Live data from Hacker News

Ask HN: I made $24k over the last month. Now what?

news.ycombinator.com

201–207 of 207 posts

Re: Ask HN: I made $24k over the last month. Now what?

#201
Congrats. But let me tell you this straight: you are not making money (yet). You are now cash-flow positive.

So start paying up your debts. Did you say you don't have any? that's a lie: you owe yourself some (a lot) working hours for programming, distributing, promoting the app.

Also, you had to buy a mac which is also an expense, an iphone or ipod touch, etc...

Step one: sum all that money. Put it wherever you like and feel free to spend it: It's your delayed salary.

The next step is trying to figure out how much money you need to "forget" about getting money everyday.

Maybe 10k/month or 20k/month to cover all your living expenses and get all (physical) things you want without having to worry about money. Let's suppose you're happy with $20k/month (tax free, of course).

Step 2: How much money do you need to have to get $20k in interest ? Figure out that sum. Remember that next year today's $20k will be something like $19,002 or something like that.

First: Keep making money (selling your app, and building one or two more).

Second: Invest in something like bonds (us, corporate bonds, etc...) with good credit rating. You may earn between 1.5% - 8% yearly (if you can buy bonds at discount, better).

Third: Invest in stock, funds, etc... just follow the tide: don't try to outsmart the market because you will fail.

Fourth: When you have time, start looking at derivates. Then, build your own guaranteed-credit deposit with options and swaps. Beat next year inflation (mostly on autopilot).

Five: Enjoy !

Re: Ask HN: I made $24k over the last month. Now what?

#203
post #199

Earlier quoted context omitted.

Incorporation can help with U.S. taxes by enabling a tax-free retirement account with a large contribution limit. (SEP-IRA has a 25% of salary / $49k annual contribution limit.)

Important note: incorporation is required neither for SEP-IRA nor for my favorite, the individual 401(k).

I stand corrected. Thanks!

Re: Ask HN: I made $24k over the last month. Now what?

#204
post #189

Earlier quoted context omitted.

Do not buy a house right now unless you really understand your local market and it's very different than the national average. Home prices are going to drop like a rock this Spring.

What makes you say that?

I've read from numerous sources that the banks are holding foreclosed home off the market until the spring to keep prices high during the 'first time homebuyers credit'.

Once it expires there should be a large influx of new homes for sale which will drive prices down. It's a game of buying now for the tax credit and 'saving' $8,000 or waiting a few months and possibly saving $20,000 because home prices have dropped.

Re: Ask HN: I made $24k over the last month. Now what?

#205

Seems like there MIGHT be some real estate opportunities in some parts of the US. Short sales in Vegas or parts of CA might be interesting. Income properties (strip malls) might be available for cheap. Fourplexes, too. I tend to lean towards our current irrational spending/printing resulting in hyper-inflation (or at least inflation) though plenty of smart people support deflation, too. If you buy the inflation argum…

I am quite sure there is not going to be any inflation or hyper-inflation. The U.S is spending a lot, but it's also very very high income. And a lot of countries have no interest in one of the biggest consumer group for their products disappearing. The U.S dollar will stay weak because this promotes manufacturing, which is what the U.S needs to be doing right now. But it will not weaken much more. The one thing you c…

Wow. You are "quite sure" and feel that crumbling roads is a leading indicator of inflation? I generally make a point not to be snippy on Hacker News, so I'll just post some links and a suggestion to not say you're "quite sure" when you aren't (or really shouldn't be).

http://en.wikipedia.org/wiki/Inflation http://en.wikipedia.org/wiki/Deflation

Kudos on the success, though.

Re: Ask HN: I made $24k over the last month. Now what?

#206
post #189

Earlier quoted context omitted.

What makes you say that?

I've read from numerous sources that the banks are holding foreclosed home off the market until the spring to keep prices high during the 'first time homebuyers credit'. Once it expires there should be a large influx of new homes for sale which will drive prices down. It's a game of buying now for the tax credit and 'saving' $8,000 or waiting a few months and possibly saving $20,000 because home prices have dropped.

That is very interesting - thank you.

Re: Ask HN: I made $24k over the last month. Now what?

#207
post #117
post #91

"What I know how to do best is the app store" Set yourself up as an _angel investor for iPhone apps_. Like a mini-mini-mini YCombinator. Based on your experience, you should be very good at evaluating an individual's chances of creating a successful app. Solicit pitches (HN would be a great source) and make 5 small investments of $5k each. If you make another $25k next month, do another 5 investments. Rinse and repea…

http://en.wikipedia.org/wiki/Accredited_investor

I'm not sure why you linked to that, but if you're suggesting that the OP must become an accredited investor in order to angel invest, then you are incorrect.

I will fight your link with another link:

http://www.sec.gov/answers/rule504.htm

Post reply on HN