I am 19, I have around 100k ready to put into a business. What should I do?

[igortachkent]

Hi, I’m 19 years old and I have experience running a clothing distribution business which I have ran for a couple of years. I want to leave this field and there isn’t much room to expand. I have around 100k available to put into a business. With a backround in logistics, distribution and Maths. What should I do? I really need a new business which I can expand and use to multiply my capital. Any advice?

 

[insaneity]

@igortachkent Awesome advice is likely incoming so I’ll take this moment to give you boring advice: Save 90% of it / put it in VOO, then start getting experience in a new industry that interests you / start up a local service business. Life is short, but also excruciatingly long, and there’s plenty of time to build with experience on a solid foundation of knowledge.

 

[613jono]

@insaneity ^ The only advice you need at this point.

 

[613jono]

@insaneity Vanguard is turning out to be a little too big and doing horrible things, does anyone have good index funds not owned by vanguard?

 

[613jono]

You're not wrong, but I haven't done that homework in a while so any advice I have is probably out of date.

You're better off asking over at r/stocks or r/investing

 

[stefanm]

@613jono ? Please explain what’s wrong

 

[613jono]

@stefanm Buying the entire housing market in cash and jacking up rent so that homes are becoming harder to purchase for normal people and renting becomes even more of a trap.

 

[sunee1]

@insaneity At 19, pick something and go work for a successful business instead of throwing money at something you have 0 experience in.

 

[613jono]

@insaneity What is VOO?

 

[ancientbrotherbass]

@613jono Vanguard index fund. It's a really same investment with great returns. Every dollar you put in VOO will likely double every ~10 years, so if a 20 year old put 100k in VOO and never touched it then it could double 3 or 4 times to 1-2 million by the time they retire (pre-tax).

 

[musicismyreligion]

@insaneity This is right about saving it, wrong about how. Get a mortgage for housing first (something you can realistically afford over time) THEN VOO, indexes, funds, whatever. You can't live in an investment.

 

[stsivo]

@insaneity Solid advice!

 

[613jono]

@insaneity Bro, THIS ADVICE RIGHT HERE HOLY SHIT

 

[613jono]

@igortachkent It’s not easy to tell someone what to do with their funds… however, your current business, I’d recommend hiring managers or automations to self manage the business. This way you can still make an income from it passively.

 

[rls]

@613jono I doubt OP owns the business.

 

[igortachkent]

@rls I own 100% of it. But it’s very limited in scale. Ie. I have maxed it out at a net profit of maybe 100k a year and it may only have a couple years left running due to certain circumstances

 

[ikpokolo]

@igortachkent If you can get 100k profit a year for even couple more years then run it or hire someone to run it for you. Running businesses is not as exiting as starting new ones but having 300k in savings instead of 100k is a huge deal for your future. If you live very cheaply 300k is enough money to sustain you for years without losing much capital meaning that you have much more chances to start another successful business.

 

[2bleweyes]

@igortachkent Buy a fully functional and profitable business. Seriously. You can use that 100k as a great down payment for a business that is already running, already making profit, and already past the startup phase where most businesses fail. That 100k is 10% down for an SBA loan for a $1M biz that could net you over 300k in annual SDE. I'm using a biz broker to find the right fit, the right industry, the right price, etc. And don't Google businesses for sale, find you someone (a broker) who knows how to hunt them down. Shoot if you want a referral, I'll give it. But just hire a professional. You'll go through the vetting process and by the time you're done, you should have a winner. You're poised to find something great with that investment!

 

[tamarahdavis]

@2bleweyes I like this

 

[stumpy82]

@2bleweyes This is great.