[lex the impaler]

Discover, Barclays...

[Captain Gh]

(04-09-2017 07:40 AM)elrubionordan Wrote:  

thank you all for your time and replies, i am 26 yrs old.

i dont want a career, life is very short... and to me a career means nothing,anyways im going to die one day with no money,no career so,i just want to live life day by day.i am currently in canada so,go figure how much i dont like this hhahaha

If you keep this mindset my friend... I'm sad to announce you that you've ALREADY lost this money! With this kind of money... and no debt, there's simply no excuse to not look into ways to make this money grow for you. You have AN EASY WAY OUT of your current social class into the elite class (Maybe not Super Elite... but wealthy nonetheless) Do what you want to do... with the premise to make this MONEY GROW FOR YOU. If you're not feeling confident of following this advice... give me a chunk of it

[kavi]

Yeah man, we are all grown ups here and there is nothing wrong with giving advice based on experience.

I dont think it's possible unless your some kind of buddhist monk to retire at 26 with 300K. You can either make that money grow or end up spending it in a few years. Look at all the wealthy boxers, celebrities, lottery winners who managed to blow their money and have nothing to show for it.

There must be something you are interested in that you could turn into a business.

[sterling_archer]

(04-09-2017 09:06 AM)elrubionordan Wrote:  

@sterling archer i had read here that croatia is quite expensive no? what about flights out of there? and how safe is it? (safe meaning are there kidnappings often and stuff like that or is mostly a quite place?) i guess with mirco cro cop the country must be really quite hahahah

Price - depends of what you mean. If you think about alcohol, most drinks are around couple of dollars. Cup of coffee is around 1,5$. Food is cheap in supermarkets such as Lidl, Kaufland and Konzum. Buy meat and veggies in packs.
You easily have access to farmers markets in most Dalmatian cities for same price or a bit more expensive but you would get higher quality as these stem from private farms instead of mass produced (potentially GMO) products offered in supermarkets.

If you think of apartments, here we have largest discrepancy. For example if you were to try to find apartment in center of Split, you could find one easily, but it will be expensive when compared to suburbs of Split. Actually that is no really different than any Western/Eastern city?

Flights - its connected to most/all European countries, but the thing is that most of these flights are from capital. So you would have to travel couple of hundred kilometers by bus (around 15$ ticket) to capital (Zagreb) to travel from there to your desired destination.

Safety - nothing worth mentioning, its safe and Croatia has really low rate of crime (murder, robbery, etc.). When murder happens, its national news as its unusual.

Mirko - hahaha, not surprised for you having heard of him. Mirko is cool guy and superb fighter.

[Brodiaga]

Invest the money in a low cost (0.05-0.15% per year expense ratio), diversified portfolio of index funds and/or ETFs. Decide on asset allocation depending on your risk tolerance. For example, 50% stocks, 20% bonds, the rest you can keep in checking and savings accounts as an emergency fund and/or buy an inexpensive apartment once you've found a place where you want to settle.

Google 'the 4% rule" to figure out how much money, on average, you can expect to make from passive investments. As a rule of thumb, for a 300K portfolio, it's about 1K per month adjusted for inflation going forward. However, many people argue that the 4% rule is not conservative enough and use 3.5% or even less to minimize the risk of running out of money, particularly those who retire early (the 4% rule is generally based on a 30 year time period, though if an investment portfolio does well for the first 30 years, it's very unlikely to fail after that). Also, if you keep an emergency fund (and you should), don't count it as part of your portfolio for the purpose of safe withdrawal rate calculations.

If/when the stock market crashes, DO NOT SELL your investments. Just make sure your emergency fund is large enough to cover at least 2-3 years of expenses in a low cost location.

https://www.theearthawaits.com/
Use this website as a starting point to choose a location depending on your budget and preferences. Just make sure you adjust your budget accordingly, because this website is mostly for older retirees who don't go out much. Also use numbeo.com to adjust your budget once you've made a short list of places you're interested in. Don't forget to budget for health insurance and visa costs if applicable.

This kind of money is not enough to retire and sit on your ass unless you want to live on a budget for the rest of your life and be priced out of most if not all developed countries. However, this is more than enough to start from a clean slate and figure out what you want to do in life. If I were you I would consider location independent jobs and online freelancing. There is plenty of information online about that, for example, look for BrettDev on youtube as a starting point and watch other related videos by location independent entrepreneurs.

Do not invest more than your are prepared to lose in any business venture. Unless you know what you're doing, do not rely on any potential business partners or people who want to "help" you invest your money in a business.

Additional resources:
Forums: bogleheads.com, Mr Money Mustache forum.
Blogs: Go Curry Cracker, The Root of Good, Mad Fientist.

[elrubionordan]

thank you all,
so,if i invest 300k at 4% that would give me 1 grand per month? mmm i guess i could live in cambodia,philipines or laos with that money,maybe even dominican republic right?

[monster]

300k is basically pennies. It's not even a third of a million. And being a millionaire is basically middle class today.

The best use of money is use it to make more money.

[Peregrine]

Why have you given up on producing value at age 26?

[Going strong]

(04-08-2017 08:11 PM)elrubionordan Wrote:  

(04-08-2017 04:38 PM)Going strong Wrote:  

In some countries, with three quarters of that money, you can secure your financial future forever.

Like, take 240,000 USD, which are four times 60,000.

Buy 4 (middle-class suitable) apartments in a place without terrorism, with no civil war looming, and where urban security and rule of law are very satisfactory. In a country where people will not resent you as a foreigner, of course. Offer on rent these 4 apartments, thus securing twice the salary-equivalent of a middle-class engineer...

With the remaining 60K, buy an apartment for yourself close to a sunny beach with thin local women or tourists, and affordable cocktails year-long. Live off the money from your four rented apartments. Game chicks on the beach, publish a book a la Hemingway, learn capoeira or muay thai, occasionally post on RVF for the common good, and enjoy life. Voila...

thank you goingstrong,,,can you please tell me which countries would these be ?

Buying the 4 middle-class apartments, say in: Buenos Aires, Santiago de Chile; Eastern Europe (example: Warsaw, Budapest, Bucharest, Sofia...).
No danger of civil wars or nuclear incidents or tsunamis etc. No danger of the State turning dictatorial and throwing law-abiding foreigners out, or turning full commies and erasing properties titles... Cheap property taxes to be paid to the city and State each month or year... Full occupation of the apartments all but guaranteed (big capitals with tons of students and middle-class workers).
Last apartment for your own use, well, why not in Mardel, Vina, Playa del Carmen, Da Nang, Odessa, Zadar... or some Thai beach city?

[asdfk]

You can live for a long time with 300K and use that time to make the remainder of your "pension".

As to location, I would backpack for a couple of years and then make my decision. Unless your main goal is investment, it's better to get some life experience and feel of different places first.

As mentioned here, spending money is easy.

[DrugAdvisor]

Malaysian banks are offering 4.15% interest rates per annum at the moment. You could live off the interest for the rest of your life, but as others mentioned, are you sure you want that and stop producing?

As for property, if you are not experienced with research and negotiating, you are walking in the game, in a foreign country slaughterhouse. 1-2 years down the road you will be the amateur selling off the properties at a cheap price because you cant deal with A or B procedures/person etc.

That said, you could get lucky and triple your investments in a year or two too...

[Brodiaga]

(04-09-2017 09:03 PM)DrugAdvisor Wrote:  

Malaysian banks are offering 4.15% interest rates per annum at the moment. You could live off the interest for the rest of your life, but as others mentioned, are you sure you want that and stop producing?
.

Potential problems:

Exchange rate risk. For example, Russian banks were also offering high interest rates before the the ruble lost about half of its value vs USD in 2015.

Bankruptcy risk. Are Malaysian bank deposits insured by the government? If so, does it apply to foreigners? Is there a maximum amount? If a bank goes bankrupt/can't pay and the government steps in, will the savers be paid interest? Even if there is insurance, how trustworthy is the government itself?

Getting money in/out of the country. Capital controls/restrictions, etc now and in the future. The cost of getting the money in and out.

What if the bank freezes or even closes the account for whatever reason or no reason at all?

While I am not against the idea of depositing money in a high interest rate savings account in a developing country, due to the risks mentioned above I would limit the total amount of deposits to about 5% of the portfolio per country and 10-15% of the portfolio in total foreign deposits. Also, even with these limits, I wouldn't feel comfortable depositing money unless I had ties to the country (family, close friends, living there long term, etc).

[Jack Of All Trades]

you should just dump it in a basket of western countries assets, like stocks, bonds, real estate and aim for 5-8% return and spread it around. With that much % every year you don't need to work indefinately until you get sick, then you can fly back home for healthcare.

[Suits]

Judging by the fact that OP doesn't immediately know what to do with the money, you should remain in the workforce and let the money sit in some safe investments he finds a legitimate use for it.

If I had $300K, I know exactly how I would use it to make more money. I know this from needs I've spotted when working ordinary jobs, things that I would have never noticed if I hadn't been active in the world's economy.

OP is too young to be thinking about retiring. OP needs to stay active (which will keep him healthier) and keep working (if only part-time) until I starts to see ways that he could create value and then he can sink some of that tiny nest egg into creating that value.

I could give OP three good ideas right now, but I won't because they would be wasted on him. Having an idea is the easy part, carrying it through is that hard part. It requires significant self-discipline and motivation.

[Brodiaga]

(04-09-2017 04:12 PM)elrubionordan Wrote:  

thank you all,
so,if i invest 300k at 4% that would give me 1 grand per month?

Read as much as possible about the 4% rule.

The short answer is no, it will not guarantee 1 grand per month, but based on historical data, if invest your money intelligently and withdraw 1K per month adjusted for inflation, you are unlikely to run out of money in the next 30 years and even beyond that. The big assumption here is that future returns will be similar to past returns. Which is the main reason many people question the 4% rule and use a lower percentage for their retirement planning. Another assumption here is that you will invest the money intelligently.

Use the following web site for simulations using historical data for different asset allocation scenarios: portfoliovisualizer.com

Also, keep in mind:

-You have less than 300K to invest because you need an emergency fund.

-The returns are before tax, so any taxes you'll have to pay should be budgeted as expenses for the purpose of using the 4% rule. In the US, you could ignore income and capital gains taxes at this level, because the amount of money you are likely to make from investing 300K is way too low to be taxed. I don't know about your country and how your taxes, if any, would change if you were to move to another country in the future.

Quote:

mmm i guess i could live in cambodia,philipines or laos with that money,maybe even dominican republic right?

I think it's pretty safe to say you could survive in any of those countries. As for living there and enjoying your life, I am not so sure unless you find additional sources of income.

[captain_shane]

Partner with a hard money lender and make 12-18% a year on that money.

[Brodiaga]

(04-09-2017 10:41 PM)captain_shane Wrote:  

Partner with a hard money lender and make 12-18% a year on that money.

Can you give some examples of hard money lenders and explain how to partner with them?

Also, this rate of return is much higher than what you can expect from investing in index funds, for example. If so, aren't more people partnering with hard money lenders instead of investing in index funds?

[soltopia]

Best investment is in yourself.e.g. training, learning personal finance, that kind of thing.

Agree that you should still aim to work a little, even if it's on your own projects. So much opportunity now with the gig economies and you have a seriously good head start with that kind of money.

You can get around 4% in New Zealand term deposits. Rock solid country (1st world, rule of law) and surprisingly easy to open bank accounts as a non resident.

[DarkTriad]

(04-08-2017 11:59 PM)[email protected] Wrote:  

20 yr old Guy in Australia received a fully paid off house in Melbourne worth 400k (at the time) from his father. His father was marrying a new woman and starting a new family. He entrusted it to his son and said "good luck with your life.

Young man sells the house, takes the cash with him to Thailand where he learned to kickbox with the intention to go pro. Ten years pass, the young man is now 30 with a battered body, nothing to show for it. He returned to Australia with no skills, no cash and now works under my sister and makes 45k/year in Melbourne (which is not good) and rents living paycheck to paycheck.

Had this guy just kept the paid off house and got a job delivering pizzas his house would have appreciated in value easily over 1.5 million dollars in 2017. He would have been able to sell off the house and retire anywhere he wanted.

That pizza delivery scenario sounds miserable. With a little extra hustle he could have leveraged some side business while pursuing his dream in Thailand. If his injuries sidelined his pro dreams, he could have used that money to open up his own camp (he has skills, knows the business, and the the business of getting paid for farang dreams is pretty good...as he himself demonstrates). He blew through 400k in Thailand...his fucked up pro career probably has more to do with partying than injuries. If he took the same work ethic to pizza delivery, he would have 3 OUIs, be unemployable, and lost the house anyway. And been miserable the whole time.

[DarkTriad]

(04-09-2017 01:07 PM)Captain Gh Wrote:  

(04-09-2017 07:40 AM)elrubionordan Wrote:  

thank you all for your time and replies, i am 26 yrs old.

i dont want a career, life is very short... and to me a career means nothing,anyways im going to die one day with no money,no career so,i just want to live life day by day.i am currently in canada so,go figure how much i dont like this hhahaha

If you keep this mindset my friend... I'm sad to announce you that you've ALREADY lost this money! With this kind of money... and no debt, there's simply no excuse to not look into ways to make this money grow for you. You have AN EASY WAY OUT of your current social class into the elite class (Maybe not Super Elite... but wealthy nonetheless) Do what you want to do... with the premise to make this MONEY GROW FOR YOU. If you're not feeling confident of following this advice... give me a chunk of it

He's miserable where he is, going someplace rock cheap to figure himself out is cheaper than going to grad school like many of his compatriots. He's an educated, open minded English speaking westerner, a few of my friends have jumped into 3rd world countries with a lot less capital, and walked out with all kinds of opportunities and connections. He knows he's dying where he is, I don't think it's that bad a plan to start off someplace new. I would recommend taking some silly job overseas (much easier to handle when you don't need the money) meet people, have fun, make connections, and figure out what you want to do with it. That's small business start up money is many countries, go there and see what the opportunities are.

[RatInTheWoods]

A nice Condo in Phuket $80K.

The other $220,000 would last 15 years if invested, and you had a budget of $1830 a month.

You could surely earn some cash, pick up a side hussle in 15 years to stretch that to 20

[captain_shane]

(04-09-2017 10:59 PM)Brodiaga Wrote:  

(04-09-2017 10:41 PM)captain_shane Wrote:  

Partner with a hard money lender and make 12-18% a year on that money.

Can you give some examples of hard money lenders and explain how to partner with them?

Also, this rate of return is much higher than what you can expect from investing in index funds, for example. If so, aren't more people partnering with hard money lenders instead of investing in index funds?

Go to local Real Estate meetups and network with investors. Most of them will know 1 or 2 hard money lenders. It's risky, but if you know your market and the people involved at each level it's gold.

[samsamsam]

OP, trying to help here. But you need to toughen up. You sound like you have given up on all hope. You are the sort of guy that could easily Be conned out of your money if someone promised you happiness forever.

Go take a vacation have some fun without going nuts. Sounds like you could use some fun. Don't quit your job. Just schedule a vacation.

I would then focus on becoming mentally tougher before doing anything else.

This money will not make you a better person. Or more importantly a better man.

I sense you don't even have much respect for yourself. Not trying to be a dick. It is hard for someone to respect themselves when they see so little value in themselves.

Plenty of guys here who would not trade their self respect and confidence for 1 million dollars.

Look at the way you came onto the forum. Sort of begging others to do the work for you. Decide for you. Tell you what to do. How much of a man are you?

I'm not trying to be a dick. I'm trying to help. But you need to fix your core. Your mental strength before you can just go and do nothing. Have some respect for yourself. Pain in life is not a bad thing. It shapes you and toughens you. Makes you improve yourself or destroys you. But that is a choice on how you want to face it.

My biggest worry for you is the money will be all gone soon. Control yoirself and take your time.

Life is 99'percent mental. Victory and defeat start in the mind. Get it right.

Good luck OP.

Edit: never do stuff out of fear or desperation. Almost always bad shit happens. Like 99.9999 percent of the time.

What does your family say about this? Has your family generally handled money well in the past? Good money and poor money lessons are learned from parents. How did they handle their finances? It seems if you had a good environment for learning about finances you would have a good sense on what to do with it. My concern is you didn't come from that environment. Please read about lottery winners.

[samsamsam]

(04-09-2017 10:59 PM)Brodiaga Wrote:  

(04-09-2017 10:41 PM)captain_shane Wrote:  

Partner with a hard money lender and make 12-18% a year on that money.

Can you give some examples of hard money lenders and explain how to partner with them?

Also, this rate of return is much higher than what you can expect from investing in index funds, for example. If so, aren't more people partnering with hard money lenders instead of investing in index funds?

Hard money lending requires you as a lender to have a handle on a few critical facts. And it depends on which route your are going. Either you are lending money to an owner that either needs it quickly or can't qualify. Or you working with a guy with a deal in hand and needs funds to close the deal. Or close the deal and cover the rehab costs.

Biggest risk overestimating the value of the property and having no cushion to protect your debt. Misjudging it means you have a property that won't sell or you sell and take a loss on the property and your debt.

Obviously other stuff like title, underestimating rehab costs etc. big risk is if the deal is expected to be sold at a price not seen in the market before. Or if the guy who brought the deal doesn't have much experience. If you don't have a ton of experience in rehab better to stick with the cosmetic rehabs and avoid things like foundational work. Or crazy deals where people move houses from one lot to another.

If you are just lending to someone who needs cash. It is a function of LTV and ability to pay off the loan. If it is short term make sure you have some early payment penalty of else you are wasting time on 2 months of payments while they are going after better financing. Understand foreclosure laws they are different in each state.

[DrugAdvisor]

(04-09-2017 09:31 PM)Brodiaga Wrote:  

(04-09-2017 09:03 PM)DrugAdvisor Wrote:  

Malaysian banks are offering 4.15% interest rates per annum at the moment. You could live off the interest for the rest of your life, but as others mentioned, are you sure you want that and stop producing?
.

Potential problems:

Exchange rate risk. For example, Russian banks were also offering high interest rates before the the ruble lost about half of its value vs USD in 2015.

Bankruptcy risk. Are Malaysian bank deposits insured by the government? If so, does it apply to foreigners? Is there a maximum amount? If a bank goes bankrupt/can't pay and the government steps in, will the savers be paid interest? Even if there is insurance, how trustworthy is the government itself?

...

Very good questions Brodiaga. I was trying to point out an example to suit OP's requirements, to prompt questions like these for him to realize what he needs to learn/consider. These are the questions OP should be considering. Especially if hes made up his mind to travel for an extensively.

I won't reply as it's just gonna turn this into my country's tourism promotion datasheet, but feel free to PM instead.

But it sounds like OP should leave the money aside, earning interest in a safe safe place before taking any steps to realize his travel dreams.