Money to Invest

[ExGingi]

Resurrection of the dead is (ostensibly) predicated on death, so both death and taxes are guaranteed.

Not necessarily.  But let's keep this diversion short and go back to the topic.

Every investment has some type of risk. Any guarantee against that specific risk, is only as strong as whoever is giving that guarantee (and enforceability in case of default).

[ari833]

Am not really looking to invest in stocks, mutual funds, life insurance etc. Am looking for a high risk investment, such as a small real estate deal, or even if someone's starting a business and needs a little cash to help him get off the ground. Things of that nature..

[chbochur]

Guaranteed!? Compound interest!?

Obviously nothing is gaurenteed but that number took into account different issues that can come up to make it very minimal
And yes it compounds
For more info pm me (not really looking for people but if you want I'm happy to take...)

[AsherO]

Am not really looking to invest in stocks, mutual funds, life insurance etc. Am looking for a high risk investment, such as a small real estate deal, or even if someone's starting a business and needs a little cash to help him get off the ground. Things of that nature..

Make sure you do your due diligence or you might be taken for a ride by a fraudster or a fool.

(not really looking for people but if you want I'm happy to take...)

Madoff said that too...

[ADG]

Drop it into Vanguard Total Stock Market Index Fund Investor Shares - walk away and look back in 10 years.

Your better off doing Dollar cost averaging. And the TMI from vangard has very little exposure to small cap.

[Redbull3]

Dollar cost averaging is a myth, it's totally disadvantageous as the earlier you invest, the greater your returns. This is particularly true with an index fund.

[12HRS]

Your better off doing Dollar cost averaging.

-1

http://www.businessinsider.com/lump-sum-vs-dollar-cost-averaging-2014-12

[Bukboy]

Am not really looking to invest in stocks, mutual funds, life insurance etc. Am looking for a high risk investment, such as a small real estate deal, or even if someone's starting a business and needs a little cash to help him get off the ground. Things of that nature..

Find somebody sourcing products from China (that obviously knows what he's doing) and selling on amazon, the risk is pretty high IMHO but the profits can be huge!

[menachem]

Make sure you do your due diligence or you might be taken for a ride by a fraudster or a fool.

I personally know ppl who were taken for a ride. Not only research but have docs signed and guarantors.
Even so, you can still get taken for a ride..

[ExGingi]

Dollar cost averaging is a myth, it's totally disadvantageous as the earlier you invest, the greater your returns. This is particularly true with an index fund.

DCA is just a way to smooth things out. It guarantees almost nothing.

Index fund investing could be dangerous IMHO, especially in the current environment where FAANG are so heavily weighted in the index. While it has worked in the past, overcrowding and herd mentality investing can only hurt performance.

All of the above being said, OP obviously is not looking for anything of this sort.

[ExGingi]

I personally know ppl who were taken for a ride. Not only research but have docs signed and guarantors.
Even so, you can still get taken for a ride..

Which is why I said

Any guarantee against that specific risk, is only as strong as whoever is giving that guarantee (and enforceability in case of default).

[Redbull3]

Index fund investing could be dangerous IMHO, especially in the current environment where FAANG are so heavily weighted in the index. While it has worked in the past, overcrowding and herd mentality investing can only hurt performance.

That just depends on what index you are investing in. I don't see any herd mentality risk with something like total US or S&P as they are already super diversified across many equities in a variety of industries. Why would this money suddenly get pulled out of US equities? Where else would it go? The only answers are foreign, bonds, etc. So, make sure to own some shares of that but otherwise you're good. It's clearly good for the market. Rising tide lifts all boats. Just my $.02, I'm very into index funds.

[ExGingi]

That just depends on what index you are investing in. I don't see any herd mentality risk with something like total US or S&P as they are already super diversified across many equities in a variety of industries. Why would this money suddenly get pulled out of US equities? Where else would it go? The only answers are foreign, bonds, etc. So, make sure to own some shares of that but otherwise you're good. It's clearly good for the market. Rising tide lifts all boats. Just my $.02, I'm very into index funds.

Do you realize what percentage of the S&P 500 is in just the 5 FAANGs? You call that diversification? I think you get more diversification and better management with BRK.B - though I'm not giving any advice or recommendation.

[ExGingi]

That just depends on what index you are investing in. I don't see any herd mentality risk with something like total US or S&P as they are already super diversified across many equities in a variety of industries. Why would this money suddenly get pulled out of US equities? Where else would it go? The only answers are foreign, bonds, etc. So, make sure to own some shares of that but otherwise you're good. It's clearly good for the market. Rising tide lifts all boats. Just my $.02, I'm very into index funds.

https://en.wikipedia.org/wiki/Confirmation_bias

[Redbull3]

Do you realize what percentage of the S&P 500 is in just the 5 FAANGs?

~1%?

You call that diversification?

Yes.

https://en.wikipedia.org/wiki/Confirmation_bias

Touche.

[Redbull3]

My bad, probably closer to 10%? Can't find the exact number. In any event if S&P isn't diversified enough for you, how do you recommend being more diversified? Whatever your answer is, there's probably a low fee index fund for that.

[aygart]

https://en.wikipedia.org/wiki/Confirmation_bias

You are taking a page from my book.

[ExGingi]

My bad, probably closer to 10%? Can't find the exact number. In any event if S&P isn't diversified enough for you, how do you recommend being more diversified? Whatever your answer is, there's probably a low fee index fund for that.

Diversification amongst asset classes. PORTFOLIO REBALANCING (which helps avoid the kind of risk currently presented by the FAANGs).

There are excellent active managers out there. I know many will point to the fact that many active managers underperform the indexes, but while that might be true in a bull market, that won't last forever.

[ExGingi]

You are taking a page from my book.

Are you taking pre-orders? Couldn't find it on Amazon. When do you expect to publish it? 

[aygart]

Are you taking pre-orders? Couldn't find it on Amazon. When do you expect to publish it? 

The chapters about this are spread around DDF.