I have about $10k cash to play with....investment ideas ???

[Spaniard]

I have recently come across some money from an inheritance. About $10,000. While many people would take and put into their Supra, I don't want to. The person who gave it to me would have liked to have seen it put to good use. He was a businessman.

While I am not looking to do a long term 15+ year invest so that I see the benefits when i'm middle aged. I was wondering if any of you had ideas for good investments?

I was thinking a small desktop CNC 4-axis machine and get started on making parts for all sorts of cars, opening up my on ebay store. Everything from pulleys, to brackets, to flanges. I already know how to use several types of CAD, so I know its feasible.

Many of you come from different backgrounds and a lot of you would say, "If I only had the money I know I would have made a shit ton...!" Well, lets hear them guys your ideas and words of wisdom.

Thank you.

 

[Cz.]

You're not going to make any money dropping 10k on a machine if you're just planning to make "pulleys and brackets". If it's a simple part, anybody can just copy it and send it to china where it can be made cheaper. If it's a complicated/unqiue part, you can charge a lot, but you're not going to be selling that many. ARZ has those really nice 7M cam covers, but they cost $675, they can probably count on their hands how many sets they've sold.
Unless you can design something unique I can't see where you're going to be making a significant amount of money.

 

[Enraged]

find a good investment advisor that charges set fees, NOT commission-based. You shouldn't have much trouble making ~6-8% a year.

you won't make any money buying a mill and selling parts unless you are selling huge quantities. there are just too many small shops out there that are desperate for any work, competition is fierce. now if you want a mill to make stuff for yourself, with the chance of maybe making some money on small batches, then go for it. I just picked up a small manual mill that I'm converting to CNC, and it's great fun.

 

[LilMissMkIII]

Investments available to you depend on your investment time frame and risk appetite.

Until you know the above, whack it in a high interest savings account.

I personally don't think it is worth seeing an investment advisor for such a small sum. The fee you will be charged will significantly eat into any growth achieved.

 

[rodel]

I agree with the guys that if you're gonna try to make a business out of making CNC'ed parts for the masses, you may not be able to compete with other shops and large manufacturers China. On the other hand, if you are able to partner up with custom builders of cars, trucks, motorcycles, etc. then you may be able to make money.


On the financial side, as LilMissMkIII stated, a sum of $10,000 may not be worth the management fee of an investment advisor. You'd be better off opening a self-managed account and learn about investing. If you decide to invest, why don't you consider buying a mix of

stocks
bonds
mutual funds

 

[mattsplat72]

We got about that much from my deceased father in laws VIP account, we paid off all our bills, All credit cards are gone and only have mortgage and two car payments. Figured we would get more over the long term with out having to deal with high interest rates from Credit card debt. Short term sacrifice for long term gain in my opinion.

 

[WeDgE]

Use it as a downpayment on a house or an investment property. Passive income is your best friend.

IMO, "investing" in the stock market is not a wise decision unless you're willing to lose the money you've put into it. Income can be made more reliably elsewhere.

 

[LilMissMkIII]

WeDgE - Depends on whether he wants income or growth from the investment.

Generally, younger people tend to want growth, and retirees want income.

 

[trucker]

sounds like you have a good 3-6 month emergency fund there. just park it in a money market account and leave it there, if you don't have an emergency fund already. if you do, wipe out one or both of the car notes.