But seriously, with another $40k - $100k, we can buy a rental here in the Phoenix area that will net $900 - $1200 per month, or about 7-8% annual return...and that's the plan (currently have 3 rentals).
This is the best plan as I see it if you are risk tolerant. Still, I would prefer to pay down the prior rentals and keep my current car, even if I have to borrow or mortgage at a point or two higher. I bought my Tesla with cash from my rentals. Even though I could afford to buy it prior, I looked at spending $100k on a car as a waste of money and against my long term goal, which was to retire young with a comfortable nest egg, It's nice to get the rentals paid off and producing income rather than borrowing money from one fast depreciating asset - the Tesla loan, to pay for an investment.
I'll pay anyone 3% interest on their money. $100k increments.
Hey Madoff, how are things in prison? JK- I'm sure
@number12 is an honest and ethical person, but who in their right mind would arrange large loans, or even small ones, with private individuals? At least Bernie had a company incorporated and printed letterhead.
Just my S&P index fund is bordering 18% as of today. That's pretty low risk IMO!
Wow, someone here was born after 2008/9. That makes you in your teens so you are perhaps excused for not knowing
this. Even real estate is not safe. But there are certain places in real estate that look much better than the markets to me.
Long term tax-free muni bonds. If you can't beat 1.99% with very low risk you're not really trying.
The nice thing about the markets and real estate is you can get in an out and in the latter you can write off capital improvements which will increase value, plus if you can do things like even minor renovations yourself you save even more increasing your return. It also taxes a 5 year term to get 2%. You're going to have to go 10 years to get 3 or more and that means you've tied up that money for a long time for a low rate.
