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Wayno
Big Wall climber
Seattle, WA
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Mar 25, 2008 - 01:34pm PT
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Spend it all and go out and earn your own.
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jstan
climber
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Mar 25, 2008 - 02:28pm PT
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When it comes to money all anyone can do is share with you their experience. There is no single truth. It is a lot like climbing in that there is both risk and, at least initially, a lot of uncertainty in one's mind as to what one is actually good at. If true this means a person has to plan on spending a number of years accumulating experience.
Patience is an essential virtue.
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AP
Trad climber
Calgary
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Mar 25, 2008 - 02:41pm PT
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I would suggest trying to get a leave of absence from work for a few months, go climb, travel, have fun, and clear your head. Then make your decisions. Never make a major decision when you are feeling down
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ADK
climber
truckee
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Mar 25, 2008 - 02:43pm PT
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I wouldnt invest in metals right now. Gold isnt going anywhere but down in the long term.
It seems like you could blow through 100k pretty easily in a couple of years if you dont watch it, whereas investing it may make your life a whole lot easier in the future.
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tolman_paul
Trad climber
Anchorage, AK
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Mar 25, 2008 - 02:45pm PT
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Money is a powerful tool, use it wisely.
100k isn't enough to live the rest of your life from in your early 20's. It is enough to get by on for a few years, and then when you try and get back into the work force, you'll have a tough time.
There are alot of ways to "invest" that money. You could have it professionally managed, and essentially forget about for say 20 years, and likely be amazed at what it has grown into. Or, it could be poorly invested and not be much 20 years down the road. Or you might not be around in 20 years.
The best use of that $ in my opinion is to put you in a position early in your life to be debt free. Nothing better in the world then to have the house paid off, live relativly simply, and most importantly you don't feel the pressure to stick with a job that is running you down due to financial obligations.
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Haggis
Trad climber
Scotland
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Mar 25, 2008 - 03:11pm PT
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ADK
PGE group metals are vital to the new ecofriendly cars and clean fuel that we here so much about.
it may be true what you say about gold but you can look at a useless metal in the same light as a something like Ni or Cu
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malabarista
Trad climber
San Francisco, Ca
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Mar 25, 2008 - 03:40pm PT
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100K isn't much? That's a fortune! Just don't buy a CA house and you are fine.
If you don't think it's much, try saving a 100K on a job that pays 100K or less per year and it will take you several years even if you live low.
I don't know about any of you but a couple years of life to me is HUGE.
I'd use the money to pay off any debts you might have and then invest the rest.
EDIT: oh... the money is tied up in a house with a 95k mortgage... different story. I'd keep the house and let the renter pay it off. I'm in a similar situation, I have about 150k of equity but I'm in my mid 30's. Consider yourself fortunate to have such a head start. It took me many years to build that much equity.
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JLP
Social climber
The internet
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Mar 25, 2008 - 04:57pm PT
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Here's my shitty advice.
1) Get a better job.
2) Your house - buy low, sell high - not the opposite.
3) "Then you are clearing $600 / year on 100,000 of equity - a 0.6% return." Don't ignore taxes.
4) Don't hire a planner w/o knowing 95% of what you expect them to know. My friends earning the best and worst returns both use planners.
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Mighty Hiker
Social climber
Vancouver, B.C.
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Mar 25, 2008 - 05:02pm PT
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The original post wasn't clear, but it sounds like the money originally came from an inheritance, and was invested in the house. Your value of the house increased to about $280K, but has now declined to about $220 K - still more equity than you originally had.
Assuming the money was from an inheritance, that is that it's likely family money, you may want to consider what the person who left it to you would have wanted you to do with it. Even if you don't know, family inheritances are in some ways an investment in the family's future, by the person leaving the money. So whatever you do, it should be something that is good in the long term for you, and so your family.
You can also consider using some of it to honour the memory of the person who left it to you, if that hasn't already been covered.
ps I agree - a post entitled 100 K, by a person going by the name Titanium Tendons, sure sounds about long distance running.
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TitaniumTendons
Sport climber
LA, CA
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Topic Author's Reply - Mar 25, 2008 - 11:47pm PT
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Thanks again guys/gals. All this food for thought is exactly what I was hoping for.
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unnamable
climber
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Mar 26, 2008 - 01:01am PT
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Do you live in the house? Is it your primary residence?
What's the rate on your mortgage? Is it fixed or variable?
You might be able to re-finance; rates are pretty low right now.
Also, do you have health insurance and/or disability insurance?
Any 401K at your existing job?
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climbera5
Trad climber
Sacramento
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Mar 26, 2008 - 03:05am PT
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$100k may not be a kings ransom but its certainly a wonderful start for someone your age. There have been many good suggestions posted here but given your real estate investment you have limited options. You are wise to ask for advice so I would do the following:
1) Educate yourself as much as possible about investments, whether it be stocks, bonds, real estate, or derivatives; it will never be wasted information. You'll use it the rest of your life and make better decisions. The business of America is business so you'll need a full rack to be successful, especially if you go solo.
2) Learn about the 'time value of money', a valuable investment principle for someone your age.
3) Hate your job? Do something about it, $100k won't solve that problem. Make yourself more marketable by getting a graduate degree or professional designations. Again, it will follow you for the rest of your career and make a big difference later on. Leverage your abilities.
4) Sounds like you need to take a break and treat yourself to a nice road trip, clear the head and recharge. Get a fresh perspective before making any financial decisions.
5) Running your own business is time and energy consuming but can be extremely fulfilling and rewarding. You must do what you love though, anything else and you'll burnout. It requires passion, commitment, and vision. I know, I did it for 20 years and did well, but it takes it toll and it requires many sacrifices and adjustments. This is not a light decision so if you have a business idea, first do your homework and think it through.
6) Economic factors I see at play are a) housing in central CA is still depreciating so your $100k may shrink first before rebounding, and that could take some years to recover depending upon where you live; b) inflationary pressures may force interest rates to rise so if you have an adjustable mortgage, switch to a fixed rate. I'd give it a 50/50 chance that we see the stock market go lower, much lower this year before things stabilize, so unless you know stocks really well, don't play that game just yet.
Good luck, sorry for your loss, and above all - follow your bliss.
MG
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p-dub
climber
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Mar 26, 2008 - 04:45am PT
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I would kill a man for $100K.
edit: What you haven't mentioned is your skill set. BA in BS from a great school, BFD. You hate what you do, no? If not, maybe advance in that field with a MA? More work, but more satisfaction and more money? But, you might hate that as well since all you want to do is grapple with the sheer rock faces...
So, with that $50/month buy a case of Steele Reserve and hit the road.
Honestly though, realize that you are now in the real-estate business, whether you like it or not. Learn as much about that as you can.
If I had $100K I would pay my student/cc debt, update my eyeglasses script, buy new tennies and take my dog to the vet. Other than that, carry on.
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Karl Baba
Trad climber
Yosemite, Ca
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Mar 26, 2008 - 07:46am PT
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Stall a little. Invest in something conservative and interest bearing. Then you can live between India, Thailand and Nepal (trekking is super cheap) for a year or two or longer, spending something like $10 a day (or way less if you work at it)
Meantime our economy is going to melt down soon and you'll be able to swoop down we hit bottom and invest in dirt cheap real estate and have more renters paying more mortgages for you.
If you can work out a deal to telecommute a bit via the net, so much the better
Good Fun, Good money, Enjoy
Peace
Karl
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hobo_dan
Social climber
Minnesota
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Mar 26, 2008 - 09:18am PT
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go the hobo way
While riding the rail swould be cool- and I would go sop far as to say freezing this time of year
Get out of debt- if you can avoid those obligations it opens up so many options. If you owe then you gots to work.
Ed Abbey had a great line-if you don't spend it you don't need it.
So find a way to scale your lifestyle back
Stop going to restaurants and cook your own food
By used everything
Do activities that are free and aerobic
Figure out what you need to live on month to month. Calculate what a major medical health plan would be for yourself
And then..............?
Decide if the job is worth it.
Or ask for a leave of absence. can you live out of your car and go on the hang for the summer? All those walmart parking lots are calling. groove off to the free camping in and around the climbing areas
work the system and get in with a group at various climbing campgrounds. Share the site and the cost.
Leave of absence seems like best option to me and now get off you ass, fill out the forms and become the 100k hobo
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WanderlustMD
Trad climber
Lanham MD
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Mar 26, 2008 - 09:25am PT
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haha Werner...
"Invest in Werner. Invest in your future."
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WanderlustMD
Trad climber
Lanham MD
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Mar 26, 2008 - 09:32am PT
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100k may not be much long term, but it's still 100k and is not chump change! I'd sh#t myself if 100k fell from the sky. Here's what I would do.
Take 10k and go nuts. Go climbing, travel whatever. Enjoy life. You are young and insane levels of saving for retirement when you are too old to do anything never made much sense to me. I'm not saying be irresponsible, but you might get hit by a bus in five years! Your big fat savings might go to crazy Aunt Ethel.
Repeat: ENJOY LIFE!
As for the rest (Bear in mind that I'm not a financial advisor and take what I say with a grain of salt):
Take 50-60% and invest it in a low risk area. Especially with the economy going south. Invest in something that isn't going to tank...like spagetti-os or something.
Take the remaining 40-50% and use that as play money. Invest in higher risk, higher return ventures. I'd still err on the side of caution, but allocate an amount of money that you wouldn't be heartbroken if you lost it all. Maybe 40-50 is too much...your call.
You have a chance to make a solid foundation, make the most of it without squirriling it away for a day that may not come.
My 2c.
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Wes Allen
Boulder climber
KY
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Mar 26, 2008 - 11:02am PT
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Cash out. Put half away, live the life you want on the other half, for as long as you can. That might mean a little part time work to help make it last longer - but that is a good thing. Get a couple part time jobs / internships in something that interests you in areas of the country that have climbing or skiing or a beach. Travel and climb in-between, research new careers on rest days. Maybe study or teach yourself some new skills (tech area is good for this). To me life is rarely about finding what you want, so much as finding out what you don't want, so take some chances, and keep an open mind. You never know where life will take you if you let it.
If you really work it 10K can buy a year of climbing all over the us, and that is living pretty upperclass dirtbag style. For the hardcore dirtbaggers, that could be two years. When you are tired of the climbing life (it really does happen!) or have found something you really want to do, you will have a little bit of cash to get you started.
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Redwood
Gym climber
West Sacramento CA
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Mar 26, 2008 - 12:33pm PT
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If it were me, I'd invest in rural property -- then stock up on food and other items. All this in preparation for the decline and eventual fall of technological society.
George Bush gave me the idea, since he recently purchased 100,000 acres in Paraguay -- or so I've heard; maybe it's only a rumour.
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Gobie
Trad climber
Northern, Ca.
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Mar 26, 2008 - 12:53pm PT
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10% to your church (charity), 10% to savings, pay off your debts, invest in a home while the market is declined. This same thing happened to me last year from wifes side of the family.
P.S. My house is sweet and mortgage is less then my rent was.
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