What Would You Do With $250,000?

A few years ago, I attended a Buddhist discussion meeting. During most of our meetings, we share a personal experience of how Buddhism has helped us.

One of our members told a story of how he had won a lawsuit several years ago and was awarded $250,000.

Do you know what you would do with that much money?

Well, the first thing he did was quit his job and go on a vacation with his son. No harm in that – as long as you don’t spend $25,000 on the vacation!

The two years that followed were spent partying, traveling and living like a rock star…

…and then the funds dried up.

Granted, $250,000 is a nice piece of change. But it’s a far cry from $250 million.

The sad truth is that his spending was not at all unusual. According to statistics, 95% of lottery winners are bankrupt within five years of winning the lottery. I would think that the data on winners of lawsuits is very close.

When I asked him if investing in stocks ever crossed his mind, he said no, because he didn’t know anything about stocks.

I thought to myself, what a shame…because that mint is totally gone.

My next question to him was, “When did you receive your settlement?”

“2005,” he answered.

That really made me sick. Because all I could do was calculate how much he would have had he invested a third of it in, let’s say, Amazon (NASDAQ: AMZN)…

So…let’s play my favorite game, “what if?”.

If you win $250,000 in a lawsuit, you will probably receive $150,000 before taxes, and net about $90,000. If he took 1/3 of that and bought Amazon stock in 2005, that $27,000 investment would be worth a little more than a million dollars today.

Ignorance is not just bliss – it’s very, very expensive.

The stock market can be a really scary place for people who don’t know better. But it’s hands down the best game in town if you want to build long term wealth.

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

 

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Introducing Wealthy Joe Investment Management!

About three years ago, a very good friend of mine won a longstanding legal case that revolved around being wrongfully terminated.  The amount of the award wasn’t life-changing in any way, shape or form, but it was better than nothing. and gave her much-needed funds.

She asked me what she should do with the $16,000 she would have left after paying back personal loans to her mother.  My advice at the time was to take the entire $16,000 and invest it.

She knew absolutely nothing about investing, so I told her to create the account and provide me with the user name and password, and I would take over from there.

Now – I must remind you that I eat, sleep and think about investing.  If it were up to me, the market would be open seven days a week.  That’s how much I enjoy it.

Before I made my first purchase, I thought long and hard, because I treated her money like it was mine.

I asked her what her financial goal was, and when she would need this money.  She did not have any money saved for retirement and did not need the money in the near future, so my game plan for her was to be ultra-aggressive and invest in high-growth companies.

I invested in the same companies that I would have bought for myself if the account were mine.  In the 3 years I managed the account, the value went from $16,000 to over $60,000. 

Watching her account grow made me as happy as if it were my own.

It wasn’t until recently that I asked myself: Can I do this for other people?  And the answer I came up with was: yes, I can!

Look, you can invest in a mutual fund.  And if your company matches, you should invest in its 401(k).  However, you should always invest in individual stocks.  No 401(k), no mutual fund on the planet, will ever be able to compare with the growth of an individual stock.

But if you’re like many people, you don’t have the time and/or the inclination to research companies and select your own stocks to invest in.

You can now outsource this task, to me.

For only $10.00 per month, I will actively manage your investment account as though it were mine.

If you are interested, please email me at wealthyjoeinvesting@gmail.com to get started.  Also, please reach out to me with any questions and/or comments!

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)