401k, financial manager or real estate?

My business is finally doing really well. We're earning about $400k/yr. We are paying ourselves less than $200k/yr. What do you recommend we do with the rest each year? We've discussed a combination of 401k, hiring financial manager, and/or buying real estate (rentals).

 

Re-invest in the current business a portion. Keep a portion liquid for slow business periods. Rental properties for passive income later in life.

Skip the financial manager. Study asset allocation and diversification. Develop your own long term investment strategy.

 

Teaching golf? Awesome.

 

Renting is a pain did that for years. Had 1 place totally destroyed by tenants also market is down

 

I agree. don't have rental properties. all i hear, and imagine, is the pain the a88 dealing with tenants. -- put your money to work in the markets instead.

 

Re: Buying property and renting to tenants.



How about buying a self-storage business? Check the rates on those places, very expensive. And eviction would be much easier than kicking people out of a house or condo.

 

don't become a landlord, been there done that and it's no fun.
You can make better returns with less hassles through the markets. Do something conservative like maybe a hedged value/dividend stock strategy and enhancing returns using covered calls or something. If you use conservative risk approach you can make maybe 10% to 12% annualized.

out of curiosity - what type of business are you running?

 

Sorry, but if the person runs a business he might don't have time to study asset allocation and other stuff. Maybe there's a need for a financial manager. I don't argue, I just suppose

 

===Re-invest in the current business a portion. Keep a portion liquid for slow business periods. Rental properties for passive income later in life.

Skip the financial manager.===

agree


===Study asset allocation and diversification. Develop your own long term investment strategy.===

he will never become a functional money manager, people who do that for a living do that poorly

whatever he will do, investment or trading vise, will be just the amateurish efforts...

 

You probably haven't achieved Accredited Investor status, but there are solid FoFs out there that will take $500K.