Eff all that. If this is money you can set on fire and it won't seriously impact your year, buy a few hundred bucks worth of about 20 different small market cap NFT cryptos. If only one goes ballistic with a 100,000% return you'd have your six figures.
Soooo, so here is another question. When is enough, enough? My wife and I have been pretty fortunate and my former business put us in a pretty good place financially. Is there point where you would pull your investments out and put them somewhere that they have virtually no chance of tanking? Even if they are just earning 1 or 2%?
plenty of people doing that. It’s just that you have to be ok with operating on the wrong side of the law
Until your working capital is at a point that your bike flipping can’t scale to take advantage of it, you’ll be hard pressed to find a safe and reliable alternative to beat the ROI you’re earning from a business you know well. If you’re seeking more passive or diversified income streams, that’s a different story. If you’re just seeking to turn $10k into $100k within a year, you either need to meet some high school kids trading meme stocks or Stan down at the truck stop. Then again, I can’t give financial advice, I don’t understand crypto and got married.
Put 1-2 years of yearly budget is savings/checking. Put 2-10 years (based on your risk tolerance on low volatility investments (bonds, treasuries, etc.) Put the rest in stocks. As I recall there has never been a 10 year period where the stack market has declined
Common "wisdom" is that stocks never go down in any 10 year period? How about DJIA from April 1966 to September 1982? You would have lost about 2/3 of your buying power with stocks. The problem is a 60 year old money manager with a 40 year career has never seen a real multi year bear market, so they must never happen, right? Older heads like Warren Buffet's partner Charlie Monger is talking about the coming lost decade for stocks for several reasons but mainly the huge population decline starting in western economies like Japan has seen. One old saying is that the crowd never makes money, they always get slaughtered, like NFT's the modern day tulip mania. I think the best investment idea on this thread by far is flipping bikes. I was doing that with cars until the used car market went insane. Wholesale auctions where I was buying only have over priced junk now so I want to hear more about how to do that with bikes!!
Depends what the rest of my portfolio looks like and my need for the money from said investments coupled with my risk aversion. But generally, no - not sure why you'd want to earn 1-2% on something right now when inflation is running north of 5%.
FWIW, years ago the Wall Street Journal did a stock picking experiment. Here were their results: https://prosperitythinkers.com/personal-finance/three-monkeys-and-cat-pick-stocks/
That can't be right. Except for @motion , every person in the investing thread is picking nothing but winners Index funds are for schmucks