23 year old with 200K inheritance. Entrepreneurial ideas? Help

[grahampmortimer]

Find something that you have a passion for and you're good at. Do whatever business that is. The only way to survive in the early stages of business is to be passionate about it.

[alphadore]

Passion is very important. I agree with you there.

[thefrugaltoad]

What an opportunity for you! I would advise against investing the entire amount in a startup business and instead take at least 150K and invest that in a Roth IRA, you will pay taxes up front but withdrawals are tax free and makes sense given your young age. Of course you will want to diversify your holdings, reinvest dividends, and re-balance quarterly. If you have the skills necessary to start your own business I say go for it, if you do not have the skills stay in your current field and acquire the skills.

[shanecurran]

Well, what happens when the price of the property falls dramatically? What guarantee do we have that U.S. is not going into another recession? There is no such thing as hitting the bottom. You never know where the bottom is. You finance a property then in two years, it is worth half the price you bought it for. You wont get the same rent from your tenants to cover your loan. I dont see this is the time for her to take risks. She can easily invest in a government bond that matures in 5 years and then decide what she wants to do with the capital. No rush.

There is risk inherent in every investment opportunity. Leaving the money in "high risk stocks" is in no way less risky than investment property. If the property brings a positive net cash flow, then it may be worth it. Another thing to consider is that the price for rent is sticky so when property prices fall, the rent will not fall as much.