#WealthBuilding #InvestmentJourney #PassiveIncomeGoals
Hey everyone! 🌟
So, my husband and I recently hit a life milestone: we inherited $100k from family! 🎉 Right now, it’s just hanging out in a money market account, but we know that money could be working a lot harder for us.
Here’s the scoop:
- Combined Income: We’ve got a solid combined income of $140k.
- First Baby on the Way: Exciting times ahead! A little one is joining our family very soon. 👶
- Existing Home: We already own our house, which has a low 2.62% interest rate. We initially thought about using the inheritance to buy a larger place in the suburbs and renting out our current home for an estimated $1,000–$1,500 a month.
But, as we searched for that perfect family home, we’ve realized that our dreams might be a little out of our budget. So now we’re rethinking our strategy on how to best invest that $100k.
Here are some options we’ve considered:
- Keep it in a Money Market Account: Safe but not super exciting.
- Buy a Franchise: An avenue for a business, but we’re unsure about the risks involved.
- Real Estate: Should we invest in another rental property?
- Start a Turnkey Business: Maybe something in e-commerce could fit the bill? 💻
As we dream about retiring early with some passive income, we’re trying to figure out the best way to use this $100k to create that desired lifestyle.
So, I’d love to hear from you all!
What do you think is the best route for us to take?
- Should we go for that forever family home?
- Is investing in rental properties a smarter choice?
- Or perhaps diving into a franchise or e-commerce opportunity?
If you’ve been in a similar situation or have valuable tips, please share! Your advice could really help us shape our decision. Thanks in advance for your thoughts! 🙏✨
VTI/VUG and forget. It’ll help you in your early retirement.
>Buy a franchise of some kind
>
>Invest in some kind of turn key business? Maybe e-commerce?
Neither of these options are “passive” income. You wouldn’t be investing as much as buying yourselves another job, and unless you know the industry you’re buying into it’s going to be incredibly risky. The financial situation you’ve described doesn’t look like one that should be dumping 100k into a high risk venture tbh.
If I was in your situation, I’d invest the money in some mid-large cap index dividend/growth ETF’s and let it sit until retirement. If you let it sit for 25 years and the markets perform at their historical average of 9%/yr, you’ll have nearly a million dollars.
If i were in your shoes, I’d keep it in the money market. ETFs/index, keep it simple.
You almost have 180k portfolio. Overnight, that great to 230k.
Keep adding to it and with compound interest, that’ll grow fast. It’ll help with early retirement for sure.
Just my two cents.
Don’t stretch yourself with rental /home if it’ll further put you in debt. Unless that’s something you know /experience/thoroughly researched, it’s not for the feint of heart.
If nothing you can end up at 65 and still be paying mortgage for two properties. Pretty far from your picture early retirement.
You can’t buy a whole turnkey business with that much money. You can only buy a job and a lot of responsibility and obligations, so you better only be buying a job you know damn well. If you hire a manager to run it for you, you won’t have anything left for yourself.
What you can buy is a piece of a company. Lots of pieces of lots of companies.
It’s stocks you want. Actual turnkey business returns for stockholders that is run by experts.
I would spend it all on SHIB instead of investing in a business.
If you buy me a truck, I would gladly drive it for your new trucking company.
The other responses are right.
Low cost index funds (either ETFs or mutual funds) would be a solid way to go if you don’t need the money any time soon.
Any ETF that tracks the MSCI World index, or just the S&P 500 or VTI if you want to focus on the US would be fine.
You can’t easily buy a hands-off business with only 100k, and what you can buy, you’d likely be buying essentially a job for yourself.
I’ve been doing this for 15+ years.
Running a business is the hardest thing you can do in life. It brings stress you can’t imagine.
Please don’t start a business. You have to have the passion to do something, not just the passion to run something. It’s a whole life commitment. It’s going to be very disruptive to your lifestyle.
You aren’t wealthy enough to be an accredited investor to invest in private companies that have big upsides and big risks. You don’t have enough cash to buy a franchise that you could hire a gm to run. The risk is massive with these, and you need liquidity to survive the ups and downs.
I would invest your money in an index fund. Vanguard.
You need a 6 month emergency fund. Especially if you’re about to have a baby. You also don’t have to spend the money right now. Don’t make rash decisions.
You’re having a kid. You put the money away and invest it in an index fund and forget you have it. This is not enough money to make true meaningful passive income.
Do like what others are suggesting and invest it.
Many people never get a stack of money like this, so don’t squander it.
In a year, reward yourself by taking a few hundred dollars of the gains and do something fun.
I’m going to agree with the chorus here that $100k doesn’t get you any kind of passive business.
However, if you want to “buy” a well paying job, consider starting a low cost service business like window washing, gutter cleaning, power washing, something like that. Very low entry costs, just a couple grand in equipment. If you work really hard I think your $5-10k investment can easily double in value if not more. Then after a few years of the $90-95k growing you can decide to invest more in your business after having some experience.
Park the lions share in the S&P tho.
Nope go ahead and put your head down and study. Find a mentor and have him teach you how to never lose with just 100k. Exactly what I did bring this guy named Vincent and I never looked back. In theory find a mentor and take a leap of faith. Don’t touch the money just learn and apply it.
Be careful of bankers whole lie. I swear they all do. Theyll take your money for silly appraisals and all kinds of junk. Do reseach and dont pay nothing for banker bs
Invest in a vanguard index fund.
Take over a UPS Store on its 5th bankruptcy. They’ll probably pay you to take over the business.
I’d probably aim for 10% return in equities. 100k ain’t much to start a business and a rental won’t return anything other than maybe appreciation after 10 years if there is a mortgage. Both of these will take oodles of time away from your regular job. I’d probably go the stocks route (personally).
Most franchises require a net-worth of 750k-1mm (not including primary residence) and 300k in liquidity. Top tier ones like McDonalds or chic fil a have even higher requirements.
Why not just burn it? Same result just quicker and not as much hard work.
You would be best off just putting it in VOO index fund of US stock market.
This is the best passive investment in general and most professional investors can’t outperform the S&P500.
If you do decide to invest in something else also check the price of VOO on the same date and then later check it against however your investment panned out for next time.
S&P500 mutual funds are the baseline for investments as you literally do nothing with zero risk of the entire investment being lost such as a business or real estate organized by someone else.
To tell you straight up, my sense reading this is it feels like this money is burning a hole in your pocket and you’re liable to do something impulsive you’re gonna regret one day
You’ve gone from wanting to buy a second home so you can become landlords to wondering about buying a franchise of any random business
The best advice is for sudden cash infusion is always the same: don’t do anything. Literally don’t touch the money for a year. Just let it sit in the money market account, forget it exists
In that year, do your research and soul searching and decide if it’s really a good idea to try and start a business or become a landlord. I’ve done both and even been successful at one but it took years of work and even now there’s nothing passive about it
Realistically, I don’t think you stated how old you are, but with $100k in home equity and $80k in a Roth you’re hardly all set for retirement. If it were me, I’d take 10% ($10k) and do something fun or ambitious with it and park the other $90k in VTI and not think about it again for a decade or two
Whatever you decide to do, please be patient and don’t make an impulsive decision
What you want to do and can do should not be gamble on a 100k. This isn’t something you pick up and be successful at, put it in an etf or S&P, and buy a date to celebrate and invest and live your normal working lives. You should be able to retire 10 yrs earlier
You can put all that in schd and get 3% in dividends a year safely. It’s not enough for any business. If you want to make that part of house number 2, up to you.
You can do a 529 for your kid over the next 18 years probably pay for all of college and jump start on that child’s roth ira.
dont put more than 50% in any business
do not buy a franchise. I have known many that did, and all of them regret it. They work themselves to death, and have to follow rules that make it so they cant do much else. The franchise company wants you to make money, so THEY can make money. Also, best locations are often taken politically to friends and others.
Caveat that possibly not all franchises are like this, but, I know of at least 6 people that have done this, even one that took 6 franchise locations, and ALL ended up trying to get out of it.
Someone once said to me, a franchise is a business HOA, same feel
Index funds & 529 account for your baby, because a business will drain you of both your money & time