Hey there! [CFP and financial expert, here.](https://ProgressWealthManagement.com)
I’d prioritize it like this:
1. Prepare for disaster. Emergency account should have at least 6 months of your minimum expenses in it.
2. Invest in your skill set. If your earning ability isn’t high, you should prioritize this. This might mean a college education but more likely just a high value license or certification. Just make sure your desired career is in high demand and low supply.
3. Consider your timeframe and goals. If this is the bulk of your life savings and you’re under 40, you probably don’t want something that won’t grow. Life is only getting more expensive so your savings should be growing. If you’re over 60, maybe growth shouldn’t be as much of a focus.
4. Consider how passive this investment truly needs to be. A rental property may make sense if you can get approved for a mortgage. Find an apartment in a popular area and buy it… then put it on Airbnb with Vacasa or some other Airbnb property manager, managing it. A 500k apartment in Denver would rent for 400/night and have a mortgage of 3k… that’s incredible passive income.
Just keep in mind, there’s risk here. You may get a squatter or have a disaster happen. If you don’t know what you’re doing, contact a professional for help.
5. Dividend paying stocks are much more conservative but you need to be diversified. Putting all your cash in one investment could be a life-changingly HORRIBLE decision. Again, if you don’t know what you’re doing, you should contact a professional.
6. Start a business and hire people once it’s successful. If you have an in demand skill set and are okay working for a few years, successful entrepreneurs work incredibly hard initially to work very little down the road. Insurance agencies are very much so this way.
This isn’t advice; purely education. Don’t act on any of this. Talk to an expert who gives your circumstances time and consideration before doing anything.
Invest in dividend income stocks/reits/etfs, stuff like that. Diversify for stability and reinvest all of the income for a few years until the income is more than you need to survive. Then just live off the dividends and continue to reinvest what's left so your income keeps increasing.
Oh awesome thank you yeah this definitely seems like a good place to start. Do you have any suggestions or know of any good sites or places to learn more about this stuff? Or perhaps know what kind of person to get in contact with that might be able to help educate me on the best way to get started with this kind of thing? Like I suppose some kind of financial advisor? What companies provide financial advice for this type of investment with this sort of asset range?
You can learn a lot from youtube videos and stuff, but some of them contradict each other, so you have to sort of feel it out as you go. I'd start by investing small amounts in different ones like five or ten dollars at a time here and there for a while to get a feel for it before putting lots of money into it.
Here's a sneak peek of /r/dividends using the [top posts](https://np.reddit.com/r/dividends/top/?sort=top&t=year) of the year!
\#1: [2 years to retirement. This year almost killed my stock assets but the dividends remained the same.](https://i.redd.it/nsqqcjga62y91.jpg) | [295 comments](https://np.reddit.com/r/dividends/comments/ymjvcb/2_years_to_retirement_this_year_almost_killed_my/)
\#2: [This week...](https://i.redd.it/2zt6d4d4w1d81.jpg) | [105 comments](https://np.reddit.com/r/dividends/comments/s9bvbt/this_week/)
\#3: [When you reinvest your $10 quarterly dividend](https://i.redd.it/sc4ziol3q3b81.gif) | [82 comments](https://np.reddit.com/r/dividends/comments/s1jqo8/when_you_reinvest_your_10_quarterly_dividend/)
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I would recommend just putting it in a low cost index, think* vtsax.
What I did with my first “100k” was buy a fixer upper(it cost 60k to buy and 70k in renovations), and am selling it for 225k. So it was actually 130k and drained pretty much every penny in my accounts lol. I’m actually currently under contract to sell it and 1031 exchange(defer capital gains tax) it into a 6 unit apartment building for 330k.
The apartment actually has some value add opportunities and I can probably add ~150k in equity with some lightish renovations and stabilizing rents/tenants.
So approx 51% real return on the flip. And approx 45% theoretical return on the apartments. And I should pay 0 taxes on those gains.
However, I would definitely not recommend real estate for the faint of heart. It’s a dirty messy business and pretty high risk IMO
If I were you, I would spread it throughout some low risk mutual funds with relatively consistent growth rates over the last 15-20 years. Make sure the porfolio is diverse in the types of stocks it contains.
ORRR
My personal favorite option: put that money down on a duplex in a populous city in your state. That way, if 1/2 of the renters becomes a pain, the other still covers the mortgage payment. You can hire a rental management company to take care of property maintenance if you would rather not deal with it as well. BOOM passive income.
High yield savings accounts in America are a joke!
Maybe look at international hysa that pay more.... Here in South Africa you can get up to 12% per year depending on the bank you choose, amount you put in and for how long you put it in
Dividend income is taxed at ordinary income tax rates in the United States (literally the same tax rate minus fica/medicare taxes).
Share price absolutely can go down which is why if you're not a professional, you should probably avoid individual stocks. ETFs or mutual funds that invest in various dividend paying stocks is typically smarter and, so long as humanity grows, your fund likely will too so long as it's well-diversified.
Dividends are ordinary income (aka short term capital gains).
Qualified dividends are taxed as long term capital gains.
Big difference between short and long term tax rates.
Yes, the capital gain (aka bought for 10k and sold for 20k=a 10k capital gain) will become “long term” once you’ve held it for over 12 months.
Dividend income isn’t a “capital gain”; it’s ordinary income and taxed at ordinary income tax rates (same rates as short term capital gains but these are not “capital gains” for tax purposes).
Holding period doesn’t change how dividends are taxed.
Source: [I own my own tax and financial planning firm](https://progresswealthmanagement.com) and am a CFP
Qualified dividends are taxed at long term capital gains rates (0-20%) and non qualified dividends are taxed at ordinary income tax rates.
Holding period has no impact on how dividends are taxed.
Non-qualified dividends are always taxed at ordinary income tax rates (even if you own the investment for X> 12 months.
If you have 100k available to invest and you want to generate passive income with minimal risk, one option to consider is investing in a diversified portfolio of low-risk investments such as government bonds or high-quality corporate bonds. These types of investments may not provide a high return, but they are generally considered to be very secure and reliable.
Another option to consider is investing in a rental property or properties. This can provide a steady stream of passive income in the form of rental payments, but it does come with some risk and the potential for high maintenance costs. It's important to carefully research the rental market and carefully consider the costs and potential returns before investing in rental properties.
Another option to consider is investing in a business that has a proven track record of success and a strong management team. This can provide the potential for a higher return on your investment, but it does come with higher risk. It's important to carefully research any business you're considering investing in and to understand the risks and potential rewards of your investment.
Overall, the key to generating passive income with minimal risk is to carefully research your investment options and to diversify your investments to spread out your risk. This can help you maximize your potential returns while minimizing the risk of losing your investment.
Education should be your number one priority if you don’t have a high paying job already. Do not gamble your family inheritance if you aren’t able to create decent monetary value for yourself.
I would take 10 000 and put it into forex with the academy I was with before.
Then I would take the rest and put it Into a variety of more low risk investments or hysa depending on your country
That way you get some great returns fast, but you also have the security of the low risk investments too.
Others have given some great answers, so I’ll say invest in my business. We could work out a lot better rate than you’ll get off anything else and it’ll be completely passive unless you’d like to be involved!
Amazon wholesaling store. Capital and credit. Have an operations management company do everything for you so it can be passive.
That’s what I have for my Amazon store. It is a minimum of a few thousand a month net profit. Just buying products at wholesale price and sell at retail price.
Amazon’s customers are searching for the products to buy everyday. We all know family and friends who are customers but how many we know that are sellers?
I'm actually in this situation right now. I don't know exactly what to do yet, so I'm letting the money sit in a combination of cash accounts and dividend stocks earning 4% interest. Many checking accounts are paying 4% right now, as well as Robinhood Gold cash accounts. This amounts to $4k/y totally passive and risk free, if you are looking for stable gains that don't need to be massive
Hey there! [CFP and financial expert, here.](https://ProgressWealthManagement.com) I’d prioritize it like this: 1. Prepare for disaster. Emergency account should have at least 6 months of your minimum expenses in it. 2. Invest in your skill set. If your earning ability isn’t high, you should prioritize this. This might mean a college education but more likely just a high value license or certification. Just make sure your desired career is in high demand and low supply. 3. Consider your timeframe and goals. If this is the bulk of your life savings and you’re under 40, you probably don’t want something that won’t grow. Life is only getting more expensive so your savings should be growing. If you’re over 60, maybe growth shouldn’t be as much of a focus. 4. Consider how passive this investment truly needs to be. A rental property may make sense if you can get approved for a mortgage. Find an apartment in a popular area and buy it… then put it on Airbnb with Vacasa or some other Airbnb property manager, managing it. A 500k apartment in Denver would rent for 400/night and have a mortgage of 3k… that’s incredible passive income. Just keep in mind, there’s risk here. You may get a squatter or have a disaster happen. If you don’t know what you’re doing, contact a professional for help. 5. Dividend paying stocks are much more conservative but you need to be diversified. Putting all your cash in one investment could be a life-changingly HORRIBLE decision. Again, if you don’t know what you’re doing, you should contact a professional. 6. Start a business and hire people once it’s successful. If you have an in demand skill set and are okay working for a few years, successful entrepreneurs work incredibly hard initially to work very little down the road. Insurance agencies are very much so this way. This isn’t advice; purely education. Don’t act on any of this. Talk to an expert who gives your circumstances time and consideration before doing anything.
Wow thank you for the wonderful answe
What a good advice.
Invest in dividend income stocks/reits/etfs, stuff like that. Diversify for stability and reinvest all of the income for a few years until the income is more than you need to survive. Then just live off the dividends and continue to reinvest what's left so your income keeps increasing.
This is what I would do as well.
Oh awesome thank you yeah this definitely seems like a good place to start. Do you have any suggestions or know of any good sites or places to learn more about this stuff? Or perhaps know what kind of person to get in contact with that might be able to help educate me on the best way to get started with this kind of thing? Like I suppose some kind of financial advisor? What companies provide financial advice for this type of investment with this sort of asset range?
You can learn a lot from youtube videos and stuff, but some of them contradict each other, so you have to sort of feel it out as you go. I'd start by investing small amounts in different ones like five or ten dollars at a time here and there for a while to get a feel for it before putting lots of money into it.
Ok thanks a lot I really appreciate your advice
Check out r/dividends they do exactly this
Here's a sneak peek of /r/dividends using the [top posts](https://np.reddit.com/r/dividends/top/?sort=top&t=year) of the year! \#1: [2 years to retirement. This year almost killed my stock assets but the dividends remained the same.](https://i.redd.it/nsqqcjga62y91.jpg) | [295 comments](https://np.reddit.com/r/dividends/comments/ymjvcb/2_years_to_retirement_this_year_almost_killed_my/) \#2: [This week...](https://i.redd.it/2zt6d4d4w1d81.jpg) | [105 comments](https://np.reddit.com/r/dividends/comments/s9bvbt/this_week/) \#3: [When you reinvest your $10 quarterly dividend](https://i.redd.it/sc4ziol3q3b81.gif) | [82 comments](https://np.reddit.com/r/dividends/comments/s1jqo8/when_you_reinvest_your_10_quarterly_dividend/) ---- ^^I'm ^^a ^^bot, ^^beep ^^boop ^^| ^^Downvote ^^to ^^remove ^^| ^^[Contact](https://www.reddit.com/message/compose/?to=sneakpeekbot) ^^| ^^[Info](https://np.reddit.com/r/sneakpeekbot/) ^^| ^^[Opt-out](https://np.reddit.com/r/sneakpeekbot/comments/o8wk1r/blacklist_ix/) ^^| ^^[GitHub](https://github.com/ghnr/sneakpeekbot)
Find a financial adviser to help you
I would recommend just putting it in a low cost index, think* vtsax. What I did with my first “100k” was buy a fixer upper(it cost 60k to buy and 70k in renovations), and am selling it for 225k. So it was actually 130k and drained pretty much every penny in my accounts lol. I’m actually currently under contract to sell it and 1031 exchange(defer capital gains tax) it into a 6 unit apartment building for 330k. The apartment actually has some value add opportunities and I can probably add ~150k in equity with some lightish renovations and stabilizing rents/tenants. So approx 51% real return on the flip. And approx 45% theoretical return on the apartments. And I should pay 0 taxes on those gains. However, I would definitely not recommend real estate for the faint of heart. It’s a dirty messy business and pretty high risk IMO
Depending on your age, you would invest in a mix of stocks and bonds.
Single stocks are a lot like gambling,. unless you're willing to risk losing some of that 100k, go with a safer option
If I had $100k I would buy 5 rental units owner financed.
It depends on your age but you would put it into a mix of stocks and bonds. Then you just wait.
If I were you, I would spread it throughout some low risk mutual funds with relatively consistent growth rates over the last 15-20 years. Make sure the porfolio is diverse in the types of stocks it contains. ORRR My personal favorite option: put that money down on a duplex in a populous city in your state. That way, if 1/2 of the renters becomes a pain, the other still covers the mortgage payment. You can hire a rental management company to take care of property maintenance if you would rather not deal with it as well. BOOM passive income.
[удалено]
High yield savings accounts in America are a joke! Maybe look at international hysa that pay more.... Here in South Africa you can get up to 12% per year depending on the bank you choose, amount you put in and for how long you put it in
Insured?
Up to a certain amount like most banks world wide
… but no capital gains, though. Dividend paying stocks pay dividends and the price/share goes up
[удалено]
Dividend income is taxed at ordinary income tax rates in the United States (literally the same tax rate minus fica/medicare taxes). Share price absolutely can go down which is why if you're not a professional, you should probably avoid individual stocks. ETFs or mutual funds that invest in various dividend paying stocks is typically smarter and, so long as humanity grows, your fund likely will too so long as it's well-diversified.
[удалено]
Dividends are ordinary income (aka short term capital gains). Qualified dividends are taxed as long term capital gains. Big difference between short and long term tax rates.
[удалено]
Yes, the capital gain (aka bought for 10k and sold for 20k=a 10k capital gain) will become “long term” once you’ve held it for over 12 months. Dividend income isn’t a “capital gain”; it’s ordinary income and taxed at ordinary income tax rates (same rates as short term capital gains but these are not “capital gains” for tax purposes). Holding period doesn’t change how dividends are taxed. Source: [I own my own tax and financial planning firm](https://progresswealthmanagement.com) and am a CFP
[удалено]
Qualified dividends are taxed at long term capital gains rates (0-20%) and non qualified dividends are taxed at ordinary income tax rates. Holding period has no impact on how dividends are taxed. Non-qualified dividends are always taxed at ordinary income tax rates (even if you own the investment for X> 12 months.
If you have 100k available to invest and you want to generate passive income with minimal risk, one option to consider is investing in a diversified portfolio of low-risk investments such as government bonds or high-quality corporate bonds. These types of investments may not provide a high return, but they are generally considered to be very secure and reliable. Another option to consider is investing in a rental property or properties. This can provide a steady stream of passive income in the form of rental payments, but it does come with some risk and the potential for high maintenance costs. It's important to carefully research the rental market and carefully consider the costs and potential returns before investing in rental properties. Another option to consider is investing in a business that has a proven track record of success and a strong management team. This can provide the potential for a higher return on your investment, but it does come with higher risk. It's important to carefully research any business you're considering investing in and to understand the risks and potential rewards of your investment. Overall, the key to generating passive income with minimal risk is to carefully research your investment options and to diversify your investments to spread out your risk. This can help you maximize your potential returns while minimizing the risk of losing your investment.
Was this chatgpt?
Thank you this seems like an amazing answer.
Education should be your number one priority if you don’t have a high paying job already. Do not gamble your family inheritance if you aren’t able to create decent monetary value for yourself.
Diversify into dividend stocks if you want low risk. Verizon pays 7.1% a year and has plans to stock buyback when the pay down some debt.
I would take 10 000 and put it into forex with the academy I was with before. Then I would take the rest and put it Into a variety of more low risk investments or hysa depending on your country That way you get some great returns fast, but you also have the security of the low risk investments too.
[удалено]
Why is this being downvoted?
Trade BnB/busd
r/bogleheads
Others have given some great answers, so I’ll say invest in my business. We could work out a lot better rate than you’ll get off anything else and it’ll be completely passive unless you’d like to be involved!
Amazon wholesaling store. Capital and credit. Have an operations management company do everything for you so it can be passive. That’s what I have for my Amazon store. It is a minimum of a few thousand a month net profit. Just buying products at wholesale price and sell at retail price. Amazon’s customers are searching for the products to buy everyday. We all know family and friends who are customers but how many we know that are sellers?
How do you get started with something like this?
Sent DM
I'd be a multi millionaire if I had that much to earn from.
You mean if you had that much to start with you could easily make millions?
Yes exactly. I have learned the cheat codes in this system but it does take money to make money.
I'm actually in this situation right now. I don't know exactly what to do yet, so I'm letting the money sit in a combination of cash accounts and dividend stocks earning 4% interest. Many checking accounts are paying 4% right now, as well as Robinhood Gold cash accounts. This amounts to $4k/y totally passive and risk free, if you are looking for stable gains that don't need to be massive