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Ask HN: What's the easiest way to make a living with $600k in cash?
11–20 of 92 posts
Re: Ask HN: What's the easiest way to make a living with $600k in cash?
#12With $600k, you could just not touch it and then be free to do whatever job you want to just cover living expenses with no thought of retirement I'm pretty sure. "Coast FIRE" achieved. EDIT: By "not touch it" I meant invest it in something safe and easy and then you'll have full retirement money in 30y
Suppose you retire at 65 and live to 90. That's 25 years. $600k is $24k/year for 25 years. Of course your investment may grow in the meantime; but there will also be inflation. I would suggest that $600k is insufficient savings for a retirement that would support the lifestyle you are accustomed to.
Kinda hard to make that call given you don't know what kind of lifestyle OP is accustomed to, or where they even live.
At any rate, it's not $600k, because OP is going to retire in 30 years. Reasonably invested, I think you could get that up to $2.5M or so by then. And presumably OP won't be spending every cent of income over the next 30 years and will continue contributing to that nest egg, even if modestly.
A 4% withdrawal rate is probably safe if the retirement horizon is only 25 years. On $2.5M that's $100k/yr, which is plenty for most places in the world. Yes, inflation complicates things somewhat, but I think OP will still be fine.
Re: Ask HN: What's the easiest way to make a living with $600k in cash?
#13Half in cash half in investments Of the 2nd half: half in regular investments the other half in crypto of the regular investments half, put it all on an index fund. Of the crypto half, put half of it in bitcoin and half of it in some crypto index etf When the next crash happens take half of cash which is now more valuable and invest as above
Please do not put 25% of your money into crypto, that’ll be a quick way to lose tens of thousands of dollars in a short time. Crypto is risky with wild swings, you shouldn’t put more than 5% into crypto.
As with most investment advice, it totally depends on your risk tolerance, age, and other life circumstances. If you’re 25 with a solid job and some surplus money to invest, a high risk strategy may be worthwhile. The upside can be immense while the downside (losing nearly all your invested money) may not actually be all that life changing.
Re: Ask HN: What's the easiest way to make a living with $600k in cash?
#14Half in cash half in investments Of the 2nd half: half in regular investments the other half in crypto of the regular investments half, put it all on an index fund. Of the crypto half, put half of it in bitcoin and half of it in some crypto index etf When the next crash happens take half of cash which is now more valuable and invest as above
No one knows if the next crash is gonna happen tomorrow or in 10 years (HN in fact has been predicting it "soon" for the last 5 years). Or whether it's gonna be a small one (so you might buy too late, already on the way up) or a deep one (so you might buy too early, and then have all the issues of the crash anyway). In fact if you put half now (not expecting a crash) and hold half (expecting a crash), you are basical…
It’s like playing roulette and betting on every single space
Re: Ask HN: What's the easiest way to make a living with $600k in cash?
#15Half in cash half in investments Of the 2nd half: half in regular investments the other half in crypto of the regular investments half, put it all on an index fund. Of the crypto half, put half of it in bitcoin and half of it in some crypto index etf When the next crash happens take half of cash which is now more valuable and invest as above
Putting money into cryptocurrency for any reason other than pure speculation is incredibly foolish.
Re: Ask HN: What's the easiest way to make a living with $600k in cash?
#16Half in cash half in investments Of the 2nd half: half in regular investments the other half in crypto of the regular investments half, put it all on an index fund. Of the crypto half, put half of it in bitcoin and half of it in some crypto index etf When the next crash happens take half of cash which is now more valuable and invest as above
Please do not put 25% of your money into crypto, that’ll be a quick way to lose tens of thousands of dollars in a short time. Crypto is risky with wild swings, you shouldn’t put more than 5% into crypto.
Also it's fueling a massive amount of power usage for limited utility.
Re: Ask HN: What's the easiest way to make a living with $600k in cash?
#17Earlier quoted context omitted.
Please do not put 25% of your money into crypto, that’ll be a quick way to lose tens of thousands of dollars in a short time. Crypto is risky with wild swings, you shouldn’t put more than 5% into crypto.
As with most investment advice, it totally depends on your risk tolerance, age, and other life circumstances. If you’re 25 with a solid job and some surplus money to invest, a high risk strategy may be worthwhile. The upside can be immense while the downside (losing nearly all your invested money) may not actually be all that life changing.
This same advice would apply to lottery tickets. It’s the opposite that’s actually true, if you lose 25% of your assets right away, that will compound to become millions of dollars in the future. I’m not saying to invest conservatively, it should be aggressive. But investing in a crypto ETF, where most people agree 90% of the coins will and should go to $0…that’s just reckless.
Re: Ask HN: What's the easiest way to make a living with $600k in cash?
#18The first thing to do IMHO is learning at least the basics on investing. You can afford to lose a few months in inflation to avoid following some rando's advice that doesn't fit you at all. The following is not even my advice, just what I think I'd do in that situation.
There's many communities around these topics, I particularly like Reddit's /r/financialindependence. If I had $600k in cash right now, I'd treat it as a windfall and start reading around here:
https://www.reddit.com/r/personalfinance/wiki/windfall
There's a logic to maximizing your money/safety, which is very generic advice to a very generic question, and it goes something like:
1. Make sure to keep an emergency deposit, in cash, that would cover all your expenses for 3-6 months. Adjust for fun factor and culture.
2. Pay off high interest debt.
3. Pay off mid-interest debt.
4. Learn about investing. Investing can be from getting a degree/masters in a higher paying field if you are young and underpaid, to day trading with all its intricacies. Of course the general blanket response is ETFs, Bonds, etc.
Learn about your risk tolerance. Higher risk normally implies higher profits. E.g. if you have most of your disposable income tied into good debt, you'll probably have quite a lot of profit. But get sick for a month with lower pay, lose your job, etc. and you might lose it all.
Re: Ask HN: What's the easiest way to make a living with $600k in cash?
#19Hi - go talk to a financial advisor
Re: Ask HN: What's the easiest way to make a living with $600k in cash?
#20see what you want to do: be an employee, be selfemployed as freelance, trader or "business owner" on whatever skills you have / can acquire. You have to invest your time in what you see profitable / risk tolerable and put the majority of your capital in investiments and let compounding work for you. Capital preservation and growth is a must for anybody in the "capital race", a "day job/activity" is what help you achieve those 2 in the long term as your real goal