Society/Culture Advice needed! What type of business would you invest in if you had 500k or 1million?

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TheShardMan

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Jun 28, 2018
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Hello everyone, an ex-colleague of mine is about to receive a settlement payout of just under 1m. What type of business would you suggest he invest in? F n B? A franchaise? Newsagent? What type of business could 500k get you? Or 1m?

He's not highly educated, works in mining. I think he's hoping the money will be enough for him to invest and gain income from so he can quit his job.

I've got no idea. Told him to go see a good financial advisor. Any ideas from you guys would be greatly appreciated.
 

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TheShardMan

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Jun 28, 2018
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Buying a franchise is ******* hard work for little return. Pay off all dept, buy a house and get a job other wise he will piss it all up against the wall.
I think he has 300k on his mortgage. But yeah he's out of his depth if he goes into franchising esp as he has zero business background.
 

TheShardMan

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Slap the f*%$#@ as hard as you can and make him read this
We are all concerned for him. And none of us have the background to advise him. Don't really know what investments he could make for a passive income these days.
 

Fat Yak

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Oct 4, 2017
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We are all concerned for him. And none of us have the background to advise him. Don't really know what investments he could make for a passive income these days.
I have been a small business owner for 20 years. I went arse up big time first time around and have seen first hand people like your mate going in with stars in their eyes, reality hits home after about 3 mouths and panic sets in.
 

awaremind

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Aug 11, 2012
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Hello everyone, an ex-colleague of mine is about to receive a settlement payout of just under 1m. What type of business would you suggest he invest in? F n B? A franchaise? Newsagent? What type of business could 500k get you? Or 1m?

He's not highly educated, works in mining. I think he's hoping the money will be enough for him to invest and gain income from so he can quit his job.

I've got no idea. Told him to go see a good financial advisor. Any ideas from you guys would be greatly appreciated.
I met a lady last night that wants to find investors for that amount to start Igas in a fast growing part of Perth. She reckons she’s on to a winner, and says her family have run igas in nz since she was young, reckoned the returns would be great within a few years.
 

ShanDog

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Honestly though, I would say the best advice you can give your friend is to hammer home the importance of getting professional advice. It would be worth every dollar they spent on it.
 

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Snake_Baker

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Hello everyone, an ex-colleague of mine is about to receive a settlement payout of just under 1m. What type of business would you suggest he invest in? F n B? A franchaise? Newsagent? What type of business could 500k get you? Or 1m?

He's not highly educated, works in mining. I think he's hoping the money will be enough for him to invest and gain income from so he can quit his job.

I've got no idea. Told him to go see a good financial advisor. Any ideas from you guys would be greatly appreciated.
Find a suitable small piece of land with housing and set it up to be as self sustainable as possible.

Water, Solar power, Solar hot water, vegetables, fruit, poultry etc., etc.

$500K is more than enough money.
 
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CheapCharlie

Norm Smith Medallist
Jun 12, 2015
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Pay off all loans, wait for the recession to hit, buy up lots of good stock and then back to headquarters for cocktails and dancing.









Note: I know nothing about money.
Its not a bad way to make some money if you have a pile of cash and have done your research on which conpanies to buy
 

EasternTiger

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Oct 15, 2007
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Most successful small business owners that started orf as tradies or factory workers/miners end up investing most of their money in real estate.

Your friend is already half way there, so buy a suburban block in a decent area and build 3 feng shui compliant architectural atrocities on it.

Rent them out when the market is sh*te. Sell them when the market is good.

When he gets a bit of experience doing it, move up into small commercial stuff.

Rinse/repeat.
 

CheapCharlie

Norm Smith Medallist
Jun 12, 2015
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Most passive income takes involved research/work to begin with and ongoing work.
Having said that, If i had a million cash to invest I'd buy shares or property. I wouldn't be buying any more shares in the current market, or only a few companies. When the market drops ~30%+ i'd have my list of 40 companes ready to go and do a quick review of their financials, before spreading the money out in a diversified portfoilo.
Property wise, with prices having fallen/still falling, i could buy 3 decent townhouses at around $350-400k here on the Gold Coast, with rental returns of $450 - 700ish a week.
 

Snake_Baker

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Most successful small business owners that started orf as tradies or factory workers/miners end up investing most of their money in real estate.

Your friend is already half way there, so buy a suburban block in a decent area and build 3 feng shui compliant architectural atrocities on it.

Rent them out when the market is s**t. Sell them when the market is good.

When he gets a bit of experience doing it, move up into small commercial stuff.

Rinse/repeat.

The great Ponzi scheme of contemporary Australia.
 

sorted

Norm Smith Medallist
Aug 21, 2016
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Most passive income takes involved research/work to begin with and ongoing work.
Having said that, If i had a million cash to invest I'd buy shares or property. I wouldn't be buying any more shares in the current market, or only a few companies. When the market drops ~30%+ i'd have my list of 40 companes ready to go and do a quick review of their financials, before spreading the money out in a diversified portfoilo.
Property wise, with prices having fallen/still falling, i could buy 3 decent townhouses at around $350-400k here on the Gold Coast, with rental returns of $450 - 700ish a week.
Don't try and time the market unless you are some stock market guru. Better to dollar cost average over months and years. And instead of researching buying 40 companies you might as well buy into a low cost ETF or indexed fund.
 

CheapCharlie

Norm Smith Medallist
Jun 12, 2015
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Don't try and time the market unless you are some stock market guru. Better to dollar cost average over months and years. And instead of researching buying 40 companies you might as well buy into a low cost ETF or indexed fund.
ETFs are okay, i have some in my portfolio, but mainly overseas markets. You don't need to be a stock guru to make good investments, you just need to take your time and do research , research, research. Ignore any stock broker/analyst recommendations is a good idea also.
 

its free real estate

it's free real estate
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Don't try and time the market unless you are some stock market guru. Better to dollar cost average over months and years. And instead of researching buying 40 companies you might as well buy into a low cost ETF or indexed fund.
This is all true, but I often wonder if all those people who spend their time gambling and studying the form of horses, teams, etc would be better spending their time studying the stock market. I guess it's not as fun, but there's a higher guaranteed rate of return.
 

sorted

Norm Smith Medallist
Aug 21, 2016
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This is all true, but I often wonder if all those people who spend their time gambling and studying the form of horses, teams, etc would be better spending their time studying the stock market. I guess it's not as fun, but there's a higher guaranteed rate of return.
Gamblers who spend their time studying the form of dogs, horses and footy teams would be better served studying probability.

Even after a lot of study of the stock market not many people would beat the pros. And plenty of amateurs go into it and lose money - by not having a trading plan (or having one and not back testing it), not having a money management plan, not following their plans, not having realistic goals - which leads them to speculate on crap. If you are going to do it the main emphasis should be on not losing money.
 

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