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If you had $400k

How would you use it in order to provide steady ongoing income.


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Answers (13)

Index fund. Barefoot investor recommends a couple.
Worthwhile joining his website and advice if you have got that much to play with.

 He does an analysis of what the true return is on rental property.
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OP I think I will bite the bullet and finally read this book thanks
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OP I’ll look into it thanks
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Investment property

OP That’s defiantly what we are considering
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OP Was thinking more outside that box, we already own our house and a unit we use for air bnb.
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 My aunt invested in property she bought house for $380k now lucky to sell for $389k to $405k
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 As if you have free hold
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 Save for the kids furure
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 This would not guaranteed you an income. I know of several people who have lost on so called I vestment properties due to poor tenants. It’s risky
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OP Our kids future is already very secure thank you :)
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OP It’s funny cos your kinda right.
😜👌🏻👈🏻 🍆 💥 about 10 minutes ago actually.

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I would do an investment property, but there are a few things I would insist upon having been a landlord for the last few years. Firstly, I would buy a house nearby but not too close - at least a street or two away - but no more than 5-10 minutes drive.
I would not take out a mortgage on the property to buy something more expensive - I would only invest what I had.
I would buy a property that only needed minimal input, that I could provide, like a paint job, but not huge renovations or repairs.
I would not charge ridiculous rent and I refuse to raise it within the first few years at all. I don't think it's fair and in my experience it encourages good will with your tenants.

OP Yeah this is the one that feels most right, we’ve found some beach front units near enough by for $320-$380k

But I just thought maybe there could be something a bit out of the box that makes someone out there good income...

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Go and see a financial planner, or a business advisor. My husband is a business advisor/account and we get lots of friends coming over and getting him to listen to ideas and going over books. So many people lose everything because they don't get proper advice.
Half of his job is true to sort out business that were terrible ideas.

OP good idea thanks :)
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A mix of things i think would be smart. If one thing bottoms out for a bit, like shares, you would have other investments to fall back on in the meantime.

Index fund. With that amount you can get the Vanguard wholesale fund (I think the website says 500k but if you email them they can let you). No businesses, no rentals. You have to work for any of those. Index funds are passive. If the value fluctuates, it doesn't matter. It's the dividends and imputation credits you want.

OP Defiantly will look into them
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I would buy a small franchise like boost ect

 I would not touch a franchise. Too many people go bankrupt in them when the franchise parent company is bought out by asset strippers.
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 Yes be careful with franchises
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OP Yes iv had two friends who lost everything through franchises and not their fault at all.
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I should be more specific I own a fairly successful small business that’s served us well and should serve well till retirement.
We’ve come into a trust fund which is buying our house and with that payout we’ve paid off our investment property leaving us with $400 (after we do a few of our Reno’s on our house)
We do give to charity fairly generous to our means, and our children are set up through the trust fund.


OP Thanks Iv never liked the idea of shares though :)
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I'd buy my house outright

OP We already have our house
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Donate some to charity

OP We already give about $150 a month to charity and I volunteer on Saturdays and give a sizeable discount to some families in my business who have children with disabilities :)
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 Yeah so do I, plus volunteer for other things, and I don't have 400k, and I'm not earning 6 figures either. I'd probably donate more
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OP this also wasn’t done for us to donate. My parents made this trust for us to set our selves up even more so, they want to see it invested....
iv spoken to them about a few ideas but I thought I’d put it out there on here for something left of center I hadn’t thought of.

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 It's ok not to donate any to charity. It's for you to set yourself up for the future.
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 To the responder say you do all that, you also give in your small buisness to families? Wow those similarities are striking.
I call bullshit , as if you would use money from the sale of your house as charity money (giving to your church doesn't count)

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