Where To Invest If You Inherit Tons Of Money?

[Phyllis Wagner]

Let's say you inherit tons of money from somewhere, or you invest a product that is a huge success etc. Where exactly do you invest it wisely if you don't want to wage slave anymore ?

I know the obvious answer is real estate and collect rent, but I personally think it is unethical because you drain money out of people who barely make ends meet by exploiting a basic survival needs and inflate the already ridiculous housing prices at the same time so you and your real estate investor friends get richer.

Edited March 2, 2021 by Phyllis Wagner

[Yarco]

I agree rent is unethical. But what about buying farm land and leasing it out to farmers? You get money for the land, the land is also generating more income for them than what they pay you. So it's win-win.

You can let people grow hay on your land and they just come in and cut it down and bale it up and take it away a couple times a year.

I've heard of some areas where people rent their land out for forestry companies. Basically it's just rows and rows of trees, then once they're mature a company comes in and cuts them all down and re-plants them. Seems kinda sustainable at least? For the years that the trees are growing.

Plus if Bill Gates is gobbling up hundreds of thousands of acres in farmland, I gotta wonder if something else is going on there.

[Leo Gura]

Real estate does not have to be unethical.

I recently bought a house. I don't see anything unethical about that.

You can also invest somewhat ethically in certain stocks.

[The0Self]

Put at least some of it in an equal-weighted (as opposed to cap-weighted) modified S&P500 for safety -- just the S&P but with equal amount in each stock rather than almost all of it in Apple/Google/whatever. It almost always performs quite a bit better than the traditional cap-weighted index (SPY).

Edited March 3, 2021 by The0Self

[Phyllis Wagner]

4 hours ago, Leo Gura said:

Real estate does not have to be unethical.

I recently bought a house. I don't see anything unethical about that.

You can also invest somewhat ethically in certain stocks.

Yeah but you live in that house, nothing unethical about that even if it is a Villa.

What is unethical is rich people buying up multiple apartments that stay empty purely as an investment/speculation object. Or buying up multiple apartments and jacking up the rent prices so whoever lives there has to basically give you all their money. People always have to live somewhere so they gonna pay. 

The whole real estate situation grinds my gears like nothing else, no regular working guy has a realistic chance of owning a reasonable place to live anymore. 

If I were at the top I would enforce a policy that forbids anyone to own more than 2 real estate objects, one of which must be where you live. If you already own more the government will force-buy it from you and rent it out for affordable prices.

 

@Yarco That is a great idea. Or renting out real estate to businesses in general. I just don't like fucking with peoples personal homes .

Stable and Ethical ETFs are also fine with me.

Edited March 3, 2021 by Phyllis Wagner

[Leo Gura]

@Phyllis Wagner As with most things, you can use it for good or for evil. Same with investing.

Not that I'm a huge fan of landlording, but most rentals have market rates. You could price your rental reasonably or even slightly below market and still earn money.

[Consept]

If you worried about ethics, which i feel similarly, there are options to do real estate in such a way. You could do holiday rentals, so buy a place that is in a popular tourist area (when things get back to "normal") and rent that out per week or even per day on airbnb or a local property management company. This way its not so much a necessity for the people renting and you can make good income because weekly or monthly rentals are higher. Theres also rental of retail & commercial space, office space etc etc.

You could also buy, renovate and then sell on, in this the money is made on the renovation, so you buy a place thats seen better days, fix it up and flip for a profit. This helps buy putting more eligible properties on the market, you could even sell at a reasonable price to first time buyers if you want to go the whole ethical way.

The option on stocks, which ive done myself, is to invest in etfs like renewable energy. Quite a few of these around and they usually hold stake in all the major players around, this is slightly more of a gamble as who knows what will happen, but i think renewable energy will be the main source of energy in the relatively near future. 

[Phyllis Wagner]

@Consept Buying property just to rent it out via AirBnB is not ethical, people are starting to do it instead of classical renting because it earns them more money. 1. That property will stay empty more than if rented out. 2. it once again reduces living space for regular people - jacking up the prices.

 

@datamonster I mean most landlords are probably not assholes, but most will charge you as high as possible because they already have bought other property on a loan that they have to pay back, their goal is to multiply their investments. The core of the problem is that base needs like shelter need to be much more regulated and not left to the free market. Everybody needs at least one affordable place to live, everything that goes beyond that can be handled by the free market. 

I see the value in actually building the houses, but what about people just buying up houses to flip them or to get the highest possible passive income stream out of them? What exactly is the value to society that is provided there?

Edited March 3, 2021 by Phyllis Wagner

[Snader]

If you want to do long term investment without big risk and effort and make it more ethical, go for index funds. I think most of the popular investing services have an option to search for funds that invest into more green markets.

I've done some investing into low CO2 risk markets in North America and Europe through index funds and some of those have gone up like 200% in 10 years and relatively even more in the past few years.

I think investing with green values especially into markets of some stable 1st world democratic countries now will make it worth your while when you take a look at those funds 10-20 years from now 

[Phyllis Wagner]

@Snader I have some money in the IShares MSCI Social Responsibility Index ETF and plan on adding more to it in the future. 

It's basically the stable MSCI World Index but with companies replaced that don't meet certain criteria, like Nestle or Gambling/Weapon stuff. 

[Consept]

3 hours ago, Phyllis Wagner said:

Buying property just to rent it out via AirBnB is not ethical, people are starting to do it instead of classical renting because it earns them more money. 1. That property will stay empty more than if rented out. 2. it once again reduces living space for regular people - jacking up the prices.

I see what youre saying, this is the case for cities definitely and has been a real problem, which in some cases has brought a lot of regulation from the local councils. What im talking about specifically is very touristic areas where a big chunk of the economy is based on tourism. For example my parents run a holiday rental company in a small beach town called mojacar in spain, the population is only 5000 and most people who live there are involved in the tourism industry or supplying some sort of service for locals. If you bought there youre not really taking away someone elses place or jacking up prices as there are other options to live in other towns close by. 

Another idea that ive come across is buying a hotel room or a student accommodation, these things are helpful to the everyday person without taking advantage or at least you dont have to take advantage.

But i agree in general that there should be more schemes to own at least one house but like @datamonster said there does have to be a balance, the argument now is that its probably to weighted toward the investor rather than the person so that needs to be addressed definitely.  

[Phyllis Wagner]

@Consept I agree in that case of tourism areas it is not unethical. 

Funny that you mention student accommodations, couldn't help but think of this. 

 

Apparently these things are priced extremely high for what you get but in some places they are the only affordable options for students. I mean you could argue things like this are helpful for the average person (otherwise they couldn't live there at all) but would you consider this ethical?Something seriously wrong with that if you ask me.  Just something to think about, I know that's not what you had in mind 

[Consept]

15 minutes ago, Phyllis Wagner said:

@Consept I agree in that case of tourism areas it is not unethical. 

Funny that you mention student accommodations, couldn't help but think of this. 

 

Apparently these things are priced extremely high for what you get but in some places they are the only affordable options for students. I mean you could argue things like this are helpful for the average person (otherwise they couldn't live there at all) but would you consider this ethical?Something seriously wrong with that if you ask me.  Just something to think about, I know that's not what you had in mind 

lol to be honest i didnt even know those pods existed for students, but yeah theres always someone taking advantage and putting their profit before the people but I dont think you or we have to do that. For example if these type of things are happening, there maybe avenues to supply something somewhat ethical. But yeah i was more talking about dorm rooms on campuses, here in the UK i think you can buy them and rent them to students although i need to look into that. 

[Leo Gura]

Don't forget that real estate prices should naturally rise if the global or city population is rising. Land is a limited resource. And desirable land is even more limited.

The world population doubled in the last 50 years. So of course prices go higher.

Obviously there is manipulation and capitalism at work on top of that.

[LfcCharlie4]

If I inherited $1M today & the focus was on income & not capital gains I’d do this-

Firstly, use the money to create a 6 figure online business, as to me, business in my experience is the best way to create income, you can then systemise / outsource the whole process if it wasn’t your passion as well. 
 

Id then invest a decent chunk in Cryptos such as Ziliqa which has 15% staking rewards annually, and they are paid out daily (compounding?) on the Atomic Wallet (20% if you include the GZil you get) & TFUEL (Theta Fuel) which after Thetas Mainnet 3.0 you’ll be able to earn up to 20%+ from staking. Not to mention these Cryptos could 5x this year on top of the staking rewards. (My investment opinion, not financial advice) 
 

id also invest a Chunk in service accommodation if I could outsource the work, otherwise I think it would take too much time away from your main focus, which is where you will generate the most income. For example, in the UKs you can buy “Chalets” (small mobile homes) for like 20-25k and rent them out to holidaymakers in the summer for like £400-500 a week, which is insane compared to traditional rental yields. 
 

 

unrelated, but you Posted a pic from Twitter and expressed views I commonly see on Leftist / Communist Twitter, those guys hate landlords with a passion & basically repeat Marx’s manifesto on the daily & are fully bought in by the communist ideology, while ignoring its flaws (not saying there aren’t good points, of course there are) so I was wondering how much of your Real Estate views are influenced by that? 
 

I ask because I was the same when I used to follow a lot of the Leftist accounts on there, then I actually done my own research & met real, ethical, landlords and realised they aren’t the Bogeyman that Twitter often makes them out to be, sure there’s some greedy & unethical ones out there, but I feel they all get unfairly lumped into the same basket. I am not saying the system is perfect as is, but I’m not sure your solutions/ the ones I see on leftist Twitter would solve everything either, but I do get your point about everyone having a house, but not everyone wants to buy. 
 

In fact one of the landlords I know is very influenced by eastern philosophy such as Vedanta and says him and his husband treat their tenants as “God” and do everything they can to make their stay as comfortable & enjoyable as possible. To me, that’s the perfect example of being an ethical landlord  

[kray]

@Phyllis Wagner Index funds, especially for long term investments. 

[LfcCharlie4]

@kray  For part of portfolio, if your young (below 50) I see no reason to be so conservative and just shoot for 7-10% annual returns, the advantage of being young if you can take risks as you won't necessarily need the capital ASAP compared to those close to retirement

Not to mention Ethics, most S&P 500 Companies aren't necessarily the most ethical companies in the world lmao 

[Phyllis Wagner]

@LfcCharlie4 You are right I am very left leaning.

I am not on twitter or in any of these bubbles, though. A lot of communist theory just makes sense to me to be honest. I am not for the Marxist revolution part, communist policies must come slowly through democracy by progressing through the spiral-stages.

[LfcCharlie4]

@Phyllis Wagner Yeah fair enough mate, we all have our biases, including myself haha 

I just don't relate to a lot of it, as the Marxists I've met in real life, well they aren't as compassionate as you'd expect communists to be lol, especially when you disagree with them 

All the rhetoric about 'Profit = Evil' and landlords should be abolished to me just comes from people who have never run a business or been a landlord, not always, but a lot of the time

Personally, I don't see Marxism as a natural progression, I would recommend watching Leo's recent business video he goes over the dangers of getting too trapped in Socialist rhetoric, Leta lone Communism in terms of Building your own success in life.

That said, I defo am not saying Capitalism is perfect in its current form, far from it, we all know that

I am just trying to warn against the victim mindset I see a lot with Socialists / Communists that always look for an outside source to blame 

While true sometimes, I just feel that mindset becomes pretty poisonous real fast and is kind of an easy excuse for not creating the life you desire, building a business etc, you always have the Baddy government or capitalism to blame, never yourself 

I've also noticed its mainly people around my age (21) in the 16-25 category and usually involved in Academia that become Radically Left leaning, which I also find quite funny 

But, hey I'm just some random guy on the internet, just some observations I've made over the years as I went to a 'state school' in England and had a working class background which is VERY left leaning (basically ridiculed for not being, even when you're like 15/16), and while great in theory, I'd like to see the more radical policies played out in real life first as Leo says in his Conscious Politics videos- test, test, test 

Also, let's be real Communism probs won't happen in our lifetime, I mean majority HATE it and are completely against it, so sure support whatever form of politics you like, but I would also say don't use it as an excuse to not to Financially blossom 

Sorry for the rant, but I fell into the trap a couple years ago, and since disassociating from that 'victim mentality' I've blossomed much more in all areas, including financially!

Have a good day mate 

[meow_meow]

Well I'd take a look what other people with shittons of money do, Elon Musk for example bought 1.5B worth of Bitcoin which is generating them (Tesla) more income than selling cars.

Anyway,

Where to invest and is it the right time to invest are the never ending questions not only for people with tons of money. 

Edited March 4, 2021 by meow_meow
I like Elon