Ask HN: I have 50k. How do I make it more without a startup? - zeynalov
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Kaizyn
The only way to make it grow is through investing it. The more risk you take
on, the higher it has the chance to grow. However, at the same time you have
an increased risk that you'll lose your investment.

A money market account is safe and leaves your liquid assets in a state where
you can get them easily. The downside is a poor rate of return.

Tax-exempt bonds (local, state or federal) are an attractive option provided
that the rate of inflation doesn't exceed your rate of return or reduce it to
effectively nil.

Another sensible option would be to pay off any debts you have. Your income is
your best way to grow wealth, and every dollar you pay in interest is a dollar
taken away from your future earnings. Even though this isn't as exciting an
option as putting your money in the stock market, this might be your best bet
longer-term.

If you have no debt, then the $50k would go a long way towards a down payment
on a home - that way you can stop paying rent, which is another source of
wasted earnings.

~~~
cauterized
I agree with the rest of the advice, but buying a home is not a good
investment in all parts of the country/world, nor at all times. A home you own
decreases your mobility and thus your employment options, especially if the
labor or housing market in your area plummets in the future.

In other markets, home ownership and all its associated costs (including
property taxes and maintenance) is more expensive in both the long and short
term than renting.

For instance, for what I pay in rent in NYC (PLUS a down payment), I would
have to commute at least 3 times as long to afford to buy an equivalent home.
And also have to add the responsibility (in time and expense) for maintenance
- from upgrading the plumbing to shoveling snow from the sidewalk.) Further,
it'd be much more difficult to see friends, whom I'd no longer live near.
That's all time that could instead be spent with friends and family, being
healthier, or even making money on a side project or freelancing.

And if you get poor terms on your mortgage (think variable rate loans), you're
just setting yourself up for pain.

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lobster_johnson
The subreddit /r/personalfinance has a wiki article about "windfalls", the
principles of which apply here (section "Get educated on saving and
investing"):

[https://www.reddit.com/r/personalfinance/wiki/windfall](https://www.reddit.com/r/personalfinance/wiki/windfall)

------
scraft
I got 'talked into' moving a chunk of money out of a current account into a
combination of investment ISAs and Personal Investment Plans with Scottish
Widows. Over 5 years they have increased in value by about 35%, so average 7%
per year. Here is one of the ones I used:

[http://webfund6.financialexpress.net/clientsv21/scottishwido...](http://webfund6.financialexpress.net/clientsv21/scottishwidows2/PerformanceChart.aspx?typeCode=FIXX5)

I went in knowing nothing, and wouldn't have done it if my bank hadn't pushed
me in that direction (the department of the bank no longer exists) and I guess
I got lucky, as it has worked out well for me.

PLEASE NOTE: investment ISAs/Personal Investment Plans with Scottish Widows
can go up and down. Also bear in mind I an openly saying I know next to
nothing about this, so please don't jump into anything without researching it
carefully.

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powera
Get a job.

There's no way for you to reliably make even 20k in the next year off of an
investment of 50k unless you are going to be personally involved in it. You
will also almost certainly make at least 20k at your job in the next year, and
can probably figure out a way to increase your salary by 20k.

~~~
rayj
Put 5k in NYSE:BND for your emergency fund, Fidelity/Vanguard/Etc work about
the same. Then put 5500 in Roth IRA NYSE:VOO. Then do the same for your work
401k account if you have one. Put the rest in a brokerage account in NYSE:VOO,
maybe save 5500 for 2018 IRA.

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gnarbarian
Try an index fund.

~~~
anotheryou
Same boat here. I'm really scared of a stock market crash.

~~~
scorpioxy
Me too. Low fee index funds always seem to be the generic answer but after
reading many articles and a couple of books about it, I am still not
convinced. It seems to me that the rate of return has a lot to do with when
you enter/exit the market and it is well known that you can't time the market
so how is this different than any other gamble?

There was also a popular article(NYT?), which I can't find the link to at the
moment, that showed me that only if you invest in the market for around 30
years or more, can you get a decent return. To me that makes sense if you want
to leave your kids a little something after you're gone but not for your own
lifetime.

Can someone educate me on this? Does everyone reply "index funds" because it
is fashionable to do so or am I missing something here?

~~~
aianus
> It seems to me that the rate of return has a lot to do with when you
> enter/exit the market

Most people "enter the market" continuously by depositing a percentage of
their pay each month of their career and "exit the market" slowly and
continuously during retirement 40 years later.

The booms and busts in between become irrelevant and you're left with a nice
and high average rate of return.

~~~
greenyoda
In fact, even if you started investing in an S&P 500 index fund at the top of
the market right before the big crash of 2007 (financial crisis), you'd still
have a very decent return today.

~~~
scorpioxy
That article convinced me otherwise. I wish I could find it now because I'd
love to get some input on the numbers that, I'm assuming, I'm reading
correctly.

~~~
Malician
I can't check without the article, but some mistakes I've seen - ignoring
reinvested dividends (~2%/yr,) and unrealistic tax figures

on the other side, you've got people who ignore inflation and assume 10% a
year returns promising ridiculous growth

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venkasub
'more' in terms of value? Then, take a break and roam the world. You can
sustain for 2-3 years and do a RTW at a slow-n-steady pace and also make some
money in the interim :)

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khalll
Buy Bitcoin for 50k and sit on it. Not even kidding. :)

~~~
MildlySerious
Only if you have the calm and patience to sit through a major dip. Or wait
until then to buy.

Bitcoin as an "investment" is a lot more volatile than most other options.
But, as of now, also a lot more profitable.

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techthumb
Given that you are in Australia, I suggest that you look at Forager Funds
Management. I think they provide a reasonable way to enter the stock market.

~~~
LeonB
I concur.

~~~
somedangedname
Shill - check the post history

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cauterized
If you take a few months off to live on that money and learn something new,
would it be enough to increase your earnings by $100k total over the next 5-10
years? That's also an investment, and one that's got a decent chance of
doubling your money in a reasonable timeframe.

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merchang
Index fund, real estate. Personally I like real estate because I find the
principles of it intuitive.

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staz
I would recommend reading the book "Your money or your life"

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scorpioxy
An unusual recommendation perhaps but recently I've been thinking of starting
a small online business. Investing in that seems to offer the better risk to
reward ratio. It also doesn't require a large capital to start. Consider that
perhaps?

~~~
zeynalov
I don't have time to start a business, otherwise I wouldn't ask (see the
title). I just look for ways to make it more with doing one time jobs (like
investing, buying selling etc.) which I don't have to do the thing on a
regular basis but one time and make it 51k after some time, for example.

~~~
scorpioxy
When I say small online business, I was thinking more along the lines of drop
shipping or novelty items from china which you can resell. There's a big
difference between the effort required for a startup and populating a shopify
account...

If you're after no effort at all, then investment is probably the best advise
you would get. But that does carry some risk. As always, the risk/reward
ratio...

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boznz
Dear Sir, SEEKING YOUR IMMEDIATE ASSISTANCE. Please permit me to make your
acquaintance in so informal a manner. This is necessitated by my urgent need
to reach a dependable and trust wordy foreign partner. This request may seem
strange and unsolicited but I will crave your indulgence and pray that you
view it seriously. My name is. DAN PATRICK of the Democratic Republic of Congo
and One of the close aides to the former President of the Democratic Republic
of Congo LAURENT KABILA of blessed memory, may his soul rest in peace. Due to
the military campaign of LAURENT KABILA to force out the rebels in my country,
I and some of my colleagues were instructed by Late President Kabila to go
abroad to purchase arms and ammunition worth of Twenty Million, Five Hundred
Thousand United States Dollars only (US$20,500,000.00) to fight the rebel
group. But when President Kabila was killed in a bloody shoot-out by one of
his aide a day before we were schedule to travel out of Congo, We immediately
decided to divert the fund into a private security company here in Congo for
safe keeping. The security of the said amount is presently being threatened
here following the arrest and seizure of properties of Col.Rasheidi Karesava
(One of the aides to Laurent Kabila) a tribesman, and some other Military
Personnel from our same tribe, by the new President of the Democratic Republic
of Congo, the son of late President Laurent Kabila, Joseph Kabila. In view of
this, we need a reliable and trustworthy foreign partner who can assist us to
move this money out of my country as the beneficiary. WE have sufficient
''CONTACTS'' to move the fund under Diplomatic Cover to a security company in
the Europe in your name. This is to ensure that the Diplomatic Baggage is
marked ''CONFIDENTIAL'' and it will not pass through normal custom/airport
screening and clearance. Our inability to move this money out of Congo all
This while lies on our lack of trust on our supposed good friends (western
countries) who suddenly became hostile to those of us who worked with the late
President Kabila, immediately after his son took office. Though we have
neither seen nor met each other, the information we gathered from an associate
who has worked in your country has encouraged and convinced us that with your
sincere assistance, this transaction will be properly handled with modesty and
honesty to a huge success within two weeks. The said money is a state fund and
therefore requires a total confidentiality. Thus, if you are willing to assist
us move this fund out of Congo, you can contact me through my email address
above with your telephone, fax number and personal information to enable us
discuss the modalities and what will be your share (percentage) for assisting
us. I must use this opportunity and medium to implore You to exercise the
utmost indulgence to keep this Matter extraordinarily confidential, Whatever
your Decision, while I await your prompt response. NOTE: FOR CONFIDENTIALITY,
I WILL ADVISE YOU REPLY ME ON MY ALTERNATIVE EMAIL BOX ...Thank you and God
Bless. Best Regards, MR DAN PATRICK.

~~~
mattnumbe
What happened to downvotes?

~~~
gesman
Downvoting worked for me

