I am in my mid-30's and have about $30,000 speculative capital with
which to invest, in any way possible--stocks, bonds, real estate,
small business venture, partnerships, internet sites, whatever. I am
interested in computers, science, music, novels...things that are
interesting and make money by providing others a service, whether
business or entertainment related, and generally things that earn
royalties, such as novels, software, music, dividends, interest, etc.
What can one do with 30K to try and make money?
Ideas, please....Most inspiring answer gets the 5 star rating. |
Request for Question Clarification by
journalist-ga
on
19 Feb 2003 11:42 PST
Greetings Omniscientbeing! Since only one Researcher may answer your
query, will you accept my answer? Because this is a speculative
question, it has no difinitive answer except the one you choose.
I have a couple of questions for you to consider: First thing, are you
debt-free? I mean no car payment, no credit card payments or, if you
are very moneywise, no house payment. If not, then the first thing I
suggest you do is to pay off your debts. Then you will not be paying
high interest which will save you a great deal of money. Consider
what you save as money earned by wise use of finances.
Second thing, do you have children and do they have college funds?
Consider investing in their education - it will be more expensive
later.
If you are not debt-free and have children whose college funds are not
in place, I suggest you first spend a teeny bit of your income on the
book "Financial Peace" by Dave Ramsey (his book list is located at
http://www.amazon.com/exec/obidos/search-handle-url/index=books&field-keywords=financial%2Bpeace&search-type=ss&bq=1/ref=aps_more_bdgw_b_1/103-9471954-4931023).
His book should convince you to become debt-free.
If you are debt-free, I would suggest you bank $20,000 in a high rate
money market fund (that way you can get some out with no penalties)
and take the remainder and "play stocks" with it. Some banks are
currently offering a 5% interest rate on money market accounts. That
is a very fine rate for today's market. If an account drops below,
say $10,000, then the rate drops but as long as the minimum is there,
the interest rate is hefty.
The economy is presently at a low so I wouldn't suggest you play
stocks on speculation - concentrate on investing in life staples. By
that I mean food stocks, petrol stocks, utility stocks - the
necessities for living. People always need food, electricity, water
and gasoline - those services are imperative for survival in today's
world. They may pay smaller dividends but that area of invesment
seems the most secure.
I also wish to add that I am not a financial consultant and my answer
is not to be construed as financial advice. I simply offer you my
suggestions. :)
After you have reviewed all the "answers" you have requested that are
listed in the Clarification and Comment sections, then you will need
to post your own Clarification to ask the "winning" Researcher to post
his/her suggestions as an answer proper. I'm looking forward to
reading them all, too!
|
Clarification of Question by
omniscientbeing-ga
on
19 Feb 2003 12:34 PST
I am debt-free with no obligations to any credit card agencies or
mortages. Rent, don't own, single, no kids at this time. (Might
someday). This is truly "speculative capital" that, were I to lose it
all, it would suck, but my life would go on.
|
Request for Question Clarification by
journalist-ga
on
19 Feb 2003 13:34 PST
That is wonderful. You didn't say it but I assume no car payment
either. VERY good! Too bad we GA Researchers are not allowed to
share private info or...Kidding!
I still stand by my "safe" investment suggestions and I'll do some
research on speculative investing in the film and music industry to
see what I might locate for you. I'm certain that *many* people would
enjoy spending your money.
|
Clarification of Question by
omniscientbeing-ga
on
19 Feb 2003 14:38 PST
Journalist: no car payments, I own my own car. I'm not trying to
gamble with $ I don't have--I have it, I owe nothing, I want to try
and make more with it, and am willing to take reasonable risks.
|
Request for Question Clarification by
journalist-ga
on
19 Feb 2003 15:17 PST
Some articles to peruse while awaiting your other answers:
From http://www.ymsi.co.uk/10_news/oct3_2002.htm
"Ploughing funds into film has always been strictly an alternative
investment - the preserve of the well-wedged eccentric rather than the
speculative entrepreneur." This was an interesting read.
Winery productions film group - investor FAQs
http://w-p.biz/eng/invest4.htm
Civilian capitol - Film IPO - investor FAQs
http://www.civiliancapital.com/help/faq.cfm?typeid=1
Investing in Harry Potter related industries
http://www.thisismoney.com/20011123/si40874.html
Investing in Film and Television - Follow "Interested?" link to
application form
http://www.productionconsulting.com/investors.htm
Michael Harpster article (with email where you can ask him questions
regarding investing in film)
http://www.filmdeveloper.com/Article/Alpha/Film%20Investing.htm
Sundance Film Festival (you might attend this year and learn a great
deal there about investing in film)
http://institute.sundance.org/jsps/site.jsp?resource=pag_ex_home
Investing in movies - a crash course
http://www.jamesarnett.com/arnett.html
Investing in movies vs. the stock market
http://www.featurefilmproductions.com/money-matters/
Fortune.com - Investing in the movies
http://www.fortune.com/fortune/investing/articles/0,15114,390112,00.html
SEARCH STRATEGY:
investing in film
speculative investing film
Sundance Film Festival
|
Clarification of Question by
omniscientbeing-ga
on
19 Feb 2003 20:44 PST
Thank you Journalist and easterangel for your comments thus far. I am
checking out your links.
|
Request for Question Clarification by
easterangel-ga
on
19 Feb 2003 22:44 PST
Hi again! it seems that your question is getting more interesting as I
research some more.
In case you are interested in pursuing a book publishing business,
this website would be of great help with its tips and advice.
The Business of Publishing
http://www.bookzonepro.com/insights/publishing.html
You might also want to look at the web as a publishing vehicle.
How to Start Your Own Profitable Subscription Website or Online
Newsletter
http://www.sdnm.com/swepa/
Finally starting a magazine publishing business is another good idea.
Starting A Magazine
http://www.laughingbear.com/magazine.html
FAQ
http://mrmagazine.com/faq.html
10 Hot Tips for First-Time Publishers
http://www.publishingbiz.com/html/article_10_publishing_tips.html
It is hard to post it as an answer since this is a very subjective
matter. But if you find these things as adequate and it is the type of
information you are looking for, I shall post it as an answer and
collect the fee.
Just let me know. :)
|
Clarification of Question by
omniscientbeing-ga
on
24 Feb 2003 10:30 PST
Thank you for your input.
What about investing in myself, so to speak, i.e. furthering my
education. I have a BS degree already, in biology, and a technical
certificaiton in computer programming. Perhaps I could use he money to
earn a Master's degree in something (not even sure what it would
be--MBA? MIS? Something that owuld earn me more $ in the job place.
Currently I work in mid-level IT jobs, software developement, web
design.
|
Request for Question Clarification by
journalist-ga
on
09 Mar 2003 08:09 PST
I've been monitoring your question and I see that there are still no
new comments for a while and I don't want you to think I've left you
hanging. I was hoping some more of my colleagues would respond.
As far as investing in continuing education, what eactly are the specs
associated with your field? Is there an area that already holds
interest for you? I'll be happy to research this for you and I want
to make sure I'm exploring your scope of interest if you will provide
some keywords or keyphrases of your field.
|
Clarification of Question by
omniscientbeing-ga
on
10 Mar 2003 10:11 PST
journalist--
Go ahead and post an Answer, perhaps with some thoughts on the value
of an MIS degree in today's job market for someone who has an
undergrad degree in biology.
Thank you and I thank all of you for your most interesting thoughts.
~omniscientbeing-ga
P.S For now I'm in bonds, up a litte bit ;)
|
A great book by a great marketing guy is a great place to start, I am
speaking of Jay Abraham's (Getting Everything You Can Out of All
You've Got). This book will help you get a feel for what you have and
might even help you decide where $30K should go.
As for starting your own business, that's great advice. You may want
to review the E-Myth though, many small business owners just created a
new form of J.O.B.
Scott of xramp.com gives good advice, but I bet he would be the first
to tell you $30K would not put a dent in what it took to start his
business.
I have opinions like everyone else, I am sure you have heard how that
goes. Opinions and ***holes everyone has one.
My wife is a gentle creature and I love her dearly. I have told her
that if anything would happen to me to sell my equipment to pay any
debt we have. I have life insurance to pay off the house we live in,
and enough to buy two similar size homes. Knowing human nature (and
her, and her family): I have told her that my life insurance would be
spent quickly if she tried to just live off the interest. Things would
come up, family emergencies, etc. and it would soon be gone. I told
her if she would buy two homes, rent them for current rates she would
have more then enough to pay for all normal bills, health insurance,
food, and be able to put some away.
I may be wrong but it is hard in a growing market like Phoenix, AZ to
lose on a real estate investment. The average home in the valley is
$140,000 and they increase in value roughly 5-10 percent per year.
Current government statistics say Phoenix is growing at a rate of 29
percent per year. Maybe you could invest in a Real Estate Investment
Trust group.
Before doing anything I would take the sage advice of the veteran tree
chopper, ...If I had four hours to chop down a tree, I would spend 3
hours sharpening my axe. Sharpen your axe, or in this case learn about
the investment vehicle you are going to use, the tax implications, the
costs, the risks, the whatever...
And as usual... Sgt. Schultz knows... Nuthing! |
You say you want to make money with your investment? Then don't
invest in an area because 'you like it'. And don't think you have to
be 'inspired' by what you invest in.
Be honest with yourself. Do you want to earn money with this 30K or
do you want to play with it?
Plus, you only have 30K. As someone has already noted, that's not
really a lot of money.
If it were mine, I know what I'd do...because I did it...I don't know
your geographical area, and it makes a difference, but assuming it's
an OK area, buy rental property for the time being. [Note: Do *not*
invest in a real estate investment trust group as someone suggested as
an aside. Too many downsides.]
I bought single family houses, they are always rented, the mortgage,
etc. is being paid by the tenants, etc. The first house I bought,
with *far* less down $30,000, was paid off in 5 years because I took
every bit of profit and applied it to the 30 year mortgage. Worked so
well I did it with everything else. I now own half a city block. Did
I think I'd 'like' it or be 'inspired' by it? Not hardly. But I look
at it now and just grin. When the stock market crashed, I was cool.
When my husband was laid off...no problem. Heck, I've already retired
once...got bored so have my own business (and guess what I used for
collateral), but sure aren't broke :-)
I started this in my mid-30s where you are now. I assumed I was going
to get older and knew that I needed to start looking toward my future.
I later got married and knew that my husband was going to want to
retire sometime, too, but wasn't ever going to have a pension or
anything so I wanted to make sure he could retire along with me.
I'm wondering if part of you is thinking that you're still young so
can still play. Yeah, you're still young, but play with something
else. For every person who invests 30K in something and makes a
zillion dollars, there's 100,000 people who don't. Make your 30K into
something more steadily income-producing, then play with later $$$. |
Read the Rich dad Series. Real estate can be great if you realy
really understand what you are doing. You also can make a ton of
money in options and stocks in any economy if you really know what you
are doing. It is hard though. Be prepared to Lose a lot until you
really learn a lot. Once you know a lot you will know how to watch
the stock market, keep your stop loss orders tight and have fun. I
have doubled capital within 3 days more than once on the stock market
with options, and I have never come anywhere close to losing that
much. I have literly spent thousands of hours understanding the
stock market and the economy, and I have be fortunate to work with
some of the best traders in the world. The stock market or the rental
properties are both great ideas. E-myth is great also(This will help
you build a business). You can start your own business, but make sure
you know what you are doing. I have come very close to losing 6 and 7
figure numbers on business deals.... you have to learn a lot or
submit yourself to hireing the very best consultants in the country
and paying top dollar for them, you may not be able to afford this.
Investing is realestate is well documented, and has been around for
the longest time. With $30,000, I could generate about $1,500 -
$1,800 per month of passive income for that would come in every month
for the rest of my life, within 20 years, I could cash in the property
investments for around a million dollars. Then again, I might be able
to do the same thing in the stock market a lot quicker than 20 years.
But the realestate is proboly the best bet if you dont have any other
experiance. Carton Sheets course is not too bad,,,but rich dad,,,
Roberts stuff is a lot better.
j |
