Easy Moneymaxxing - New upper-middle or upper class college grads

[CelestialEmpire]

Assuming you're highly financially literate and have UHNW parents who can fund you in at least the low 8-figures range for whatever:

1. Dump into equities on margin
- IBKR has dirt cheap margin (4.5% or something) right now and you only need 50% margin, easy way to lever up when cost of debt is way under long-run cost of equity
- Margjn rates get even lower with more money (millions+) or if you have established banking history with your bank (especially if parents are in the WM arm)
- Historically $35 margin for each $100 equity in broadly diversified indices (US all cap or global all cap) will NEVER get margin called, easy spread (cost of equity - cost of debt) on the 35%
- $5MM investment portfolio (starter trust fund) with $1.75MM levered at 4.5% borrowing rate and returns 8% on average = free ~62K/year

2. Lever tf up with rental properties at 5% downpayment
- Ask parents for money or get them to HELOC one of their properties
- Spam buy high class assets (multifamily in big cities) at 5% downpayment with B-lenders who will loan to you even if you have very little income (early 20s IB/PE cash comp is $400K USD at the top tier), so use your own trust fund/family balance sheet to back
- 20x leverage is very powerful even if cost of debt is higher due to B-lenders having lax requirements
- Will likely be cash-flow negative so need decent reserve fund for a few years til you can exit some assets at a solid cap rate, NOI grows enough, and/or refinance mortgage to a lower rate

 

[CelestialEmpire]

Gonna keep expanding the list tonight but LMK preliminary thoughts.

Another one is offer to manage your dad's RE portfolio and take over from a property management company (usually charge 5% of gross rent or 3% NOI), saves him money and split the diff by pocketing say 1.5% of NOI for yourself plus get operating experience

 

[CelestialEmpire]

Stuff to AVOID:
- Crypto/NFTs/daytrading/sports betting (no explanation needed)
- Franchises (low margins, impossible to pull off operational efficiency improvements, low quality human capital that youll be working alongside or managing)
- Have to state again for the franchises youll literally be managing high schoolers and retards in the minimum-wage market, NOT ivy league 4.0 GPA top frat white guys like you'd be used to in IB/PE

 

[jfllcellular]

youre a faggot
"moneymaxxing if your family is rich, ask them for money and buy shit"
nigga kys

 

[CelestialEmpire]

youre a faggot
"moneymaxxing if your family is rich, ask them for money and buy shit"
nigga kys

then lever up on stocks with margin in your own portfolio or buy a small 1 bed or 2 bed apartment with a 5% downpayment on your own income? these are way easier with scale (AKA dad's venture money) but not impossible if ur poor

 

[CelestialEmpire]

youre a faggot
"moneymaxxing if your family is rich, ask them for money and buy shit"
nigga kys

not rlly a point moneymaxxing if ur family isnt already well off, might as well as spend it on immediate gratification stuff (cars, hoes, bottle service, drugs, casino, vacations) cuz you cant even get to a comfortable lifestyle from scratch without a lot of luck and hard work

comfortable lifestyle (need like $25mm+ of a trust fund):
- primary home in good neighborhood ($5-10mm)
- apartment in business cities ($5mm to cover london/new york, more if ur going to toronto, hong kong, paris, munich, etc frequently)
- couple of vacation properties ($2-5mm)
- few cars ($500k, split between practical suv like a range rover and weekend cars like a 911)
- frequent vacations to high class places (mykonos, mallorca, vail, aspen, st barts, st tropez) and good hotels there (cavo tagoo myk etc), about $200k a year
- flying out to top festivals/events as they happen throughout the year (experts only, glastonbury, igloofest, art basel, etc) about $150k a year more if ur getting bottles/VIP sections at each
- "fun funds" (bottles/tables at top clubs/bars in ur city)

 

[jfllcellular]

not rlly a point moneymaxxing if ur family isnt already well off, might as well as spend it on immediate gratification stuff (cars, hoes, bottle service, drugs, casino, vacations) cuz you cant even get to a comfortable lifestyle from scratch without a lot of luck and hard work

comfortable lifestyle (need like $25mm+ of a trust fund):
- primary home in good neighborhood ($5-10mm)
- apartment in business cities ($5mm to cover london/new york, more if ur going to toronto, hong kong, paris, munich, etc frequently)
- couple of vacation properties ($2-5mm)
- few cars ($500k, split between practical suv like a range rover and weekend cars like a 911)
- frequent vacations to high class places (mykonos, mallorca, vail, aspen, st barts, st tropez) and good hotels there (cavo tagoo myk etc), about $200k a year
- flying out to top festivals/events as they happen throughout the year (experts only, glastonbury, igloofest, art basel, etc) about $150k a year more if ur getting bottles/VIP sections at each
- "fun funds" (bottles/tables at top clubs/bars in ur city)

I cant tell if you are genuinely fucking retarded or just a trust fund kid with no real insight into the world.
25million trust fund to live comfortably jfl

Moneymaxxing is always viable, if anything it is less viable when you are well off since you need more money to get higher on the wealth percentile.

As opposed if you were in the middle of the bell curve, when any additional income would be likely to push you farther into the top percentiles.
( same reason why height surgery for people who are 6'6 makes no sense while for people who are 5'9 height surgery pushes them into being tall)

How about instead of saying monemaxxing tips from the view of a retard like yourself, you ask your dad what he does for work and then tell us so we know what to actually fucking do.

 

[CelestialEmpire]

bump

 

[CelestialEmpire]

I cant tell if you are genuinely fucking retarded or just a trust fund kid with no real insight into the world.
25million trust fund to live comfortably jfl

Moneymaxxing is always viable, if anything it is less viable when you are well off since you need more money to get higher on the wealth percentile.

As opposed if you were in the middle of the bell curve, when any additional income would be likely to push you farther into the top percentiles.
( same reason why height surgery for people who are 6'6 makes no sense while for people who are 5'9 height surgery pushes them into being tall)

How about instead of saying monemaxxing tips from the view of a retard like yourself, you ask your dad what he does for work and then tell us so we know what to actually fucking do.

hes a partner at a PE firm (not megafunds like blackstone kkr apollo), their latest flaship (corporate PE buyout) fundraise was ~$11bn usd

 

[AverageCurryEnjoyer]

I cant tell if you are genuinely fucking retarded or just a trust fund kid with no real insight into the world.
25million trust fund to live comfortably jfl

Moneymaxxing is always viable, if anything it is less viable when you are well off since you need more money to get higher on the wealth percentile.

As opposed if you were in the middle of the bell curve, when any additional income would be likely to push you farther into the top percentiles.
( same reason why height surgery for people who are 6'6 makes no sense while for people who are 5'9 height surgery pushes them into being tall)

How about instead of saying monemaxxing tips from the view of a retard like yourself, you ask your dad what he does for work and then tell us so we know what to actually fucking do.

hes a 5'6 asian in the slums of phillipines