I vote for paying off your mortgage (if you have one).
Where are you parking your savings ?
- Thread starter No.Heat
- Start date
I have had the same dilemma for a while. Investing money wisely is tough and could be risky. These are some of the ideas I have contemplated:
1. Commercial real estate - one of the people I know owns a 3 garage (5 bays each) which he rents out at 4K a piece. He bough it for 600K about a decade ago. It has been paid off and after taxes brings about 9K a month gross. I like commercial real estate as it is less needy than residential type and the lease is generally long term.also, it is easier to get rid of a tenant when things do not add up. The only minus is a high price of entrance.
2. Residential real estate - like it but could be too much of a hassle with NY tenant laws being in favor of renters and not landlords. Plus things like heat, running water, and vandalism could be an issue. The plus side - if you could afford something big (24 apartments+) then you could have a management company take care of the running for a fee of course. This could also be a much better solution in states where apartment buildings are relatively cheap and rents moderately high and laws more favorable to the landlord.
3. Stocks that are relatively stable AND with high yields/dividends. I am sure with some researching one could find a couple strong companies with attractive dividends. This strategy could perhaps be best when implemented as a supplement to the core investment package (20% of portfolio?).
4. Purchasing a business as a passive partner. Something where receipts could be easily verified (motel 6, Mc D). Having a partner is not the best solution as this creates a temptation for the other side to steal, but if the business provides plentiful stream of revenue, one could overlook the extra 10% that disappears. The big plus is that this kind of arrangement allows the silent partner to not be involved in every day operation and yet at the same time continue to be paid.
5. Opening up a bar, or a strip joint. This is for those who do not go to church on Sunday and are on the edge when it comes to ethics and decency so ymmv. Both types of places if run the right way and positioned in the right location would have a potential to generate a great deal of $$$. Again, not a business for everybody.
6. Purchasing yellow cab medallions (NYC specific). When I attended college I used to drive a cab in the city and I was able to observe and learn the business from the inside. The price of one is about $500000 and you could lease for around $3K a month.Again it is a passive investment where the owner does relatively very little. Another plus is that the medallion will increase in value as years go by.
7. Some invest in land, but for me living in NYC is neither feasable nor attractive nor income producing.
Hope this helps those who are in need of "parking"
1. Commercial real estate - one of the people I know owns a 3 garage (5 bays each) which he rents out at 4K a piece. He bough it for 600K about a decade ago. It has been paid off and after taxes brings about 9K a month gross. I like commercial real estate as it is less needy than residential type and the lease is generally long term.also, it is easier to get rid of a tenant when things do not add up. The only minus is a high price of entrance.
2. Residential real estate - like it but could be too much of a hassle with NY tenant laws being in favor of renters and not landlords. Plus things like heat, running water, and vandalism could be an issue. The plus side - if you could afford something big (24 apartments+) then you could have a management company take care of the running for a fee of course. This could also be a much better solution in states where apartment buildings are relatively cheap and rents moderately high and laws more favorable to the landlord.
3. Stocks that are relatively stable AND with high yields/dividends. I am sure with some researching one could find a couple strong companies with attractive dividends. This strategy could perhaps be best when implemented as a supplement to the core investment package (20% of portfolio?).
4. Purchasing a business as a passive partner. Something where receipts could be easily verified (motel 6, Mc D). Having a partner is not the best solution as this creates a temptation for the other side to steal, but if the business provides plentiful stream of revenue, one could overlook the extra 10% that disappears. The big plus is that this kind of arrangement allows the silent partner to not be involved in every day operation and yet at the same time continue to be paid.
5. Opening up a bar, or a strip joint. This is for those who do not go to church on Sunday and are on the edge when it comes to ethics and decency so ymmv. Both types of places if run the right way and positioned in the right location would have a potential to generate a great deal of $$$. Again, not a business for everybody.
6. Purchasing yellow cab medallions (NYC specific). When I attended college I used to drive a cab in the city and I was able to observe and learn the business from the inside. The price of one is about $500000 and you could lease for around $3K a month.Again it is a passive investment where the owner does relatively very little. Another plus is that the medallion will increase in value as years go by.
7. Some invest in land, but for me living in NYC is neither feasable nor attractive nor income producing.
Hope this helps those who are in need of "parking"
If your money is truly extra funds and not needed for trading you can also buy a few small atm's. The service charges will far exceed any CD or GIC.
I am not sure but you might be able to even lease them?
My husband and I use to factor account's receivables years ago.
We were getting 5 percent a month. Most were in the home renovations sector and on small funds like 20 thousand so we would make 1 on 20 every 30-45 days. Works out about 40 percent net after expenses.
Let us know what you decide as not you've got my interest.
maggie
I am not sure but you might be able to even lease them?
My husband and I use to factor account's receivables years ago.
We were getting 5 percent a month. Most were in the home renovations sector and on small funds like 20 thousand so we would make 1 on 20 every 30-45 days. Works out about 40 percent net after expenses.
Let us know what you decide as not you've got my interest.
maggie
Little update on what I decided to do with the extra capital.
Don't feel comfortable with any investment right now, decided to say liquid until a solid opportunity arises.
Will place the capital in two FDIC banks since the capital goes above the 250k limits to make I sure I receive full federal insurance.
One could argue that interest rates of 2-2.5% won't even beat inflation and that is absolutely correct but here's the thing, when the opportunity is there I want to make sure I am ready and able.
Perhaps after a solid market retracement this year, who knows, hopefully the unknown presents something interesting but at the present time I don't feel comfortable buying the market at these levels, it seems overbought with too much uncertainty. If I miss it, so be it, I will move onto other things or if I must, keep waiting.
Ideas are still welcome and thank you for your input it was helpful and enlightening.
No Heat
Don't feel comfortable with any investment right now, decided to say liquid until a solid opportunity arises.
Will place the capital in two FDIC banks since the capital goes above the 250k limits to make I sure I receive full federal insurance.
One could argue that interest rates of 2-2.5% won't even beat inflation and that is absolutely correct but here's the thing, when the opportunity is there I want to make sure I am ready and able.
Perhaps after a solid market retracement this year, who knows, hopefully the unknown presents something interesting but at the present time I don't feel comfortable buying the market at these levels, it seems overbought with too much uncertainty. If I miss it, so be it, I will move onto other things or if I must, keep waiting.
Ideas are still welcome and thank you for your input it was helpful and enlightening.
No Heat
Metals.
I placed my savings in CDs and on regular savings account for other use just in case.