Let's get right to it, I need financial advice.

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Let's get right to it, I need financial advice.

Lenny Smith
Member since 2020 · 14 posts · 1 vote

Alright. As the title says I am in need of financial advice.  I am 28.  I have been working a job I hate for two years, and have managed to save close to 10k.  At the beginning of the year I inherited a little over 150k, the 150k is going to be taxed when I take it out of the account it is in but the remaining money is not taxed(can't remember the amount).  Now. I am extremely lucky. I am in an extremely fortunate position. I want to capitalize off of this the most that I can so I can help my own family and friends in the future like the person who left me this inheritance helped me. 

I have a very low cost of living, I moved a little over two years ago with my parents to a property they purchased years ago, and I live rent free in a small cabin on the property. With bills, food, and necessities I probably pay $380 a month most months, but never more than $480.  When I am working, which I haven't been for the last 2 weeks due to COVID, the only added expense is gas which is about $80-$100 a month(of course it's much cheaper now).  

So, like I said before I realize that I am extremely fortunate.  I've been completely broke, living in a really crappy 1 bedroom apartment while working at a job many considered a career, paying $600 a month in rent and barely being able to afford food.  I am stressing the fact that I realize how fortunate I am because I think it is important that I take advantage of every opportunity that I have being in my position.  A lot of people can't afford to think about quitting there job to learn something that might help them earn more. A lot of people inherit money but have to spend most of it on their current living arrangement and bills. 

With that said, I am thinking about quitting my job. It truly makes me miserable, and I think having more time to focus on learning to invest and trade in the stock market among other things would be worth it in the long run.  I am only going to be 28 once, and if I can take this year to develop skills by 29 that I wouldn't have if I stayed at my job, and I can profit off those skills, why shouldn't I do it? 

With COVID causing so many to lose their jobs, I figure there will be no shortage of jobs in the future.  I have enough money in my savings alone to live comfortably for at least 6 months, at least a year even.  But, I acknowledge that my ambition and the amount of resentment I hold for my current job might be clouding my judgment.  So I would like to ask for advice/opinions on what I should do? 


Should I quit? 

If so, is the stock market/trading a realistic way of earning income considering our economy today? 

I have already began taking some courses on TD ameritrade's website, I opened a brokerage account and downloaded thinkorswim(trading program), and I have been observing stocks and messing with trendlines and different forms of analysis. I am seriously motivated to learn this.  I do not want to be broke, I do not want to be one of those idiots who inherits money and burns through it.  This is a blessing and I want to take advantage of it fully.  

I appreciate any help. Thank you.  

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Aaron K.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
6y

@Lenny Smith for the vast majority of people day trading is a bad idea; a very bad idea.  If you want to try it set aside $1,000-$3,000 fully expecting to lose it all and give it a month or so, if you don't lose money I'd be surprised, if you make a decent amount I'll be shocked.  

One of the problems with day trading is you need an account value of $25k to even do it and you have to pay trading commissions if you want to actually trade in real time, and even then you are 2 steps behind the trading algorithms.  Whatever you decide be careful, you are lucky to have this opportunity; don't squander it.

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  • Aaron K.
    Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    6y

    Ok so there is a lot to unpack here, to be frank $150k is probably not enough to quit your job and live on investments alone unless your expenses stay at $500 per month or less forever.  Let's start with stocks, there isn't a big secret there the best strategy is buy and hold, not trying to day trade and predict trendlines, invest in a broad index fund with low fees and wait, that's pretty much all there is to it there.  

    With real estate, if I were in your shoes I'd probably start looking into a strategy involving rentals, there are several like house hacking, BRRRR, or even turnkey.

    While $150k may not be enough to quit a job and invest full time I think it is probably a good start and may allow you to look for a job that you enjoy more, not all jobs are terrible, find something you like to do and it will kickstart your investing even more.

    2Reply
  • Lenny Smith
    OP
    Member since 2020 · 14 posts · 1 vote
    6y
    Originally posted by @Aaron K.:

    Ok so there is a lot to unpack here, to be frank $150k is probably not enough to quit your job and live on investments alone unless your expenses stay at $500 per month or less forever.  Let's start with stocks, there isn't a big secret there the best strategy is buy and hold, not trying to day trade and predict trendlines, invest in a broad index fund with low fees and wait, that's pretty much all there is to it there.  

    With real estate, if I were in your shoes I'd probably start looking into a strategy involving rentals, there are several like house hacking, BRRRR, or even turnkey.

    While $150k may not be enough to quit a job and invest full time I think it is probably a good start and may allow you to look for a job that you enjoy more, not all jobs are terrible, find something you like to do and it will kickstart your investing even more.

     I might not have said that right, but by mentioning trading and tendlines etc. I was talking about day trading. I have seen day traders make $50-$100 or even more in an hour.  If I could do this I would have no issue quitting my job. I should also mention that my job pays just above minimum wage, and I do not plan on being there in a year regardless.  I am finishing up an associates degree and will most likely be putting all of my time into getting a bachelors after the end of this year.  This is another reason I want to quit my current job and find something I can do (such as day trading) that allows me to make money independently of an employer.  I have crammed a full college schedule into my 40 hour work weeks for the last two years and I feel like I never had time to really learn the material I was working with. I sort of just blazed through it to make time for my job. 

    I have thought about rentals.. I guess at the moment though I am just really hung up on the day trading idea. Probably because it seems less involved.  I will look into it further though. 

    0Reply
  • Aaron K.
    Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    6y

    @Lenny Smith for the vast majority of people day trading is a bad idea; a very bad idea.  If you want to try it set aside $1,000-$3,000 fully expecting to lose it all and give it a month or so, if you don't lose money I'd be surprised, if you make a decent amount I'll be shocked.  

    One of the problems with day trading is you need an account value of $25k to even do it and you have to pay trading commissions if you want to actually trade in real time, and even then you are 2 steps behind the trading algorithms.  Whatever you decide be careful, you are lucky to have this opportunity; don't squander it.

    4Reply
  • Lenny Smith
    OP
    Member since 2020 · 14 posts · 1 vote
    6y
    Originally posted by @Aaron K.:

    @Lenny Smith for the vast majority of people day trading is a bad idea; a very bad idea.  If you want to try it set aside $1,000-$3,000 fully expecting to lose it all and give it a month or so, if you don't lose money I'd be surprised, if you make a decent amount I'll be shocked.  

    One of the problems with day trading is you need an account value of $25k to even do it and you have to pay trading commissions if you want to actually trade in real time, and even then you are 2 steps behind the trading algorithms.  Whatever you decide be careful, you are lucky to have this opportunity; don't squander it.

    I learned of a brokerage that allows day trading with only $400 in the account.  I didn't make an account and read into it so there might be a catch here.  What do you mean '2 steps behind the trading algorithms'?  From what I understand there are stocks(indexes, futures, not sure of the right term here) that you can day trade with reasonable commissions.     

    I'm definitely not going to even attempt to day trade until I feel confident that I will make more than I lose. 

    0Reply
  • Aaron K.
    Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    6y

    @Lenny Smith you can only make 3 day trades a week before being flagged as a pattern day trader which puts the $25k restriction in place, the account probably lets you open it with as little as $400 but they are expecting you to do buy and hold investing.  

    When I say you are behind the algorithms, you the day trader are trying to do the same thing the computer is, but you will likely have delayed information, slower reaction times, and the computer will make math based decisions 100% of the time, not to mention the computers that do this are right next to the NYSE and have maxed out their internet connections so that they can beat out other trading computers.

    3Reply
  • Lenny Smith
    OP
    Member since 2020 · 14 posts · 1 vote
    6y
    Originally posted by @Account Closed:

    Id rather invest in a Garguatuan high fee Grant Cardone syndication than DO day trading.

    High level stuff here.  Not polite to say what i really want to.

    You are young if you Hate your job go do something else.

    I mean, I never asked for politeness. I would rather people keep it real and tell it how they see it. That is why I am here asking for advice, where I assume most know better and more than me. 

    But, in response to you telling me to do something else, that is what I am asking about.  Aside from learning to trade I would be using the freed up time to find something better. Now the question is, is it smart for me in my particular situation to quit the job before finding something better? If I want a break from working a job I hate and possibly getting right back into another crappy job, is it smart to allow myself to take a 6 month-1 year break while I focus on school/finding work I enjoy? 

    Time is valuable.  That not only includes time spent making money but time spent figuring things out and making a plan/setting goals.  I hadn't had a moment to myself in what feels like years until I was laid off recently. My gut is telling me my time would be much better spent staying disciplined everyday and focusing on my future, figuring out a move I can make to put me in a better place, than to stay at a dead end job while the misery increases and self worth deteriorates. Am I wrong? Maybe. 

    0Reply
  • Lenny Smith
    OP
    Member since 2020 · 14 posts · 1 vote
    6y
    Originally posted by @Aaron K.:

    @Lenny Smith you can only make 3 day trades a week before being flagged as a pattern day trader which puts the $25k restriction in place, the account probably lets you open it with as little as $400 but they are expecting you to do buy and hold investing.  

    When I say you are behind the algorithms, you the day trader are trying to do the same thing the computer is, but you will likely have delayed information, slower reaction times, and the computer will make math based decisions 100% of the time, not to mention the computers that do this are right next to the NYSE and have maxed out their internet connections so that they can beat out other trading computers.

    The program I am referring to is called NinjaTrader I think, from the little I read about it, it sounded like they only required $400 for a futures trading account and there was some way around the pattern day trading rule.  I don't remember what that was, it might have been trading in a specific future.  But you could still be right, I wouldn't put it past them to make it sound appealing to someone like me just so I would open an account. 

    And I think I understand what you are saying, I would be trading against a lot of computers that would have the advantage. Yeah.  Makes sense...    Well... I think I am still going to continue with the courses on TD, I don't think it could hurt to learn about this stuff. The guy who managed my inheritance before it was set to be given to me said he would help me put 10k or whatever I wanted into an investment account of my own, so I could apply whatever I learn to that down the road.  

    0Reply
  • Greg Morris
    Flipper/Rehabber · Spanish Fort, Ala · Member since 2019 · 97 posts · 88 votes
    6y

    I have say right off l would not trade stocks. l traded stocks since the 80s. I know little bit about stocks. Your going to be trading against AI computers. If you decide to trade stocks start off with 5k. and build from there, dont add anymore cash to your trading acct. As to your 150k dont rush to withdrawal the money. I would wait a few months to see what is going to happen to the housing market. Home prices have already started falling, new construction is down. I think we're going to see a big slow down in the market & economy. Keep in mind we are now in a monetary phenomenon which is going to bring on hyper inflation. The guys with the money are not out spending their money on investments, they are sitting on their money because they know this is not the time to buy and deals are coming. You will be picking up houses for 50% below todays market in the months or year to come. There is a reason the Fed is charging 0% to the banks. Were in a state of deflation and bank dont normally like to operate in a deflationary economy. Were going to see a contraction in the economy in the coming months. I hate to say this but many foreclosures are coming, and thousands of business will be closed. Be patient and smart. I wish you well. 

    3Reply
  • Charles LeMaire
    Rental Property Investor · DFW TX · Member since 2018 · 179 posts · 260 votes
    6y

    @Lenny Smith - I noticed that you joined BP today.  Welcome.  I'm curious why you're asking about this on two fronts.  First, you realize this is an RE site, not a Wall St. investing site, right?  You've confused podiatrist with dentist.   Second, it seems by your comments that you're relatively sure it can be done and that you can do it.  GO FOR IT!!!  Unless you are Peter Lynch reincarnated, someone out there can use that $150K+ you inherited.  I recall a fellow telling me that most people win in a casino; as I recall he had to borrow rent money after that experiment.  

    I don't believe you mentioned what you do.  No idea how bad it could be; change!  You said you're off at present.  I hope you've taken some time to attempt to learn about some jobs you might like.  Or perhaps taken time to watch Mike Rowe's Dirty Jobs.  Seriously, there are a lot of great RE pod-casts. 

    Clearly, this is a RE site and yes, I play in RE.  RE can be very lucrative, but there are often bumps in the road. Some avenues of RE requires a fair amount of capital, some don't. But the folks that WIN have very positive attitudes and a lot of drive.  

    Given you are asking on the Wall St side of the fence, I would find an advisor that you can trust. I assume you are referring to an non-spousal inherited IRA (they now have a 10 year RMD clock). I would pull most/all of it now while the market is down, pay the tax, and get it reinvested to allow it to ride the market back up. Pay the tax now when it is smaller and taxes are lower (Trump's taxes are lowest in my lifetime!). Once you have allowed it to climb, you have studied and learned about something (Wall St or RE or something) then work you way into that when you have a clue.

    Get a job you can stand and keep it while you figure out what you want to do.  If you can work close to your target area, do it.  Figure out how to FLY before you step off the cliff.

    Regards from a Grumpy Old Man,

    Charles LeMaire

    1Reply
  • Kitt Pyle
    Member since 2019 · 5 posts · 1 vote
    6y

    People have already said it, but I will say it more plainly.  Day trading is playing Russian Roulette.  It is basically gambling on trends.  The fallout from this COVID-19 will get a lot worst before it gets better.  

    You said that presently you are unemployed.  Use this time to learn about how money really works.  I recommend reading How Money Works, Stop Being A Sucker.  Yes, you have been blessed.  I recommend investing in cash flowing real estate. Once you have made lots, and I mean lots of money with a constant stream of excess money coming in, then do you da trading gig.  

    With all the answers you have provided thus far, it sounds like you have made up your mind to gamble your money in hopes of making lots of money in a very short time.  This is like becoming the number one athlete in the world.  It is one in a million.  But then you don't see all the hard losses, etc. Two birds in the hand are better than one in the bush. 

    If you decide to gamble your money in day trading, I wish you lots of luck. 

    0Reply
  • Lenny Smith
    OP
    Member since 2020 · 14 posts · 1 vote
    6y
    Originally posted by @Account Closed:

    This isnt going to end well.....................................Ninja Trading.  These companies make their money by choosing the right name.  I bet they spend millions focus grouping .

    Tasty Trade.....yum yum yum.

    Of the Planets 8,000,000,000 inhabitants how many have made it trading the day?

    You are being sort of obnoxious. If I'm wrong, uneducated, ignorant about any of this stuff I have no problem admitting it and listening to someone wiser than me.  But I don't think you have any intentions of offering any helpful advice, and if that's the case I don't see why you are wasting your time responding to my post. 

    0Reply
  • Lenny Smith
    OP
    Member since 2020 · 14 posts · 1 vote
    6y
    Originally posted by @Charles LeMaire:

    @Lenny Smith - I noticed that you joined BP today.  Welcome.  I'm curious why you're asking about this on two fronts.  First, you realize this is an RE site, not a Wall St. investing site, right?  You've confused podiatrist with dentist.   Second, it seems by your comments that you're relatively sure it can be done and that you can do it.  GO FOR IT!!!  Unless you are Peter Lynch reincarnated, someone out there can use that $150K+ you inherited.  I recall a fellow telling me that most people win in a casino; as I recall he had to borrow rent money after that experiment.  

    I don't believe you mentioned what you do.  No idea how bad it could be; change!  You said you're off at present.  I hope you've taken some time to attempt to learn about some jobs you might like.  Or perhaps taken time to watch Mike Rowe's Dirty Jobs.  Seriously, there are a lot of great RE pod-casts. 

    Clearly, this is a RE site and yes, I play in RE.  RE can be very lucrative, but there are often bumps in the road. Some avenues of RE requires a fair amount of capital, some don't. But the folks that WIN have very positive attitudes and a lot of drive.  

    Given you are asking on the Wall St side of the fence, I would find an advisor that you can trust. I assume you are referring to an non-spousal inherited IRA (they now have a 10 year RMD clock). I would pull most/all of it now while the market is down, pay the tax, and get it reinvested to allow it to ride the market back up. Pay the tax now when it is smaller and taxes are lower (Trump's taxes are lowest in my lifetime!). Once you have allowed it to climb, you have studied and learned about something (Wall St or RE or something) then work you way into that when you have a clue.

    Get a job you can stand and keep it while you figure out what you want to do.  If you can work close to your target area, do it.  Figure out how to FLY before you step off the cliff.

    Regards from a Grumpy Old Man,

    Charles LeMaire

    Thanks for the reply! Great advice..  

    I honestly just googled 'financial advice' and this forum popped up so I used it, along with a few others.  Was just trying to ask as many 'educated' people for advice in the shortest amount of time. Didn't realize this was a real estate site until after I posted. 

    As far as being sure that I can day trade successfully, I'm only as sure as blind ambition has made me, I 100% acknowledge that I don't know the half about it and am only going by the few accounts of people who claim to have made it work. 

    I don't like getting into what I do, I don't really think it is relevant anyways.  I have used my time off to look into other avenues, but I have already been asked to go back to work so I'm still in the bind of deciding if I should quit before I have found something else or not.  I am pretty hung up, I must admit, on figuring out something I can do to make a somewhat consistent income on my own time or from home.  There are not many jobs in my area to begin with and right now especially with everything that is going on. I live in a very small town in a very remote area of my state.  And, honestly, I'm sick and tired of being miserable and depressed--the job that I do I come into contact with and talk with people from all over the area and most of them are miserable and depressed too at the handful of other jobs available.  And of course, the hallmark response to this is "that's life", "it's like that everywhere".  Well, I'm tired of it.  If I go on much longer at this job I won't have a mind to work with, I won't have ambition or drive to accomplish anything. 

    As far as the inheritance, I am expecting to take the money out of the account soon, and pay the taxes.  The guy managing the account has told me essentially the same thing about it being cheaper to do it right now.  The only downside to that is as soon as I have that in my name I will no longer be able to get financial aid for school.  Might effect me other ways too I'm not sure.  But I definitely plan on reinvesting some of it.

     anyways, thanks for the advice.  

    0Reply
  • Alexander BaconPro Member
    Member since 2020 · 17 posts · 14 votes
    6y

    @Lenny Smith I would advise against stocks as many others have already said. I have been successfully trading stocks for a few years now but on the side. I have made about $10k in the last two months and have probably averaged about $2k a month for the last 4-5 years. I use $30k in my account and rinse and repeat. With that being said, I highly discourage this and I am personally trying to stop day/swing trading and get into real estate. Day/swing trading can be done and can be possible but you will soon learn that it is more time consuming than you think, analysis does not really mean as much as people think, and it is stressful. If you are determined to do this, then do it but I would be comfortable with losing $5-10k off the bat and hopefully you learn from the early mistakes quickly. I also highly highly recommend you use the thinkorswim paper trading platform for a minimum of three months. It has its flaws but if you can trade successfully with paper money of the same amount you would use with real money, for a minimum of one month, then you could try real money. If you have questions about analysis or anything at all about stocks, feel free to message me. Just be aware that if playing the stock market was so easy, everyone would do it. Also, carefully listen to all the "wealth gurus" on youtube. What you'll notice, besides the useless private groups and subscriptions they offer for a price, is that all day traders have real estate investments. ALL OF THEM. I would argue that 99% of the stock guys have built their wealth through real estate, not the stock market. Then look at all the real estate people on youtube. Very few talk about the stock market except to make comparisons to the returns you get through real estate. I HIGHLY recommend you stay on this website and learn everything you can about real estate and put your money there, not the stock market. This is just my two cents as someone who has played the stock market game with reasonable but not overabundant success. Again, feel free to message me with any questions and I can gladly answer them. I am 27 myself so we are at about the same age and can probably relate on a few levels.  

    2Reply
  • Lenny Smith
    OP
    Member since 2020 · 14 posts · 1 vote
    6y
    Originally posted by @Kitt Pyle:

    People have already said it, but I will say it more plainly.  Day trading is playing Russian Roulette.  It is basically gambling on trends.  The fallout from this COVID-19 will get a lot worst before it gets better.  

    You said that presently you are unemployed.  Use this time to learn about how money really works.  I recommend reading How Money Works, Stop Being A Sucker.  Yes, you have been blessed.  I recommend investing in cash flowing real estate. Once you have made lots, and I mean lots of money with a constant stream of excess money coming in, then do you da trading gig.  

    With all the answers you have provided thus far, it sounds like you have made up your mind to gamble your money in hopes of making lots of money in a very short time.  This is like becoming the number one athlete in the world.  It is one in a million.  But then you don't see all the hard losses, etc. Two birds in the hand are better than one in the bush. 

    If you decide to gamble your money in day trading, I wish you lots of luck. 

    Thanks for the reply. 

    I haven't made up my mind at all, that's why I am asking for advice.  Based on the advice so far it, trading doesn't sound so good anymore.  I'm not unemployed, if I was I probably wouldn't be asking the questions that I have.  I was laid off, but I have been asked to come back and will be going back in a couple days.  I might decide to quit, I might not.  Going to continue to consider different opinions and think it over long and hard before I make any decisions. I will look into that title as well as 'cash flowing real estate', (I have no idea what that it is).  Thanks!

    0Reply
  • Lenny Smith
    OP
    Member since 2020 · 14 posts · 1 vote
    6y
    Originally posted by @Alexander Bacon:

    @Lenny Smith I would advise against stocks as many others have already said. I have been successfully trading stocks for a few years now but on the side. I have made about $10k in the last two months and have probably averaged about $2k a month for the last 4-5 years. I use $30k in my account and rinse and repeat. With that being said, I highly discourage this and I am personally trying to stop day/swing trading and get into real estate. Day/swing trading can be done and can be possible but you will soon learn that it is more time consuming than you think, analysis does not really mean as much as people think, and it is stressful. If you are determined to do this, then do it but I would be comfortable with losing $5-10k off the bat and hopefully you learn from the early mistakes quickly. I also highly highly recommend you use the thinkorswim paper trading platform for a minimum of three months. It has its flaws but if you can trade successfully with paper money of the same amount you would use with real money, for a minimum of one month, then you could try real money. If you have questions about analysis or anything at all about stocks, feel free to message me. Just be aware that if playing the stock market was so easy, everyone would do it. Also, carefully listen to all the "wealth gurus" on youtube. What you'll notice, besides the useless private groups and subscriptions they offer for a price, is that all day traders have real estate investments. ALL OF THEM. I would argue that 99% of the stock guys have built their wealth through real estate, not the stock market. Then look at all the real estate people on youtube. Very few talk about the stock market except to make comparisons to the returns you get through real estate. I HIGHLY recommend you stay on this website and learn everything you can about real estate and put your money there, not the stock market. This is just my two cents as someone who has played the stock market game with reasonable but not overabundant success. Again, feel free to message me with any questions and I can gladly answer them. I am 27 myself so we are at about the same age and can probably relate on a few levels.  

     Thanks for the reply.  I have been using paper money and what you said is what I planned on doing for the most part, using paper money to make successful trades and then trying out the real deal. 

    Here's the thing about quitting my job though, if I don't... there is absolutely no chance that I am going to learn anything about anything.  Working 40 hours+ a week and going to school full time leaves no brain power and no time to learn about real estate. Sure I could maybe make time one day a week but I really would like to make something happen within a few years, not a decade. 

    I appreciate the offer to help, and I will probably end up sending you a message one of these days.  Thanks man. 

    0Reply
  • Alexander BaconPro Member
    Member since 2020 · 17 posts · 14 votes
    6y

    @Lenny Smith The idea that you are trying to achieve financial independence is a costly idea in terms of time and effort which many people seem to overlook. To be blunt, if you can not figure out how to manage your time to begin this process, you will not make it. I work 84 hours a week at the moment, have a wife and two kids, and am beginning to invest in real estate on the side. I learned everything about the stock market on my own and am doing my best on the real estate side right now (with help from others on this site). My circumstances are not normal and I fully understand that but not having enough time is a complete cop out. If you watch tv, netflix, play video etc, you have time. If you spend time on social media, you have time. If you sleep more than 6 hours, you have time. It is all about time management and if you don't have the courage, willpower, and time management skills to simply begin at this point in your life, you will not magically have the grit to succeed just because you quit your job. You can do this so do not doubt yourself. But you need to push yourself right now given the current circumstances to mold yourself into someone who is a time management expert and someone who will stop at nothing. Quitting your job and using the "not enough time" excuse is a simple cop out that everyone uses on a daily basis but I guarantee it is not a question about time but it is a question about priorities. 

    0Reply
  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    6y

    Just read Dave Ramsey’s “the total money makeover” and follow the plan in the book. Do not try to be a day trader or a real estate investor or you will part with your inheritance very quickly.

    0Reply
  • Kitt Pyle
    Member since 2019 · 5 posts · 1 vote
    6y

    Now you are sounding like you are beginning to listen to the advice that people are giving you.  

    Generally, I would say find something part-time or keep your full-time job for now.  When you are not working, develop a hobby or business you can do on the side that you enjoy.  There is a need everywhere for handymen, gardeners, etc.  Get that business up and running so that it covers your expenses plus some for the unexpected.  Once you are consistently making that from your new endeavors, then quit your present job.   

    In today's economy with so many people that have lost their jobs is not the time to voluntarily walk away from a job. In the meanwhile read the book I suggested earlier.  I read the book and have given one to each of my teenage grandchildren.   Once you have read the book you will have a much better idea of what to do with your inheritance.  A financially sound person has 5-7 different streams of income.  

    Before day trading and hoping you will be one of the few great successes, make sure you are secure and sound financially.  Also, make sure you isolate your vulnerable day trading money from the rest of your resources. In other words, make sure each income stream can only use the money set aside for that business and not touch your other resources.  People today are sue-happy.  You do not want to have all your resources vulnerable to some unfortunate unexpected incident. 

    1Reply
  • Clint ShelleyPro Member
    Surveyor · Dothan, AL · Member since 2014 · 425 posts · 391 votes
    6y

    @Lenny Smith

    Never quit a job until you have the next one lined up. It's so much easier to get a job when you have one. I've hired and fired many people. It's just a bad look when you cold quit. No knock on anyone who wants to improve. Every employee should want to do that. Just find what you want to do then transition to that when it's time. You'd be foolish to quit a job now. Treat that 150000 likes it is nothing, because it is not much money. But you can turn it into something. My advice hang on to it until you have a plan for it.

    Clint

    0Reply
  • Lenny Smith
    OP
    Member since 2020 · 14 posts · 1 vote
    6y
    Originally posted by @Alexander Bacon:

    @Lenny Smith The idea that you are trying to achieve financial independence is a costly idea in terms of time and effort which many people seem to overlook. To be blunt, if you can not figure out how to manage your time to begin this process, you will not make it. I work 84 hours a week at the moment, have a wife and two kids, and am beginning to invest in real estate on the side. I learned everything about the stock market on my own and am doing my best on the real estate side right now (with help from others on this site). My circumstances are not normal and I fully understand that but not having enough time is a complete cop out. If you watch tv, netflix, play video etc, you have time. If you spend time on social media, you have time. If you sleep more than 6 hours, you have time. It is all about time management and if you don't have the courage, willpower, and time management skills to simply begin at this point in your life, you will not magically have the grit to succeed just because you quit your job. You can do this so do not doubt yourself. But you need to push yourself right now given the current circumstances to mold yourself into someone who is a time management expert and someone who will stop at nothing. Quitting your job and using the "not enough time" excuse is a simple cop out that everyone uses on a daily basis but I guarantee it is not a question about time but it is a question about priorities. 

    Well. I must say, this frustrated me. I have been trying to live my life for the past two years in a way that I can look back and say I couldn't have done anything more than what I did.  I'm sure there is something I could have done in hindsight, but not that I saw or could see at the time.  With that said, I have seriously tried to not waste a minute. For example, for this year, I was working nights everyday with two days off per week. I would wake up each morning at 6 am, I get to bed at 11-12 so that is 7-8 hours of sleep. I would study until I had to go to work, and then I would work until a little after 10.  On my two days off, I would wake up maybe a bit later to catch up on sleep so about 8 or 9 at the latest. I was ALWAYS tired. No matter what.  I felt completely burnt out 24/7. You say 6 hours of sleep? There is just absolutely no way. Maybe it works for you, but I can't do that.  And it isn't that I don't want to do that, or couldn't physically do it, I could force myself but if I am already barely absorbing what I am studying because I am always exhausted then getting less sleep would just make it worse. Anyways, on my two days off, I had them set up to land on days where I usually had a quiz/exam the day I went back to work so I could study on/off for two days.  In between studying for tests I would do other school work, take care of things around the house and other things that need to be done, and if I had time and the mental energy I would read a book or watch tv. 

    I don't have social media whatsoever. I will admit though, I have often thought that I might have an issue with overthinking things that don't matter which results in me being so tired. Problem is I don't know how to fix this.  I can manage it quite well when I am in control of my life and my environment. But when I was working I would often bring stuff home with me that I really didn't need to. I admit that I have a lot of trouble separating myself from things sometimes and this definitely effects my focus and efficiency.

    But I really feel like I have been using all of my time as best as I could. I used to have some problems years back and being lazy and sitting around consuming stupid stuff makes me feel like crap. The only time my tv has been on since I have been laid off is at night for noise while I sleep. I've been doing nothing but waking up, checking off lists, and trying to get as much as I can packed into this time that I have before I have to work again. This is another reason that I feel in my gut(which could be wrong, yes) that having more time could help me figure things out, I've never valued every minute of the day as much as I do now.  It might not sound that way to you, but hey, that's alright.  Until being laid off, I didn't have any priorities besides school and work. Whether it was a cop out or I really didn't have time, I never could just sit at my computer researching different paths to take or getting on sites like these and asking people wiser than me for advice. Anyways, I still appreciate your reply. It was motivating, and I don't totally disagree, I know I can always do and be better.  Thank you. 

    0Reply
  • Lenny Smith
    OP
    Member since 2020 · 14 posts · 1 vote
    6y
    Originally posted by @Account Closed:

    Just read Dave Ramsey’s “the total money makeover” and follow the plan in the book. Do not try to be a day trader or a real estate investor or you will part with your inheritance very quickly.

     Man, I will look into that book!  I have a ton of other books I am trying to get through but I love listening to his radio program when I catch it in the car. 

    0Reply
  • Mary White
    Rental Property Investor · Klamath Falls, OR · Member since 2016 · 146 posts · 213 votes
    6y

    There's nothing wrong with starting in real estate to see how you like it. I'd look for a 2-4 unit place and use your W-2 income to leverage and only use a small portion of your inheritance. You can hire a manager or do it yourself to figure it out. I'm a big believer of "you'll never know until you try." I'd also put a bit in the stock market (Roth IRA) and just let it marinate. Can you roll over the inheritance into your own IRA a bit at a time to save on taxes? Talk to an accountant ASAP and ask for help. It shouldn't cost very much and you can learn from somebody who isn't in a position to gain from your inheritance. There's also nothing wrong with walking away from a job and using a bit of the money to help invest in yourself and figure out your life. Just be intentional about your actions and please don't blow it on a new vehicle.

    1Reply
  • Lenny Smith
    OP
    Member since 2020 · 14 posts · 1 vote
    6y
    Originally posted by @Kitt Pyle:

    Now you are sounding like you are beginning to listen to the advice that people are giving you.  

    Generally, I would say find something part-time or keep your full-time job for now.  When you are not working, develop a hobby or business you can do on the side that you enjoy.  There is a need everywhere for handymen, gardeners, etc.  Get that business up and running so that it covers your expenses plus some for the unexpected.  Once you are consistently making that from your new endeavors, then quit your present job.   

    In today's economy with so many people that have lost their jobs is not the time to voluntarily walk away from a job. In the meanwhile read the book I suggested earlier.  I read the book and have given one to each of my teenage grandchildren.   Once you have read the book you will have a much better idea of what to do with your inheritance.  A financially sound person has 5-7 different streams of income.  

    Before day trading and hoping you will be one of the few great successes, make sure you are secure and sound financially.  Also, make sure you isolate your vulnerable day trading money from the rest of your resources. In other words, make sure each income stream can only use the money set aside for that business and not touch your other resources.  People today are sue-happy.  You do not want to have all your resources vulnerable to some unfortunate unexpected incident. 

     Maybe I will consider just asking for less hours.. Even though I have enough in savings to cover expenses for a while, I don't want to give up a steady income. Less stress, still more time to focus on other ways to make $. 

    1Reply
  • Lenny Smith
    OP
    Member since 2020 · 14 posts · 1 vote
    6y
    Originally posted by @Mary White:

    There's nothing wrong with starting in real estate to see how you like it. I'd look for a 2-4 unit place and use your W-2 income to leverage and only use a small portion of your inheritance. You can hire a manager or do it yourself to figure it out. I'm a big believer of "you'll never know until you try." I'd also put a bit in the stock market (Roth IRA) and just let it marinate. Can you roll over the inheritance into your own IRA a bit at a time to save on taxes? Talk to an accountant ASAP and ask for help. It shouldn't cost very much and you can learn from somebody who isn't in a position to gain from your inheritance. There's also nothing wrong with walking away from a job and using a bit of the money to help invest in yourself and figure out your life. Just be intentional about your actions and please don't blow it on a new vehicle.

    Thanks Mary!  That's the first thing my mother told me to do, buy a new vehicle. That's why she has been in debt most of her life though. I am not spending a dime of it on anything other than making more money. I don't understand enough to know what you mean by use my w-2 to leverage.  But it sounds like a decent idea. Thing is I don't know how easy it will be to find a decent place near me, pretty small area but maybe. 

    I do have a brokerage account that I opened just to access TD ameritrades courses and paper money program but it is not an IRA.

    The guy managing the transfer of the funds, seems like a really decent person and he has said he is making nothing off of it. He has given me some good advice and I think he would do so in the future, I plan on asking him some questions. 

    And I agree and I'm glad you see it that way, I know a lot of people are saying dont quit the job, do as much as you can, fill the clock, cant afford to lose any $. I get it. But, it's also important to have the well being and state of mind conducive to making logical and grounded decisions about the future.  Easy to take it for granted when you have it. 

    0Reply
  • Mary White
    Rental Property Investor · Klamath Falls, OR · Member since 2016 · 146 posts · 213 votes
    6y

    What I meant was that while you're employed you can qualify for a loan. You could literally quit the day after a loan closes. I hope you get lots of great advice and take your time making a choice. This is a fantastic opportunity for you. 

    0Reply
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