Earlier quoted context omitted.
Tax free municipal bonds.
Come back and tell me about dumping all your money into tax-free municipal bonds in two years.
What is the reasoning behind your comment?
Rethinking 'Fuck You' money
61–70 of 172 posts
Re: Rethinking 'Fuck You' money
#62If you ask me, the best way to invest the $2 million mentioned in the article in order to retire comfortably would be rental property. Take your $2 million and buy four $500K houses (or eight $250K houses, or whatever's appropriate). Pay an agent to take care of them, or do it yourself, depending on how much involvement you want. That should yield maybe $8,000 a month in rent, which after you've taken care of all the extra costs should still be enough to live on quite comfortably. Any capital gains you enjoy (and if you're smart you'll have invested in an up-and-coming area) are a bonus.
The best part is that you don't need to leave some money on the table to hedge against inflation, since in the long term rent will pretty much keep pace with inflation.
There are areas where this is a completely terrible idea due to rent controls and other landlord-unfriendly policies, obviously you shouldn't do it there. Also, avoid any area where you're likely to get undesirables as tenants.
Re: Rethinking 'Fuck You' money
#63People who think 6-10% returns are unrealistic are sheep, and know nothing about real estate. A friend of mine, a complete novice, was able to buy a multifamily unit in downtown San Jose for 500K and rent it out for 5000 a month. His down payment is 100K. His expenses(400K mortgage, insurance, taxes, etc) is 2500 a month. His rate of return is (5000-2500)x12/100K = 30% or so. He did this while violating the #1 rule o…
So because your friend managed to get a crazy-good deal on one property, everyone else is sheep?
Arbitrage opportunities do exist in the current market due to the current craziness, but the present foreclosure pace can't last forever. I don't know how long "70% of MLS" has been "the #1 rule of real estate investing", but how easy was it to snap up properties for those prices in 2005?
Re: Rethinking 'Fuck You' money
#64"His belief was that it was likelier to get worse before it got better and that it could be 10 years or more before the economy bounced back. “I think we’ll see Dow 4,000 before we see Dow 12,000,” he told me."
sure but as long as you believe the economy is going to bounce back over 10 years then if you took a good piece of your $5m and simply put it into an index fund now, in ten years (retirement) time you'd have a very healthy return on it.
i don't agree that now is a bad time to invest. i believe now is a bad time to invest for returns over the shorter/medium term but if you're talking about investing over a retirement time scale then it's during periods like the one we are in where big returns can be made.
Re: Rethinking 'Fuck You' money
#65Repost but a quote from George Foreman about longshoremen. What is real wealth?: Mr. Foreman, who stared down financial collapse as an adult despite a troubled, impoverished childhood, said he knew real wealth when he saw it. “If you’re confident, you’re wealthy,” he says. “I’ve seen guys who work on a ship channel and they get to a certain point and they’re confident. You can look in their faces, they’re longshoreme…
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Re: Rethinking 'Fuck You' money
#66His premise seems flawed to me. He says people should forget about F@#$ You Money because you can't depend on it to grow in this bad economy. That's reasonable. But then he suggests you aim for “f@#$ you influence and credibility” because it "allows you to charge $30k+ for a 1 hour speaking engagement". But I know people who used to make $10k per speaking engagement and they aren't getting much work lately. In my exp…
eh, I dono. To a certain extent, credibility can be transformed in to money... e.g. if you write a technical book, you will have a much easier time getting a job later on.
On the other hand, I think most things that get you a lot of money also gets you a lot of credibility, so going from just f-ck you money to f-ck you money plus f-ck you credibility isn't going to take much effort; you just have to be a bit more public, a bit more vocal about what you are doing.
Re: Rethinking 'Fuck You' money
#67Repost but a quote from George Foreman about longshoremen. What is real wealth?: Mr. Foreman, who stared down financial collapse as an adult despite a troubled, impoverished childhood, said he knew real wealth when he saw it. “If you’re confident, you’re wealthy,” he says. “I’ve seen guys who work on a ship channel and they get to a certain point and they’re confident. You can look in their faces, they’re longshoreme…
in entertainment and sales, confidence is almost everything. The thing is, outside those fields, confidence is dramatically less useful. (granted, sales skills have a pretty wide applicability, but my point is there are jobs that don't involve much sales, where confidence doesn't matter that much.)
Re: Rethinking 'Fuck You' money
#68I think after you get fuck you money, your goal should be to create a lifestyle business. Something that can more or less run on autopilot and generate money for you to live on. If you are a web guy, you can create some software product(or pay someone to build one for you). Then charge $50 a month...and you only need to make 6 sales a day(via adwords) to make $100K/yr. If you are not...you can buy a franchise...i.e.…
>I think after you get fuck you money, your goal should be to create a lifestyle business. Something that can more or less run on autopilot and generate money for you to live on.
my god, man, if you are capable of building a business that pays you a good salary without doing much any work, why not do so /before/ you get f-ck you money? I mean, at that point, you'd have a lot of time to pursue whatever startup ideas that might get you f-ck you money.
Re: Rethinking 'Fuck You' money
#69Earlier quoted context omitted.
If you can make something that makes you $100k/yr why wait until you have already made your fuck you money?
because a lot of these niche $100K/yr products...hit the ceiling at 150-200K. So you have no security like you do when you have 5-6 million in the bank. Anything can happen...Google might slap your adwords account, someone might release a competing product etc. And starting a lifestyle business with FU money, means that you can tough it out as it grows from 1 sale every other day, to 1-2-3-4-5-6 sales a day.
If you can build a $100K/year product, why not do that, and then use that money as your runway while you build your five million dollar product?
building a company is /much/ easier if you don't have to worry about where rent is coming from three months from now.
Re: Rethinking 'Fuck You' money
#70The first 3/4 of this article is fucking terrifying .
If you are not fucking terrified at the moment you're not paying attention.
eh, it's been a long time coming. corruption is endemic to the system; shareholders have outsourced management of their companies without providing any supervision. there's really no way that is sustainable.