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Ask HN: What's the easiest way to make a living with $600k in cash?

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Re: Ask HN: What's the easiest way to make a living with $600k in cash?

#71

Post by jasonpeacock »

cobaltoxide wrote: post #7
whateveracct wrote: post #2

With $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.

Don't forget that as you get older you need more medical support, so your cost of living will actually be increasing while inflation is eating away at the buying power of your savings.

You need an investment that at least matches inflation, and is large enough to cover fixed living + increasing medical costs.

Re: Ask HN: What's the easiest way to make a living with $600k in cash?

#72

Post by cobaltoxide »

kelnos wrote: post #12
cobaltoxide wrote: post #7

Earlier quoted context omitted.

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% wi…

> Kinda hard to make that call given you don't know what kind of lifestyle OP is accustomed to, or where they even live.

Well, they are 35 years old and have $600k, which says something.

Re: Ask HN: What's the easiest way to make a living with $600k in cash?

#73

Post by murderfs »

3np wrote: post #70
murderfs wrote: post #63

Earlier quoted context omitted.

AFAIK, TreasuryDirect should be available to non-Americans. You'll need to get a U.S. Tax Identification Number, and figure out your tax situation though: it'll vary from country to country based on treaties with the U.S.

Looked it up. https://www.treasurydirect.gov/indiv/help/TDHelp/faq.htm#Ope... > In order to open a TreasuryDirect account, an individual or entity account manager must have a valid Social Security Number (SSN), be 18 years of age or over, and be legally competent. An entity must have a valid SSN or Employer Identification Number (EIN). The account owner must also have a United States address of record and have an acc…

Ah, yeah, you're right. You can probably still buy them through a broker, though. Searching around a bit, it looks like you should be able to open an account with Schwab: https://international.schwab.com/

Re: Ask HN: What's the easiest way to make a living with $600k in cash?

#74

Post by randomhodler84 »

beervirus wrote: post #69
randomhodler84 wrote: post #60

Earlier quoted context omitted.

What is money? What is the role of the state in the value of currencies? What is the average life of fiat currencies? https://wtfhappenedin1971.com/

Money doesn’t fluctuate in value 50% on a timescale of minutes.

I mean, it can. Not minutes, and minutes means internet speeds. Old school finance is in the order of days. Securities can collapse in minutes too I guess… Fiat currencies inflate and are worth less every year. In some places in the world, relative to the USD, which itself is an inflationary fiat currency, it could be 50%! What if you gave your life’s labor and saved it all in something a politician and banker could erase with a database record.

Re: Ask HN: What's the easiest way to make a living with $600k in cash?

#75

Post by motohagiography »

pedrosorio wrote: post #64
motohagiography wrote: post #21

First quesiton is: is it savings or windfall? This determines your risk profile. Savings, you can make over again because you've already made $600k once the hardest way possible. Windfall, thank lucky stars and secure that shit. I'd wonder why leveraging it to buy or build a duplex or triplex in a city on the obvious list? The key thing is to tie it up so that it doesn't make you lazy. My wealthy friends are getting…

> it's not a lot of money from a wealth perspective, (you're on the second bottom rung of a very tall ladder) What is this referencing?

A Pareto distribution. It's a lot of cash for someone who works for a salary, but as capital that generates income it's less than a lot of franchise fees and unencumbered capital requirements. e.g. to start a Krispy Kreme donut shop, you'd need about $1.5m in cash. You can buy into smaller franchises for much less, with 2-3x leverage, you might be able to do a Starbucks. Myself included, it's important to feel a bit of humility when sitting in someones starbucks location with a laptop while pontificating about entreprenurship.

Re: Ask HN: What's the easiest way to make a living with $600k in cash?

#76

Post by beervirus »

randomhodler84 wrote: post #74
beervirus wrote: post #69

Earlier quoted context omitted.

Money doesn’t fluctuate in value 50% on a timescale of minutes.

I mean, it can. Not minutes, and minutes means internet speeds. Old school finance is in the order of days. Securities can collapse in minutes too I guess… Fiat currencies inflate and are worth less every year. In some places in the world, relative to the USD, which itself is an inflationary fiat currency, it could be 50%! What if you gave your life’s labor and saved it all in something a politician and banker could…

>I mean, it can.

>Not minutes

So… it can’t?

Re: Ask HN: What's the easiest way to make a living with $600k in cash?

#77

Post by jedberg »

randomhodler84 wrote: post #60
beervirus wrote: post #48

Earlier quoted context omitted.

Bitcoin isn’t money. It’s a gambling token.

What is money? What is the role of the state in the value of currencies? What is the average life of fiat currencies? https://wtfhappenedin1971.com/

> What is the role of the state in the value of currencies?

They provide the violence to back up the value of the currency. A currency is only as valuable as the courts and ultimately the army that backs it.

Re: Ask HN: What's the easiest way to make a living with $600k in cash?

#78

Post by medvezhenok »

murderfs wrote: post #39
randomhodler84 wrote: post #32

Not financial advice, 600k isn’t enough unless you live in a low cost of living region. Lazy: Send it to Gemini, buy 600k worth of GUSD, loan it on their Lend program and collect 8%pa compounded monthly. Collect 48k GUSD a year. Convert that back to bank dollars every month. Live your life. Risky: Send it to Gemini, buy 600k DAI. Send it to ethereum chain. Buy $200 of ether that you will spend on gas. Swap half the D…

> Lazy: Send it to Gemini, buy 600k worth of GUSD, loan it on their Lend program and collect 8%pa compounded monthly. Why would you bother with this when TIPS bonds are paying out 7.12%?

Series I Bonds, not TIPS; they only have that rate locked in for the next 6 months (you're getting a 0 percent real return), and you can only buy $10K per year (+$5K if you do the tax return withholding method).

Re: Ask HN: What's the easiest way to make a living with $600k in cash?

#79

Post by medvezhenok »

artdigital wrote: post #61
11101010001100 wrote: post #52

Earlier quoted context omitted.

But the ~8% on GUSD is not insured right?

No crypto products are insured the same way banks are insured

This is incorrect - there is no FDIC backstop on crypto or stablecoin lending. The risks are not comparable.

Source: https://support.gemini.com/hc/en-us/articles/360056367771-Ar...

Re: Ask HN: What's the easiest way to make a living with $600k in cash?

#80

Post by [deleted] »

murderfs wrote: post #73
3np wrote: post #70

Earlier quoted context omitted.

Looked it up. https://www.treasurydirect.gov/indiv/help/TDHelp/faq.htm#Ope... > In order to open a TreasuryDirect account, an individual or entity account manager must have a valid Social Security Number (SSN), be 18 years of age or over, and be legally competent. An entity must have a valid SSN or Employer Identification Number (EIN). The account owner must also have a United States address of record and have an acc…

Ah, yeah, you're right. You can probably still buy them through a broker, though. Searching around a bit, it looks like you should be able to open an account with Schwab: https://international.schwab.com/

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