How would you invest $5000 right now?

ChicagoFire

Kingfisher
^^
@duedue I think I can answer that question

I only speak for myself so this is my approach:

I know I'm worth it. Therefore I will utilize my money so I can obtain the best ROI for my efforts. So right now I'm going from food industry into sales. I've worked so hard and have lived off of peanuts so I can transition my skills into 5Xing my money. I view myself as a brand that can ROI my money. Once I obtain that career now I have to maximize my ROI from that point. From there I probably would go into owning real estate. One of the dumber answers I've ever heard was from someone who said he/she would take inheritance money and go on a hedonistic spree....and people wonder why lotto winners go broke within years.

From there you have to figure out how you want to ROI your money. Do you want to cater to the masses which is the easiest and arguably the best way? These are the basic bitch CNN watching monkeys that will spend money on a $10 sandwich or a $20 CD. Or do you want the harder approach of appealing to the elite? This category is hard to categorize and best bet would be get into medical since people will pay top dollar for pain relief. Trump's real estate empire is a prime example of how to sell to the elite.

Even if you can't answer this question everybody has 24 hours to do their work regardless of age, sex, and color. So why can't you maximize your time and turbo charge whatever money you may have?
 

Mig Picante

Woodpecker
Lots of people are suggesting “Start a Business”

My question is : What makes you think you will be good at it?
Lots of businesses fail in the first two-years. It’s a good way to lose money if you don’t know what you’re doing.

The conversation was more around how to invest 5k, in terms of returns and allocations, whereas the response addresses a marketing/business strategy between pursuing differentiation(luxury) vs cost leadership(masses) strategy.
 

Adonis

Pelican
Gold Member
Need a few more details to give better advice. Do you have high interest unsecured revolving debt (credit card)? Any secured debt (car loans)? I would pay those two types of debt off before investing anything. Those are tax free gains you can lock in right away. Personally if that was my only savings I would find an investment vehicle with the highest return and zero principal risk. I definitely wouldn't put it into a software product that I knew nothing about.

debeguiled said:
Buy T Bills or a T Bill Fund/ETF and keep putting money into it until you have one year's operating expenses socked away in case of sickness or loss of work.

Then start talking about investing.

This is good advice. I would say put it into a PenFed CD @3% but there is a low-moderate interest rate risk right now with the Fed raising rates into the near term that takes CDs off the table completely for me. I would probably re-invest 2-6 mo T-Bills or a HY MM fund to minimize that.

Swell said:
if I had an extra $5000; I would buy a power-rack, a bar and some plates.

Invest in yourself.

I did this about 5-6 years ago and it was a great investment. Not just for the health benefits, but the time convenience of having your own equipment at home is amazing. You could even have a great setup for maybe half that.
 

Australia Sucks

Kingfisher
RatInTheWoods said:
Australia Sucks said:
Really? Bank shares? There are so many better shares to buy in Australia then the stodgy no growth (earnings per share are likely to go backwards over the next few years) banks!



I think the banks will upswing in the next 12 months.

Fortesque, TOE, wollies all gone to shit.

Pick me a share AS, I'll drop $20K on it.

I'll do better that for you, i will pick 4 shares!

In order of attractiveness (my opinion) I think you should consider the following 4 shares:

1) Credit Corp Group (ASX code: CCP). Today's closing share price $18.40 which i have mentioned in another thread already. Australia's largest debt collection company. Today's closing share price was $18.40. I have been buying in recent months at anything below $19 per share. I forecast (I think they will beat their own guidance) earnings per share of at least $1.50 and dividends per share (fully franked) of at least $0.75 for FY2019. That is a fully franked yield of over 4% and a price to earnings ratio of less than 12.5 times for a company that will continue to grow earnings per share at double digit rates and has a 24% return on equity.

Broadly speaking the company has 3 major divisions:

First division is the Australia and New Zealand debt collection division (primarily the purchasing of defaulted credit card debt, personal loans, utility bills, etc). The second division is Australian consumer lending (e.g. personal loans, car loans, small business loans, etc). The third division is the U.S. debt collection division.

If you break down the 3 divisions the largest division of Australia and New Zealand debt collection will be steady (most likely no or minimal growth). This is due to unsecured consumer lending being largely static in Australia (the credit growth in Australia in recent years has largely occured in the areas of mortgage debt and government debt) and them operating in a highly concentrated and competitive market where they are a price taker. this division can be considered fully "mature" (i.e. low growth).

The consumer lending division will continue to grow at a rate of knots. Other companies operating in the consumer lending sector such as Cash Convertors, Thorn Group, etc are still reeling from the effects of tougher regulations, whereas the products they provide are designed to be more consumer friendly and thus have and will continue to avoid the harsher levels of regulatory scrutiny that other companies in the sector have faced. This means they will continue to gain market share. Tougher regulations that are likely coming through the pipeline will only strengthen their lead over competitors.

U.S. debt purchasing. Dynamics in the U.S.A. debt collection industry are favourable after a number of difficult years. A number of the large companies in the sector are struggling with weak balance sheets (meaning less competition), meanwhile banks are offloading a higher portion of their bad debts to debt collectors. This has resulted in ample supply and attractive pricing for U.S. debt ledgers. It appears these favorable tailwinds will continue for some years to come.
Disclosure: I own shares

2) Platinum Asia Investments (ASX code: PAI). Todays closing share price $1.01 This is a listed investment company run by Platinum asset management (ASX code: PTM) who have a good track record in outperforming the market. It had its IPO in late 2015 at $1.00 per share and ran up to around $1.35 earlier this year before tumbling recently. I would recommending buying at or below $1.00 per share (i.e. if the share price falls further). The shares are around NTA and it represents a good opportunity to benefit from the undervaluation/weakness of Asian stock markets. Disclosure: I own shares


3) Sunland Group (ASX Code: SDG) Current closing share price $1.34. The management and directors own over 30% of the company and it has been around a long time. Its a property developer (and property owner) that is heavily/primarily weighted towards the Queensland property market. They do a mix of residential, retail, office property, etc. The last reported NTA was $2.50 per share (notwithstanding any potential declines due to property price declines which could occur). If it keeps falling I would recommend buying some at anything below $1.25 per share (i.e. half NTA). The current guidance for FY2019 is around 27 - 30 million (AUD) in NPAT. Even if you downgrade it to $25 million NPAT that is more than $0.16 in earnings per share. If you buy at $1.25 that is less than 8 times earnings and half NTA for a well established company. It pays a healthy dividend and if you are willing to look past the current impending property downturn (i.e. take a long-term view) it offers good value.

4) Thorney Technologies (ASX Code: TEK). It today closed at $0.185 per share. I would be buying at these levels. Recent market declines and the rotation out of tech stocks has seen its share price plummet. Its a listed Investment Company (specializing in Australian technology companies) run by Alex Waislitz the clever and successful Jewish businessmen (and also the son in law of billionaire businessman Richard Pratt). Disclosure: I own shares.

If I had to pick only one stock it would be Credit Corp Group (ASX code: CCP).
 

Mig Picante

Woodpecker
I ended up investing in 2x $4000 parcels of a REIT. Have set it up to reinvest the dividends.

It's time to stay focused on earning the next $5k and find another suitable investment in order to diversify.
 

Waqqle

Kingfisher
Fuck stocks, fuck Forex, and fuck p2p lending. With only $5k in, you won't make enough profit on those within the next 20 years to make it worth not being able to touch that money at all for all of that time. I had a little over $10,000 in an aggressive mutual fund myself where I made only a few hundred dollars in interest over 2 years before I pulled it all out because I can put it to better use myself. If you had $50k-100k that you didn't need just lying around, it might be a different matter but you don't.

Instead, I recommend investing it in learning a life skill. For example, $5000 is more than enough to buy a musical instrument and get lessons until you are decent. It's also enough to pay the tuition for a full 1-2 year language course at a foreign university, such as in Ukraine, Mexico, Bulgaria, or Indonesia for example and still have a lot of money leftover.

Proficiency in another language can get you paid in a countless number of ways for the rest of your life and knowing how to play an instrument is one of the oldest and most reliable methods of making yourself more attractive to women as well as just being a great mode of self expression. For $5000, you could transform yourself into an Amharic-singing Masengo-playing musical sensation and get yourself on TV in Ethiopia. You'll have to hire a secretary to schedule all the Habesha girls who will be trying to jump on your dick every time you visit Addis Ababa, Washington DC, or Atlanta. Maybe you'll even marry one of them, convert to Ethiopian Orthodoxy, and start your own clan in a house you bought near a castle in Gondar. Doesn't that sound cooler than letting it just sit in an account for 10-20 years where it might not even grow that much?

Your software idea sounds good too, OP.
 

22qwert22

Pigeon
Waqqle said:
Fuck stocks, fuck Forex, and fuck p2p lending. With only $5k in, you won't make enough profit on those within the next 20 years to make it worth not being able to touch that money at all for all of that time. I had a little over $10,000 in an aggressive mutual fund myself .

I agree with this. Think about it. If I invest 10k in to the market and it goes up 10% wild assumption. I have only made 1k. And that is a good year. Things can go south as well.

Would it be a better idea to try to flip things on craigslist? maybe but an older Jeep, fix it up and sell for a profit while learning how to work on cars.

What about hiring someone from India for an entire year to (about 4K) to do things for you like video editing, data entry, or whatever you can make an employee do over the computer. Many of the guys in India are half decent at programming as well and know english.



::Idea::

Would it be possible to setup a boot camp for video game addicts, you know get them going to the gym, interacting with females. Help them find a job fast food is a great place to start. I can think of renting a small cottage for 2-3k for couple months. 2-3k for expenses. Or would the government be up my ass, asking for certificates, licences, insurance and trying to stop me from setting something up like this "Canada"
 

AWright

Robin
All in chainlink, the project is necessary for widespread adoption of the blockchain with the real world. It's working with legit companies such as google, oracle, and SWIFT. Best performing crypto over the past year. I got in last summer and am up around 800% overall and will not be selling for quite some time, that's how much I believe in the project.

https://finance.yahoo.com/news/bitcoin-6th-best-performing-cryptocurrency-161450752.html
"Chainlink was the best performer of the last eight months, having gained close to 800 percent this year. It was the only token that had more than a 400 percent return. Bitcoin, on the other hand, is up close to 185 percent since the start of the year, having climbed from just $3,746 up to its current value of $10,674.

The two tokens that rose the most this year (Chainlink and Binance Coin) have clear reasons behind their growth. Many projects have decided to implement Chainlink's set of decentralized oracles over the past year, many forming crucial partnerships with the team behind the coin. It's mainnet launched earlier this year and it has already been listed on Coinbase—setting its value rocketing from $1 to $4.40 in June."
 

BBinger

Kingfisher
AWright said:
All in chainlink, the project is necessary for widespread adoption of the blockchain with the real world. It's working with legit companies such as google, oracle, and SWIFT. Best performing crypto over the past year. I got in last summer and am up around 800% overall and will not be selling for quite some time, that's how much I believe in the project.

https://finance.yahoo.com/news/bitcoin-6th-best-performing-cryptocurrency-161450752.html
"Chainlink was the best performer of the last eight months, having gained close to 800 percent this year. It was the only token that had more than a 400 percent return. Bitcoin, on the other hand, is up close to 185 percent since the start of the year, having climbed from just $3,746 up to its current value of $10,674.

The two tokens that rose the most this year (Chainlink and Binance Coin) have clear reasons behind their growth. Many projects have decided to implement Chainlink's set of decentralized oracles over the past year, many forming crucial partnerships with the team behind the coin. It's mainnet launched earlier this year and it has already been listed on Coinbase—setting its value rocketing from $1 to $4.40 in June."

The USD backed system is entering its terminal decline and the current US-China tensions make delicious tears that are better than any vermouth in my martini.

Any crypto that isn't named Bitcoin is a distraction. Marginal altcoins with few eyes on them tend to swing wildly. 2012-2013 Devcoin swung wildly up-down and in 2019 is ~nothing. Not that long ago the Argentine pesos traded at an official and a blue (real) exchange rate. In the time since the Argentine peso started to officially float it has fallen to 45 to the dollar before this month falling to ~60 to the dollar with December peso futures trading under 100 to the dollar.

It isn't impossible to make money on alts. It is dangerous and immoral to recommend others hold altcoins, whether they be USD, Pesos Argentinos, or whatever other flavor of the month. It's like the uranium mines.: You need good gloves, minimum contact with the ore, and if you stay down too long the radon will suffocate you before the first signs of radiation poisoning have time to take effect.
 
Waqqle said:
Fuck stocks, fuck Forex, and fuck p2p lending. With only $5k in, you won't make enough profit on those within the next 20 years to make it worth not being able to touch that money at all for all of that time. I had a little over $10,000 in an aggressive mutual fund myself where I made only a few hundred dollars in interest over 2 years before I pulled it all out because I can put it to better use myself. If you had $50k-100k that you didn't need just lying around, it might be a different matter but you don't.

Instead, I recommend investing it in learning a life skill. For example, $5000 is more than enough to buy a musical instrument and get lessons until you are decent. It's also enough to pay the tuition for a full 1-2 year language course at a foreign university, such as in Ukraine, Mexico, Bulgaria, or Indonesia for example and still have a lot of money leftover.

Proficiency in another language can get you paid in a countless number of ways for the rest of your life and knowing how to play an instrument is one of the oldest and most reliable methods of making yourself more attractive to women as well as just being a great mode of self expression. For $5000, you could transform yourself into an Amharic-singing Masengo-playing musical sensation and get yourself on TV in Ethiopia. You'll have to hire a secretary to schedule all the Habesha girls who will be trying to jump on your dick every time you visit Addis Ababa, Washington DC, or Atlanta. Maybe you'll even marry one of them, convert to Ethiopian Orthodoxy, and start your own clan in a house you bought near a castle in Gondar. Doesn't that sound cooler than letting it just sit in an account for 10-20 years where it might not even grow that much?

Your software idea sounds good too, OP.


This is an excellent idea, although anyone pursuing this path would have to be deadly serious about their life on this journey for the next 5-10 years. The cost of success isn't really discussed much but you're looking at many late nights, lots of crying, "why God" and the like. Although if you are man enough to jump into the abyss then this isn't a sound decision.
 
You can do all right with options with a little foresight.

Long calls on SBUX last summer was an obvious play (especially if you live in Asia and have seen the growth firsthand) which went 10x recently, I'm just sad I'm such a pussy and didn't get more.

Currently, how about long calls on NVDA or a straddle on SBUX?
 

LoveBug

Kingfisher
IMO we need an all inclusive online marketing thread.

I have about 10 g pocket change saved up from staying in w corona

I’m thinking of buying an existing site on a web flip company that is earning a hundred or two a month, hiring some SEO/web developing etc and pimping it out
 
Hello community,

because it is matching here best, i need a financial advice from some professionals :)
(*kidding* only some ideas what to do.... it's clear that nobody can predict the future) :)

Current Situation:

first of all my monthly investments:
50€ to X-TR. MSCI WLD - ETF
50€ to DB X-TR DAX- ETF
50€ to ComStage NASDAQ-100 - ETF
50€ to some kind of pension investment
120€ mixed Investment fonds

coming from this Investments i was able to create already (i am 39 now and started years ago) a small capital about 50k€ which i have't touched yet. Besides all that i started playing with 1k€ in total into P2P credits like (Mintos, Twino, Estateguru) and a 1k€ direct Investment into stocks via Revolut and Trade-Republic.

As a Emergency fund, i have 25k€ !

Now to my Questions... additional to all that, i have "dead" capital which i don't use and don't need at the moment about 80k€.
Any good advice what i can do with that ?

I am still living in rental house and have not any big obligations at the moment. With a fixed permanent Job, where i want/need some changes because same Job for decades…
 
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