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Started By
Message
Financial Advice - what would you do?
Posted on 12/12/14 at 9:11 pm
Posted on 12/12/14 at 9:11 pm
You need $25,000 a year over for a 10 year period and have $250,000 cash to start with Day 1. What is your plan that will allow you to use $25,000 a year while maximizing what will be left of the $250,000 principal after 10 years?
5
Posted on 12/12/14 at 9:32 pm to bwm14
Stick it in the stock market unless I was retired and could run my own business like flipping houses.
Posted on 12/12/14 at 9:54 pm to C
If that post is evidence of anything it's don't get your financial advice from a message board.
Posted on 12/12/14 at 10:14 pm to bwm14
250k starting
Used large power forklift 30k
Sequoia Bandsaw sawmill 10k
5 acres of land near a highway 15k
Small building for office use/Shower etc 25k
Yearly insurance premium, unknown $$
Used Dually pickup and flatbed trailer 15k
80 tons red oak at 75$ per ton 7k
Months worth of diesel for saw and truck 1000
Cut oak logs, Cross ties are worth 30$ a pop, the planks can be sold at an average of $700 per 1000 sq feet.
20 tons is a normal truck load, and is normally 20-30 cross ties and around 6000 sqft of planks.
So $600 for cross ties and $4200 in planks. It will take about a week to do a load.
$4800
-$250 fuel
-$1500 logs
$3050 bottom line per week, $12200 a month.
$146000 a year, minus insurance and taxes which I am unsure of, but one should be able to walk away with $100000
May not be for you though. It is a lot of work. Within five years it'd be possible to have 2 18 wheelers, 5 saws, 15 employees, grading deck, and be looking at 500-750,000 in revenue a year cutting specialty lumber
Used large power forklift 30k
Sequoia Bandsaw sawmill 10k
5 acres of land near a highway 15k
Small building for office use/Shower etc 25k
Yearly insurance premium, unknown $$
Used Dually pickup and flatbed trailer 15k
80 tons red oak at 75$ per ton 7k
Months worth of diesel for saw and truck 1000
Cut oak logs, Cross ties are worth 30$ a pop, the planks can be sold at an average of $700 per 1000 sq feet.
20 tons is a normal truck load, and is normally 20-30 cross ties and around 6000 sqft of planks.
So $600 for cross ties and $4200 in planks. It will take about a week to do a load.
$4800
-$250 fuel
-$1500 logs
$3050 bottom line per week, $12200 a month.
$146000 a year, minus insurance and taxes which I am unsure of, but one should be able to walk away with $100000
May not be for you though. It is a lot of work. Within five years it'd be possible to have 2 18 wheelers, 5 saws, 15 employees, grading deck, and be looking at 500-750,000 in revenue a year cutting specialty lumber
This post was edited on 12/12/14 at 10:30 pm
Posted on 12/12/14 at 10:37 pm to Cmlsu5618
Can you find a 10 year timeframe that he would lose money putting his money into a SP 500 index fund?
Posted on 12/12/14 at 10:46 pm to bwm14
unless you have a business idea or can invest in something private, I'd think the easiest way to generate that income stream is either rental property or high-yield funds/securities
Posted on 12/13/14 at 9:22 am to Feed Me Popeyes
The money is just to live on and supplement income while not having to be actively involved in it's management. No time for rental property or a side business, just trying to figure out safest way to protect the principal so there is money in year 10, without getting killed by an adviser just trying to make money on you.
What investment products would you absolutely stay away from that an adviser is offering?
What investment products would you absolutely stay away from that an adviser is offering?
Posted on 12/13/14 at 10:03 am to bwm14
How about a good solid portfolio of balanced funds and low beta equity funds that will minimize the deterioration of the principle?
Posted on 12/13/14 at 10:03 am to bwm14
quote:
What investment products would you absolutely stay away from that an adviser is offering?
If the adviser is getting a commission for selling the product, stay away from all of them.
Posted on 12/13/14 at 10:06 am to oR33Do
quote:
It is a lot of work.
Sounds like it. I don't want money badly enough to work for it, I want to sit in front of a TV, blissfully drunk, while I clip coupons.
Posted on 12/13/14 at 11:25 am to bwm14
These threads always kill me. You'd rather take advice from a message board than a professional money manager. You're looking to take a 10% w/d each year without hurting your principal? That's not gonna happen. Good luck
Posted on 12/13/14 at 12:14 pm to foshizzle
quote:
Sounds like it. I don't want money badly enough to work for it, I want to sit in front of a TV, blissfully drunk, while I clip coupons.
Well, after five years of blood sweat and beers that could be possible.
Posted on 12/13/14 at 2:14 pm to oR33Do
quote:
80 tons red oak at 75$ per ton 7k
Months worth of diesel for saw and truck 1000
Is that oak the delivered price?
Posted on 12/13/14 at 2:34 pm to Shepherd88
Not saying you don't want to touch the principal, I'm saying you want to make sure you have 10 years at $25,000 with some upside of having something left at the end of the time period without getting killed by fees.
Posted on 12/13/14 at 4:57 pm to bwm14
You can play around with a Monte Carlo simulation with different allocations of stock, bonds, cash at Vanguard. There's an 81% chance you'll have something left after 10 years. Frankly it looks too optimistic to me, but Vanguard knows just a little more than I do. You could easily find other versions at other sites to play around with.
Posted on 12/13/14 at 9:29 pm to bwm14
Put it in Vanguard Wellington and draw monthly off of it. Simple and effective.
Posted on 12/14/14 at 4:29 pm to fbb
quote:
Is that oak the delivered price?
It should be. Last numbers I saw was 60$ a ton for Southern area on red oak. Most small buyers will give an extra 5$ per ton to get a load and the extra $10 goes for shipping line.
It can be more though but that is the average price range I have seen.
Posted on 12/15/14 at 5:27 pm to C
what you're overestimating is the ability to hold one particular investment for a 10 year time horizon.
go research the average holding period for a mutual fund.
s*** happens,emotions get involved, plans don't work out unless you have a properly allocated situation that protects agains as many applicable risks as possible.
go research the average holding period for a mutual fund.
s*** happens,emotions get involved, plans don't work out unless you have a properly allocated situation that protects agains as many applicable risks as possible.
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