Is $50,000 a lot of money? Much like anything in life, it all depends on the perspective of who you ask. However, there is no argument that a large lump sum of money like that can be used for many things, ranging from smart to risky to downright silly.
Whether you have an excess balance in your savings account, you stumbled across a lucrative business opportunity, or you got lucky and won the lottery, it’s important to assess your full range of options with your money.
How you acquired it doesn’t matter, as long as it’s legal tender or a liquid asset. Let’s just say you have $50,000 available for a new venture. What can you do with that $50,000? Here are but a few options.
Invest In The Fixed Income Fund
It just so happens, the minimum required note for the Tactical Wealth Fixed Income Fund is $50,000. That may seem like a large investment, but for what you’re getting back it’s really a drop in the bucket. Say you want to make a two-year investment in the Fixed Income Fund, for instance. You would get your $50,000 back in the form of stable, consistent monthly payments plus interest at a rate of 1.66 percent. Seems fairly reasonable, right? Well, how about when you increase the duration of your note? If you’re able and willing to make a 10-year commitment with the Fixed Income Fund, you’ll see returns on your $50,000 principal investment that are almost unheard of. The rate for a 10-year note is 4.75, almost two times higher than that offered by the top fixed annuity firms. Here’s how the rest of our rates compare to fixed annuities. So, it’s clear that a $50,000 deposit in the Fixed Income Fund is certainly a smart move.
Invest In Annuities
Sure, if you want a lower interest rate on your principal returns, then you can explore the different annuity options. Annuities are generally safe investments, typically used by those at or near the age for retirement. However, some negatives associated with annuities include their previously mentioned low interest rates, high management fees, and confusing terms. Learn more about the differences between the Fixed Income Fund and annuities here.
Pay Off Student Loans
Maybe you’re still at the stage in life where you’re paying off student loans. Or, maybe you’ve been kicking around the idea of going back to school to get a higher degree, such as a Master’s or doctorate. Well, a $50,000 seed would certainly go a long ways toward paying off your existing student debt or even your future education. Or, if you were able to make it through school without accumulating any debt, you can set it aside as an education fund for your children, grandchildren, or other family member. An investment in education is always a worthwhile venture.
Pay Off Your Credit Cards
Another form of debt which has a way of accumulating over time, your credit cards can probably be paid off in full with a sum of $50,000 (if not, you may have a problem). You can take this opportunity to shred some unnecessary cards, cut back on your debt accumulation, and use your excess cash to contribute to savings or retirement planning.
Start A Retirement Fund
Speaking of which, do you have a plan in place for retirement? Most studies show that Americans are well behind the curve when it comes to preparing for retirement, whether it’s not saving enough throughout the course of their lives or simply not saving at all. With $50,000, you could make a generous contribution to your IRA or 401K account (which you can later use to invest in the Fixed Income Fund), and assure that you are able to maintain a comfortable standard of living when your working days are over.
Start A Business
OK, maybe $50,000 isn’t quite enough to start up a business in earnest, but it’s a great jumping off point. Especially if you’ve already paid off your debt, you can leverage your initial funding into receiving a small business loan from a bank, or possibly use it as an angel investment into someone else’s business. Choose wisely, and you can be set for the rest of your life. What are your passions? What types of businesses excite you? Maybe you’ve always wanted to be your own boss. With $50,000, you can get started down that path.
Get Peace Of Mind
Of course, you can choose to spend, invest, or distribute your $50,000 in any number of ways. But there’s one way which will help you experience peace of mind with regards to your financial situation. You can turn that lump sum into a steady, consistent stream of income that will last you for up to 30 years, if you so choose. Contact Tactical Wealth today to learn more about our tactical investment strategy and get started with an investment you deserve.