, input welcomed

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AGhead
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$250,000.00 cash dilemma, input welcomed

Postby AGhead » Thu Jun 28, 2018

Say a person has a $250k US dollars cash stashed, it's drawing O interest and prob reducing in value, def not pacing inflation. She's stacked well- in PM's, has plenty more in say 2.6% CD's, and some in stocks. She does not want more land/property but instead desires to downsize. She wants to retire in maybe 10 yrs.
...
What should/might she do with the cash?
Proverbs 27:17 "As iron sharpens iron, so a friend sharpens a friend."

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cornbread
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Re: $250,000.00 cash dilemma, input welcomed

Postby cornbread » Thu Jun 28, 2018

More gold 8-) .....

or PM me to donate. :angel:
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Purple and Gold
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Re: $250,000.00 cash dilemma, input welcomed

Postby Purple and Gold » Thu Jun 28, 2018

Retire. Today.
There are banks paying decent interest rates. For many years my local small time bank has been paying me 4.01 APY on my checking account but they recently capped it at 20K @ that rate.
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Diggin4copper
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Re: $250,000.00 cash dilemma, input welcomed

Postby Diggin4copper » Thu Jun 28, 2018

Star fund.. not sexy, but very diversified. And a vacation- she deserves to reward herself for the great job she has done
Outstanding!

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agnostic
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Re: $250,000.00 cash dilemma, input welcomed

Postby agnostic » Thu Jun 28, 2018

Get out of cash, one way or another. You can eat up 200K pretty fast buying
a little more gold.
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joefro
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Re: $250,000.00 cash dilemma, input welcomed

Postby joefro » Thu Jun 28, 2018

If the goal is to build wealth using the 250k, then the classic answer would be to split it up and invest in a few stable assets (mutual funds, real estate, etc...) even if she already has plenty. Otherwise, I’d say spend some of it and enjoy life before you get too old to do the things you want to.

cmiller17363
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Re: $250,000.00 cash dilemma, input welcomed

Postby cmiller17363 » Thu Jun 28, 2018

I vote gold. A large variety.
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Brick's
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Re: $250,000.00 cash dilemma, input welcomed

Postby Brick's » Thu Jun 28, 2018

Keeping some cash around for when their is "blood in the streets" to buy things cheaply is not a bad idea. How much cash and cash equivalent is individual preference. How balanced does the individual feel they are compared to the rest of their investments?

Otherwise, if the goal is to downsize and retire in 10 years then take some of the cash and invest in those things that are sorely beaten down at this time. Gold being one of them. Stocks not being one of them. Also fairly liquid, income producing, value protecting conventional type investments need consideration until something of better value comes around.

Or hire a professional investment (conventional isn't always bad) advisor, at least to look at what she's got more closely and make recommendations.

And what Joe and Diggin say, enjoy life while you can. Get out, travel, run, jump, play around and whatever it is you have wanted to do but never got a chance to do until now.
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Natchez14
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Re: $250,000.00 cash dilemma, input welcomed

Postby Natchez14 » Thu Jun 28, 2018

It's an ever-evolving category, but for me the answer is tax lien certificates.
They have a negative reputation in many circles, and getting clear and accurate info can be difficult;
however, I've been investing in them in Mississippi for 8 years, and my only two regrets are that I didn't
start sooner, and that I don't have more funds to put in them.
My experience is they have been an extremely safe place to earn around 10% annually. It requires some knowledge and time (but not a large amount of either).
It has gotten more competitive each and every year, but is still my #1 option.
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jareksdad
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Re: $250,000.00 cash dilemma, input welcomed

Postby jareksdad » Thu Jun 28, 2018

Smartly lend it to other investors at higher interest rates backed by solid real estate that she is 1st or at least majority owner.
People will try to come up with reasons why this is bad but if done CORRECTLY it is almost foolproof.
PP gift happily accepted along with AG!!
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Re: $250,000.00 cash dilemma, input welcomed

Postby highroller4321 » Thu Jun 28, 2018

jareksdad wrote:Smartly lend it to other investors at higher interest rates backed by solid real estate that she is 1st or at least majority owner.
People will try to come up with reasons why this is bad but if done CORRECTLY it is almost foolproof.
PP gift happily accepted along with AG!!
D



+1


Cash sitting around is dead money and losing purchasing power. Sounds like PM's might not be of the most interest to her.


Secured loans are the way to go. There are a lot of wealthy people but often times they are asset rich and cash poor. Doing short term secured loans for "larger" amounts is a great way to put the money to work.

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iron-pyrite
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Re: $250,000.00 cash dilemma, input welcomed

Postby iron-pyrite » Thu Jun 28, 2018

Downsize assets is what it sounds like. If PM, land, and stocks all taken care of then take care of #1. Spend it on vacations. If the idea is to invest then the market and an honest portfolio can be profitable. Currently my last 12 month performance is just over 10% have had it up to 16% before. This would allow even more money for traveling when the time comes. Because if you don't travel when you can. You don't travel.
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mnymgr1
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how about this.......

Postby mnymgr1 » Thu Jun 28, 2018

don't buy stocks when many people feel the markets are completely rigged and overpriced, by 50-65%.
that would decimate her pile of cash if even half that decline came true.

real estate, same issues as above. with interest rates moving up, seems like many markets have hit their tops. many like las vegas are regarded as the most overvalued in the country, not sure where you live.

silver & gold...tough to resell, real easy to buy today. if int rates keep moving up over next 12 months, coupled with a lower stock market which forces margin calls, we're going to watch a run for the exits, a mad dash to liquefy which would include metal sales. So I wouldn't jump into metals like crazy right now.

tax lien idea might be way too much for a novice who also may not want to put in the time/effort.
if this person still works, totally max out any retirement plan where the business matches personal contributions. Do this 100% of salary if possible as the match is simply free money, doesn't get any better than that. Use the cash to live on if necessary.

lending to a super close friend or family member and taking half market rate for interest sounds great, just remember to not put it into writing, nor take the interest in anything but cash. You can't be a bank and charge interest, unless you are actually a bank ;-) Make sure principal payments on something like this are accelerated since they are being charged less in interest, even though they cannot use the interest expense on their taxes. A work around to all this might be contacting your friendly small local banker to see if you could deposit the cash, loan it to the friend, set the interest rate yourself, and voila.

Isn't lendingclub still around ? you could investigate those borrowers as well, just remember to spread out your loans over a wide group.

If the $250k is under 25% of total estate, probably not the worst thing to slowly lend/invest/buy metals and keep the pile of cash in place. Like 4-12% of cash invested annually. Readjust forecast for markets (ie...gold crashes, stocks crash), then up the 4-12% to 8-24% annually. Invest the cash equally if possible every month.

None of what I said is an offer to buy or sell, nor is it investment advice, just my opinion.
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BotanicusRex
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Re: $250,000.00 cash dilemma, input welcomed

Postby BotanicusRex » Thu Jun 28, 2018

All into BRK.B (to get in on the coming dividends.. maybe)
And at the first sign of illness try to get out the door quicker than everybody else.
"You have a choice between the natural stability of gold, and the honesty and intelligence of the members of government. Vote for Gold."........ George Bernard Shaw

AGhead
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Re: $250,000.00 cash dilemma, input welcomed

Postby AGhead » Thu Jun 28, 2018

BotanicusRex wrote:All into BRK.B (to get in on the coming dividends.. maybe)
And at the first sign of illness try to get out the door quicker than everybody else.

what div's expected to be and when?
Proverbs 27:17 "As iron sharpens iron, so a friend sharpens a friend."

AGhead
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Re: $250,000.00 cash dilemma, input welcomed

Postby AGhead » Thu Jun 28, 2018

AGhead wrote:
BotanicusRex wrote:All into BRK.B (to get in on the coming dividends.. maybe)
And at the first sign of illness try to get out the door quicker than everybody else.

what div's expected to be and when?

And by illness... you mean the old man's?
Proverbs 27:17 "As iron sharpens iron, so a friend sharpens a friend."

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7aw2tr4
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Re: $250,000.00 cash dilemma, input welcomed

Postby 7aw2tr4 » Thu Jun 28, 2018

200 GAE's.......takes up a lot less space than all that paper....liquidate as needed...... : )
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BotanicusRex
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Re: $250,000.00 cash dilemma, input welcomed

Postby BotanicusRex » Thu Jun 28, 2018

AGhead wrote:
AGhead wrote:
BotanicusRex wrote:All into BRK.B (to get in on the coming dividends.. maybe)
And at the first sign of illness try to get out the door quicker than everybody else.

what div's expected to be and when?

And by illness... you mean the old man's?


Just a perpetual rumor on divs.. because he holds so much cash. I think it will happen someday although Buffet claims it won't. :roll:
His saying.."What if you have a trophy elephant in your sights and you don't have any ammunition?"

Yes, Buffett.. although no indications at all so far.
"You have a choice between the natural stability of gold, and the honesty and intelligence of the members of government. Vote for Gold."........ George Bernard Shaw

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Super Stacker PCB
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Re: $250,000.00 cash dilemma, input welcomed

Postby Super Stacker PCB » Fri Jun 29, 2018

Doesn’t sound like much of a dilemma to me. Wish my dilemmas were like this. :lol:
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AGhead
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Re: $250,000.00 cash dilemma, input welcomed

Postby AGhead » Fri Jun 29, 2018

^Agreed!^
I believe it was not easy to get that much in cash... so to get the cash back into the grid, will it not be flagged as income? or draw other red flags?
Proverbs 27:17 "As iron sharpens iron, so a friend sharpens a friend."


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