What would you do with $500,000?

What would you do if you were say... 18 years old and came into ownership of 500K?

Stocks, managed funds, property, bonds, EFT's, index funds, businesses, companies, what would you pick?

Would you pick one option or many?Play it safe and use compound interest to do the work or go for the big bucks?

Just a hypothetical question here, no-one should use this thread or any replies for advice, nor does this person actually exist.

 

18 year old men only have one thing on mind and Half a million is still enough:

 

all in something like BRK-B

 

Break it up into understandable amounts for your age, earnings thus far and potential earnings.

50% (250k) goes into low risk savings: US bonds, and teaser rate CDs.
30% (150k) goes into low risk long term investments.
10% (50k) goes into higher risk investments
10% (50k) goes into an account you *Can* access for ESSENTIALS.

Go to work, get a degree or marketable skill. When you have earned roughly 250k, then you have earned the right to deploy the savings because you have earned that much by yourself.

In general, people who have not earned the money are bad at managing it.

And if you get another 500K windfall, you know now, through the previous deployments, how to do it, and how you feel about it and can manage the risk.

A lot of people, especially on this forum, are clueless on what to do with 6-7 digits. They talk about stupid car etc. The road is long and everyone will want to use, take, borrow, your money.

Alternatively, freeze it for 1 year, which all the vultures, including yourself, can equilibrate psychologically, to having something you did not earn. This works well for the people who have "great ideas" on what to do with "YOUR money". If it were such a great idea then they would have their own money and not want not need yours.

 

Women, teenaged single malt & fast cars. If there was anything left I'd spend it foolishly

 

Part of it in a growth fund. Part in a CD. Part in money market..part in a conservative fund.
Some to trade with and some to puy in my tip jar in my mens batnroom.

 

Hello weaselbiter,

Pay off current debt. Buy a very nice fancy car and fancy truck. Buy 1970 Chevelle.

Put the rest in savings account.

Continue growing small account with trading ES and Options.

Go hunting 2 times a year.

 

Good Riddance.

If I magically came upon 500K at 18....my stupid arrogant self would have bought a Ferrari, some Rolex watches, and a whole bunch of electronics and champagne and expensive restaurants, shoes, clothes. Completely blown it in less than 2 months.

Life truly takes alot of time, wisdom and experience.

 

Way too cautious. PO is 18. Brk-b margined