What to do with 100k?
September 1, 2010 7:54 AM Subscribe
What to do with 100k? My wife and I together have been able to save just over 100k over the last couple of years, which is nominally reserved for the purchase of a house. I am looking at potential alternatives that may be a better short/medium term investment. We already have another 100k reserved for an emergency fund.
posted by anonymous to Work & Money (21 answers total) 6 users marked this as a favorite
My wife has no debt other than a $400/mo car payment her company takes care of. I have about 15k left in student loans, and another 4k in CC debt which should be balanced by 2011.
Before you guys tell me that I should be paying off the student and cc debt with the balance -- we operate on the idea that these debts are mine and not ours. We have everything budgeted out such that payments are being made to shared savings and I take care of my debts myself. I'm fine with that. We're both maxing out our 401k to employer match and each of us is maxing our roth iras.
Here's the deal.
We have 100k sitting in a saving's account making no money for us. ING or HSBC used to be good choices, until the economy dropped out and we were left with very bad rates. We want to keep the money liquid, but also in a place where it can get a decent return medium term.
Here's what I'm thinking:
- Buy/sell luxury cars. I have access to non-public wholesale auction data and know what the margins are. On the face of it it looks like 5k can be brought off the top for any 20-30k+ car at auction. I'm also aware of the 'N registrations limit per year."
- Purchase a rental/renovation properties. Renovations shouldn't be a major issue, I've already contracted major renovations for other properties.
- We are in a position to take advantage of a franchise opportunity we believe in, where a venue that is is statewide is looking to expand nationally.
My question is this: If you had this scenario, what would you do? Play it safe and pay off the existing debts, flip cars, or start looking at real estate?