Author Topic: Excess Cash - What to Do?  (Read 3032 times)

Fishindude

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Excess Cash - What to Do?
« on: December 30, 2015, 08:04:49 AM »
Due to recent sale of a business, I am sitting on a substantial amount of excess cash that I need to put to work in some manner.  Already have substantial amount in stock market and not real crazy about putting a bunch more there.

Leaning towards parking it in some sort of safe real estate purchase such as farm land, and / or some type of simple post FIRE business that I could run with pretty minimal effort.

Anybody been faced with similar circumstances?  Ideas?

GGNoob

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Re: Excess Cash - What to Do?
« Reply #1 on: December 30, 2015, 09:28:37 AM »
If you have a preferred overall investment allocation, I'd just invest according to that. You would have chosen that allocation for a reason so it shouldn't matter how much you have invested. Feel free to dollar cost average into the market if you want.

Outside of stocks, I also invest in P2P lending (Prosper and Lending Club). I also just made a small investment into the Fundrise eREIT and plan on adding more in the future. If you are an accredited investor, there are more options at Fundrise, Realty Mogul and Realty Shares for you to invest in real estate without having to do the work yourself.

bwall

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Re: Excess Cash - What to Do?
« Reply #2 on: January 03, 2016, 10:03:50 PM »
In your original post, you indicate that you have two sets of substantial funds, one in the stock market and one in cash due to the recent sale of a business.

Judging by the words chosen, I would assume the two sets of funds are equal?

When in doubt, look to those who have achieved more than you: Buffet, Gates, Wal-Mart heirs (b/c somehow they know more than welfare recipients), Bezos, etc. What % of their fortune is in the stock market vs. cash?  Can you achieve a similar asset allocation?

In sum, the stock market has been and will always be the best wealth creator available to North Americans and those who can access their stock markets. The best 'post-FIRE business you can run with minimal effort' is to manage your Vanguard total index fund. There is no reason to 'buy yourself a headache' so that you can putter around. Invest in Vanguard and pursue your hobbies. If you have no hobbies, become a foster parent as there is a serious over-supply of kids who need help. Or volunteer at the non-profit of your choice, mentor young kids who don't have the advantages you did so that they can grow and follow in your footsteps, ANYTHING but buy yourself a headache billed as 'minimal effort' (think about it; if it was minimal effort and profitable why would anyone sell, or sell at a reasonable price?)

Justin1911

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Re: Excess Cash - What to Do?
« Reply #3 on: January 05, 2016, 03:06:51 PM »
Due to recent sale of a business, I am sitting on a substantial amount of excess cash that I need to put to work in some manner.  Already have substantial amount in stock market and not real crazy about putting a bunch more there.

Leaning towards parking it in some sort of safe real estate purchase such as farm land, and / or some type of simple post FIRE business that I could run with pretty minimal effort.

Anybody been faced with similar circumstances?  Ideas?

I'd like to recommend you look into buying a storage company if you're interested in a FIRE business. My family owns a couple small storage companies with a mix of storage unit sizes and open parking for RVs, boats, etc. Both are being managed by older retired couples that either live on site or very nearby. I fully plan to buy one of my own someday.

soccerluvof4

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Re: Excess Cash - What to Do?
« Reply #4 on: January 05, 2016, 04:32:30 PM »
^+1. I have often thought of this and every-time i seem to someone is building one. Brick and mortar , easy to do as long as there is the demand. The problem in most areas at least by me is getting the land close enough to build that makes the numbers work.

BTDretire

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Re: Excess Cash - What to Do?
« Reply #5 on: January 06, 2016, 09:53:55 AM »
^+1. I have often thought of this and every-time i seem to someone is building one. Brick and mortar , easy to do as long as there is the demand. The problem in most areas at least by me is getting the land close enough to build that makes the numbers work.

The big boys, pick a property that they believe is in the way of growth and build storage units on it to pay costs to hold.
Near a highway interchange, undeveloped area where two major roads cross,
or the logical area where a city will grow towards.
  I had a friend buy 3 acres near a highway interchange about two miles from the developed area of a small suburb, he paid $25,000 he held it for 24 years, they city
expanded to the area, the interchange became busy,the county built a large HS not to far away. He never put anything on it to cover his costs and pointed that out to me,when he mention all the property taxes he paid over 24 years.
He priced it at $2,000,000 and sold it for $900,000. That helped his retirement.


Fishindude

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Re: Excess Cash - What to Do?
« Reply #6 on: January 08, 2016, 11:58:51 AM »
Currently leaning heavily towards investing in some more farm ground.  Not a big money maker, but a very safe place to let some money sit, and pretty easy to turn back into cash at a later date if needed.