Posted 2/10/2019 22:15 (#7312392 - in reply to #7312261) Subject: RE: Investments for 26 year old
When I was 26 I didn’t have any debt to pay down yet. If you do, I would pay down personal debt and some moderate business debt before getting deeper into something. You will have lots of opportunities pop up in the next 10 years if you have cash to grab onto them.
I’m 34 and here is the advice I give my younger siblings. Dave Ramsey your personal money. Put 15% of your personal earnings in the market (including your 401k match or whatever) and pay off any personal debt before considering something else. You will have a big pile of cash in the market by the time you are 30.
Pay for your house, where the interest is not a business expense, ASAP. I had a job where my employer moved me around every 18 months for 6 years (until I was 30) and paid someone else’s mortgage for those 6 years. Big missed equity opportunity for me.
Take your business money and get a strong current ratio, then get a payment or more ahead on your existing land. Cash apparently is king.
If you’ve done all that already at 26, I dunno what to tell you. You should be giving us advice.
I don’t expect a huge correction in the land market, more drifting sideways it seems right now. If there is no huge land inflation and the futures market looking murky on profits/returns, I wouldn’t at 26 be looking at biting off more land. MO. You will have LOTS of opportunities in the next 8 years. I sure did.
What happens 3 years from now if you have 3 kids, need a minivan, and your wife wants to stay home? Sometimes patience and a cash stockpile is a virtue. Ie with cash you are getting an option on future investments.