Hi!
I'm trying to figure out what to do with some cash and am looking for help/your ideas!
Important life details:
--34 year old single male
--Entrepreneur. Haven't had a job really since I graduated from college. Made savings to this point from first business. Haven't had an income for the last 4+ years. I guess my net worth decreased by 20k or so during that time. Lived in NYC, drove a car across a couple continents, wrote a few books, and now I'm starting another business, a technology startup, which is about like lighting a rocket ship and hoping it goes in the right direction. I'm already doing exactly what I would want to do if money was no concern.
--I live like a slightly lavish monk and would be pissed if I had to live otherwise. I spend about 21k a year.
--Our startup may possibly raise money soon. Even if it does I'll go w/out a salary as long as possible (or a minimal one!) to hold onto that equity!
Here's my current set up:
cash source amount
savings account 161172.99
checking account 37000
expected cash 20000
checking account 1888
cash inside IRA's. 38000
Other cash 42302
Total 300362.99
stocks 81852.54
cryptos 40000
jewelry 2700
wotc tax credits 27334 Not sure if I can count these in net worth, but they are dollar for dollar and will cancel out taxes when I do have an income again.
land/lot 15000
car 2514
tax deductions 25000
194400.54
total 494763.53 percent in cash 0.6070839336
When the market crashed in March, I didn't invest more. If anything, as it went back up I pulled a little out. My goal isn't to be rich in life. It's to have the margin to do what I want to do (mainly entrepreneurship and writing books!). So, I played much more conservatively than I would have if I'd had a steady income going at the time. I feel some regret even though I feel like given my life circumstances it was the right move at the time. But it's time to move to the present!
I'm on the bandwagon that inflation is coming though and I'm ready to get off some of this cash. Here's my thoughts/plan:
--I'm thinking I'll hold onto 60-80k in cash regardless for future opportunities/savings/spending money for every day expenses.
--House: A while back I found 40 lots for a developer. He eventually got 100. He told me that he would sell me a house at cost. While it was verbal/handshake and I'm not sure if he will honor that deal, I think he'll give me the best deal he can. I'll find out in the next few weeks when I meet him. He's building now selling the houses for about 200k and my guess is that I'd pay 100-150k and that I could collect about 18k of rent annually. It's in an up and coming part of the city I live in which is a hot spot in the US right now. I know there will be expenses but that should put a heavy dent in my annual living expenses with some other built in upsides.
I do not currently own where I live. I rent for $600 a month including utilities. I love where I live and don't want to move.
Given that this is an asset that would increase w/ value w/ inflation, I think will increase anyways, and I can raise rent if inflation comes, and because I could see myself potentially living there down the road, I think this is a potential good play if he gives me a good deal on the house. I already own the lot and that's the land/lot that's 15k above.
That leaves me with 120k-70k.
I'm frankly thinking of putting another 10-35k in cryptos. I'm 34. If I put in 10-35k it's 10-15% of my net worth. If it pans out for the way it has for the people who bought Etherium at $100 in March of 2020 and it's now worth $1,300, then it's a bit life changing. If it goes to 0 then I haven't lost my shirt, just a sleeve.
I feel like those two investments represent a risk spread that I'm comfortable with the upsides and downsides of each.
And then I'm not sure what to do w/ the rest. I could put some in a few stocks, not sure. That's why I'm here! They feel high but I expect the value to keep going up.
Plus there's the hope that my new business hits in a big way.
Thoughts?