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TitaniumTendons
Sport climber
LA, CA
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Topic Author's Original Post - Mar 25, 2008 - 01:19am PT
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I'm in my mid 20's and due to a family death have 100K in the bank. Call me a slacker but I'm sick of working 50 hour work weeks. My dream job would be climbing all day but, due to a serious lack of finger strength and cojones, I don't think I could support myself that way. I also don't want to live off the 100k and then when I'm 40 have nothing to my name. What should I do with this money? I would love to use it to start some sort of business where I could work less then I am now and make around the same amount of money. Or maybe invest it in something where I could get a livable monthly return. I'm sure I'm dreaming but... Any ideas or suggestions from fellow climbers would be greatly appreciated.
Things I don't need to hear because I've already thought of them include: invest in a wide variety of stocks and mutual funds, don't listen to financial advice given on the internet, and, even though I know it's wise, save it for retirement. Anything other then that and I'm all ears. Not sure if I'll get any hits but thanks in advance for any responses.
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Moof
Big Wall climber
A cube at my soul sucking job in Oregon
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Mar 25, 2008 - 01:24am PT
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Stick it in the stock market in an IRA. You'll cut years off your career, so that before you know it our buds can take pics of your crotch ala Woody.
You could also take a year sabbatical for about 20-30k living pretty high on the hog cruising all over. I did that with a severance package and it was the best year of my life. I was 26 at the time, though I already had ~100k in 401k money in the bank.
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caughtinside
Social climber
Davis, CA
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Mar 25, 2008 - 01:29am PT
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If you think you can start a business and work less you're in for a surprise.
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Matt
Trad climber
primordial soup
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Mar 25, 2008 - 01:37am PT
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not to burst your bubble pal, but 100k ain't sh#t (these days).
that will do 1 of 2 things for you-
either help you make a down payment of a home (whenever you get there) so you can get a better loan or lower payment, or boost your IRA (see above).
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Jaybro
Social climber
The West
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Mar 25, 2008 - 01:41am PT
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Invest it well, and make it work for you, as you work, seeing the light at the end of the tunnel go large beyond anyone's expectations.
Or, devise your own karma by sending it to an aging Odubber with bills; the choice is clear.
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Matt
Trad climber
primordial soup
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Mar 25, 2008 - 01:55am PT
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hey by the way, and i mean this quite seriously, sorry for your loss.
carry on.
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Standing Strong
Trad climber
I LOVE TAHOE
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Mar 25, 2008 - 02:12am PT
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"either help you make a down payment of a home (whenever you get there) so you can get a better loan or lower payment"
that's what i would do. you could put into your retirement fund the money you saved with a better loan and/or a lower payment.
i know you said you don't want to do anything too terribly responsible, but 100k is really not that much money.
if you're really truly unhappy in your job, the only other thing i would suggest (except finding a new job) would be to use a portion of the money for more or different education / training that would put you into a career you like better.
not working for a bit and being able to play might make you happy, but financial security will make you happy too.
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BurnRockBurn
climber
South of Black Rock City
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Mar 25, 2008 - 02:28am PT
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Do some research on financial planning. If you invest it correctly now you will be able get out of the work force way early. If your work sucks==quit!! I did 2 years ago and have not looked back. Found a much better job and now work 2-3 days a week. (more climbing time!!!!)
Work to live, don't live to work.
BRB
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Standing Strong
Trad climber
I LOVE TAHOE
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Mar 25, 2008 - 02:29am PT
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he's right. you should def. consult a financial advisor. or at least pick up some suze orman books...
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Phil_B
Social climber
Hercules, CA
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Mar 25, 2008 - 02:38am PT
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I've been using my inheritance for playing. I use it to take trips I wouldn't normally be able to afford. Went to Norway for whitewater kayaking, a couple of other river trips. It's not that much money so I still have to work. I'm just trying to have it last a little longer than just blowing it all at once.
Already have a little condo and don't want the hassles associated with taking care of a house. Already have a dependable car.
If you've already got the essential stuff taken care of, find some things that you haven't been able to do and enjoy them.
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BurnRockBurn
climber
South of Black Rock City
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Mar 25, 2008 - 02:47am PT
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I you do use a financial planner make sure it is one that has been referred to by someone you trust. They should NOT be charging you up front fees. Be very careful and shop around. At least dump your maximum into Roth IRA (4000$) per year. If you have not filed your taxes yet you could do it now and right after you filed. Get that money growing ASAP.
BRB
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stinky
climber
Santa Cruz. CA
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Mar 25, 2008 - 03:00am PT
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hookers and booze.
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BurnRockBurn
climber
South of Black Rock City
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Mar 25, 2008 - 03:05am PT
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booze then hookers---Bunny ranch is 3.2 miles from home if you need some "investment" advice on the ranch
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immanti
climber
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Mar 25, 2008 - 03:52am PT
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Number one thing, buy some new rock shoes. (Just kidding.)
Seriously, do's and don'ts.
Don'ts first: Stay away from real estate and from the stock market, at least for a while. Don't open a business if you're not willing to work harder than you do as an employee.
Do's: Physical silver & gold.
If you disregard both do's and don'ts you might as well go with the hookers and booze.
JMO, NIA, DYODD
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mcreel
climber
Barcelona, Spain
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Mar 25, 2008 - 04:51am PT
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I thought this thread was going to be about long trail runs - what a disappointment! If you think you can make it from your 20s to your 40s on 100K, you should probably get some counseling about your diet.
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TradIsGood
Chalkless climber
the Gunks end of the country
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Mar 25, 2008 - 06:52am PT
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You do not provide any information on what your savings outlook is without this "windfall". Or goals.
Perhaps you already have another $100k that you have not mentioned that represents your savings?
Kids? Plans for kids? College could run as high as $50k/year today. Figure maybe double that 10-12 years from now.
The FDIC insurance limit is $100K per account. If you are over that consider restructuring your accounts so that none of it is at risk.
http://www.fdic.gov/deposit/deposits/insuringdeposits/index.html
Why is it all cash? Inheritance was uninvested? Liquidated? Taxes on it paid?
Echo on the advise of others. Running your own business would be a minimum of 50 hours. You could lose it all. You will have to learn a whole ton of stuff that you do not know today to be successful. It might be right for you, but not to work less!
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Norwegian
Trad climber
Placerville, California
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Mar 25, 2008 - 08:29am PT
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by my mid 20's i had saved up 50k. i put it all in cd's (cash deposits) as that way i couldn't squander it. then i just let it rot for a couple of years. i, too, despised working so much. so i didn't. i quit my job and went cheaply travelling. when i ran out of money, i went to work. well, along the way, i met the right girl, and my motivations and goals kinda shifted. so i tagged that money and put it down on some property. we squatted for a couple of years, then borrowed against the property to build a house. now, we've started a family.
so, my suggestion: put it away and see where life takes you. right now is only that. things may change and if they do, it will be nice to have a little financial trampoline. if your direction remains a deviation, then it will still be there down the road...
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Gunkie
climber
East Coast US
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Mar 25, 2008 - 08:32am PT
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Send it to me and I'll think about the best ways to utilize the wealth :)
In reality, the smartest ideas have been posted. If you want to roll the dice, invest in the beaten down financials. I'm thinking CitiGroup [C].
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Patrick Sawyer
climber
Originally California now Ireland
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Mar 25, 2008 - 08:52am PT
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Having worked as a business journalist for many years, I have met and interviewed loads of entrepreneurs and business owners.
Owning and running a business is not easy work, as has been mentioned already on this thread. Sure you will be your own boss, but the hours, the hours man.
And if you employ others, then the concerns and headaches of employment law.
As for financial advice, I may be a good biz journo but I am not that great of financial hack, and yes there is a difference.
Maybe Fattrad can give some advice on this thread, he seems to know what he is doing (of course, most financial advisors will say that).
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WoodySt
Trad climber
Riverside
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Mar 25, 2008 - 09:48am PT
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Invest in plastics.
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