$30k - What would you do?

Water Cooler
#1

Here’s the hypothetical: You are to be given $30,000 today and your only requirement is that you must return it in two years, plus a 5% annual return to the “investor”. Anything above the 5% per annum is yours, and anything below you must pay out of your own pocket. What do you do? The reason I have chosen $30,000 is because it is enough money to provide a few different options, and not enough money to provide an entire portfolio. So, your decision is a bit tougher than saying “invest in BRIC’s and short the S&P excluding tech stocks”…

#2

Actively trade XSP’s

#3

Go to a Casino and put it all on black. I win, I pay the guy back. I lose, declare bankrupcy or flee the country.

#4

“I lose, declare bankrupcy or flee the country” +2

#5

That is a tough one, mainly because of the timespan. With a 2 year timeframe and current markets: -Interest rates suck, no way I could do any kind of cash or cash-equivalent and hope to get 5% avg return over 2 yrs. -Equity market undoubtedly has values floating around in it that can be gotten for good prices, but my problem would be the 2 yr time frame. There’s a chance that the market could not realize those values enough to cover the cost of the 5% loan. I’d probably research the heck out of my favorite investment ideas and put the $30K fully into the two or three stocks I had the most conviction about. But still, the 2 yr timeframe is a hurdle - there are plenty of undervalued/turnaround/etc situations that can take years to be valued reasonably.

#6

Honestly, if i had 30k, i would lend it to friends who have high student loan interest rates (~8-9%) at 5%. This would be the safest investment bet, as A) I know they are employed B) They will pay back

#7

I’d like to solve the puzzle: Your friend is entrusting you with a handshake to hold $30k for him while he -gets divorced -declares bankruptcy -settles on debts -etc. He demands 5% interest since stranger is pursuing that CFA thing. Now stranger is looking to lever up with other peoples money.

#8

Totally disappointed in you guys. Hookers and blow.

#9

Play a hand of blackjack with Charles Barkley

#10

Analyze_This Wrote: ------------------------------------------------------- > Play a hand of blackjack with Charles Barkley That would only be 1/7th of a hand with Chuck.

#11

Analyze_This Wrote: ------------------------------------------------------- > Play a hand of blackjack with Charles Barkley Thats just Turrbl

#12

By 30k worth of SDS. Sit back, wait.