what would you do?

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[quote author="USCTrojanCPA" date=1253422913][quote author="topdown" date=1253421738]Howdy folks. Been a long time lurker. Thought I finally register and make a post/question.



<strong>Scenario</strong>

You have about 120k in a savings account.

You make about 100k/year as a computer geek.

You have zero debt.

You have zero interest in finance. (thus the amount in savings)



What would you do with the money?





Thanks

topdown</blockquote>
Be in cash for now and possibility invest once we get a decent pull back in the stock market.</blockquote>


I completely agree, this is what I would do.
 
[quote author="topdown" date=1253421738]Howdy folks. Been a long time lurker. Thought I finally register and make a post/question.



<strong>Scenario</strong>

You have about 120k in a savings account.

You make about 100k/year as a computer geek.

You have zero debt.

You have zero interest in finance. (thus the amount in savings)



What would you do with the money?





Thanks

topdown</blockquote>


We have much in common. But age and goals need to be in your question. Also children and marital status.

Note: If your married half of it is gone. Divorce/Alimony and Child support and your broke.



But for a single old fart like me its all one word.



"Ferrari" 458 Italia.



<img src="http://www.itechnews.net/wp-content/uploads/2009/07/Ferrari-458-Italia-Sportscar-front.jpg" alt="" />



At least with the car you can enjoy it and its deprecition is somewhat controlled.
 
[quote author="roundcorners" date=1253613252]talk to most millionaires and they will tell you that they have earned and lost millions in their careers... you will NEVER "win" with just a savings account... but you will never truly get ahead...</blockquote>


how quickly times change, eh? 6 months ago the world was ending. cash was king. over a 20 yr period, if you were invested in cash, cds, treasuries, or savings bonds, you looked like a genius and might have outperformed people who jumped into every risky "sure-thing" over the years like tech and RE. imagine if you bought 30-yr noncallable savings bonds in the early 80's yielding +10% and still had 5 yrs left on them. maybe not realistic, but there are a lot of very wealthy people are also extremely conservative (by today's standards).



the bogleheads, schwabs, and jeremy siegels of the world have done a great job of ingraining the stocks 10%-bonds 6% rules of thumbs into every american's heads. the stock market has become so much a part of americana that we forget that just a generation ago, most workers didn't have a 401k let alone actively managed investments. the biggest investments a family might have had were their homes and savings (excluding pensions).



today's working people have more of their wealth invested in stocks and bonds than previous generations. today we also work longer hrs, require dual incomes only to live in lesser homes, have lower savings rates, and are less prepared for retirement than ever. am i missing something?
 
[quote author="acpme" date=1253660870][



how quickly times change, eh? 6 months ago the world was ending. cash was king. over a 20 yr period, if you were invested in cash, cds, treasuries, or savings bonds, you looked like a genius and might have outperformed people who jumped into every risky sure-thing over the years like tech and RE. imagine if you bought 30-yr noncallable savings bonds in the early 80's yielding +10% and still had 5 yrs left on them. maybe not realistic, but there are a lot of very wealthy people are also extremely conservative (by today's standards).</blockquote>


Neither of my parents has any interest in anything financial. My mom is very conservative. She puts most of her money in CDs. My Dad put most of his money in the stock market, mainly index funds through his 401K. My dad used to call my mom stupid for not investing her money and for about a decade he was right. Now in terms of overall percentage gains, they are about equal.



I think that if you have a good paying job, the easiest way to get rich is to spend less.
 
[quote author="ABC123" date=1253662080]

I think that if you have a good paying job, the easiest way to get rich is to spend less.</blockquote>


Lower spending and efficient tax planning. People forget about that one.
 
I started purchasing places in Arizona and Texas (Large populated areas). While they may not cash cows and pay HUGE amounts of money, it is a long term investment. I recently purchased a quad for 210k. It cashflows 1000 a month... The state(s) are giving me a nominal tax break as well as assistance. While it doesn't cashflow HUGE, in 4-5 years with an very nominal inflation it should sell for a decent amount as well as tax flowed decently to some extra money.

-bix
 
[quote author="acpme" date=1253665287][quote author="ABC123" date=1253662080]

I think that if you have a good paying job, the easiest way to get rich is to spend less.</blockquote>


Lower spending and efficient tax planning. People forget about that one.</blockquote>


This is pretty much why I live the way I do (less than flashy or extravagent). I'd rather put off the tax burden... but the day or recokoning will be swift and harsh. I'll be walking funny for a LONG time.



-bix
 
[quote author="biscuitninja" date=1253686604]I started purchasing places in Arizona and Texas (Large populated areas). While they may not cash cows and pay HUGE amounts of money, it is a long term investment. I recently purchased a quad for 210k. It cashflows 1000 a month... The state(s) are giving me a nominal tax break as well as assistance. While it doesn't cashflow HUGE, in 4-5 years with an very nominal inflation it should sell for a decent amount as well as tax flowed decently to some extra money.

-bix</blockquote>


Are you charging admissions on your border quads?



<img src="http://www.thetakeaway.org/media/photologue/photos/cache/crossing-mexico-border-fence_large_image.jpg" alt="" />
 
[quote author="bkshopr" date=1253687410][quote author="biscuitninja" date=1253686604]I started purchasing places in Arizona and Texas (Large populated areas). While they may not cash cows and pay HUGE amounts of money, it is a long term investment. I recently purchased a quad for 210k. It cashflows 1000 a month... The state(s) are giving me a nominal tax break as well as assistance. While it doesn't cashflow HUGE, in 4-5 years with an very nominal inflation it should sell for a decent amount as well as tax flowed decently to some extra money.

-bix</blockquote>


Are you charging admissions on your border quads?



<img src="http://www.thetakeaway.org/media/photologue/photos/cache/crossing-mexico-border-fence_large_image.jpg" alt="" /></blockquote>


Tucson is about 90 miles from the border and Houston is 7 hrs from any boarder town. And they are in a slightly mid range cost. The lost cost stuff is easy to rent... but you get .... certain clients that are not so ... cultured.



-bix
 
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