Dear Pud,

I recently inherited $150,000. I’m not a big spender, and would like to invest it. Do I play conservative and go with safe mutual funds? Or do I put it all on red?

Please help,
24 years old
Seattle, Wa


Remember what Wesley Snipes said in Passenger 57… “always bet on black.”

But seriously… you’re 24. You’ll have plenty of time to be “safe” when you’re old. And $150,000 isn’t gonna make you rich sitting in mutual funds. And not that you were serious about putting it on the roulette wheel, but even that would just make you another $150,000.

Go for the big one! What are you good at? Use the dough to start a business and be self-sufficient for a year or two while you grow it. Or dump it into a high-risk investment… like an IPO you’re into. If you lose the money, no big deal… you’re 24 and you’ll make it back. But on the other hand, it could make you a millionaire.

Of course, blow and hookers are a fine investment for a 24-year old, too.


13 Responses to “$150,000”

  1. 1 Anonymous March 23, 2007 at 9:16 am

    Pud, you just gave investment advice, and you’re not a licensed financial investment advisor.

    In addition, how dare you advise this kid to blow his money on a risky investment? He should invest, yes, of course, but he’d be better off buying his first house than risking it all on an IPO!


  2. 2 Anonymous March 23, 2007 at 4:35 pm

    That $150K could be $3.5 million by age 65 if it grew at a steady 8% for 41 years in a balanced portfolio. of course inflation will chew at it and $3.5mm won’t be what it is now, but that’s the potential basis for an eventual retirement.

    So I’d put it in a target date retirement fund or allocate it to a diversified portfolio yourself.

    Then, pursue whatever line of work you really love (whether it’s starting a business or otherwise) and never touch that portfolio. Even if you save little to nothing during the rest of your wild 20s you will be ahead of the game.

    pud’s advice sounds like that of someone with either a strong affinity for risk (which he has but you might not), or a solid fallback position (like a big inheritance or other assets).

    be smart — play it cool with the first $150k and feel confident that you can make aggressive bets and take risks with your additional earnings/savings without blowing your whole wad or risking your financial future.

  3. 3 Ben March 23, 2007 at 7:04 pm

    To the first Anon, shut your pie hole. Nobody likes a bitch!

    I say buy a few high-class hookers to put the money on black for you. You can have twice the fun if you win!

  4. 4 Anonymous March 23, 2007 at 9:16 pm

    Why are you losers still jealous of PUB?? Haha, loser betas.

  5. 5 Anonymous March 25, 2007 at 12:04 am

    I inherited the same amount of money when I was 24.

    I put 100K down to invest in a sweet apartment I wouldn’t have been able to afford otherwise, spent about $20K on furnishing it (including appliances, etc…), spent $10K paying off all of my debt, and put $20K down on a new BMW.

    I’m 26 now and make more than twice as much money as 2 years ago and since my monthly expenses are low (mortgage on my place is only $130K – it’s worth about $300K) I can pretty much blow lots of cash on leisure and electronics and still save money every month.

    Thanks grandpa!

  6. 6 Anonymous March 26, 2007 at 12:26 am

    Pud is an amazing man who is crazy busy making mad money. Pud makes time to address you tards.

    Show some appreciation for the access to this great mind.

  7. 7 Anonymous March 28, 2007 at 9:54 am

    I think the anwser depends on how much you make if you make like 24k a year then you should buy a house or put it toward a life long investment. if you make considerably or soon will make more, then yes risky investments.

  8. 8 CB March 31, 2007 at 5:50 pm

    As #5 said, buy a place. Especially with the current real estate market.

  9. 9 Anonymous April 1, 2007 at 11:58 pm


    Putting $150,000 in mutual funds won’t make you rich? That’s just wrong, assuming you don’t pick horrible mutual funds.

    The question at issue seems to be consumption now or consumption later. If it’s consumption now, then have fun. If it’s consumption later, invest the money in a safe and smart way and enjoy the compounding.

    As Buffett says, (paraphrasing) “The power of compounding is the eight wonder of the world.” Banking $150k and growing it even modestly over 30 or 40 years until this kid retires will provide a significant corpus for him to retire from. If he is smart and persistently puts additional money away over time, he could easily crack eight digits by age 60 or 65. If you compound at 8% a year after all costs (fees, taxes, etc.), you’ll double your money every nine years. 40 years would allow him to double just under 4.5 times. $150k doubles to $300, doubles to $600, doubles to $1.2mm, doubles to $3.5 mm and then grows by about 30% to $4.5 million. Even if inflation is 3% a year during that time, his money will spend like well over $1 million in today’s dollars.

    Assuming he packs away some dough that he actually earns during his life, he could EASILY double that $4.5mm level of savings. And if instead of 8% per year he earns 9%, he’d have $7mm rather than $4.5. That gap, my friend, personifies the power of compounding. Get your money working for you.

    Kid, save the money. Find a decent mutual fund or two and you could significantly trump 8% after taxes (note: don’t get caught up in the latest and greatest – generally the staying power of performance is questionable and the taxes of some aggressive mutual funds can be horrible, eating up a huge chunk of your gains). Don’t get tricky: look at a couple firms with embedded cultures of intelligent investing (Southeastern, Oakmark, Third Avenue, etc.), pick a total of one or two funds that make sense to you and then don’t look at the money any more often than once every 12 to 24 months (or longer). You will thank the shit out of yourself someday.

  10. 11 Adam April 8, 2007 at 1:33 pm

    150K. Not huge, but enough to set yourself up at 24 for a good life.

    40% Stocks. Buy companies you understand. The Warren Buffett way, basically.
    30% Property deposit. Find out where the gays and bohos live in your area. Buy there. Why? Gays have lots of disposable income and good taste when it comes to property. Bohos attract rich people who want to live “on the edge” Look at Hoxon and Shoreditch in London and W’burg in NYC for proof over the past 10 years. Buy a daggy apartment in a good area, do it up, profit and move on. Repeat until mortgage is paid off by age 35 or so.
    20% Long term savings account
    10% coke,hookers and rubbish fund to last a month. Just do it once in your life. I can vouch that Hennessy XO, Laphroiag and Peter Luger will never disappoint, but I gather the first two are a massive con.

  11. 12 Anonymous April 24, 2007 at 7:16 am

    I have a business startup idea and together we could launch a website that succeed.

    Please contact me under:



  12. 13 Anonymous September 16, 2007 at 6:30 am

    I be careful taking anyone’s advice. I would want to take the time to learn what I should do with it, that comes with age sometimes and passion for want you like to do. For some months, just leave it in the bank CD,to take the pressue off yourself. It’s only money that you have to gain; not the most important thing to worry about.

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