Ok, here is the scenario. I can get 8500 dollars for six months to use as I wish but it has to be returned by Jan 28th 2008. What would you do with the money? My initial thoughts were: 1. Money Market Account Low risk, low reward. 2. Some type of Bank CD Low risk, low reward 3. Invest in mutual fund or individual stock medium risk, medium reward What would you do?
Do something with a high risk. Playing it safe all the time won't get you anywhere. Of course make it an educated decision but put all your efforts into it.
The key here is that this money is on "loan" till Jan. Spending it would just mean I'm out 8500 bucks and will need to repay it out of my money.
i would open a small web business! this is about 3.5 lakh Rs in india! you can get a small office for 6 months, and 3-4 computer in it, and you can hire 4 professionals also. so, you will have 4 people, including one who will work as a computer surfer who will help you with the seo work, a graphics specialist, and the other two as php and html experts! so, you can start your web business, and then it will be up to you to make enough money in the 6 months, to get the money back, and i think you can do it!!
With that money, I would build a basic online game that is fun, and then make money marketing it. You can't build a high end online game, but 8 grand is enough to build an online game that is fun. Don't try building an MMORPG or First Person Shooter. Most programmers/artists will say that is too low. But I would build something like an online side scrolling shooter with 3D graphics. You will need to outsource it, or if you live in the U.S., hire college kids. Professionals here charge too much. But yeah, online games are the future, so I'd definitely would invest in that area. Nevermind the online game. I didn't read this part. It will take you at least six months to build a basic online game, there is no way you can earn high enough profits to pay it back by January 08. Just stick it in a CD, unless you are good with the stock market. If you are good, you could play in the stock market, but man, you better be careful, and you better watch the market 24/7. You see a problem, you sell. But here is what I would do if I were you. 1. Reserve 15% of the 8.5 grand for the stock market. This is high risk 2. Stick the rest in a CD. This is your safety.
He would be better doing that offline. On the Internet, anyone can just take your money and disappear into the sunset. Offline, you can get some collateral, to make sure you get your money back with interest. How would he be able to secure an online loan?
It was meant to be tongue-in-cheek lest you miss my subtle wit I did put that smiley dude on there too vanessa.
Investment in Mutual Fund is really a good idea. That way you will earn good return (not much as you expect) because you have short term funds with you.
Is this a 0% credit card loan? If so, just throw it in a decent online money market that gets 5-6%. You don't want to play around with something that could turn into a 20%+ loan down the road.
5,000 I would place on a low yield safe investment like a time deposit. 2,500 I will invest it in mutual funds and with the remaining 1,000 I will invest in the stock market.
Thanks for the suggestions and keep them coming. Loan Shark? Heheh, no way. Money Market/Mutual Funds (so far this seems to be the safest route) Buying websites (too risky and I doubt they would pay back quickly enough to pay off the balance owed in January. As for the source of the money, yes, it's a special offer from my credit card to use "for whatever I want". There is a small service charge but if the investment or interest returns enough, it will be no problem. I am finding this to be a great exercise in creative thinking. While 8500 bucks isn't that much, it does present an opportunity to think outside the box with other people's money.
Invest in mutual funds that are into emerging stock markets in Asia and Latin America....get higher returns.