Non traditional investing. Should I?

[Fishindude77]

You don't necessarily need to be looking for higher yields, maybe just looking for diversification of your investments. If the stock market tanks, you will be glad you had some other things going.

No need to quit the high paying job either if you're happy there. Plenty of alternate investments out there besides the stock market that don't require too much hands on work.

[corn18]

Everyone has hit on an important point: time. I don't have any spare time right now. I would need something turnkey and hands off.

[Fishindude77]

Don't know where you live, but farm ground can be a decent investment with moderate, safe returns and almost no chance of a loss. Just collect the rent check every year from the farmer or a government program and pay the taxes.

[TexasHusker]

Everyone has hit on an important point: time. I don't have any spare time right now. I would need something turnkey and hands off.

I would just keep full steam ahead as you are. If you don't have time to give to alternative investments, you're setting yourself up for some problems.

[LivingAlmostLarge]

How do you get into storage investing? Or investing in farm land? I'm always curious about diversifying investments. I also think you can retire from the rat race just doing the normal investing but it just takes more patience than perhaps real estate.

[TexasHusker]

How do you get into storage investing? Or investing in farm land? I'm always curious about diversifying investments. I also think you can retire from the rat race just doing the normal investing but it just takes more patience than perhaps real estate.

If you don't have the $$ to do it yourself, form a real estate partnership.

If a storage unit is going to cost $ 1 million - and assuming you have accurately projected the income and expenses - you gather $300K, then go to the bank and borrow the other $700K.

Build it, open it, and you're off.

Farm land is somewhat the same - there are land banks that love to lend for farm and ranch land.

A friend of mine here bought 80 acres and turned it into a pumpkin patch - complete with a corn maze, hay rides, refreshments, and concerts. He's retired now, and wears a straw hat.

[tripods68]

go to the bank and borrow the other $700K...Build it, open it, and you're off.

This comment strikes me too much "self-indulgence"

[Fishindude77]

There are thousands of farm ground owners throughout the midwest who do not farm themselves and collect a nice income off of their land, year after year, as it gradually appreciates in value. The only expense they have is taxes which are pretty low and might have to repair a drainage tile, or something like that every few years.

This is something you do with cash, not borrowed money. If you've got some cash that isn't doing much for you in CD's, etc. farm ground will get you a significantly better return. The returns just aren't there if you're paying interest on a loan. Average ground around here runs $6,000/acre and you can get $250/year cash rent, do the math.

I've seen some people get into the mini storage business pretty economically by using some ingenuity and re-purposing big old buildings with a common security entrance, divider walls, OH doors, etc. rather than building new buildings. This doesn't have to be a million dollar deal, you can start small with as little as 30-40 units.

It's a pretty darned simple business too. Shouldn't be hard to figure out your income potential by calling around to see what they rent for, then allowing for always having some vacancies. Biggest hurdle is somebody needs to be available to take calls and rent units, clean vacant units, deal with deadbeats, etc.

[Nutria]

This is something you do with cash, not borrowed money. If you've got some cash that isn't doing much for you in CD's, etc. farm ground will get you a significantly better return. The returns just aren't there if you're paying interest on a loan. Average ground around here runs $6,000/acre and you can get $250/year cash rent, do the math.

With no maintenance or tax costs (which, of course, isn't true), that's a twenty four year payback on cash flow.

How quickly is the price of the land appreciating?

[sv2007]

Thought I would start a new thread because we had hijacked another.

I am 50. If I stay the course and work for another 9 years, contribute the max to my 401k and IRA's and some additional to my taxable account, I can retire with enough investments and pension to live very well for the rest of my life ($150k annual income with COLA). If nothing catastrophic happens, my children should inherit a sizable estate. I can accelerate this plan to retire at age 55 if I can sustain my current income.

I'll be honest, this is boring. But relatively safe. As many of you know, until a few years ago, I was a financial idiot. Now that I have a shot at being financially independent, I am scared to death to take much risk. But TexasHusker got me thinking about doing something different. I like my job, it pays a metric boatload and I would like to keep doing it until 55. But I will always need to be involved in something. Maybe I could find my way into one of these non-traditional investments and derive some enjoyment from the challenge.

I don't think I want to be a landlord. But I like running a business. Know nothing about franchising. Maybe an angel investor? What alternate investments should I look at and should I even think about it given my situation?

Thanks, Tom

Hey, what kind of business? food?

I forget the stats, but a lot of business fail in the start, even franchise (esp weak ones) and with franchise, you may be required to buy expensive equipment vs your own where you can buy used equipment. But, maybe you have an interest in running a business? If so, then none of it matters; I'd say go for it.

[sv2007]

It's taken me a lot of years to get to where the investing side is boring and I have found that I like it that way.

What does your long suffering wife say about this latest scheme?

There are tons of things you can do after you reach retirement to keep you engaged. I would think the goal would be to do it because you want to and not get in a situation where you have to work yourself to death because you have to.

The bogleheads have a general rule--risk no more than 10% of your portfolio on these type of investments. Would that be in line with what you are thinking ?

Hahaha, I was just thinking hey, this guy thinks like bogleheads forum (which I just joined).

As for the OP, do you like Vegas? If so, open a FOREX account and put some $ into it. Excitement level directly proportional to leverage. Or, for less excitement, you can always do some individual stock picking. These investments are easy to get into bu MOST IMPORTANTLY easy to get out of.

[tiffmar]

STOP 401K Contributions

You may want to consider suspending your 401k contributions. Little known fact, gov can change the tax rate AT ANY TIME when you start drawing from your 401k. Do you really think you will be paying LESS in taxes in 10 or 20 years? Between the government, Wall Street and banks we are all stuck in this Triangle of Confiscation. Look into Building a Financial Bunker.

[corn18]

You may want to consider suspending your 401k contributions. Little known fact, gov can change the tax rate AT ANY TIME when you start drawing from your 401k. Do you really think you will be paying LESS in taxes in 10 or 20 years? Between the government, Wall Street and banks we are all stuck in this Triangle of Confiscation. Look into Building a Financial Bunker.

My bad, THIS is the worst advice ever.

[TexasHusker]

My bad, THIS is the worst advice ever.

Actually it is pretty sound. Do you really think the gubmit was looking out after YOUR financial interest when they created these tax deferred instruments? Do you really believe the gubmit was being benevolent and charitable?

There is only one reason why the gubmit invented these schemes: More $$$ to the treasury. You'll discover that, eventually.

[Fishindude77]

If you are offered a 401K program that has a company match amount, you would be silly not to contribute enough to at least get the full match amount. That is free money, and all of this money is pre-tax. If you get ZERO return on the investments, you are still way ahead.

Unless you are psychic or have a crystal ball, nobody knows what the government will do in the future. Maybe they will seize all of our property and clean out all of our bank accounts? We can only play by the rules we are aware of.