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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?

#91

Earlier quoted context omitted.

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…

> you're on the second bottom rung of a very tall ladder > A Pareto distribution I'm not following. Pareto distributions don't have "rungs". Who defines the rungs of the ladder? Why is $600k the second bottom rung?

They do not. I'm trying to find a simile that will facilitate the perspective that the size of the number and the goal of making a living from it is more meaningful when you compare it against the amount of capital that people typically use to make a living from investments.

For concrete thinkers: people who live off investments usually need more than $600k, so the question is how to use that money to grow it into an amount similar to what said people live off.

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

#92

Earlier quoted context omitted.

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

Neither is the 600k FDIC unless it is in 3 different bank accounts earning 0.01%pa. Securities… well you got SIPC protections if the brokerage fails but that ain’t insurance. Insurance is useful sure but insurance also is a cost. Some risks in life are uninsurable.

I think the FDIC will insure $1,250,000 if you name 5 beneficiaries.
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